#1Student-Focused Funding for West Virginia Public Higher Education West Virginia Higher Education Policy Commission March 23, 2018#2Senator Mitch Carmichael Senate President and Lieutenant Governor Senator Kenny Mann Chair, Senate Committee on Education Senator Charles S. Trump IV Chair, Senate Committee on the Judiciary Delegate Tim Armstead Speaker of the House LEGISLATIVE MANDATE Delegate Paul Espinosa Chair, House Committee on Education West Virginia Code §18B-1B-4(d) The Higher Education Policy Commission shall examine the question of general revenue appropriations to individual higher education institutions per student, and per credit hour, and by other relevant measures at all higher education institutions, including four-year baccalaureate institutions and the community and technical colleges, and on or before January 1, 2018, the Commission shall deliver its report to the Joint Committee on Government and Finance and the Legislative Oversight Commission on Education Accountability. This report shall include a recommendation to the Legislature on a formula for the allocation of general revenue to be appropriated to such institutions that provides for ratable funding across all four-year institutions and community and technical colleges on a ratable basis, by enrolled student, by credit hour or by other relevant measures. On such basis, the Commission shall make a recommendation to the Legislature as to the amounts that each such institution should have appropriated to it in the general revenue budget for fiscal year 2019, based upon the total general revenue appropriations that such institutions receive in aggregate in the enacted budget for fiscal year 2018. Student-Focused Funding | 2#3Senator Mitch Carmichael Senate President and Lieutenant Governor Delegate Tim Armstead Speaker of the House LEGISLATIVE MANDATE West Virginia Code §18B-1B-4(d) "examine the question of general revenue appropriations to individual higher education institutions" Senator Kenny Mann Chair, Senate Committee on Education Senator Charles S. Trump IV Chair, Senate Committee on the Judiciary "report shall include a recommendation to the Legislature on a formula for the allocation of general revenue" Delegate Paul Espinosa Chair, House Committee on Education "the Commission shall make a recommendation to the Legislature as to the amounts that each such institution should have appropriated to it in the general revenue budget for Fiscal Year 2019." "on or before January 1, 2018... deliver its report to the Joint Committee on Government and Finance and the Legislative Oversight Commission on Education Accountability." Student-Focused Funding | 3#4A NEW FORMULA MUST... focus state taxpayer dollars on educating West Virginia resident students; provide the Higher Education Policy Commission and West Virginia Council for Community and Technical College Education with a fair and equitable means of calculating recommended institutional funding levels; account for variations in the missions of the state's public institutions and the unique needs of their diverse student populations; be based upon reliable metrics drawn from existing data resources; be straightforward and easy to understand; be transparent and auditable; promote innovation and student success; and reward institutional successes with additional funding. Student-Focused Funding 4#5TIMELINE OF WORK TO DATE June 2017 Commission research staff begins review of other states' higher education funding models. July 7, 2017 Effective date of House Bill 2815 August - October 2017 Funding model research continues. Commission staff use institutional data to conduct mathematical modeling exercises to determine the extent to which factors commonly used by other states will affect a potential model. Factors are combined into hypothetical models that are later used in preliminary discussions with constituent groups. Conversations are held with key legislative leaders and Governor's Office representatives to consider the factors that should be included in a preliminary draft of the funding framework and to discuss the possibility of an extended timeline for the research study. November 2017 Nine web-based meetings are hosted with the executive leadership teams of each institution between November 8 and 28. Institutional leaders share initial impressions on the proposed framework, and are invited to submit more formal feedback as the process continues through the end of the year and into the second phase of the project. December 2017 Commission programming and research staff continue mathematical modeling work. December 29, 2017 A preliminary report on the status of the project is submitted to Legislative leadership as required by statute. The report includes a proposal for a modified timeline to extend the work through the end of 2018. 