overview of higher education funding in florida presented to the council of 100 dr. bill proctor,...
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Overview of Overview of Higher Education Higher Education
FundingFundingin Floridain Florida
presented to the Council of 100
Dr. Bill Proctor, Executive Director
November 7, 2002
GG6%
HHS/CJ
41%
Educ53%
Education
HHS/Criminal Justice
Gen Gov't/Trans/EcDev
FY 2002-03FY 2002-03State General RevenueState General Revenue
FY 2002-03 GAAFY 2002-03 GAA Education Education
AppropriationsAppropriations
(in millions)(in millions)• Public Schools $ 9,823 m• Community Colleges 902 m• State Universities 1,914 m• Other Education 712 m• Workforce (includes Voc Rehab) 642 m• Fixed Capital Outlay 1,864 m• TOTAL $ 15,857 m
FY 2002-03 GAAFY 2002-03 GAA Education Appropriations Education Appropriations
Fixed Capital Fixed Capital OutlayOutlay
Funding forFunding forState UniversitiesState Universities
in Floridain Florida
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
GRAD II
GRAD I
UPPER
LOWER
State UniversitiesState UniversitiesFTE Enrollment PlanFTE Enrollment Plan
2002-03 2002-03
Note: Educational and General (E&G) Note: Educational and General (E&G) enrollmentenrollment
State UniversitiesState UniversitiesEducational & GeneralEducational & General$2.5 billion Operating $2.5 billion Operating
BudgetBudget
• Educational and General $ 2,535• Contracts and Grants 1,224• Auxiliary Enterprises 661• Local Funds 1,210
(Student Activity, Athletics, Concessions, Student
Financial Aid, Self-Insurance Programs)
• Faculty Practice Plans 323 TOTAL $ 5,952
State UniversitiesState UniversitiesTotal Operating BudgetsTotal Operating Budgets
2002-03 (in billions)2002-03 (in billions)
• Instruction $ 814.6 42%• Other Enroll-Related 246.6 13%• Academic Admin 152.8 8%• Other Academic 284.5 15%• University Support 203.8 11%• Physical Plant 181.9 9%• Stand-alone 44.0 2% Total $1,928.0 100%
State UniversitiesState UniversitiesE&G ExpendituresE&G Expenditures
2000-01 (in millions)2000-01 (in millions)
• Relationship between funding and achievement of mission
• Student expectations v. taxpayer expectations
• Balance between local & state control/accountability
• Articulation incentives
• Performance funding
State Universities:State Universities:Policy Issues Related to Policy Issues Related to
FundingFunding
• Funding planned enrollment
• Decline in PECO funds
• Unnecessary obstacles to accessing funds?
• Best Financial Management Practices for community colleges and universities?
State Universities:State Universities:Policy Issues Related to Policy Issues Related to
FundingFunding
Funding forFunding forPublic Community Public Community Colleges in FloridaColleges in Florida
Community CollegeCommunity CollegeProfiles, 2001-02Profiles, 2001-02
• 28 colleges, 157 sites• Student headcount: 834,570• Part-time students: 69%• Average age: 27• Minority enrollment: 37%• Faculty members: 40,541
– Part-time faculty: 75.5%
Community CollegeCommunity CollegeEnrollment HistoryEnrollment History
170,000
175,000
180,000
185,000
190,000
195,000
200,000
205,000
210,000
215,000
96-97 97-98 98-99 99-00 00-01 01-02
Note: Full-time equivalent (FTE) Note: Full-time equivalent (FTE) enrollmentenrollment
• Community Colleges have adopted formula, but it has not been consistently used by the Legislature
• Formula is allocation model, not model for requesting funds
• Formula takes 3-year average enrollments into consideration, but not projections
Community CollegeCommunity CollegeAppropriations ProcessAppropriations Process
Student Fees29%
State Workforce
25%
Other Receipts5%
State CCPF33%
Lottery8%
Community CollegeCommunity CollegeRevenues, 2000-01Revenues, 2000-01
A&P50%
Adult Ed3%
PSec Voc28%
CWE4%
Prep7%
PSAV8%
Community CollegeCommunity CollegeExpenditures by ProgramExpenditures by Program
2000-012000-01
Direct Instruct47%
Acad Supp12%
Student Svcs9%
Inst Supp19%
PO&M13%
Community CollegeCommunity CollegeExpenditures by FunctionExpenditures by Function
2000-012000-01
Community Colleges:Community Colleges:Policy Issues Related to Policy Issues Related to
FundingFunding• Relationship between funding and
achievement of mission
• Student expectations v. taxpayer expectations
• Ensuring workforce needs are being met
• Balance between local and state control/accountability
• Results of workforce performance funding
workforcworkforcee
Workforce AppropriationsWorkforce Appropriations1999-00 to 2002-031999-00 to 2002-03
$640,000,000
$650,000,000
$660,000,000
$670,000,000
$680,000,000
$690,000,000
$700,000,000
$710,000,000
$720,000,000
$730,000,000
1999-00 2000-01 2001-02 2001-02 (SpecialSession "C")
