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The Council on Postsecondary Education is Kentucky’s statewide postsecondary and adult education coordinating agency charged with leading the reform efforts envisioned by state policy leaders in the Kentucky Postsecondary Education Improvement Act of 1997. The Council does not discriminate on the basis of race, color, national origin, sex, religion, age, or disability in employment or the provision of services, and provides, upon request, reasonable accommodation, including auxiliary aids and services necessary to afford individuals with disabilities an equal opportunity to participate in all programs and activities.
Kentucky Council on Postsecondary Education, 1024 Capital Center Drive, Suite 320, Frankfort KY 40601, Ph: (502) 573-1555, Fax: (502) 573-1535,
http://cpe.ky.gov
Twitter: https://twitter.com/cpenews Facebook: https://www.facebook.com/KYCPE
Printed with state funds
MEETING AGENDA
Thursday, November 17, 2016 Owensboro Community & Technical College
Members, Council on Postsecondary Education
Ronald C. Beal, Bowling Green
Ben Brandstetter, Hebron Glenn D. Denton, Paducah (chair)
Maryanne Honeycutt Elliott, Louisville Joe E. Ellis, Benton
Dan E. Flanagan, Campbellsville Lucas V. Mentzer, Lexington
Pam Miller, Lexington Donna Moore, Lexington (vice chair)
Joseph Papalia, Louisville Vidya Ravichandran, Louisville Robert H. Staat, UofL (faculty member) Carol Wright, Tyner Sherrill B. Zimmerman, Prospect Sebastian Torres, EKU (student member) Stephen Pruitt, Commissioner of Education (ex officio, nonvoting)
Robert L. King, CPE President
AGENDA Council on Postsecondary Education
Thursday, November 17, 2016 2:00 PM
Owensboro Community & Technical College
1. CPE Work Session (2:00 p.m.) Location: Advanced Technology Center, Chandler Conference Room (Room 107)
a. Update on Performance Funding 3
b. Performance Metrics & Accountability System 17
c. 2017-18 Tuition Setting Process & Affordability Issues 38
2. Owensboro Community & Technical College Briefing and Campus Tour (4:30 p.m.) Location: Advanced Technology Center, Chandler Conference Room (Room 107)
3. Reception & Dinner (6:00 p.m.) Location: OCTC Barn
All meetings are in Central Standard Time (CST)
Presentation
from the
Performance
Funding Work
Group Meeting
11/2/16
3
2
Four-Year Universities
4
Proposed Approach
3
• Outcomes based model that distributes 100% of allocable resources based on rational criteria:
70% distributed based on performance (student success and course completion outcomes)
30% allocated in support of vital campus operations (M&O of facilities, institutional support, and academic support)
• Includes all public four-year universities in performance pool, but includes safeguards to ensure that neither sector is advantaged or disadvantaged at implementation
• Contains small school adjustment to minimize impact on smaller campuses
• Makes use of hold harmless and stop loss provisions in early years of implementation
5
(Dollars in Millions)
(A - B - C)
A B C D
2017-18 Net Mandated Small School Allocable
Campus General Fund Programs Adjustment Resources
UK $267.0 $80.3 $18.7 $168.0
UofL 132.8 0.0 13.3 119.5
EKU 65.0 0.2 4.8 60.0
KSU 26.7 6.7 4.8 15.2
MoSU 42.0 2.9 4.8 34.3
MuSU 45.9 2.6 4.8 38.5
NKU 51.4 1.5 4.8 45.2
WKU 74.5 5.6 4.8 64.2
Sector $705.3 $99.9 $60.5 $544.9
4
Allocable Resources
• Allocable resources are defined as General Fund appropriations net of mandated programs and a small school adjustment
6
5
• Student Success (35% of allocable resources)
– Distributed based on each institution’s share of sector total student success outcomes produced
o Bachelor’s Degrees
o Degrees per 100 UG FTE Students
o STEM+H, URM, and Low Income Degrees
o Student Progression (@ 30, 60, and 90 credit hour thresholds)
o Educational Opportunity (under consideration)
• Course Completion (35% of allocable resources)
– Distributed based on each institution’s share of sector total
student credit hours earned (weighted to account for cost
differences by degree level and discipline)
Outcomes Based Components
7
6
• Maintenance and Operations (10% of allocable resources)
– Distributed based on each institution’s share of square feet, net of research and non-class laboratory space
• Institutional Support (10% of allocable resources)
– Distributed based on share of sector total instruction and student services spending, net of M&O
• Academic Support (10% of allocable resources)
– Funding for academic support services, such as libraries and academic computing
– Distributed based on share of FTE student enrollment
Operational Support Components
8
7
• Fiscal 2017-18 (Year Zero)
– Run the model with additional year of data and use results to:
o Distribute Postsecondary Education Performance Fund (5%)
o Inform Council’s 2018-20 biennial budget recommendation
• Fiscal 2018-19 (Year One)
– Apply hold harmless provision in first year of implementation
– Request sufficient additional appropriations that when combined with hold harmless allocation will achieve equilibrium in first year
• Fiscal 2019-20 (Year Two)
– Transition to 1% stop loss in second year
• Fiscal 2020-21 (Year Three)
– Transition to 2% stop loss in third year and each year thereafter
Recommended Phase In
9
Sample Model
8
10
9
• Distributes 100% of allocable resources using rational criteria (no
unearned funds).