2018 (Next Slide) Student-Focused Funding 5#6TIMELINE OF WORK TO DATE January 2018 Meetings are held with key legislative leaders, legislative staff members and Governor's Office representatives to gather feedback on the preliminary report submitted on December 29, 2017. Institutions continue to offer feedback on the proposed framework. Work begins on developing a funding framework proposal for the Community and Technical College System. February 2018 Mathematical modeling work continues. Preparations are made for a formal presentation to the Higher Education Policy Commission. March 23, 2018 Funding model proposal is presented to the Higher Education Policy Commission as an information item for solicitation of comments. Formal comment period begins. Future Timeline Provided Later in Presentation Student-Focused Funding 6#7CURRENT FUNDING LEVELS 2016-17 Annualized FTE Enrollment Base Appropriation per FTE FY18 Base Budget WV All Students Residents All Students WV Residents Four-Year Institutions $229,434,536 58,867 36,461 $3,898 $6,293 Bluefield State College $5,379,199 1,203 1,028 $4,471 $5,233 Concord University $8,278,077 2,217 1,842 $3,734 $4,494 Fairmont State University $14,579,417 3,639 3,171 $4,006 $4,598 Glenville State College $5,622,099 1,217 998 $4,620 $5,633 Marshall University* $54,940,572 12,125 8,864 $4,531 $6,198 Potomac State College of WVU $3,650,589 1,130 802 $3,231 $4,552 Shepherd University $9,360,954 3,163 2,039 $2,960 $4,591 West Liberty University $7,592,683 2,226 1,450 $3,411 $5,236 West Virginia State University** $9,514,960 2,252 1,938 $4,225 $4,910 West Virginia University*** $103,079,979 28,579 13,507 $3,607 $7,632 WVU Institute of Technology $7,436,007 1,116 822 $6,663 $9,046 *In addition to its base budget of $54,940,572, Marshall University receives $3,443,152 in special-purpose funding. These appropriations are not subject to the proposed model: Luke Lee Lab ($93,441), Vista ($229,019), Brownfield PD ($309,606), MUGC Writing Project ($25,412), WV Autism Training Center ($1,671,280), Lottery Funds - Rural Health Initiative and Rural Health Residency Program ($560, 107), Forensic Lab ($235,104), Rural Health Outreach Program ($163,219)and Center for Rural Health ($155,964). ** West Virginia State University's land grant match of $1,584,947 is not included in FY18 base budget figures. *** In addition to its base appropriation of $103,079,979, West Virginia University receives $28,154,323 in special-purpose funding. The following appropriations are not subject to the proposed model: Jackson's Mill ($472,960); Brownfield PD ($314,188); Rural Health Outreach Program ($158,372); Soft Drink Tax Appropriation ($15,935,640); Land Grant Match ($7,871,000); Medical School Lottery Funds ($3,402,163). Student-Focused Funding | 7#8SIMPLE FTE-BASED REALLOCATION All Students FY18 Base Budget FTE-Based Appropriation Percent Difference West Virginia Resident Students FTE-Based Appropriation Percent Difference Four-Year Institutions $229,434,536 $229,434,536 $229,434,536 Bluefield State College $5,379,199 $4,688,701 -12.8% $6,468,794 20.3% Concord University $8,278,077 $8,640,773 4.4% $11,590,972 40.0% Fairmont State University $14,579,417 $14,183,027 -2.7% $19,953,839 36.9% Glenville State College $5,622,099 $4,743,266 -15.6% $6,280,016 11.7% Marshall University* $54,940,572 $47,257,271 -14.0% $55,777,618 1.5% Potomac State College of WVU $3,650,589 $4,404,183 20.6% $5,046,666 38.2% Shepherd University $9,360,954 $12,327,814 31.7% $12,830,614 37.1% West Liberty University $7,592,683 $8,675,850 14.3% $9,124,272 20.2% West Virginia State University** $9,514,960 $8,777,185 -7.8% $12,195,061 28.2% West Virginia University*** $103,079,979 $111,386,848 8.1% $84,994,166 -17.5% WVU Institute of Technology $7,436,007 $4,349,618 -41.5% $5,172,518 -30.4% *In addition to its base budget of $54,940,572, Marshall University receives $3,443,152 in special-purpose funding. These appropriations are not subject to the proposed model: Luke Lee Lab ($93,441), Vista ($229,019), Brownfield PD ($309,606), MUGC Writing Project ($25,412), WV Autism Training Center ($1,671,280), Lottery Funds - Rural Health Initiative and Rural Health Residency Program ($560,107), Forensic Lab ($235,104), Rural Health Outreach Program ($163,219)and Center for Rural Health ($155,964). ** West Virginia State University's land grant match of $1,584,947 is not included in FY18 base budget figures. *** In addition to its base appropriation of $103,079,979, West Virginia University receives $28,154,323 in special-purpose funding. The following appropriations are not subject to the proposed model: Jackson's Mill ($472,960); Brownfield PD ($314,188); Rural Health Outreach Program ($158,372); Soft Drink Tax Appropriation ($15,935,640); Land Grant Match ($7,871,000); Medical School Lottery Funds ($3,402,163). Student-Focused Funding | 8#9WHERE A PURE FTE-BASED MODEL FALLS SHORT Results in dramatic reductions in appropriations at two institutions. Provides no way to account for the high-cost missions of our research institutions. Fails to recognize the variation in instructional costs across academic disciplines and at different academic levels. Does not drive state dollars toward state needs (high-demand fields, for example). Student-Focused Funding | 9#10THE MISSION OF PUBLIC HIGHER EDUCATION West Virginia Code §18B-1-1a (1) State institutions of higher education. -- The institutions are the cornerstone of efforts to provide higher education services that meet the needs of state citizens. To varying degrees, and depending upon their missions, these institutions serve the state in three major ways: [Instruction, Public Service, Research] (A) Instruction. -- By providing direct instruction to students along with the student services necessary to support the instructional mission. These services have two primary goals: (i) To produce college graduates who have the knowledge, skills and desire to make valuable contributions to society; and (ii) To provide opportunities for citizens to engage in life-long learning to enhance their employability and their overall quality of life. Student-Focused Funding | 10#11INVESTING IN WEST VIRGINIA STUDENTS West Virginia Code §18B-1D-3(a)(2)(B)(ii) ...establishing tuition and fee rates for out-of-state students at levels which, at a minimum, cover the full cost of instruction unless doing so is inconsistent with a clearly delineated public policy goal established by the Legislature, the commission or the council. Student-Focused Funding | 11#12WEST VIRGINIA RESIDENT STUDENTS AS A PERCENTAGE OF TOTAL HEADCOUNT ENROLLMENT, BY YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Bluefield State College 87.7% Concord University 81.9% Fairmont State University Glenville State College Marshall University 78.5% Potomac State College of WVU 74.1% Shepherd University 55.6% West Liberty University 68.3% West Virginia State University West Virginia University 89.6% 54.3% WVU Institute of Technology 88.1% 88.3% 89.5% 88.5% 88.5% 87.1% 86.8% 86.9% 85.8% 82.3% 81.5% 81.6% 83.0% 81.8% 81.3% 83.8% 84.2% 82.3% 92.1% 92.7% 92.0% 90.4% 90.2% 89.4% 88.5% 87.5% 89.8% 89.9% 87.8% 86.0% 86.9% 87.7% 85.6% 77.3% 76.3% 75.8% 76.2% 76.0% 75.0% 74.7% 75.5% 76.2% 75.4% 74.1% 71.8% 68.9% 57.7% 59.8% 59.8% 59.5% 59.9% 60.3% 60.0% 60.7% 60.9% 69.9% 69.0% 68.1% 70.6% 69.0% 67.9% 66.2% 67.0% 67.1% 89.3% 89.8% 90.8% 91.3% 91.4% 91.1% 91.8% 90.9% 91.5% 54.2% 53.0% 51.6% 50.1% 88.1% 85.7% 88.1% 86.1% 86.4% 88.3% 87.9% 88.1% 86.0% 86.8% 75.8% 69.3% 68.0% 73.6% 74.9% 49.2% 48.7% 48.7% 48.4% 48.1% 77.3% 76.6% 75.0% 78.7% 82.9% Student-Focused Funding | 12#13INVESTING IN WEST VIRGINIA STUDENTS Non-Resident Graduates who Remain in West Virginia 2014-15 Academic Year Non-Resident Graduates WV Workforce Number of Non-Resident Graduates in Percentage of Non-Resident Graduates in WV Workforce Bluefield State College Concord University 27 5 18.5% 89 16 18.0% Fairmont State University 72 16 22.2% Glenville State College 18 3 16.7% Marshall University 727 172 23.7% Potomac State College of WVU 80 23 28.8% Shepherd University 345 52 15.1% West Liberty University 187 47 25.1% West Virginia State University 37 11 29.7% West Virginia University 3,291 445 13.5% WVU Institute of Technology 39 1 2.6% Student-Focused Funding | 13#14A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students Student-Focused Funding | 14#15A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students WHAT COURSES ARE STUDENTS TAKING? ARE STUDENTS MAKING SUFFICIENT PROGRESS TOWARD DEGREE COMPLETION? HOW MANY STUDENTS ARE EARNING A COLLEGE DEGREE? Student-Focused Funding | 15#16A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students ACCESS WHAT COURSES ARE STUDENTS TAKING? SUCCESS ARE STUDENTS MAKING SUFFICIENT PROGRESS TOWARD DEGREE COMPLETION? IMPACT HOW MANY STUDENTS ARE EARNING A COLLEGE DEGREE? Student-Focused Funding | 16#17A TALE OF FOUR STUDENTS Low-RISK, HIGH ACHIEVING, LOW COST Bachelor's-seeking first-time freshman taking 15 hours of general education courses. PROMISE recipient. HIGH-RISK, HIGH-COST, HIGH-DEMAND • Minority bachelor's-seeking student with 95 hours completed. Taking 18 hours of upper-division courses. Pursuing a degree in Chemistry education. HIGH-RISK, REQUIRES ADDITIONAL SUPPORT Returning adult with some college but no degree. Requires remediation in math and English. Low-RISK, High-Cost, High-DemAND Graduate student pursuing a Ph.D. in Cancer Cell Biology. Taking 9 hours of 700-level major-specific courses. Student-Focused Funding | 17#18FUNDING MODELS ACROSS THE COUNTRY 37+ States Have Adopted Funding Formulas In place at two-year institutions In place at two-year and four-year institutions WA OR ID CA ND MT WY SD In place at four-year institutions None In Transition MN NE IA NE NV UT CO KS MO Adapted from: National Conference of State Legislatures, July 2015. http://www.ncsl.org/research/education/performance-funding.aspx AZ NM HO OK AR TX LA WI MI OH IL IN TN PA WV KY VA SC MS AL GA FL NC NY NJ MD VT NH MA CT ME Student-Focused Funding | 18#19A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students Four-Year Institutions Bluefield State College Concord University Fairmont State University Glenville State College FY18 Base Budget $229,434,536 $5,379,199 $8,278,077 ACCESS 70% $160.6M $14,579,417 $5,622,099 SUCCESS 5% Marshall University* $54,940,572 Potomac State College of WVU Shepherd University $3,650,589 $9,360,954 West Liberty University $7,592,683 West Virginia State University** $9,514,960 $11.5M West Virginia University*** WVU Institute of Technology $103,079,979 $7,436,007 *In addition to its base budget of $54,940,572, Marshall University receives $3,443,152 in special-purpose funding. These appropriations are not subject to the proposed model: Luke Lee Lab ($93,441), Vista ($229,019), Brownfield PD ($309,606), MUGC Writing Project ($25,412), WV Autism Training Center ($1,671,280), Lottery Funds - Rural Health Initiative and Rural Health Residency Program ($560,107), Forensic Lab ($235,104), Rural Health Outreach Program ($163,219)and Center for Rural Health ($155,964). ** West Virginia State University's land grant match of $1,584,947 is not included in FY18 base budget figures. *** In addition to its base appropriation of $103,079,979, West Virginia University receives $28,154,323 in special- purpose funding. The following appropriations are not subject to the proposed model: Jackson's Mill ($472,960); Brownfield PD ($314,188); Rural Health Outreach Program ($158,372); Soft Drink Tax Appropriation ($15,935,640); Land Grant Match ($7,871,000); Medical School Lottery Funds ($3,402,163). IMPACT 25% $57.4M Student-Focused Funding | 19#20A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students The Student-Focused Funding Model provides an objective and equitable means of distributing general appropriation funds to public four- year institutions based upon the courses attempted by West Virginia resident students [ACCESS], the progress resident students make toward on-time degree completion [SUCCESS], and the number of students who finish college with high-quality degrees [IMPACT]. ACCESS Weighted Credit-Hour Production 70% of total funding