An Overview of Performance-Based Funding in West Virginia 2013 Board of Governors Summit Stonewall...

An Overview of Performance-Based Funding in West Virginia

2013 Board of Governors SummitStonewall Resort

Roanoke, West Virginia

Rob Anderson

A method for structuring higher education funding by tying funds to outcomes (such as increased graduates, STEM degree holders, etc.) instead of basing it on enrollment or historical funding.

West Virginia Higher Education Policy Commission

What Is Performance-Based Funding?

• Over ½ of all states have some type of model• Purpose:

1. Stabilize funding and reassess how to finance public colleges

2. Greater focus on degree completion

3. The need to increases college access and success

• Involvement of national foundations


National Context

Performance Funding Landscape

Higher Education: A Good Investment for West Virginia


In 2010, the Commission, in collaboration with the West Virginia University Bureau for Business and Economic Research, released a report regarding the economic impact of the state’s four-year public colleges and universities.

• Highlights of the Fiscal Year (FY) 2008 total economic impact report include:

• Total number of jobs created was approximately 40,600.

• Total business volume generated was $7.9 billion.

• Total employee compensation was $1.5 billion.

• Total assorted state taxes (consumer sales and use, personal income, corporate net income, and business franchise) resulting from these business activities was $73 million.

• Based on inflation only and not accounting for institutional growth, the estimated economic impact for FY 2014 is nearly $13.5 billion.

• The total return on investment for FY 2014 would be 50:1 with level funding.

Charting the Future establishes a public agenda for how higher education can best serve the needs of West Virginia’s citizens.

• Access: Enrollment has grown by approximately 5,500 students, a 6% increase.

• Cost and Affordability: Approximately 155,000 students have received state financial aid support and tuition has increased at a lower rate than peers.

• Learning and Accountability: An increased focus has been placed on completion - making institutions more accountable for performance.

• Innovation: Research funding has significantly increased in all categories and most recent data shows a $198 million annual investment in external funding.

• Economic Growth: More than 60,000 graduates have entered the workforce and an increasing number of graduates are remaining in the state.

Charting the Future: The 2007-12 Master Plan


• Increased Participation Rates of Low-Income and Adult Students

• Stable Retention and Graduation Rates

• Increased Number of Graduates Living and Working In-State

• Increased Tuition and Fees and Student Loan Debt

Charting the Future: 2012 Progress Report



Leading the Way: The 2013-18 Master Plan


• Focal Areas• Access - Goal: Increase access to postsecondary education

for both traditional and non-traditional aged West Virginians. • Success - Goal: Increase the number of students at system

institutions completing quality academic programs. • Impact - Goal: Increase the impact that public colleges and

universities have on West Virginia through the production of qualified graduates ready to contribute to the workforce and the community, provision of needed services, and research and development that promote knowledge production and economic growth.

• Tools• Collaboration• Fiscal Responsibility• Assessment

Leading the Way: Access. Success. Impact.


Cracks in the Pipeline

Source: National Center for Higher Education Management Systems (2008)

StateFor every 100 Ninth Graders

Graduate from High

School

Enter College

Still Enrolled Sophomore

Year

Graduate within 6

yearsMassachusetts 100 77 58 42 30Pennsylvania 100 79 51 37 30Virginia 100 71 49 34 24Delaware 100 66 43 32 23Missouri 100 78 47 32 22Ohio 100 73 46 33 22Nation 100 70 44 30 21North Carolina 100 66 44 30 19Tennessee 100 71 44 29 19Maryland 100 73 46 31 19Georgia 100 59 41 27 17Arkansas 100 75 47 29 17Oklahoma 100 75 42 25 17West Virginia 100 72 43 28 17Florida 100 60 35 24 16Kentucky 100 69 42 28 16Mississippi 100 60 46 27 15South Carolina 100 54 38 24 15Alabama 100 64 43 27 15Louisiana 100 58 38 25 15Texas 100 65 37 24 14


Total Headcount EnrollmentFall Census Figures


65,000

70,000

75,000

80,000

85,000

90,000

95,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Estimate for total headcount enrollment: 92,140Enrollment decreased 1.3% from Fall 2011 and increased 4.9% over Fall 2008.

