tennessee higher education commissionknowledgecenter.csg.org/kc/system/files/higher_education... ·...
TRANSCRIPT
![Page 1: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/1.jpg)
![Page 2: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/2.jpg)
Tennessee Higher Education Commission
Higher Education Finance Reform:
Lessons from the Tennessee Experience
David L Wright and Russ Deaton,Tennessee Higher Education Commission
Southern Legislative Conference webinar
October 23, 2012
![Page 3: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/3.jpg)
Tennessee Higher Education Commission
Tennessee Public Higher Education Governance/Coordination Structure
![Page 4: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/4.jpg)
Tennessee Higher Education Commission
Tennessee Higher Educationprior to CCTA
• Master Plan; limited buy-in from institutionso Little linkage between funding and state goals
• Performance Funding program allocated 5.5% of budget on measures tied to Master Plan
• Enrollment-based funding formulao Hadn’t been fully funded since mid 1990s
• Geography and demography drove institutional growth
![Page 5: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/5.jpg)
Tennessee Higher Education Commission
Tennessee Higher EducationFiscal Realities
• Fewer state dollars for institutional operationso 20% cut over the last 5 years
• Robust merit scholarship program• Enrollment growth• Cost inflation• Tuition spiral• Exacerbated by recent recession
![Page 6: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/6.jpg)
Tennessee Higher Education Commission
Tennessee Public Higher Education Operating Revenues
Total Revenue per FTE - UniversitiesInflation Adjusted
$0
$1,500
$3,000
$4,500
$6,000
$7,500
$9,000
$10,500
$12,000
$13,500
$15,000
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
ARRA/MOEStFeesStAppr
![Page 7: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/7.jpg)
Tennessee Higher Education Commission
CCTA Context
NEEDED:
A new vision for Tennessee higher education
![Page 8: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/8.jpg)
Tennessee Higher Education Commission
CCTA Context• Unprecedented fiscal circumstances
• Emphasis on policy alignmento Statewide policy audit (April 2009, NCHEMS)
• Opportunity for higher ed to function as an integral part of a statewide agenda.
![Page 9: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/9.jpg)
Tennessee Higher Education Commission
CCTA Overview• Public Agenda• Outcomes-based Funding Formula• Mission Differentiation• Articulation & Transfer• Remedial & Developmental Education• Community College System• Research www.tn.gov/thec
![Page 10: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/10.jpg)
Tennessee Higher Education Commission
2010-2015 Public Agenda for Tennessee Higher Education
• Primary focus = increasing educational attainment
• “Public agenda” language was intentional• Narrowly focused -- on CCTA implementation• A Public Agenda annual Progress Report on the
Complete College TN website will provide accountability for Agenda implementation
![Page 11: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/11.jpg)
Tennessee Higher Education Commission
• The “Big Goal” • Informed by THEC Student Flow Model • Achieve the U.S. avg in ed attainment by 2025• Needed:
o 26,000 additional cumulative degrees by 2015
o 210,000 by 2025
o 4% annual increases in certificate and degree production; every year from now to 2025
o Goal includes private non-profits and for-profits
2010-2015 Public Agenda for Tennessee Higher Education
![Page 12: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/12.jpg)
‐
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2008
‐09
2009
‐10
2010
‐11
2011
‐12
2012
‐13
2013
‐14
2014
‐15
2015
‐16
2016
‐17
2017
‐18
2018
‐19
2019
‐20
2020
‐21
2021
‐22
2022
‐23
2023
‐24
2024
‐25
Annu
al Degree Prod
uctio
n
Additional Cumulative Degrees Needed by 2015:
26,000
Current Projection2009‐2015
Cumulative Degree Production: 281,000
Current Projection2009‐2025 Cumulative Degree Production: 711,000
Annual Degree Production (Current Projection)
Required Annual Degree Production
The Big Goal
![Page 13: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/13.jpg)
Tennessee Higher Education Commission
• Required by the CCTA• Why important?