Credit hours attempted by West Virginia residents, weighted by academic discipline, course level and high-risk student status. SUCCESS Momentum / Progress to Degree 5% of total funding Number of undergraduate West Virginia resident students who are on track for on-time degree completion, with additional credit awarded for students in high-risk populations. IMPACT High-Quality Degree Production 25% of total funding Number of degrees completed by West Virginia residents, with additional credit awarded for degrees produced in high-demand fields and those earned by students in high-risk populations. Institutions are also rewarded for non-resident graduates who join West Virginia's workforce after graduation. Student-Focused Funding | 20#21HIGH-RISK POPULATIONS ECONOMICALLY DISADVANTAGED ACADEMICALLY UNDERPREPARED NON-TRADITIONAL ADULT (25+) UNDERSERVED RACIAL/ETHNIC MINORITY Student-Focused Funding | 21#22A NEW APPROACH West Virginia Taxpayer Dollars Supporting West Virginia Students - THREE-YEAR ROLLING AVERAGE HOLD-HARMLESS PROVISION CARRY-OVER PROVISION ADDITIONAL DOLLARS TO SUPPORT INNOVATION Student-Focused Funding | 22#23HIGH-DEMAND FIELDS HEALTHCARE STATE TE OF WEST VIRGIN SEMPER LIBERI EDUCATION ENGINEERING WEST VIRGINIA Specific fields to be identified by West DEPARTMENT of COMMERCE Virginia Department of Commerce and approved by the Commission and LOCEA. MORTANI Student-Focused Funding | 23#24DIFFERENTIATION West Virginia University. Special-purpose funding excluded from model. University weighting table used for credit-hour production. 10 percent research institution weight applied across all measures. M MARSHALL UNIVERSITY. Special-purpose funding excluded from model. University weighting table used for credit-hour production. 10 percent research institution weight applied across all measures. 1891 WEST VIRGINIA STATE UNIVERSITY Land-grant match excluded from model. University weighting table used for credit-hour production. 2.5 percent research institution weight applied across all measures. Student-Focused Funding | 24#25DIFFERENTIATION Special-Purpose Funding Excluded from Model Calculations West Virginia University Jackson's Mill Brownfield PD Rural Health Outreach Program Soft Drink Tax Land Grant Match Medical School Lottery Funds Marshall University Luke Lee Lab Vista Brownfield PD $28,154,323 $472,960 $314,188 $158,372 $15,935,640 $7,871,000 $3,402,163 $3,443,152 $93,441 $229,019 $309,606 MUGC Writing Project $25,412 WV Autism Training Center $1,671,280 Lottery Funds - Rural Health Initiative and Rural Health Residency Program $560,107 Forensic Lab $235,104 Rural Health Outreach Program $163,219 Center for Rural Health $155,964 West Virginia State University Land Grant Match $1,584,947 $1,584,947 Student-Focused Funding | 25#26DIFFERENTIATION College weighting table used for credit-hour production. University weighting table used for credit-hour production. FM Bluefield State College 1872 GLENVILLE STATE COLLEGE Potomac State College West Virginia University. Institute of Technology West Virginia University FAIRMONT STATE CONCORD UNIVERSITY UNIVERSITY M MARSHALL UNIVERSITY. 1891 Shepherd UNIVERSITY WEST VIRGINIA STATE UNIVERSITY WA WEST LIBERTY UNIVERSITY West Virginia University. Student-Focused Funding | 26#27FUNDING POOLS ACCESS Weighted Credit-Hour Production 70% of total funding • Distributes 70 percent of available general appropriation funding based upon the total number of credit hours West Virginia resident students attempt in a year. Because instructional costs vary by academic discipline and across academic levels, weighting factors are applied on a student-level basis to account for these cost variations. Credit hours attempted by students in high-risk populations, such as the economically disadvantaged, non-traditional (adult) students, academically underprepared students, and racial and ethnic minority students, are weighted at a higher rate than those taken by students with a greater chance of success. Credit Hours Attempted Weighting Factors X Total Weighted Credit Hours Student-Focused Funding | 27#28WEIGHTING TABLES UNIVERSITY TABLE COLLEGE TABLE Discipline Clusters Liberal Arts, Math, Social Science, Languages, Other 05. Area, Ethnic, Cultural & Gender Studies. Lower Division Upper Division Masters Doctoral 1.0 2.2 4.4 5.5 1.0 2.2 4.4 5.5 Discipline Clusters Liberal Arts, Math, Social Science, Languages, Other 05. Area, Ethnic, Cultural & Gender Studies Lower Division Upper Division 1.0 2.0 1.0 2.0 09. Communication, Journalism and related programs. 1.0 2.2 4.4 5.5 16. Foreign Languages, Literature and Linguistics 1.0 2.2 22 4.4 44 5.5 09. Communication, Journalism and related programs 16. Foreign Languages, Literature and Linguistics 1.0 2.0 1.0 2.0 19. Family and Consumer Sciences/Human Sciences 1.0 22 2.2 4.4 5.5 23. English Language & Literature/Letters 1.0 2.2 4.4 5.5 19. Family and Consumer Sciences/Human Sciences 23. English Language & Literature/Letters 1.0 2.0 1.0 2.0 1.0 24. Liberal Arts & Sciences, General Studies and Humanities 1.0 2.2 4.4 5.5 24. Liberal Arts & Sciences, General Studies and Humanities 1.0 2.0 25. Library Science 1.0 2.2 4.4 5.5 25. Library Science 1.0 20 2.0 27. Mathematics & Statistics 1.0 2.2 4.4 5.5 27. Mathematics & Statistics 1.0 20 28. Reserve Officer Training Corps 1.0 2.2 4.4 5.5 28. Reserve Officer Training Corps 1.0 2.0 29. Military Technologies 1.0 2.2 5.5 30. Multi/Interdisciplinary Studies 1.0 2.2 4.4 5.5 38. Philosophy & Religious Studies 1.0 2.2 5.5 42. Psychology and Applied Psychology 1.0 2.2 5.5 45. Social Sciences 1.0 2.2 4.4 5.5 54. History 1.0 2.2 4.4 5.5 99. Honors Curriculum and Other 1.0 2.2 4.4 5.5 Basic