2017-19 Postsecondary Budget Recommendations
Indiana Commission for Higher Education
October 28, 2016
Overview
• Performance Funding for Higher Education
• Indiana and the National Landscape
• Budget Process and Components
• Staff Budget Recommendation
Indiana’s Performance Funding for Higher Education
6 Performance Funding Metrics
• Overall Degree Completion
• On-Time Degree Completion Rate
• At-Risk Degree Completion (PELL)
• High-Impact Degree Completion (STEM)
• Remediation Success Rate
• Persistence Counts
Overall Degree Completion Increasing Statewide
*18-29 credit hour certificates are included for the first time.
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Increase
18-29 Credit Hour Certificates 388 1,119 2,186 2,121 2,723 2,297 492%
1 Year Certificates 2,199 2,683 3,318 4,602 7,267 7,722 251%
Associate Degrees 7,417 8,676 9,665 10,201 10,867 10,951 48%
Bachelor Degrees 20,312 21,089 22,474 23,295 23,392 23,933 18%
Masters Degrees 4,402 4,747 4,854 5,058 4,770 4,343 -1%
Doctoral Degrees 778 828 830 832 830 902 16%
TOTAL OVERALL DEGREES CONFERRED 35,496 39,142 43,327 46,109 49,849 50,148 41%
Statewide Overall Degree Completion
On-Time Graduation Rates Increasing Statewide
*Increases in on-time completion achieved at all 15 campuses.
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Increase
2 Year Institutions (Associates Only) 5.3% 4.1% 3.4% 4.5% 6.9% 7.5% 2.2%
4 Year Institutions (Bachelor Only) 27.2% 28.2% 29.8% 31.6% 32.0% 36.2% 9.0%
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Increase
2 Year Institutions (Associates Only) 601 500 474 421 641 665 11%
4 Year Institutions (Bachelor Only) 6,103 6,424 6,988 7,418 7,433 8,253 35%
Statewide On-Time Graduation Rate Increase
Statewide On-Time Completers
At-Risk & High Impact Degree Completion Increasing Statewide
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Increase
18-29 Credit Hour Certificates 182 640 1,196 1,351 1,455 1,346 640%
1 Year Certificates 850 1,326 1,735 2,669 3,525 4,123 385%
Associate Degrees 2,684 3,521 4,161 5,337 4,924 5,006 87%
Bachelor Degrees 5,032 6,197 6,855 7,716 7,781 7,969 58%
TOTAL OVERALL DEGREES CONFERRED 8,748 11,684 13,947 17,073 17,685 18,444 111%
Statewide At-Risk Degree Completion
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Increase
Bachelor Degrees 3,184 3,405 3,464 3,515 3,561 3,899 22%
Masters Degrees 492 564 644 581 560 585 19%
Doctoral Degrees 179 181 182 209 191 203 13%
TOTAL OVERALL DEGREES CONFERRED 3,855 4,150 4,290 4,305 4,312 4,687 22%
Statewide High-Impact Degree Completion
Remediation Success Rates Statewide
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Change
Only Math Courses
Gateway success rate 28.5% 24.2% 19.2% 24.7% 25.3% 28.5% -0.03%
Only English Courses
Gateway success rate 25.6% 21.8% 20.6% 19.8% 21.1% 32.2% 6.66%
Both Math and English Courses
Gateway success rate 12.7% 9.3% 9.3% 13.0% 14.9% 17.1% 4.44%
Statewide Remediation Success Rates
Statewide Persistence Benchmarks Show Declines
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
5 YR %
Change
2 Year Institutions (Persistence)
Completed 15 Credit Hours 31,289 30,404 28,698 28,134 19,947 18,015 -42%
Completed 30 Credit Hours (2YR) 18,644 21,870 20,240 18,685 16,572 14,996 -20%
Completed 45 Credit Hours 12,836 15,522 15,817 14,475 13,661 12,637 -2%
4 Year Institutions (Persistence)
Completed 30 Credit Hours (4YR) 9,080 9,316 9,454 9,136 9,575 9,011 -1%
Completed 60 Credit Hours 9,337 9,506 9,576 8,173 8,161 8,566 -8%
OVERALL STUDENTS PERSISTING 81,186 86,618 83,785 78,603 67,916 63,225 -22%
Statewide Persistence Counts
• Persistence benchmarks are closely and more quickly correlated to enrollment changes, which accounts for much of the declines presented here.