Excellent institutions ≠ higher ed system meeting State needs
• Institutional Mission Differentiation Carnegie Classification Academic Degree Programs by level and field Undergraduate/graduate mix Sub-populations Research capacity
• Goal: avoid duplication of programs & services• Core of outcomes funding formula• Institutions constructed the profiles systems
endorsed THEC approved
Mission Profiles
![Page 14: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/14.jpg)
Tennessee Higher Education Commission
• 30-year program, distinct from the outcomes formula; builds on indicators from existing cycles
• Quality Assurance focused
• Accountability instrument for Master Plan
• Serves as THEC statutorily-required State performance report for General Assembly
• Contributes to student success as the unifying goal of Public Agenda, outcomes based funding formula, and Performance Funding
Performance Funding
![Page 15: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/15.jpg)
Tennessee Higher Education Commission
Performance Funding
Standard IQuality of Student
Learning & Engagement75%
Institutional performance measured by achievement of student learning, program evaluation and
satisfaction studies
Standard IIQuality of Student Access and Student
Success25%
Institutional performance measured by achievement of credentials earned for selected student
sub-populations
2010-15 Performance Funding CycleTwo Quality Assurance Standards
![Page 16: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/16.jpg)
16
Tennessee Higher Education Commission
Tennessee’s Outcomes-Based Funding Formula:
An Analysis of the First Two Years
![Page 17: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/17.jpg)
17
Tennessee Higher Education Commission
Tennessee Finance Policy Reform
• In January 2010, Tennessee passed the “Complete College Tennessee Act.”
• The legislation called for reforms in several areas:
– student transfer – research collaboration– funding formula policy
![Page 18: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/18.jpg)
18
Tennessee Higher Education Commission
• TN retired its enrollment based model and built a funding formula that is entirely a function of outcomes.
• The TN design, utilizing outcomes and an institution-specific weighting structure, is unique in higher education finance policy.
Funding Formula Policy
![Page 19: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/19.jpg)
19
Tennessee Higher Education Commission
• This is not simply a reform to TN’s long-standing Performance Funding program.
• The outcomes-based model completely replacesthe enrollment-based model.
• There is no enrollment-based allocation in TN.
TN Outcomes-Based Model
![Page 20: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/20.jpg)
20
Tennessee Higher Education Commission
TN Funding Formula Evolution
![Page 21: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/21.jpg)
21
Tennessee Higher Education Commission
TN Funding Formula Evolution
![Page 22: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/22.jpg)
22
Tennessee Higher Education Commission
• Rather than counting enrollments, the TN model simply counts outcomes such as degrees.
• There are no state-imposed targets or pre-determined goals.
• The outcomes are weighted to reflect institutional mission.
TN Outcomes-Based Model
![Page 23: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/23.jpg)
23
Tennessee Higher Education Commission
TN Outcomes-Based Formula
OutcomeStudent Progression: 24 Credit HoursStudent Progression: 48 Credit HoursStudent Progression: 72 Credit Hours
Bachelors DegreesMasters Degrees
Doctoral/Law DegreesResearch/Grant Funding
Student TransfersDegrees per 100 FTEGraduation Rate
Universities
![Page 24: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/24.jpg)
24
Tennessee Higher Education Commission
TN Outcomes-Based Formula
OutcomeStudents Accumulating 12 hrsStudents Accumulating 24 hrsStudents Accumulating 36 hrs
Dual EnrollmentAssociatesCertificates
Job PlacementsRemedial & Developmental Success
Transfers Out with 12 hrsWorkforce Training (Contact Hours)
Awards per 100 FTE
Community Colleges
![Page 25: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/25.jpg)
Tennessee Higher Education Commission
TN Outcomes-Based Formula
Bachelors degrees; little research/doctoral degrees
Extensive doctoral degrees and emphasis on research
Weights Based on Institutional Mission APSU UTM TTU UTC MTSU ETSU TSU UM UTKStudent Progression: 24 Credit Hours 3% 3% 3% 3% 3% 3% 3% 2% 2%Student Progression: 48 Credit Hours 5% 5% 5% 5% 5% 5% 5% 3% 3%Student Progression: 72 Credit Hours 7% 7% 7% 7% 7% 7% 7% 5% 5%
Bachelors Degrees 30% 30% 25% 25% 25% 25% 25% 25% 15%Masters Degrees 15% 15% 15% 15% 15% 15% 15% 15% 15%
Doctoral/Law Degrees 0% 0% 5% 5% 5% 7.5% 7.5% 10% 10%Research/Grant Funding 10% 10% 10% 10% 10% 12.5% 12.5% 12.5% 15%
Student Transfers 10% 10% 10% 10% 10% 5% 5% 5% 5%Degrees per 100 FTE 15% 15% 10% 10% 10% 10% 10% 10% 10%
Graduation Rate 5% 5% 10% 10% 10% 10% 10% 12.5% 20%100% 100% 100% 100% 100% 100% 100% 100% 100%
![Page 26: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/26.jpg)
26
Tennessee Higher Education Commission
• Outcomes model utilized for 2011-12 and 2012-13 state budget cycles.