Skills Cluster 32. Basic Skills 1.5 1.5 29. Military Technologies 30. Multi/Interdisciplinary Studies 38. Philosophy & Religious Studies 42. Psychology and Applied Psychology 45. Social Sciences 54. History 99. Honors Curriculum and Other Basic Skills Cluster 32. Basic Skills 1.0 2.0 1.0 2.0 1.0 2.0 1.0 2.0 10 1.0 2.0 1.0 2.0 1.0 2.0 1.5 1.5 Business Cluster (Business, Public Administration) 1.0 2.2 4.4 6.6 Business Cluster (Business, Public Administration) 1.0 2.0 44. Public Administration & Social Service Professions 1.0 2.2 4.4 6.6 52. Business Management, Marketing related support services 1.0 2.2 4.4 6.6 44. Public Administration & Social Service Professions 52. Business Management, Marketing & related support services 1.0 2.0 1.0 2.0 Education Cluster 1.5 2.2 2.75 5.5 Education Cluster 1.5 2.0 13. Education 1.5 2.2 2.75 5.5 13. Education 1.5 2.0 Services Cluster (Personal, Protective, Recreation) 1.5 2.2 3.3 4.4 Services Cluster (Personal, Protective, Recreation) 1.5 2.0 31. Parks, Recreation, Leisure & Fitness Studies 1.5 2.2 3.3 4.4 31. Parks, Recreation, Leisure & Fitness Studies 1.5 2.0 12. Personal & Culinary Services 1.5 2.2 3.31 4.4 36. Leisure and Recreational Activities 1.5 2.0 43. Security and Protective Services 1.5 2.2 3.3. 4.4 12. Personal & Culinary Services 1.5 2.0 43. Security and Protective Services 1.5 2.0 Visual and Performing Arts Cluster 1.5 2.75 5.5 5.5 50. Visual & Performing Arts 1.5 2.75 5.5 5.5 Visual and Performing Arts Cluster 1.5 2.5 50. Visual & Performing Arts 1.5 2.5 Trades/Tech Cluster (Construction, Mechanic Tech, Precision Production 2.0 2.75 46. Construction Trades 2.0 2.75 Trades/Tech Cluster (Construction, Mechanic Tech, Precision Production 2.0 2.5 47. Mechanic Repair Technologies/Technicians 2.0 2.75 46. Construction Trades 2.0 2.5 48. Precision Production 2.0 2.75 47. Mechanic Repair Technologies/Technicians 2.0 2.5 49. Transportation & Materials Moving 2.0 2.75 48. Precision Production 2.0 2.5 49. Transportation & Materials Moving 2.0 2.5 Sciences Cluster (Agriculture, Computer, Biology, Physical) 2.0 3.3 5.5 8.8 01. Agricultural, Agriculture Operations & related sciences 2.0 3.3 5,5 8.8 Sciences Cluster (Agriculture, Computer, Biology, Physical) 2.0 3.0 03. Natural Resources & Conservation 2.0 3.3 5.5 8.8 01. Agricultural, Agriculture Operations related sciences 2.0 3.0 11. Computer & Information Sciences & Support Services 2.0 3.3 5.5 8.8 03. Natural Resources & Conservation 2.0 3.0 26. Biological & Biomedical Sciences 2.0 3.3 5.5 8.8 40. Physical Sciences 2.0 3.3 5.5 8.8 11. Computer & Information Sciences & Support Services 26. Biological & Biomedical Sciences 2.0 3.0 2.0 3.0 40. Physical Sciences 2.0 3.0 Law Cluster 2.0 2.2 4.4 4.4 22. Legal Professions and Studies 2.0 2.2 4.4 4.4 Law Cluster 2.0 2.0 22. Legal Professions and Studies 2.0 2.0 Engineering/Architecture Cluster 04. Architecture 14. Engineering 15. Engineering Technologies/Technicians Health Cluster 51. Nursing, Allied Health, Health Professions 2.0 3.3 5.5 8.8 2.0 3.3 5.5 8.8 2.0 3.3 5.5 8.8. 2.0 3.3 5.5 8.8 15. Engineering Technologies/Technicians 2.0 2.2 5.5 6.6 2.0 2.2 5.5 6.6 Health Cluster 51. Nursing, Allied Health, Health Professions Engineering/Architecture Cluster 04. Architecture 14. Engineering 2.0 3.0 2.0 3.0 2.0 3.0 2.0 3.0 2.0 2.0 2.0 2.0 Source: Nevada System of Higher Education Source: Nevada System of Higher Education Student-Focused Funding | 28#29WEIGHTING TABLES COLLEGE TABLE ENLARGED VIEW - Discipline Clusters Liberal Arts, Math, Social Science, Languages, Other 05. Area, Ethnic, Cultural & Gender Studies Lower Division Upper Division 1.0 2.0 1.0 2.0 09. Communication, Journalism and related programs 16. Foreign Languages, Literature and Linguistics 1.0 2.0 1.0 2.0 19. Family and Consumer Sciences/Human Sciences 1.0 2.0 23. English Language & Literature/Letters 1.0 2.0 24. Liberal Arts & Sciences, General Studies and Humanities 1.0 2.0 25. Library Science 1.0 2.0 27. Mathematics & Statistics 1.0 2.0 28. Reserve Officer Training Corps 1.0 2.0 29. Military Technologies 1.0 2.0 30. Multi/Interdisciplinary Studies 1.0 2.0 38. Philosophy & Religious Studies 1.0 2.0 42. Psychology and Applied Psychology 1.0 2.0 45. Social Sciences 1.0 2.0 54. History 1.0 2.0 99. Honors Curriculum and Other 1.0 2.0 Basic Skills Cluster 32. Basic Skills 1.5 1.5 Business Cluster (Business, Public Administration) 1.0 2.0 44. Public Administration & Social Service Professions 52. Business Management, Marketing & related support services 1.0 2.0 1.0 2.0 Education Cluster 1.5 2.0 13. Education 1.5 2.0 Source: Nevada System of Higher Education Student-Focused Funding | 29#30WEIGHTING TABLES UNIVERSITY TABLE ENLARGED VIEW - Discipline Clusters Lower Division Upper Division Masters Doctoral Liberal Arts, Math, Social Science, Languages, Other 05. Area, Ethnic, Cultural & Gender Studies 1.0 2.2 4.4 5.5 1.0 2.2 4.4 5.5 09. Communication, Journalism and related programs 1.0 2.2 4.4 5.5 16. Foreign Languages, Literature and Linguistics 1.0 2.2 4.4 5.5 19. Family and Consumer Sciences/Human Sciences 1.0 2.2 4.4 5.5 23. English Language & Literature/Letters 1.0 2.2 4.4 5.5 24. Liberal Arts & Sciences, General Studies and Humanities 1.0 2.2 4.4 5.5 25. Library Science 1.0 2.2 4.4 5.5 27. Mathematics & Statistics 1.0 2.2 4.4 5.5 28. Reserve Officer Training Corps 1.0 2.2 4.4 5.5 29. Military Technologies 1.0 2.2 4.4 5.5 30. Multi/Interdisciplinary Studies 1.0 2.2 4.4 5.5 38. Philosophy & Religious Studies 1.0 2.2 4.4 5.5 42. Psychology and Applied Psychology 1.0 2.2 4.4 5.5 45. Social Sciences 1.0 2.2 4.4 5.5 54. History 1.0 2.2 4.4 5.5 99. Honors Curriculum and Other 1.0 2.2 4.4 5.5 Basic Skills Cluster 