1. 1 2007-09 Higher Education Budget Recommendations Presented to: Ways and Means Committee January 30, 2007

2. 2 HOW DOES INDIANA COMPARE?

3. 3 Higher Education Appropriations per FTE by State, 2005 U.S. Indiana Source: SHEEO SHEF, State Higher Education Finance FY2005.

4. 4 Net Tuition as a Percentage of Public Higher Education Total Educational Revenues by State, 2005 Source: SHEEO SHEF, State Higher Education Finance FY2005. U.S. Indiana

5. 5 Total Educational Revenues per FTE for Public Institutions by State, 2005 Indiana U.S. Source: SHEEO SHEF, State Higher Education Finance FY2005.

6. 6 Change in State and Family Share of Education Expenditures FY1995 to FY2005 Source: Indiana Commission for Higher Education.

7. 7 Compare State Revenue Growth with Higher Education Appropriations FY00 – FY 07 Note: FY 07 estimated

8. 8 Compare Revenue Projections to CHE Higher Education Institutional Funding Recommendation Note: FY 08 and FY 09 from December 14, 2006 revenue projections

9. 9 Commission for Higher Education Responsibilities and Funding Priorities Debt Service Research Enrollment Degree Completion Operating Support Repair and Rehabilitation SSACI

10. 10 Growth in Debt Service Note: includes debt service in FY 09 for CHE recommended new capital projects

11. 11 Debt Service Growth OperatingDebt Service DS as % of Oper. + DS FY 1980$335.6$17.04.8% FY 1985$497.3$34.56.5% FY 1990$743.3$64.07.9% FY 1995$824.6$79.48.8% FY 2000$1,025.4$104.89.3% FY 2005$1,176.1$110.28.6% FY 2007$1,185.3$131.210.0% FY 2009$1,220.0$169.811.8% Avg. Annual % Incr. 1980 to 20094.4%7.3% Total % Increase 1980 to 2009237%620% Note: includes debt service in FY 09 for CHE recommended new capital projects

12. 12 Research Funding Total institutional research & development expenditures per capita for Indiana, US and Selected States Source: National Center for Higher Education Management Systems (using National Science Foundation; U.S. Census Bureau).

13. 13 Research Funding Incentive Matches University Expenditures on Research Expenditure Growth $.50 per $1 Matches Federal, Industry and Competitively Awarded Private Foundation Research Grants Includes IUB, PUWL & IUPUI Health

14. 14 College-going Rate Percent of high school graduates enrolled the next fall in higher education Ranked 34th Ranked 10th Source: Mortenson, T. Postsecondary Education Opportunity, Oskaloosa, Iowa. (Note: Technical corrections were made to three states: Indiana, Kentucky, and Utah in the 2004 data and are reflected in the chart).

15. 15 Adult Participation in Postsecondary Education for Indiana and Selected States Source: U.S. Census Bureau, Decennial Census, 2000.

16. 16 Progress Toward 10-Year Enrollment Goal Source: Indiana Commission for Higher Education, Student Information System.

17. 17 Fall Headcount Enrollment in Indiana Postsecondary Institutions Total 346,378 Public 266,790 Private* 79,588 Source: Annual Editions of Report of Enrollment in Indiana Colleges and Universities, prepared for the Indiana Association of Collegiate Registrars and Admissions Officers. Independent Colleges of Indiana. Commission for Higher Education Student Information System. *Awaiting update

18. 18 Percent of first-time full-time degree-seeking students earning a baccalaureate degree for Indiana’s public colleges, 2004 College/University4-Year Grad Rate6-Year Grad Rate Indiana University Bloomington41%71% Purdue University West Lafayette31%64% Ball State University26%52% Indiana State University19%40% University of Southern Indiana13%32% Indiana University East4%19% Indiana University Kokomo8%23% Indiana University Northwest7%24% Indiana University South Bend5%21% Indiana University Southeast4%26% IUPUI5%22% Purdue University Calumet4%22% Purdue University North Central1%11% IPFW3%19% NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students. Source: The Education Trust, College Results Online, Databank/Reporting Tool using data collected by the U.S. Department of Education’s National Center for Education Statistics (NCES) through the IPED Graduation Rate Survey.

19. 19 Percent of first-time full-time degree-seeking students earning an associate degree for Indiana’s public community colleges, 2004 College/University2-Year Grad Rate3-Year Grad Rate Ivy Tech Community College of Indiana4%18% Vincennes University11%19% NOTE: Graduation rates calculated using the national GRS formula for first-time full-time degree seeking students. Source: For 3-year grad rate, Ivy Tech’s data gathered from reports on the IPEDS Graduation Rate Survey published by the Office of Institutional Research at ITCCI. For 3-year grad rate, Vincennes data gathered from U.S. Department of Education’s National Center for Education Statistics (NCES) through the IPED Graduation Rate Survey Peer Analysis System. For 2-year grad rate, data gathered from the CHE SIS system.

