fy16 budget recommendation
DESCRIPTION
Presentation by Sean Nelson, Deputy Commissioner for Administration and Finance. Not presented at meeting due to time constraints.TRANSCRIPT
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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