32. Basic Skills 1.5 1.5 Business Cluster (Business, Public Administration) 1.0 2.2 4.4 6.6 44. Public Administration & Social Service Professions 52. Business Management, Marketing & related support services 1.0 2.2 4.4 6.6 1.0 2.2 4.4 6.6 Education Cluster 1.5 2.2 2.75 5.5 13. Education 1.5 2.2 2.75 5.5 Source: Nevada System of Higher Education Student-Focused Funding | 30#31FUNDING POOLS ACCESS Weighted Credit-Hour Production Number of Credit Hours Attempted in Each Course = X Discipline / Level Weighting Factor (See weighting tables) X High-Risk Population Weighting Factor (1.50) X Research Institution Weighting Factor (Varies by Institution) Total Weighted Credit Hours Attempted 70% of total funding Student-Focused Funding | 31#32FUNDING POOLS ACCESS Weighted Credit-Hour Production Weighted Credit- Share of System Hour Production Total ACCESS Pool Share Four-Year Institutions Bluefield State College Concord University Fairmont State University 2,706,049 1.000000 $160,604,175 67,732 0.025030 $4,019,888 121,320 0.044833 $7,200,364 202,179 0.074714 $11,999,363 Glenville State College 54,000 0.019955 $3,204,899 Marshall University* 674,349 0.249200 $40,022,641 Potomac State College of WVU 41,466 0.015323 $2,460,980 Shepherd University 147,206 0.054399 $8,736,694 West Liberty University 103,029 0.038074 $6,114,799 West Virginia State University* 119,760 0.044256 $7,107,749 West Virginia University* 1,121,975 0.414617 $66,589,299 WVU Institute of Technology *See exclusions slide for additional details. 53,033 0.019598 $3,147,499 70% of total funding WEIGHTED CREDIT- HOUR RATE: $59.35 Student-Focused Funding | 32#33FUNDING POOLS SUCCESS Rewarding Institutions that Help Students Finish on Time • 5% of total funding The SUCCESS pool rewards institutions that adopt proven solutions to help students gain and maintain the momentum they need in order to graduate on time. Funds in this pool are distributed based on the number of first-time, full-time freshmen in a fall entry cohort who complete at least 30 hours by the end of their freshman year of college, at least 60 by the end of their sophomore year, and 90 or more by the end of their junior year. Taking 15 credit hours or more per semester is essential to completing a degree on time - within two years for an associate's degree or four years for a bachelor's degree. Taking a full course load increase the likelihood that a student will graduate on time, research has shown taking 15 credit hours actually improves academic outcomes. In addition, it reduces student loan debt, saves students money on tuition, and improves students' employment prospects by allowing them to earn a degree and begin their professional careers in the shortest time possible. 30 60 90 120 Student-Focused Funding | 33#34FUNDING POOLS SUCCESS Rewarding Institutions that Help Students Finish on Time 1 Momentum Milestone Achieved X High-Risk Population Weighting Factor (1.50) X Research Institution Weighting Factor (Varies by Institution) = Total Weighted Momentum Milestones Achieved 5% of total funding Student-Focused Funding | 34#35FUNDING POOLS SUCCESS Rewarding Institutions that Help Students Finish on Time Weighted Momentum Milestones Achieved Share of System Total SUCCESS Pool Share 11,408 1.000000 $11,471,727 Four-Year Institutions Bluefield State College 141 0.012316 $141,282 Concord University 501 0.043886 $503,453 Fairmont State University 856 0.074990 $860,261 Glenville State College 261 0.022849 $262,117 Marshall University* 2,727 0.239013 $2,741,893 Potomac State College of WVU 163 0.014288 $163,907 Shepherd University 604 0.052962 $607,563 West Liberty University 510 0.044731 $513,140 West Virginia State University* 299 0.026173 $300,244 West Virginia University* 5,133 0.449903 $5,161,166 WVU Institute of Technology 216 0.018890 $216,699 *See exclusions slide for additional details. 5% of total funding WEIGHTED MOMENTUM MILESTONE RATE: $1,006 Student-Focused Funding | 35#36FUNDING POOLS IMPACT High-Quality Degree Production College graduates have a significant positive impact on the state's economy. • Their earnings tend to be higher than those of high school graduates without a postsecondary credential. Additionally, employers looking to relocate to West Virginia are more likely to do so if they can draw new employees from a highly skilled and educated workforce. • Because of the important role that educational attainment plays in economic growth, the IMPACT pool rewards institutions for helping West Virginia residents achieve the college dream. The model rewards institutions that graduate non-resident students who decide to join West Virginia's workforce. The model also drives additional dollars toward degrees in high-demand fields such as teacher education, engineering and healthcare. 25% of total funding Student-Focused Funding | 36#37FUNDING POOLS IMPACT High-Quality Degree Production 1 Degree Awarded (Associate's or Higher) X High-Risk Population Weighting Factor (1.50) X High-Demand Field Weighting Factor (Varies by Discipline) X Research Institution Weighting Factor (Varies by Institution) = Total Weighted Degree Production 25% of total funding If a student earns multiple degrees at the same institution within the same academic year, the institution receives credit for the highest-scoring degree awarded. Institutions receive credit for degrees granted to non-resident graduates who remain and earn wages in West Virginia two years after graduation. Student-Focused Funding | 37#38FUNDING POOLS IMPACT High-Quality Degree Production Weighted Degree Share of System Production Total 12,314 1.000000 IMPACT Pool Share $57,358,634 Four-Year Institutions Bluefield State College Concord University Fairmont State University 408 0.033141 $1,900,951 595 0.048295 $2,770,143 1,047 0.084985 $4,874,651 Glenville State College 253 0.020546 $1,178,487 Marshall University* 2,925 0.237547 $13,625,361 Potomac State College of WVU 298 0.024192 $1,387,634 Shepherd University 734 0.059640 $3,420,873 West Liberty University 560 0.045477 $2,608,509 West Virginia State University* 577 0.046839 $2,686,613 West Virginia University* 4,748 0.385621 $22,118,666 WVU Institute of Technology 169 0.013716 $786,745 *See exclusions slide for additional details. 