INDIANA STATE UNIVERSITYBiennial Budget Presentation

to theIndiana Commission for Higher Education

Presented by President Daniel J. BradleySeptember 11, 2014

Indiana State #1 in Community ServiceWashington Monthly College Guide ranks

schools in three broad categories:

• Social Mobility (recruiting and graduating low-income students)

• Research (producing scholarly work and PhDs)

• Service (encouraging students to give something back to their country/ community).

Indiana State is ranked #1 in the nation for the second year in a row for the

community service its students perform.

In addition, Indiana State ranked #30 overall among national universities between

Michigan State and Duke University.

Supporting the State’s Higher Ed Goals

Indiana State’s Strategic Plan CHE’s Strategic Plan

Goals of Indiana State’s strategic plan directly align with those of the State of Indiana and play a unique role in

helping the State advance its goals.

Supporting the State’s Higher Ed Goals ISU’s enrollment

has grown by 26% since fall 2008

Graduate enrollment is the largest in history

24% of ISU students are U.S. minorities

86% of new freshmen are from Indiana

53.9% of freshmen are Pell recipients

28.6% of freshmen are 21st Century Scholars

2008 2009 2010 2011 2012 2013 201410,000

10,500

11,000

11,500

12,000

12,500

13,000

13,500

10,45710,534

11,494 11,528

12,114

12,448

13,183

INDIANA STATE ENROLLMENT GROWTH

New programs to help adult students obtain bachelor’s degrees• Bachelor’s in General Studies• Bachelor’s in Civil Engineering Technology

(Developed in partnership with Ivy Tech)

• B.A.S. programs in Technology and Health Services(Designed to provide baccalaureate degree option for individuals with A.A.S. degrees)

• Continued growth of DegreeLink initiative with Ivy Tech• Added 7 new online bachelor’s degrees since 2010 (17 programs in total)

New programs to address critical shortages of health care providers• Master’s degree in Physician Assistant Studies• Doctor of Nursing Practice• Doctor of Physical Therapy• Master’s degree in Occupational Therapy• Master of Social Work• Doctorate of Health Sciences

Addressing the State’s Workforce Needs

• Degree mapping through Degree Works and MySAM program

• Academic coaching through Inside Track

• Four-Year Graduation Guarantee

• Simplification of degree programs/majors

• Summer Initiative to keep 21st Century Scholars on track

• Open Source Textbook Initiative

Indiana State Leading Statewide Initiatives

• Created 8-week course options for mid-semester for students who drop a class

• Expanded summer school options• Expanded accessibility to Foundational Studies

courses, including more online courses• Discounted summer tuition for seniors within

range of degree completion• Created University College

Improving Persistence and Completion

Early Results: Retention on the Rise• Retention of first-year students has increased

3.9% in the last 2 years (6.4% in 4 years)• Retention of first-year

African-American students is also up by 3.9% in 2 years (12.5% in 4 years)

• Retention of first-year 21st Century Scholars is up 7.5% in 2 years

Helping 21st Century Scholars Stay On Track• New rule requires Scholars to earn 30 credit hours per year to

retain full scholarship• ISU launched an aggressive communication plan to make scholars

aware of new rule• ISU also provided scholarships of up to 6 free summer credit hours

and 50% discount on summer housing to help those who had completed between 23 and 29 hours

Results: • 49% of 21st Century Scholars

completed 30 hours by end of spring (up 16%)

• 61% completed 30 hours by end of summer (increase of 26.5%)

Student Success Initiatives Produce Results But Cost Significant Dollars

University College $ 1,399,147

Center for Student Success $ 705,997

Center for Teaching Excellence $ 194,724

Math and Writing Center $ 171,910

LEAP Program $ 160,100

Athletic Academic Tutoring $ 59,388

Supplemental Instructor Budget $ 44,633

21st Century Scholarships $ 42,275

Conditional Admits Mentoring $ 39,753

Tutoring Budget $ 38,038

Inside Track $ 750,000

Remedial Math with Ivy Tech $ 663,582

Financial literacy services for students $ 195,000

Summer scholarships for 21st Century Scholars $ 126,049

TOTAL $ 4,590,596

Investment in Education Pays

Graph recreated from The New York Times Magazine article: “Am I supposed to be here? Am I good enough?” – Source: Ron Haskins “Education and Economic Mobility”

Graduation Gap: Challenges for Low-Income Students

Graph recreated from The New York Times Magazine article: “Am I supposed to be here? Am I good enough?”– Source: Anthony P. Carnevale and Jeff Strohl “Rewarding Strivers.”

1,200-1,600 1,100-1,199 1,000-1099 800-9990%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Bottom Income Quartile

Top Income Quartile

High-scoring college students are more likely to graduate if from well-off families, and the gap is even greater for lower-scoring students.

Line Item Appropriations Request2015-17

Line Item Appropriations

• DegreeLink: $460,245 (2,397 graduates since 1999, 551 in last 2 years)

• Nursing Program: $204,000 (1,068 graduates since 2008, 385 in last 2 years)

• Indiana Principal Leadership Institute: $600,000 (116 principals and 114 teachers have participated on-campus; an additional 47 new administrators participated in the INALI program run by IPLI)

Capital Budget Request2015-17

College of Nursing, Health and Human Services Building Renovation/Expansion

The College of Nursing, Health and Human Services Building was constructed in 1961 with an addition built in 1986.