Total In-State Tuition and Fees


Institution 2002-03 2007-08 2011-12 2012-131 Year

Change5 Year

Change10 Year Change

Bluefield State College $2,598 $3,984 $4,908 $5,180 5.5% 5.4% 7.1%Concord University $2,962 $4,414 $5,446 $5,716 5.0% 5.3% 6.8%Fairmont State University $2,866 $4,614 $5,326 $5,326 0.0% 2.9% 6.4%Glenville State College $2,700 $4,174 $5,352 $5,860 9.5% 7.0% 8.1%Marshall University $2,984 $4,360 $5,648 $5,930 5.0% 6.3% 7.1%Potomac State College of WVU $2,192 $2,596 $3,058 $3,178 3.9% 4.1% 3.8%Shepherd University $2,886 $4,564 $5,554 $5,834 5.0% 5.0% 7.3%West Liberty University $2,748 $4,172 $5,266 $5,930 12.6% 7.3% 8.0%West Virginia School of Osteopathic Medicine $14,206 $19,830 $19,950 $20,950 5.0% 1.1% 4.0%West Virginia State University $2,754 $4,156 $5,038 $5,442 8.0% 5.5% 7.0%West Virginia University $3,240 $4,722 $5,674 $6,090 7.3% 5.2% 6.5%WVU Institute of Technology $3,066 $4,598 $5,344 $5,558 4.0% 3.9% 6.1%

Average Growth Rate

Average In-State Tuition and Fees

Source: Trends in College Pricing, 2012. Table 5. College BoardWest Virginia Higher Education Policy Commission

State 2011-12 Rank 2012-13 Rank % Change RankSREB Average $7,330 $7,754 5.78%Alabama $8,001 5 $8,741 4 9.25% 4Arkansas $6,654 10 $6,968 10 4.72% 9Delaware $10,438 1 $10,890 1 4.33% 11Florida $5,624 14 $6,232 12 10.81% 1Georgia $7,298 8 $7,504 9 2.82% 16Kentucky $7,974 6 $8,455 5 6.03% 8Louisiana $5,246 16 $5,812 16 10.79% 2Maryland $7,961 7 $8,220 7 3.25% 15Mississippi $5,673 13 $6,147 14 8.36% 5North Carolina $5,689 12 $6,220 13 9.33% 3Oklahoma $6,071 11 $6,350 11 4.60% 10South Carolina $10,356 2 $10,698 2 3.30% 14Tennessee $7,170 9 $7,676 8 7.06% 6Texas $8,053 4 $8,354 6 3.74% 13Virginia $9,535 3 $9,907 3 3.90% 12West Virginia $5,536 15 $5,883 15 6.27% 7

Declining Role of State Support Per FTE

Source: SREB Data Exchange January 2013


2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-1220.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

55.00%

60.00%

65.00%

70.00%66.14%

64.23%61.63%

58.23%55.94% 55.11% 55.45% 56.09%

53.49%

48.90%46.49%

43.68%

58.47%59.84%

53.60%

45.65%

41.57%39.38%

38.21% 38.10% 37.63%

34.54% 33.59% 34.51%

SREB Average

WV Average

Percent of Students Borrowing and Average Amount


Institution

Percent with

Loans

Average Loan

AmountBluefield State College 51.0% $6,494Concord University 49.9% $6,136Fairmont State University 62.2% $6,793Glenville State College 45.4% $6,907Marshall University 51.1% $7,205Potomac State College of WVU 46.3% $5,620Shepherd University 50.3% $7,170West Liberty University 61.2% $7,480West Virginia State University 44.1% $6,534West Virginia University 53.1% $8,116WVU Institute of Technology 48.2% $5,974Total 52.2% $7,337

2011 data

State Financial Aid Programs


Funding Awards Funding Awards Funding Awards Funding Awards

2003-04 $20,587,780 6,740 20,322,999$ 10,327 $3,407,582 3,507 $44,318,361 20,5742004-05 $30,896,581 8,827 20,544,912$ 10,226 $3,420,713 3,432 $54,862,206 22,4852005-06 $38,258,487 10,303 20,303,483$ 10,104 $4,418,014 4,043 $62,979,984 24,4502006-07 $39,547,724 9,823 27,432,882$ 11,183 $4,242,911 4,639 $71,223,517 25,6452007-08 $40,264,423 9,526 30,349,514$ 11,588 $4,188,601 4,298 $74,802,538 25,4122008-09 $42,498,633 9,334 35,285,378$ 16,132 $5,636,793 5,552 $83,420,804 31,0182009-10 $45,706,663 9,456 40,082,411$ 15,203 $4,297,153 3,977 $90,086,227 28,6362010-11 $46,897,179 9,783 37,136,887$ 20,797 $4,536,842 4,415 $88,570,908 34,9952011-12 $47,583,889 9,820 39,369,774$ 19,314 $5,249,644 5,025 $92,203,307 34,159