25% of total funding WEIGHTED DEGREE PRODUCTION RATE: $4,658 Student-Focused Funding | 38#39TOTAL FUNDING PROPOSED MODEL - FY18 Base Budget* ACCESS Pool Funds SUCCESS Pool Funds IMPACT Pool Funds New Base Budget (Proposed Model) Difference from FY 2018 Percent Base Budget Difference Four-Year Institutions $229,434,536 $160,604,175 $11,471,727 $57,358,634 $229,434,536 $0 0.0% Bluefield State College $5,379,199 $4,019,888 $141,282 $1,900,951 $6,062,121 $682,922 12.7% Concord University $8,278,077 $7,200,364 $503,453 $2,770,143 $10,473,961 $2,195,884 26.5% Fairmont State University $14,579,417 $11,999,363 $860,261 $4,874,651 $17,734,276 $3,154,859 21.6% Glenville State College $5,622,099 Marshall University* $54,940,572 $3,204,899 $40,022,641 $2,741,893 $262,117 $1,178,487 $13,625,361 $4,645,504 $56,389,894 ($976,595) -17.4% $1,449,322 2.6% Potomac State College of WVU $3,650,589 $2,460,980 $163,907 $1,387,634 $4,012,521 $361,932 9.9% Shepherd University $9,360,954 $8,736,694 $607,563 $3,420,873 $12,765,130 $3,404,176 36.4% West Liberty University $7,592,683 $6,114,799 $513,140 $2,608,509 $9,236,448 $1,643,765 21.6% West Virginia State University* $9,514,960 $7,107,749 $300,244 $2,686,613 $10,094,607 $579,647 6.1% West Virginia University* WVU Institute of Technology *See exclusions slide for additional details. $103,079,979 $7,436,007 $66,589,299 $5,161,166 $3,147,499 $216,699 $22,118,666 $786,745 $93,869,132 $4,150,943 ($9,210,847) -8.9% ($3,285,064) -44.2% Student-Focused Funding | 39#40TOTAL REVENUE EFFECT FY18 Operating Revenue (Projected) FY18 Non- Operating Revenue (Projected) FY18 Total Operating and Non-Operating Revenue (Projected) Funding Model Effect on Total Proposed Funding Model Effect Estimated Revenue Under Revenue (Percent Proposed Model Change) Four-Year Institutions Bluefield State College Concord University $1,214,226,059 $442,849,959 $1,657,076,018 $0 $1,657,076,018 0.0% $13,297,000 $9,331,000 $22,628,000 $682,922 $23,310,922 3.0% $27,050,000 $13,164,000 $40,214,000 $2,195,884 $42,409,884 5.5% Fairmont State University $78,678,059 $21,053,959 $99,732,018 $3,154,859 $102,886,877 3.2% Glenville State College $18,571,000 $5,622,000 $24,193,000 ($976,595) $23,216,405 -4.0% Marshall University* $190,392,000 $83,373,000 $273,765,000 $1,449,322 $275,214,322 0.5% Potomac State College of WVU ** ** ** ** ** ** Shepherd University $38,399,000 $16,296,000 $54,695,000 $3,404,176 $58,099,176 6.2% West Liberty University $32,197,000 $11,223,000 $43,420,000 $1,643,765 $45,063,765 3.8% West Virginia State University* $29,918,000 $16,073,000 West Virginia University* $785,724,000 $266,714,000 $45,991,000 $1,052,438,000 $579,647 $46,570,647 1.3% ($12,133,979) $1,040,304,021 -1.2% WVU Institute of Technology ** ** ** ** *See exclusions slide for additional details. **West Virginia University submits a single, combined audited financial report for its main campus, Potomac State College of WVU and WVU Institute of Technology. Therefore, separate revenue figures for these campuses are unavailable. Student-Focused Funding | 40#41TOTAL FUNDING PROPOSED MODEL - with Hold-Harmless Provision Dollars Applied FY18 Base Budget* New Base Budget (Proposed Model) Difference from FY 2018 Base Budget Hold-Harmless Provision Dollars (Proposed Model) New Base Budget with Hold- Harmless Difference from FY 2018 Base Budget Percent Difference Four-Year Institutions $229,434,536 $229,434,536 $0 $13,472,506 $242,907,042 $13,472,506 5.9% Bluefield State College $5,379,199 Concord University $8,278,077 Fairmont State University $14,579,417 Glenville State College $5,622,099 Marshall University* $54,940,572 Potomac State College of WVU $3,650,589 $6,062,121 $10,473,961 $2,195,884 $17,734,276 $3,154,859 $4,645,504 ($976,595) $56,389,894 $1,449,322 $4,012,521 $682,922 $0 $6,062,121 $682,922 12.7% $0 $10,473,961 $2,195,884 26.5% 90 $0 $17,734,276 $3,154,859 21.6% $976,595 $5,622,099 $0 0.0% $0 $56,389,894 $1,449,322 2.6% $361,932 $0 $4,012,521 $361,932 9.9% Shepherd University $9,360,954 $12,765,130 $3,404,176 $0 $12,765,130 $3,404,176 36.4% West Liberty University $7,592,683 West Virginia State University* $9,514,960 $9,236,448 $1,643,765 $10,094,607 $579,647 69 69 $0 $9,236,448 $1,643,765 21.6% $0 $10,094,607 $579,647 6.1% West Virginia University* $103,079,979 WVU Institute of Technology $7,436,007 $93,869,132 ($9,210,847) $4,150,943 ($3,285,064) $9,210,847 $3,285,064 $103,079,979 $0 0.0% $7,436,007 $0 0.0% *See exclusions slide for additional details. Student-Focused Funding | 41#42MODEL COMPARISON FTE-Based and Student-Focused Models FTE-Based Model FY18 Base Budget* FTE-Based Appropriation Difference from FY18 Base Budget Percent Difference from FY18 Base Budget New Base Budget with Hold-Harmless Student-Focused Model Difference from FY 2018 Base Budget Percent Difference from FY18 Base Budget Four-Year Institutions $229,434,536 $229,434,536 $0 0.0% $242,907,042 $13,472,506 5.9% Bluefield State College $5,379,199 $6,468,794 $1,089,595 20.3% $6,062,121 $682,922 12.7% Concord University $8,278,077 $11,590,972 $3,312,895 40.0% $10,473,961 $2,195,884 