2002-03
Workforce FundingWorkforce FundingIssuesIssues
• $640 million in state funding, administered by 272 state and local agencies, with very little coordination
• Rewards have not kept pace with increases in performance
• Only 4% of K-12 funding is in workforce education (therefore it tends to receive less priority than at community colleges)
1. Formula• Budget decisions rely on mathematical formulas
2. Justification of increment• Budget decisions rely on incremental increases
3. Formula plus• Combination of 1 and 2
4. Performance funding (at the margins)• Incentive funding or performance-based budgeting• Florida does both
Approaches toApproaches toFunding in the StatesFunding in the States
1. Based on state goals for postsecondary education
2. Sensitive to colleges’ different missions
3. Provide adequate funding
4. Provide incentives for or reward performance
5. Appropriately recognize size-to-cost relationships
6. Be responsive to changing demands
13 Guiding Principles13 Guiding Principlesfor Postsecondary for Postsecondary
FundingFunding
7. Provide reasonably stable funding
8. Simple to understand
9. Fund colleges and universities equitably
10.Appropriately recognize size-to-cost relationships
11.Make provisions for special purpose units
12.Use valid, reliable data
13.Allow administrative flexibility in spending funds
13 Guiding Principles13 Guiding Principlesfor Postsecondary for Postsecondary
FundingFunding
• Florida ranks 26th in state and local appropriations per full-time equivalent student at public degree-granting institutions…
• …but ranks 49th in resident undergraduate tuition at state universities
““Shared Responsibility”Shared Responsibility”and Funding for and Funding for
Postsecondary Education in Postsecondary Education in FloridaFlorida
Tuition andTuition andFinancial AidFinancial Aid
Student AidStudent Aidin the U.S., by Sourcein the U.S., by Source
• State programs are a small but growing source of student financial aid.
Total Aid
Awarded
$74.4 billion
SOURCE: The College Board.
$0
$100
$200
$300
$400
$500
$600
$700
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00
$ p
er F
TE
Need-Based Grant Aid Total Grant Aid
NOTE: 1990-91 constant dollars.
SOURCE: NASSGAP
Total and Need-Based UndergraduateState Grant Aid per Full-Time Equivalent Student,
1990-91 to 1999-00
Florida Legislative Appropriationsfor Financial Aid, by Basis of Award,
2000-01
Need27%
Merit73%
Source: State Student Aid Policy, PEPC, January 2001.
Need Status of Financial Aid Need Status of Financial Aid Recipients in the State Recipients in the State
University System, 2000-01University System, 2000-01
Students with Bright Futures
N=63,085
Florida resident students without Bright Futures
N=60,299
withfinancial
need29%
without financial
need71%
with financial
need78%
without financial
need22%
Family Income Distribution, FSAG Recipients and Bright Futures Initial Recipients
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under$10K
$10-19K
$20-29K
$30-39K
$40-49K
$50-59K
$60-$69K
$70-79K
$80K +
FSAG Bright Futures
1998-99
Unmet and Overmet Financial Need, by Family Income, for Aid Applicants Who Received Initial Bright Futures Award in 1998-99
(State University System: Dependent, Resident)
-$20,000
-$15,000
-$10,000
-$5,000
$0
$5,000
$10,000
$15,000
< $10,000 $10,000-$19,999
$20,000-$29,999
$30,000-$39,999
$40,000-$49,999
$50,000-$59,999
$60,000-$69,999
$70,000-$79,999
$80,000 andover
Income
Av
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Ne
ed
Re
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inin
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fte
r S
ub
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cti
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Av
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EF
C f
rom
A
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. Att
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Other Remaining Need Bright Futures Portion of Remaining Need
Data Source: OSFA
Student Financial Student Financial Policy IssuesPolicy Issues
• Target financial aid to likely growth areas of the postsecondary education market
Part-time students Students in career
education programs Students in training for
high-demand occupations Adult students
Examples: Current Reality: Part-time FSAG 1% of OSFA budget Private postsecondary FSAG is 2%
of OSFA budget; no postsecondary FSAG for use at public institutions
Aid for targeted occupations & populations is 3% of OSFA budget
Bright Futures usage must begin within 3 years of HS graduation
Council Web SiteCouncil Web Site
http://www.cepri.state.fl.us