• The success rate of persistence benchmarks is slightly increasing.
Persistence Success Rates (2-Year)*3 Years of Data Available
37.0% 37.5% 37.4%
21.9%22.4% 22.2%
14.8%15.3% 15.4%
2013 2014 2015
15 Credits 30 Credits 45 Credits
Persistence Success Rates (4-Year)*3 Years of Data Available
42.7%
48.0% 48.1%
23.9%25.1%
27.3%
2013 2014 2015
30 Credits 60 Credits
Resident FTE Enrollment w/ Ivy Tech
Resident FTE Enrollment w/o Ivy Tech
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Resident FTE Excluding Ivy Tech (UG and Grad)
BSU
ISU
IUB
IUPUI
PUWL
USI
Vincennes
IU Regional
PU Regional
Indiana and the National Landscape
Indiana’s Enrollment Increase Since 2008 Near National Average
8.2% 8.6%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
WES
T V
IRG
INIA
MIC
HIG
AN
LOU
ISIA
NA
MA
INE
WIS
CO
NSI
NO
HIO
MIN
NES
OTA
CA
LIFO
RN
IAP
ENN
SYLV
AN
IAO
KLA
HO
MA
WYO
MIN
GV
ERM
ON
TA
LAB
AM
AR
HO
DE
ISLA
ND
NEB
RA
SKA
NO
RTH
DA
KO
TAN
EVA
DA
ALA
SKA
TEN
NES
SEE
KEN
TUC
KY
NEW
YO
RK
KA
NSA
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LIN
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IND
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AIO
WA
U.S
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IPP
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TAN
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ASH
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NO
RTH
CA
RO
LIN
AC
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RA
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GEO
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IAH
AW
AII
FLO
RID
AV
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INIA
MA
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DN
EW M
EXIC
OC
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NEC
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UT
NEW
JER
SEY
MIS
SOU
RI
SOU
TH D
AK
OTA
MA
SSA
CH
USE
TTS
DEL
AW
AR
EN
EW H
AM
PSH
IRE
UTA
HA
RIZ
ON
ASO
UTH
CA
RO
LIN
AO
REG
ON
TEX
AS
IDA
HO
FULL-TIME EQUIVALENT (FTE) ENROLLMENT: PERCENT CHANGE SINCE RECESSION (2008-2015)
Indiana’s Funding for Higher Education Decreased Less than Most States
-15.3%
-8.0%
-50.0%
-25.0%
0.0%
25.0%
50.0%
LOU
ISIA
NA
ALA
BA
MA
PEN
NSY
LVA
NIA
AR
IZO
NA
SOU
TH C
AR
OLI
NA
NEV
AD
AID
AH
OD
ELA
WA
RE
NEW
HA
MP
SHIR
EFL
OR
IDA
WES
T V
IRG
INIA
WA
SHIN
GTO
NN
EW J
ERSE
YV
IRG
INIA
KEN
TUC
KY
RH
OD
E IS
LAN
DTE
NN
ESSE
EG
EOR
GIA
MIN
NES
OTA
OR
EGO
NN
OR
TH C
AR
OLI
NA
MIS
SISS
IPP
IU
TAH
TEX
AS
CO
NN
ECTI
CU
TH
AW
AII
MIS
SOU
RI
MIC
HIG
AN
NEW
MEX
ICO
IOW
AO
KLA
HO
MA
KA
NSA
SSO
UTH
DA
KO
TAW
ISC
ON
SIN
CO
LOR
AD
OM
ASS
AC
HU
SETT
SU
.S.
