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

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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