FY16 Budget Recommendation

Board of Higher Education Meeting | December 9, 2014

FY16 Budget Recommendation

FY15 Budget was +4% over FY14 [+$32M]

+$13.2M for the Community Colleges

+$8M for the State Universities

+$3M for State Scholarship Line (MASSGrant)

Collective Bargaining

$7M appropriated in FY15 reserves▪ Inadequate to support ratified contracts

▪ Total exposure is between $2.5M and $3M

Governor’s “9C” Authority to Reduce Appropriations

-$5.2M in DHE accounts▪ -$500K for State University Internship Incentive Program

▪ -$2.4M for STEM Starter Academy Initiative

▪ -$550K for Workforce Incentive Training Grants

No Reduction to Campus Base Appropriations

Current Fiscal Year Review (FY15)

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FY16 Budget Recommendation

December 9, 2014

BHE approves FY16 Budget Request

March 4, 2015

Governor releases “House 1” FY16 Budget Recommendation

Mid-April 2015

House Ways and Means releases FY16 Budget Recommendation

Mid-May 2015

Senate Ways and Means Releases FY16 Budget Recommendation

June 2015

Conference Committee Releases FY2016 Budget Report

July 1, 2015

FY2016 Fiscal Year Begins

FY16 Budget Timeline

FY16 Budget Recommendation

Key Goals by 2020

Top 10 Public System of Higher Education

Top 10 in Excellence, Access, and Affordability

Commission’s FY16 Fiscal Recommendations

+$95M for operating budget support for three segments

+$42M for MASSGrant

+$4.2B for additional bond authorization for deferred maintenance

Context: Higher Ed. Finance Commission

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Context: Higher Ed. Finance Commission

MA Ranking: Funding per FTE

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Public Higher Ed System Students State Support Per Student

1. Wyoming 25,669 $16,474

2. Alaska 21,131 $12,932

3. Illinois 375,190 $9,439

4. North Carolina 410,622 $8,687

5. New Mexico 101,239 $8,580

6. New York 578,144 $7,843

7. Nebraska 81,175 $7,357

8. Texas 987,506 $7,259

9. Hawaii 41,088 $7,173

10. California 1,478,928 $7,096

26. Massachusetts 171,974 $5,672

Source: SHEEO, State Higher Education Finance FY2013. Data about FY14 rankings will be published in spring 2015.

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000

Puerto RicoArkansas

MassachusettsAlabama

Rhode IslandMichigan

New MexicoArizona

MaineOhio

LouisianaDistrict of Columbia

OklahomaMontana

UtahColoradoNebraska

MissouriFloridaAlaska

ConnecticutDelaware

North DakotaMinnesota

OregonTennessee

NevadaKentucky

VirginiaWisconsin

KansasVermont

South CarolinaNorth Carolina

West VirginiaHawaii

MarylandPennsylvania

US AVERAGEIowa

IndianaIllinoisIdaho

New YorkWashington

TexasNew JerseyMississippi

California

National Average: $2,405/eligible student

Massachusetts Average: $657/eligible student

Context: Higher Ed. Finance Commission

MA Ranking: Need-Based Aid

6Source: SHEEO, State Higher Education Finance FY2013.

0%

10%

20%

30%

40%

50%

60%

70%

80%

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

9%

Average Grant as % Share of Tuition & Mandatory Fees FY1988 through FY2014

Context: Higher Ed. Finance Commission

Trend in MASSGrant Buying Power

7Source: MDHE, 2014.

FY16 Budget Recommendation

Key State-Funded Initiatives:

Vision Project Performance Incentive Fund

Massachusetts State Scholarship Program

Bridges to College

Commonwealth Dual Enrollment Partnership

Learning Outcomes Assessment

Low-Income Males & Males of Color

STEM Starter Academies

Context: “Big Three” Completion Plan

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FY16 Budget Recommendation

DHE Administration & Strategic Initiatives

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DHE Administrative Account FY16: $3.8M +$545K

State University Internship Incentive [$1M]▪ Matches state dollars with private donations to support internships. Funded at $1 million in the FY15

budget, later reduced in November 2014 to $500,ooo in the Governor's 9C action.