VER
MO
NT
MA
INE
OH
IOIN
DIA
NA
MA
RYL
AN
DA
RK
AN
SAS
CA
LIFO
RN
IAN
EW Y
OR
KN
EBR
ASK
AM
ON
TAN
AW
YOM
ING
ALA
SKA
NO
RTH
DA
KO
TAIL
LIN
OIS
EDUCATIONAL APPROPRIATIONS PER FTE (CONSTANT DOLLARS):PERCENT CHANGE SINCE RECESSION (2008-2015)
Indiana’s Tuition Increases Among Lowest in Nation
11.6%
31.8%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
MA
SSA
CH
USE
TTS
WYO
MIN
GTE
XA
SM
ON
TAN
AN
OR
TH D
AK
OTA
VER
MO
NT
MA
RYL
AN
DIN
DIA
NA
MIS
SOU
RI
NEW
HA
MP
SHIR
EA
LASK
ASO
UTH
CA
RO
LIN
AR
HO
DE
ISLA
ND
OH
IOM
AIN
EP
ENN
SYLV
AN
IAK
AN
SAS
CO
NN
ECTI
CU
TK
ENTU
CK
YM
ISSI
SSIP
PI
AR
KA
NSA
SFL
OR
IDA
WIS
CO
NSI
NN
EW Y
OR
KN
EBR
ASK
AU
.S.
NEW
JER
SEY
IOW
AW
EST
VIR
GIN
IAU
TAH
DEL
AW
AR
EV
IRG
INIA
NO
RTH
CA
RO
LIN
AM
ICH
IGA
NM
INN
ESO
TAN
EVA
DA
OK
LAH
OM
ASO
UTH
DA
KO
TATE
NN
ESSE
EC
OLO
RA
DO
OR
EGO
NH
AW
AII
ILLI
NO
ISA
LAB
AM
AA
RIZ
ON
ALO
UIS
IAN
AC
ALI
FOR
NIA
WA
SHIN
GTO
NID
AH
OG
EOR
GIA
NEW
MEX
ICO
NET TUITION REVENUE PER FTE (CONSTANT DOLLARS):PERCENT CHANGE SINCE RECESSION (2008-2015)
Indiana’s Degree-Completion Growth is Outpacing the National Average
21.7%
34.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Mai
ne
Cal
ifo
rnia
Illin
ois
We
st V
irgi
nia
Wis
con
sin
Mic
hig
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ew H
amp
shir
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lab
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Iow
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on
tLo
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klah
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ska
De
law
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Pe
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sylv
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Nev
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Co
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cut
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Isla
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Car
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and
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Mex
ico
Ari
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lask
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Mas
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awai
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aho
Ind
ian
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Mis
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eorg
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rkan
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TOTAL DEGREES AWARDED, EXCLUDING CERTIFICATES:PERCENT CHANGE SINCE RECESSION (2008-2014)
With Certificates, Indiana’s Growth is 2nd Highest in the Nation
12.7%
44.5%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
KEN
TUC
KY
DEL
AW
AR
EN
EW H
AM
PSH
IRE
SOU
TH C
AR
OLI
NA
ILLI
NO
ISM
AIN
ESO
UTH
DA
KO
TAID
AH
OIO
WA
CO
NN
ECTI
CU
TN
OR
TH D
AK
OTA
NEB
RA
SKA
WYO
MIN
GV
ERM
ON
TO
KLA
HO
MA
ALA
BA
MA
WIS
CO
NSI
NN
OR
TH C
AR
OLI
NA
KA
NSA
SM
ON
TAN
AFL
OR
IDA
MIC
HIG
AN
WES
T V
IRG
INIA
PEN
NSY
LVA
NIA
OH
IOC
ALI
FOR
NIA
TEX
AS
MIN
NES
OTA
CO
LOR
AD
ON
EW Y
OR
KU
.S.