Totals $352,241,359 83,612 $270,828,240 124,874 $39,398,253 38,888 $662,467,852 247,374

TotalsPROMISE Scholarship Higher Education Grant HEAPS Grant

Percent Undergraduate Population – Pell Recipients

Source: Higheredinfo.org (2009-10 data)


55.8%

50.1%

32.3%

53.5%

59.0%

45.2%47.3%

35.5%

62.7%

43.2% 42.9%

48.7%

51.8%

44.0%

35.0%

43.6%45.7%

Average Salaries of Full-Time FacultyPublic Four-Year Institutions

(Budget Uncertainty)

Source: SREB Data Exchange January 2013


• Professors at the public four-year institutions in West Virginia earn 83 percent of the SREB states average.

• Associate professors at the public four-year institutions in West Virginia earn 92 percent of the SREB states average.

• West Virginia ranks 16 (lowest) out of the 16 SREB states in average salaries for professors. Associate professor salaries rank 12 out of 16 and both assistant professors and instructors rank 15 out of 16.

• The statewide Advisory Council of Faculty is developing a multi-year funding approach to increase faculty salaries across the state’s higher education system. The estimated cost is unknown at this time.

Classified Staff SalariesCompliance with Senate Bill 330

(Budget Uncertainty)


• In July 2010, the total shortfall for funding of the 2001 Classified Staff Salary Schedule was $4,056,146.

• Today, the 2001 salary schedule has been fully funded by the institutions and the Commission.

• As a result of Senate Bill 330, a study is in progress and should be released in the coming months along with a new salary schedule. Until that time, the total amount of required funding for the new schedule is unknown.

Deferred Maintenance for Buildings

Unmet Institutional Need: Deferred maintenance remediation across the two- and four-year institutions (one-time).• Required by West Virginia Code 18B-1B-4(a)(11) and 18B-19-5.• Commission staff works with the institutions on a list of high priority

capital projects addressing deferred maintenance and code compliance issues, updating the list for those in most urgent need.

• Institutions have identified more than $10,000,000 in immediate needs. Funding for deferred maintenance and code compliance issues would be utilized to match institution funding on a 50/50 basis.

• Funding would allow institutions to repair and maintain facilities that have longstanding capital needs such as sprinkler systems, fire alarms, smoke detectors, ADA access to buildings, re-roofing, and HVAC upgrades.

• Funding would support projects across both two- and four-year institutions, with the funding split in the range of 80 percent for Commission institutions and 20 percent for Council institutions.


• 2012 Legislative Session•Objectives:

1. Review of existing models

2. Identification of 3 to 5 policy objectives

3. Recommendations to ensure stability

4. Analysis of the impact of different models on different types of institutions


Senate Bill 436

• HCM Strategists•Lumina Foundation•Complete College America•SREB•Council and Commission Staff


Legislative Partners

• Meeting with HCM Strategists (May 2012)•Meeting with College Presidents (August 2012)•Presentation of Draft Formula (October 2012)•Final Report Discussed (January 2013)•SB 326 Introduced (February 20130•SB 326 Passes Senate But Fails in House (April 2103)


The Work of the Select Committee

• Two Formulas:• CTCS Categories: Developmental Education,

Student Progression, Degree Completion, and On-Time Degree Completion

• HEPC Categories: Student Progression, Degree Completion, On-Time Degree Completion, and Transfer Students from Two-Year Sector


Proposed Formula

• Both structured around a “points model” where students are counted in broad categories.

•Students in defined priority categories (STEM, low-income, adult) are weighted more heavily.

•The formula was run based on reallocations of 2% and 5% of base budgets.


Proposed Formula

• Charged the Commission and Council to promulgate procedural rules:•Consider the differentiation of institutional missions

•Establish appropriate weights to help meet the goal of 20,000 additional degrees by 2018

•Set FY 2014 as a pilot year


SB 326

• Would prefer new funding instead of pulling from base budget

•Current inequality in funding per student•More input into the process


Institutional Concerns

• Are institutions being judged on the right measures

•How can we assure that the process will be adhered to and not circumvented

•Effectiveness


Legislative Concerns

•HEPC website: http://wvhepcnew.wvnet.edu •Rob Anderson, [email protected]


Contact Information

mailto:[email protected]

An Overview of Performance-Based Funding in West Virginia 2013 Board of Governors Summit Stonewall...

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