The renovation and expansion will provide

much-needed classrooms, laboratories and office space for our growing health-care programs.

CNHHS BUILDING RENOVATION/EXPANSION

• 6 new health-related degree programs created in last 4 years

• Building does not meet today’s OSHA or ADA guidelines.

• Classroom and laboratory space does not meet instructional or technology needs of today’s students.

• ISU’s scheduled annual fee replacement appropriation for debt service to decrease by about $3 million during 2015-2017 biennium, offsetting a large portion of project’s $64 million cost

• Project will increase intra-professional educational opportunities

• State’s investment will help produce more health care workers to improve health and wellness care for Hoosiers.

CNHHS ENROLLMENTS

New Programs since 2010 Degree Total Ind Res

Social Work MSW 15 12

Nursing Practice DNP 25 16

Physician Assistant Studies MS 60 59

Occupational Therapy MS 54 44

Health Sciences DHS 16 11

Total 170 142

Total CNHHS Enrollment

2008 1,657 1,101

2014 3,281 2,435

Unduplicated Headcount Fall 2014

ICHE Performance Funding2015-17

Degree Completion

PREV 3YR AVG FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

1. Overall     Bachelors 1232 1249 1085 1058 1116 1173 1217 Masters 254 246 241 246 252 266 277 Doctoral 35 33 37 34 34 23 33 TOTAL 1520 1528 1363 1338 1402 1462 1527 2. At-Risk Student Degrees 269 293 341 398 436 459 444 Productivity Metrics 1. On-Time Degrees 19.3% 20.1% 21.4% 21.3% 18.3% 20.9% 18.7% Indiana Residents in FTFT Freshman Cohort 1476 1597 2198 2146 2143 2193 2367 2. Student/(Faculty & Staff) Ratio Institutionally-Defined Productivity Measure 5.1 5.2 6.1 6.4 6.7 6.8 7.3 Student/Faculty Ratio Institutionally-Defined Productivity Measure 15.4 15.8 16.3 17.9 18.5 18.7 20.4 Student/Staff Ratio Institutionally-Defined Productivity Measure 7.7 7.7 9.7 10.0 10.4 10.6 11.3 Progression Point Metrics 1. 30 Credits 1131 1153 1182 1308 1522 1594 1688 2. 60 Credits 1115 1027 1018 1045 1204 1331 1323

ICHE Performance-Based Funding

ICHE Priorities

Performance Funding Formula

• 17.3% increase in each category needed to earn our money back• Not an accurate measure of Indiana State’s value to the State of Indiana• $3.9 million reduction would significantly reduce our ability to provide

services to our students

If no new funding is provided:% Reallocation 7.0%$ Amount of reallocation for ISU ($4,711,576)Performance Funding Metrics UNIT VALUE ISU TOTAL

Bachelor Degree Completion $5,694 $0Master Degree Completion $2,847 $25,623Doctoral Degree Completion $1,423 $0At-Risk Degree Completion $4,270 $298,900Completed 30 Credit Hours (4YR) $569 $186,632Completed 60 Credit Hours $1,068 $189,036On-Time Graduation Rate $16,370 $0Institution Defined Metric $1,779 $131,646

Total Performance Funding $831,837Net Change in Appropriation ($3,879,739)Percent Change -5.8%

Value What’s ImportantAt-Risk Degree Completion PROPOSED VALUE

NEXT BIENNIUM

1 Yr Certificate $1,500Associate $3,000Bachelor $6,000

Student Persistence15 CH $30030 CH (2 YR) $60030 CH (4 YR) $80045 CH $1,20060 CH $1,500

High Impact Degree CompletionBachelor $20,000Master $14,000Doctoral $7,000

Tuition & Operating Appropriation per Hoosier FTE(Adjusted per CPI)

1989-90

1991-92

1993-94

1995-96

1997-98

1999-00

2001-02

2003-04

2005-06

2007-08

2009-10

2011-12

2013-14

2015-16 $1,900

$2,900

$3,900

$4,900

$5,900

$6,900

$7,900

$8,900

$9,900

$10,900

Total Approp & TuitionTuitionOperating Appropriationper Hoosier FTE

Budget Planning Assumptions

Indiana State remains conservative in its budget planning which is based on the following assumptions:

• 0% increase in state operating appropriation

• 2% increase in enrollment• 2% increase in tuition• $1 million annual reallocation

Performance Funding ObservationsThe ICHE Performance Funding model is not helping in the achievement of ISU’s and Indiana’s overall goals.

1. Institutions are incentivized to compete and sometimes are rewarded for the work of others. For example, dual credit dramatically helps 4-year graduation rates of high-achieving students.

2. Overall resident degree-seeking enrollment at the state’s public institutions is down 9.4% since 2009. The incentives are counter productive to seeking and enrolling low-income students with less than a stellar high school record.

3. A scenario with a 7% reallocation and no new money would reduce Indiana State’s funding per resident FTE in FY2017 to less than half the value, in real terms, of that in FY1990.

4. Dollars at risk for the next biennium are related to performance that occurred as much as a decade ago. Low enrollment in 2004-06 and high enrollment in 2007-09 are the keys at this time.

Indiana State respectfully requests that its operating base appropriation for 2015-2017

be kept at the 2013-2015 level of $67,308,231.

Closing Comments

INDIANA STATE UNIVERSITYBiennial Budget Presentation

to theIndiana Commission for Higher Education

Presented by President Daniel J. BradleySeptember 11, 2014