MA
SSA
CH
USE
TTS
WA
SHIN
GTO
NN
EW J
ERSE
YO
REG
ON
UTA
HM
AR
YLA
ND
AR
IZO
NA
MIS
SISS
IPP
IV
IRG
INIA
MIS
SOU
RI
RH
OD
E IS
LAN
DA
LASK
AH
AW
AII
TEN
NES
SEE
GEO
RG
IAN
EW M
EXIC
OA
RK
AN
SAS
NEV
AD
AIN
DIA
NA
LOU
ISIA
NA
CERTIFICATES AND DEGREES PER 100 FTE:PERCENT CHANGE SINCE RECESSION (2008-2014)
Per Capita Income
$39,257 $40,068 $39,822
$40,508
$41,940
$44,732
$45,698 $45,237
$46,469
$48,112
$30,000
$32,000
$34,000
$36,000
$38,000
$40,000
$42,000
$44,000
$46,000
$48,000
$50,000
2011 2012 2013 2014 2015
Per Capita Personal Income - Adjusted for Inflation 2011 - 2015
Indiana United States
2-Year % Change (2013 Base Year)
1.74%
3.61%
1.71%
0.92%
3.72%
5.21%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
CPI-Urban CPI (Less Food/Energy) CPI (Education &Communication)
CPI (Midwest) HECA HEPI
2 Year % Change
Average 2 Year % Change = 2.82%
3-Year % Change (2012 Base Year)
3.23%
5.44%
3.26%
2.33%
5.60%
6.86%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
CPI-Urban CPI (Less Food/Energy) CPI (Education &Communication)
CPI (Midwest) HECA HEPI
3 Year % Change
Average 3 Year % Change = 4.45%
State v. Higher Ed Funding
INDIANAHigher Ed State GF
OperatingState General Fund
Operating % of Total Budget
2011 $1,754,481,203 $13,904,128,619 12.6%
2012 $1,696,072,128 $13,710,536,895 12.4%
2013 $1,701,724,252 $14,055,686,287 12.1%
2014 $1,824,198,503 $14,775,090,173 12.3%
2015 $1,807,462,173 $15,016,689,596 12.0%
2016 $1,884,453,974 $15,089,859,909 12.5%
2017 $1,901,745,590 $15,524,340,987 12.3%
2 Year % Change 5.2% 3.4%
5 Year % Change 12.1% 13.2%
5 Year CAGR 2.3% 2.5%
Indiana’s Higher Education Budget
Review of Budget Process
• Spring 2016 – Commission voted to maintain the performance funding metrics with two minor adjustments: retiring the institutionally defined metric and adding 18-29 credit hour certificates for two-year institutions
• September/October 2016 – Institutions presented budget requests to Commission
• October 2016 – Budget and Productivity Committee (including full Commission) to discuss budget recommendation development
• November 2016 – Commission votes on final budget recommendation
• December 2016 – Commissioner presents 2017-19 budget recommendation for higher education to State Budget Committee
Goals for Commission Recommendation
1. Align recommendation to Indiana’s Reaching Higher, Delivering Value strategic plan for higher education.
2. Align recommendation to support improved student success and completion—as well as greater affordability.
3. Maintain Indiana’s commitment to student financial aid.
4. Maintain state’s support for higher education.
5. Increase pool for performance funding and the amount of institutions’ total budget funded through performance.
Components of Higher Education Budget
About the Budget Components
• Operating – Largest portion of higher education funding; direct state support to institutions
• Student Financial Aid – State tuition and fee support to students attending postsecondary institutions in Indiana
• Debt Service/Capital – State support for academic/administrative buildings bonded through student fees
• Institution Line Items – Specific line items housed within institutions for programs and services outside of the general operations (includes dual credit)
• Repair and Rehabilitation – State support for maintenance and upkeep of academic/administrative buildings
• Other Higher Education Line Items – State support for higher education functions, such as CHE, Medical Education Board, leases, Statewide Transfer Website, Budget Agency, etc.
Budget & Productivity Subcommittee Budget Recommendation to Full
Commission
Budget Inputs
• Increase performance funding pool to 7% in FY18 with 3.7% reallocation and 3.5% new funds
• Increase performance funding pool to 8% in FY19 with 4.3% reallocation and 4% new funding
– New funding reflects Commission’s commitment to partnering with institutions to increase the level of performance funding in Indiana
– Recognizes institutions’ commitment to keeping tuition increases low
• Fund previously existing line items with a maximum increase being the lesser of the requested amount or 3.5% increase
• Fund USI’s security line item
• Fund dual credit at $50 per credit hour
Budget Inputs Continued
• Fund capital based on university submitted requests:• IU $78.5M (Priority 1) • PU $69M (Priority 1) • BSU $77.6M (Priority 1/minus $9.9M reduction/match agreement) • USI $41M (Funds only request) • Ivy Tech $78.9M (Priorities 1 & 2) • VU $22M (All) • ISU $15M (Funds only request)
• Resulting statewide debt ratio is 9.4% in FY18 and 10.7% in FY19 • CHE recommended in 2015-17 11.1% and 10.6% in FY16/FY17
• Fund R&R at .50% (matching 2013-15 & 2015-17 levels) reflecting a 5.6% increase overall
• Commitment to maintaining support for financial aid
Statewide Budget Recommendation