fy2017 budget recommendation
TRANSCRIPT
FY17 Budget Recommendation
Board of Higher Education Meeting | December 8, 2015
FY17 Budget Recommendation
+$24M in Fiscal Year 2016 Budget (+ 3.7% over FY15) Key Increases:
▪ +$9.2M for the Community Colleges (+ 3.4%) ▪ +$7.8M for the State Universities (+ 3.1 %) ▪ +$2.0M for State Scholarship Line (+ 2.1%) ▪ + $500K for Dual Enrollment (+ 33%)
Key Decrease: ▪ -$500K for PIF, funded at $2.75M (- 18%)
Supplemental Funding for the Campuses $2.4M to support FY15 collective bargaining liability $9.2M to support FY14/FY15 National Guard reimbursements
Exposures FY16 collective bargaining shortfall of $16.8M Governor’s “9C” spending reduction authority still possible
Current Fiscal Year Review (FY16)
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FY17 Budget Recommendation
December 8, 2015
BHE approves FY17 Budget Request; submits to EOE
January 27, 2016
Governor releases “House 2” FY17 Budget Recommendation
Mid-April 2016
House Ways and Means releases FY17 Budget Recommendation
Mid-May 2016
Senate Ways and Means releases FY17 Budget Recommendation
June 2016
Conference Committee releases FY17 Budget Report
July 1, 2016
FY2017 Fiscal Year begins
FY17 Budget Timeline
FY17 Budget Recommendation
Focusing on the “Big Three” in FY17
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FY17 Budget Recommendation
Performance Incentive Fund FY17: $4.25M +$1.5M Primary means of advancing strategic goals of the Vision Project’s
“Big Three.” Focus of additional funding in FY17: ▪ 100 Males to College: Continue pilot program to support the college-going
aspirations and college success of low-income males and males of color in Gateway cities.
▪ Females in Computer Science: Create campus programs to stimulate interest in and aptitude for careers in the computer science field, especially among under-represented female students.
▪ Educator Diversity: Expand campus initiatives to increase diversity of students enrolled in two-year and four-year educator prep programs, to better reflect diversity of Commonwealth’s Pre-K–12 classrooms.
▪ Curriculum & Student Success Collaborations: Enhance campus collaborations with K–12 partners, especially in Gateway cities, to align curriculum and increase the likelihood of underserved students earning post-secondary credentials.
Key Investments: Performance Incentive Fund
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FY17 Budget Recommendation
Commonwealth Dual Enrollment FY17: $1.5M +$500K Provide more students with opportunity to take free or reduced-cost
college-level courses and earn credit toward future college degrees National research concludes that dual enrollment drastically increases
likelihood of students attending and graduating from college
Massachusetts State Scholarship FY17: $96.6M +$1M Includes additional funding for MASSGrant, the state’s primary
need-based financial aid program for MA-resident undergraduate students (public & private)
Also funds Cash Grant, Part-Time Grant, High Demand, Early Childhood Educators Scholarship
Key Investments: CDEP, Financial Aid
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$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
Puerto Rico Arkansas
Massachusetts Alabama
Rhode Island Michigan
New Mexico Arizona
Maine Ohio
Louisiana District of Columbia
Oklahoma Montana
Utah Colorado Nebraska
Missouri Florida Alaska
Connecticut Delaware
North Dakota Minnesota
Oregon Tennessee
Nevada Kentucky
Virginia Wisconsin
Kansas Vermont
South Carolina North Carolina
West Virginia Hawaii
Maryland Pennsylvania
US AVERAGE Iowa
Indiana Illinois Idaho
New York Washington
Texas New Jersey Mississippi
California
National Average: $2,405 per student
Massachusetts Average: $657 per student
National Median: $1,500 per student
FY17 Budget Recommendation
MA Ranking: Need-Based Aid
7 Source: SHEEO, State Higher Education Finance FY2013.
FY17 Budget Recommendation
Trend in MASSGrant Buying Power
8 Source: MDHE, 2014.
FY17 Budget Recommendation
DHE Administration and Academic Support
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DHE Administrative Account FY17: $4.4M
State University Internship Incentive [$1M] Matches state dollars with private donations to support internships
DHE Initiative: Campus Violence [$100K] Supports continued assessment & coordination of system efforts to
address campus violence Added emphasis on addressing racial & cultural bias, and providing
training & resources to campuses TRAIN (Training Resources and Internship Networks) Initiative [$1M]
Community college workforce development grant program addressing needs of long-term unemployed
Piloted in FY16 in tandem with Executive Office of Labor & Workforce Development
FY17 Budget Recommendation
Workforce Development
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Nursing & Allied Health Initiative FY17: $400K Restores FY14 funding level to support development & replication
of pathways for RN-to-BSN in support of healthcare workforce plan
STEM Pipeline Fund FY17: $1.5M Supports initiatives of Governor’s STEM Advisory Council
STEM Starter Academies FY17: $4.75M Increases recruiting, retention & graduation rates for STEM programs
at community colleges
Community College Workforce Grants FY17: $1.45M Supports workforce development initiatives
Rapid Response Grants FY17: $500K Addresses the needs of employers for training programs to be implanted at
community colleges within 90 days, and to provide training for unemployed, underemployed & incumbent workers
FY17 Budget Recommendation
Community Colleges & FY17: $566M +$49M State Universities Personnel costs: Recognizes importance of establishing baseline costs,
including fiscal impact of collective bargaining contracts ▪ FY16 value of collective bargaining contracts not currently
appropriated [≈ $16.8M] ▪ FY17 projected collective bargaining need of $17.3M for
both segments Performance funding: Recommends additional $15M in funding to be
allocated through respective funding formulas ▪ Community Colleges: $9,325,000 [+ 2% ] ▪ State Universities: $5,675,000 [+ 2% ]
Community College & State Universities
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FY17 Budget Recommendation
Increase of $1.5M for the Performance Incentive Fund
Increase of $500K for the Dual Enrollment Program
Increase of $1M for the MA Scholarship line-item
Increase of $200K for the Nursing and Allied Health Initiative
Increase of $27M for the Community Colleges $9.325 million allocated through funding formula Estimated need of over $18 million for FY16/FY17 collective bargaining
Increase of $22M for the State Universities $5.675 million allocated through funding formula Estimated need of over $16 million for FY16/FY17 collective bargaining
Total request of $50M over FY16, overall increase of 7.7%
FY17 Recommendation Summary
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Discussion
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