26.5% Fairmont State University $14,579,417 $19,953,839 $5,374,422 36.9% $17,734,276 $3,154,859 21.6% Glenville State College $5,622,099 $6,280,016 $657,917 11.7% $5,622,099 $0 0.0% Marshall University* $54,940,572 $55,777,618 $837,046 1.5% $56,389,894 $1,449,322 2.6% Potomac State College of WVU $3,650,589 $5,046,666 $1,396,077 38.2% $4,012,521 $361,932 9.9% Shepherd University $9,360,954 $12,830,614 $3,469,660 37.1% $12,765,130 $3,404,176 36.4% West Liberty University $7,592,683 $9,124,272 $1,531,589 20.2% $9,236,448 $1,643,765 21.6% West Virginia State University* $9,514,960 West Virginia University* WVU Institute of Technology $103,079,979 $7,436,007 $12,195,061 $2,680,101 $84,994,166 -$18,085,813 $5,172,518 -$2,263,489 28.2% $10,094,607 $579,647 6.1% -17.5% $103,079,979 $0 0.0% -30.4% $7,436,007 $0 0.0% *See exclusions slide for additional details. Student-Focused Funding | 42#43RATE-BASED APPROPRIATIONS Beginning Fiscal Year 2020 Weighted Credit-Hour Rate $59.35 Weighted Momentum Milestone Rate $1,006 Weighted Degree Production Rate $4,658 • Rates will be adjusted annually for inflation. Student-Focused Funding | 43#44PROPOSED IMPLEMENTATION TIMELINE July 1, 2019 FY20 July 1, 2020 FY21 Rate-Based Reallocation Appropriations Hold- Harmless in Effect 100% 100% Innovation Pool Funds Available July 1, 2021 FY22 100% First Innovation Fund Proposals Accepted July 1, 2022 FY23 66.6% 33.3% July 1, 2023 FY24 33.3% 66.6% July 1, 2024 FY25 100% Student-Focused Funding 44#45INNOVATION POOL Beginning Fiscal Year 2023 ACCESS Weighted Credit-Hour Production SUCCESS Momentum / Progress to Degree IMPACT High-Quality Degree Production INNOVATION 70% of total funding 5% of total funding 25% of total funding Former Hold-Harmless Funds / New Money Initiatives to Promote Student Success Student-Focused Funding | 45#46INNOVATION POOL Beginning Fiscal Year 2023 INNOVATION Former Hold-Harmless Funds / New Money Initiatives to Promote Student Success Supported by former hold-harmless funds, beginning in Fiscal Year 2023. Institutions apply for innovation funds. Applications reviewed and approved by the Commission. Single- or multi-year awards available (pending availability of funding). Innovation Pool funds may be used to support innovative initiatives focused on improving student outcomes. Proposed initiatives must align with and support the Commission's Master Plan. All proposed initiatives must be STUDENT-FOCUSED. Student-Focused Funding | 46#47INNOVATION POOL Examples of Student-Focused Initiatives x+y-x= √ xy() yx √√x + (1)x Offering micro-grants to faculty who adopt open- source textbooks in general education courses. Funding training on academic advising for faculty and student support staff. Supporting efforts to develop innovative degree programs aimed at returning adult students. Providing funds to support strategic course scheduling initiatives designed to improve efficiency and reduce time to degree completion. Student-Focused Funding | 47#48LOOKING AHEAD 2018 Present funding model proposal to Higher Education Policy Commission Host funding model summit for institutional leadership and research/data personnel. January February Ma April May Ji July August September о November December Revise framework based upon Refine model and draft related policies continued feedback from institutional leaders and state legislators. Formal Comment Period Present final proposed model to Legislature. Continue dialogue with legislators, institutional leadership and institutional researchers (DPAC representatives). Host additional in-person or web-based meetings as necessary. Student-Focused Funding | 48#49LOOKING AHEAD 2019 January February March April May June 1 July August September October November December Legislature enacts legislation to implement Student-Focused Funding model. Phase 2 Implementation: FY2021 Rate-Based Model 2 2020 Hold Harmless Provision Applies Commission staff revise model to comply with legislative mandates. Phase 1 Implementation: FY2020 Reallocation Hold Harmless Provision Applies 2021 2022 Phase 3 Implementation: Full Implementation of Rate-Based Model 3 2023 2024 Hold Harmless Phase-Out Student-Focused Funding | 49#50COMMUNITY AND TECHNICAL COLLEGE FUNDING STUDY Conduct mathematical modeling exercises and develop a series of hypothetical models to facilitate future discussions with Council members and CTC presidents. Continue dialogue with legislators, institutional leadership and institutional researchers (DPAC representatives). Host additional in-person or web-based meetings as necessary. 2018 Refine proposed model based on Council and institutional feedback. January February March A May June July Aug nber October November December Initial meeting with CTC Council of Presidents. Provide progress report to Council for Community and Technical College Education. Present recommendations to Council for Community and Technical College Education Present final report on proposed CTC funding model to Higher Education Policy Commission. Present final report and recommendations to CCTCE for approval. Student-Focused Funding | 50#51COMMENT PERIOD March 23, 2018 to April 27, 2018 WV HIGHE EDUCATION A copy of this presentation is available for download at: http://www.wvhepc.edu/resources/reports-and-publications/ Formal written comments may be submitted by email to the: Office of the Chancellor at [email protected] For questions or additional information, contact: Dr. Chris Treadway, Senior Director of Research and Policy at [email protected] or (304) 558-1112. Student-Focused Funding for West Virginia Public Higher Education West Virginia Higher Education Policy Commission March 23, 2018 POLICY COMMISSION