• The outcomes model is not for the allocation of new state funding, but for allstate funding ($750 million).
• The model works with flat, increasing or decreasing state appropriations.
TN Outcomes-Based Model
![Page 27: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/27.jpg)
27
Tennessee Higher Education Commission
TN Outcomes-Based Formula
• All state funding is back up for grabs every year.
• No institution is entitled to some minimal level of appropriations that is based on prior-year funding.
• State appropriations have to be earned anew each year.
![Page 28: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/28.jpg)
28
Tennessee Higher Education Commission
TN Outcomes Formula
• 100% of state appropriations are subject to reallocation each year to reflect productivity changes.
• The TN model is engineered such that productivity changes generate state appropriations changes largely within a +/-2% range.
![Page 29: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/29.jpg)
29
Tennessee Higher Education Commission
TN Outcomes-Based Formula
![Page 30: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/30.jpg)
30
Tennessee Higher Education Commission
TN Outcomes-Based Formula
![Page 31: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/31.jpg)
31
Tennessee Higher Education Commission
‐4.0%
‐3.0%
‐2.0%
‐1.0%
0.0%
1.0%
2.0%
2010‐11 2011‐12 2012‐13
Cumulative Change in Appropriations Due to Formula
APSU
ETSU
MTSU
TSU
TTU
UM
UTC
UTK
UTM
Total Funding
![Page 32: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/32.jpg)
32
Tennessee Higher Education Commission
Outcomes Based Model Advantages
• The outcomes model is linked directly to the educational attainment goals of TN’s Public Agenda.
• The outcomes model establishes a framework for government to have an ongoing policy discussion with higher education.
• The model is adjustable to account for new outcomes or a different policy focus (changing the weights).
![Page 33: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/33.jpg)
33
Tennessee Higher Education Commission
Outcomes Based Model Advantages
• The structure (outcomes & weights) of the outcomes-based model is the key innovation.
• The specific outcomes and weights that TN chose fit our state’s context and current needs.
• Other states could adopt the general design and decide for themselves what outcomes are valuable and how they should be weighted to reflect institutional mission.
![Page 34: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/34.jpg)
34
Tennessee Higher Education Commission
TN Outcomes Formula
• Extensive information, including the formula model, is available on the THEC homepage.
• www.tn.gov/thec
![Page 35: Tennessee Higher Education Commissionknowledgecenter.csg.org/kc/system/files/higher_education... · 2020. 9. 15. · David L Wright and Russ Deaton, Tennessee Higher Education Commission](https://reader035.vdocuments.us/reader035/viewer/2022062607/60571a44be02f37294207db3/html5/thumbnails/35.jpg)
Tennessee Higher Education Commission
Contact Information
David L WrightChief Policy [email protected]
Russ DeatonChief Fiscal [email protected]
www.tn.gov/thec