20. 20 Six-Year Graduation Rates Relative to Peer Groups Indiana University-Bloomington Purdue University-Main Campus Ball State University Indiana University-Purdue University-Indianapolis Indiana State University Indiana University-Purdue University-Fort Wayne University of Southern Indiana Indiana University-South Bend Indiana University-Northwest Indiana University-Southeast Purdue University-Calumet Campus Purdue University-North Central Campus Indiana University-Kokomo Indiana University-East Source: National Center for Higher Education Management Systems (IPEDS Graduation Rate Survey, 2003)

21. 21 Six and Three Year Degree-Completion Rates in Indiana Postsecondary Education by Race and Degree Source: National Center for Education Statistics, 2003 IPEDS Graduation Rate Survey

22. 22 New Incentives Degree Growth Incentive Time to Degree Incentive Transfer Incentive

23. 23 Degree Growth Incentive Change in number of degrees conferred Includes all resident students regardless of entry (first time, transfer, continuing) or status type (part-time, full time) This is a simple calculation that measures change in the number of degrees conferred over a specified period of time and multiplied by $3,500 for Associates Degree and $4,000 for Baccalaureate Degree (increase only) Appropriation is the greater of Change in Degree funding or Enrollment Change funding

24. 24 On-Time Completion Incentive Change in On-Time Degree Completion Rate (4yr. And 2yr.) Includes all full-time, degree-seeking resident students Measures change in the graduate rate of cohorts Uses the Graduation Rate Survey national methodology and compares rates measured over a specified period of time Appropriation is most recent cohort graduation rate minus previous cohort graduation rate: pays $5,000 for increase in bachelor degrees and $2,500 for associate degrees

25. 25 Transfer Incentive Provides funding to two-year colleges for students that successfully transfer to public four-year institutions Appropriation is the greater of Transfer Incentive funding or Enrollment Change funding

26. 26 Operating Support Funds Campus Operating 1.4% FY 08 and 2.0% in FY 09* Funds Line Items 3.0% in FY 08 and 3.0% in FY 09 Note: Institutional operating increases 3.1% and 4.7%

27. 27 History of R&R 2000-2007

28. 28 CHE SSACI Recommendation Higher Education Award and Freedom of Choice Award funded to keep caps flat in FY 08 and increase caps 3% in FY 09 Fully funds 21 st Century Scholars Awards Fully funds fee remission programs for veterans, National Guard and public safety officers Other SSACI programs flat or small inflationary increases Total SSACI Increases of 7.2% (FY 08) and 4.3% (FY 09)

29. 29 CHE 2007-09 HIGHER EDUCATION BUDGET RECOMMENDATIONS

30. 30 Base Appropriation Increases (includes SSACI) Appropriation% chg. FY 07$1.613 billion FY 08$1.699 billion5.3% FY 09$1.783 billion4.9% Does not include payment delay repayment $62M

31. 31 Base Appropriation Increases (excludes SSACI) Appropriation% chg. FY 07$1.396 billion FY 08$1.465 billion5.0% FY 09$1.539 billion5.0% Does not include payment delay repayment $62M

32. 32 Capital Appropriation Increases Appropriation% chg. FY 07$157 million FY 08$188 million20.0% FY 09*$201 million7.1% * Includes first year of debt service for CHE recommended capital projects

33. 33 Capital Appropriation Increases ($ millions) FY 08FY 09* Debt Service$25.9$13.3 R&R$5.4$0.0 TOTAL$31.3$13.3 * Includes first year of debt service for CHE recommended capital projects

34. 34 Existing and New Debt Service Increases 20082009* IU Totals 9.0%5.3% PU Totals 13.8%14.0% ISU Totals 30.0%0.2% USI Totals 60.8%23.4% BSU Totals 14.8%-1.7% VU Totals 38.9%18.8% ITCCI Totals 58.1%11.3% Total: 19.7%8.1% * Includes first year of debt service for CHE recommended capital projects

35. 35 Debt Service as a share of New Appropriations* FY 08 FY 09 * Includes first year of debt service for CHE recommended capital projects FY 09 DEBT SERVICE

36. 36 Institutional Operating Appropriation Increases (excludes SSACI) Appropriation% chg. FY 07$1.239 billion FY 08$1.277 billion3.1% FY 09$1.337 billion4.7%