Learning Outcomes Assessment [$145K]▪ Continues Learning Outcomes Assessment initiative which was started in 2010 with support from the

Davis Foundation. Pilot program serves as the key Vision Project outcome of measuring and public reporting of what our students know and are able to do upon completion of their college studies.

DHE Initiative: Campus Violence [$150K]▪ NEW Supports assessment and coordination of system efforts to address campus violence with an

emphasis on campus sexual violence, and addressing the unique needs of the LGBTQ community and fostering a culture of inclusivity.

DHE Initiative: Low-Income Males & Males of Color [$250K]▪ NEW Implements strategies for closing the largest student achievement gap in the Commonwealth for

college participation and completion: the historically underserved populations of low-income males and males of color on all 29 campuses.

FY16 Budget Recommendation

DHE Administration & Strategic Initiatives

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Performance Incentive Fund FY16: $8M +$500K Fourth year of funding to support grants that advance the goals of the Vision Project, as well as

collaboration and efficiency initiatives and common course numbering.

Commonwealth Dual Enrollment FY16: $2M +$1.25M Funding for high school students to take college-level courses free or at minimal cost,

earning simultaneous credits toward a HS diploma and a future college degree.

Bridges to College FY16: $400K Continuation of FY14 initiative to assist low-income adult learners via grants to agencies.

Civic Engagement Initiative FY16: $250K Supports competitive grants to programs that encourage civic learning and engagement in

public higher education by providing students with learning experiences intended to cultivate knowledge, skills, and disposition necessary to be engaged, informed citizens.

FY16 Budget Recommendation

Financial Aid

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Massachusetts State Scholarship FY16: $135.6M +$42M Includes funding for MASSGrant, the state’s primary need-based financial aid program; also funds

Cash Grant, Part-Time Grant, and Early Childhood Educators Scholarship.

Foster Care & Adopted Fee Waiver FY16: $4M +$100K Supports the Commonwealth’s commitment to provide tuition and fee assistance to students who

were either adopted or remain in foster care with the Department of Children and Families.

Foster Care Financial Aid FY16: $1.08M Funding for students who elect to remain in the care of the Department of Children and Families

beyond age 18; serves as an incentive for Foster Children to continue their education beyond high school.

High-Demand Scholarships FY16: $1M Supports previously awarded students who continue to persist in eligible high-demand certificate

and degree programs .

FY16 Budget Recommendation

Workforce Development

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Nursing & Allied Health Initiative FY16: $400K +$150K Supports development and replication of pathways for Registered Nurses to Bachelor of Science

in Nursing in support of healthcare workforce plan.

STEM Pipeline Fund FY16: $1.5M Supports initiatives of Governor’s STEM Advisory Council.

STEM Starter Academies FY16: $4.75M Increases recruiting, retention, and graduation rates for STEM programs at community colleges.

Community College Workforce Grants FY16: $1.45M Supports workforce development initiatives at community colleges.

FY16 Budget Recommendation

Community College & State Universities

Community Colleges & State U’s FY16: $555.7M +$48.9M

Recognizes importance of establishing baseline personnel costs, including fiscal impact of new collective bargaining contracts.

Three-Step Build for FY161. Roll FY15 funding forward into the FY16 campus appropriations.

2. Establish baseline personnel costs.Build all FY15 and FY16 collective bargaining into base appropriation, including FY15 deficiency.

3. Recommend additional investment to be allocated through funding formula.

$20 million for the Community Colleges

$15 million for the State Universities

Results in total increase of 9.7%

FY16 Budget Recommendation

Community Colleges [+$25.3M over FY15]

$20M additional investment; $5.3M in collective bargaining

State Universities [+$23.6M over FY15]

$15M additional investment; $8.6M in collective bargaining

Massachusetts State Scholarship [$42M]

Commonwealth Dual Enrollment [$1.25M]

Performance Incentive Fund [$4.8M]

DHE Administrative Initiatives [$545K]

Nursing and Allied Health Initiative [$200K]

College Health and Welfare [$366K]

Foster Care and Adopted Fee Waiver [$118K]

Tufts Veterinary School [-$1.8M]

Summary

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Total:+$96.3M

+$48.9M

+$47.4M

Discussion

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