37. 37 Operating Appropriation Increases Over FY 07 Base ($ millions) * Funded 50% in FY 08 and 100% in FY 09; ** Funded 100% in FY 09 20082009 Research Support Incentive*$10.2$20.4 Enrollment Change Incentive*$6.6$13.2 Change In Degrees Incentive**$0.0$6.7 On-Time Degree Completion Incentive**$0.0$3.4 Two-year campus Transfer Incentive**$0.0$0.5 Campus Operating Support (1.4% / 2.0%)$16.8$40.9 Line Item Operating Support (3.0% / 3.0%)$1.2$2.7 New Academic Programs$2.0$9.3 Other$1.4$1.0 Plant Expansion$0.0 TOTAL$38.3$98.7

38. 38 New Academic Programs Increases Over FY 07 Base 20082009 IUPUI – Columbus (a) $.9M$1.9M PU Statewide Technology and TAP Programs (a)(b) $.1M$1.7M Fast Track to College$1.0M$4.8M BSU Entrepreneurial Prog.$0.0M$1.0M Total:$2.0M$9.3M Notes:(a) Funds new programs related to Cummins expansion (b) Roll-out of statewide programs

39. 39 Institution Operating Appropriations % chg2008% chg2009 IU Totals2.7%$470.6M4.1%$489.8M PU Totals3.1%$324.2M4.6%$339.2M ISU Totals1.3%$74.9M2.6%$76.9M USI Totals2.7%$36.2M4.9%$37.9M BSU Totals1.4%$124.7M4.2%$128.9M VU Totals1.4%$36.9M4.4%$38.5M ITCCI Totals5.8%$152.4M6.0%$161.6M Total2.9%$1,220M4.4%$1,271M

40. 40 R&R Base Appropriations Funds 50% of 2007-09 R&R Formula 20082009 IU Totals$12.6M PU Totals$9.9M ISU Totals$2.3M USI Totals$.6M BSU Totals$3.4M VU Totals$1.1M ITCCI Totals$1.1M Total$31.0M % change over FY0721.1%

41. 41 Payment Delay Repayment (Does Not Go Into Base) 20082009 IU Totals$12.2M PU Totals$8.6M ISU Totals$2.2M USI Totals$.8M BSU Totals$3.3M VU Totals$.9M ITCCI Totals$3.1M Total$31M CHE recommends these payments be used for R&R

42. 42 CHE 2007-09 SSACI Budget Recommendations FY 2007FY 2008FY 2009 Higher Education Awards*$120,674,9406.2%$128,125,9196.9%$136,917,883 Freedom of Choice Awards*$46,035,7990.0%$46,035,7991.3%$46,640,885 21st Century Scholar Program Awards$19,171,42933.3%$25,546,0851.0%$25,811,511 Statutory Fee Remissions$18,148,10810.5%$20,055,5130.5%$20,150,884 * Funds cap increases of 0% in FY 2008 and 3% in FY 2009

43. 43 CHE 2007-09 SSACI Budget Recommendations FY 2007FY 2008FY 2009 SSACI Hoosier Scholar Awards400,0000.0%400,0000.0%400,000 SSACI Minority Teacher Scholarship399,7680.0%399,7680.0%399,768 SSACI College Work Study805,1890.0%805,1890.0%805,189 SSACI Grant Administration1,240,7233.2%1,280,9980.0%1,280,998 SSACI Southeast Indiana Contract for Space603,4070.0%603,4070.0%603,407 SSACI 21st Century Scholar Program Administration2,000,0001.1%2,021,0000.0%2,021,000 SSACI Part-time Student Grant Program5,250,0000.0%5,250,0000.0%5,250,000 SSACI Nursing Scholarships402,1420.0%402,1420.0%402,142 SSACI National Guard Supplemental Grant3,299,8210.0%3,299,8210.0%3,299,821

44. 44 Recommended New Capital Projects PUWL Boiler #6$53,000,000 VU Electrical Infrastructure/Substation Phase II$2,000,000 USI College of Business/General Classroom Building$24,900,000 IUB Cyber Infrastructure Buildings$18,300,000 IUPUI Neurosciences Research Building$20,000,000 ITCCI Fort Wayne Technology Center & Demolition Costs$26,700,000 PUNC Student Services & Rec. Center A&E$1,000,000 ITCCI Logansport Building$10,500,000 TOTAL RECOMMENDED STATE FUNDING$156,400,000 RECOMMENDED FOR AUTHORITY ONLY PUWL Mechanical Engineering Addition$33,000,000