• Excludes mandated program appropriations that do not contribute to credit hour generation or student success outcomes.
• Dynamic model capable of shifting funds to reflect changes in enrollment, program mix, and student success outcomes.
• Stable fund source provides ongoing incentives for improvement.
• Does not require targets or goals (distribution determined by each
institution’s share of sector total outcomes produced).
• Includes hold harmless and stop loss provisions to minimize shifts in funding in early years of implementation
• Rewards future performance based on relative improvement (after equilibrium achieved).
Advantages of Proposed Approach
11
10
• Encourages increased bachelor’s degree production at universities and associate degrees and industry recognized certificates at KCTCS, which will help Kentucky achieve 58% attainment goal by 2025.
• Provides incentives for efficient degree production (through use of
degrees per 100 FTE metric).
• Supports production of degrees in priority areas (STEM+H fields).
• Helps close achievement gaps by providing incentives for increased underrepresented minority and low income degrees.
• Provides incentives for retaining and progressing students toward timely degree completion.
• Encourages investment in instructional faculty and student support services, as opposed to administrative overhead.
Behaviors Incentivized
12
11
KCTCS Update
13
Proposed Approach
12
• KCTCS is developing an outcomes component that can be integrated into their existing funding formula
• Like the four-year model, their formula will distribute 100% of allocable resources based on rational criteria:
Outcomes Based Components
o Student Success
o Course Completion
Operational Support Components
o Maintenance and Operations
o Institutional Support
o Academic Support
• Includes equity adjustment to provide stability to the model
• Will likely include hold harmless and stop loss provisions
14
13
• Student Success
– Distributed based on each institution’s share of system total student success outcomes produced
o Credentials
o Credentials in STEM+H fields
o Credentials earned by URM, low income, & underprepared students
o Student Progression (@ 15, 30, and 45 credit hours)
o Targeted industry credentials
o Transfers
o High wage, high demand graduates
• Course Completion
– Distributed based on share of system total student credit hours
earned
Outcomes Based Components
15
Presentation
from the
Performance
Funding Work
Group Meeting
11/2/16
16
Lee Nimocks, Vice President, CPE
November 17, 2016
Statewide Strategic
Agenda and
Accountability
System 17
Kentucky Council on Postsecondary Education 2
KRS 164.020 directs the CPE to develop a Strategic Agenda, which shall:
• Provid[e] statewide priorities and a vision for long-term economic growth;
• State important issues and aspirations of the Commonwealth's students, employers, and workforce reflecting high expectations for their performance;
• Sustain a long-term commitment to constant improvement, while valuing market-driven responsiveness, accountability to the public, technology-based strategies, and incentive-based motivation.
Planning and Accountability
18
Statewide Strategic Agenda
Kentucky Council on Postsecondary Education 3
What it isn’t What it is
• A replacement for campus strategic plans
• Focused on the needs and goals of individual campuses
• The CPE’s strategic plan • A static plan that cannot be
changed • A publication that gathers
dust on a shelf
• A higher education planning blueprint for Kentucky
• Focused on good of the state and her people
• A guidepost for what we want to achieve
• Reflective of collective values and goals
• A way to engage external stakeholders
• A way to measure progress and adjust course if needed
19
VISION:
MISSION:
Kentucky will experience greater prosperity and a higher quality of life through increased educational attainment, workforce readiness, research and innovation.
Kentucky’s postsecondary system enhances the health and well-being of our citizens by preparing students to create and apply new knowledge and excel in a global economy and culture.
20
EDUCATIONAL ATTAINMENT
5
Kentucky Council on Postsecondary Education
Kentucky lags many other states in the percentage of adults with postsecondary credentials, which affects our economic competitiveness and quality of life.
21
Kentucky Council on Postsecondary Education 6
Adults (25-64) with an Associate Degree or Higher, by State
51
.3
48
.0
47
.8
47
.6
47
.0
46
.6
46
.2
45
.9
45
.8
45
.8
44
.6
44
.0
43
.8
43
.7
43
.6
43
.1
41
.8
41
.8
41
.4
41
.0
40
.9
40
.6
40
.6
40
.2
40
.2
39
.9
39
.8
39
.7
39
.7
39
.5
38
.6
38
.5
37
.6
37
.6
37
.4
37
.3
37
.0
37
.0
36
.5
35
.4
34
.5
34
.5
33
.8
33
.8
33
.0
33
.0
31
.1
30
.8
29
.6
28
.6
28
.5
0
10
20
30
40
50
60
Mas
sach
use
tts
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nes
ota
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nn
ecti
cut
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ire
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est
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ia
KY Ranked 44th
Source: U.S. Census Bureau, 2013 American Community Survey 1-Year Public Use Microdata Sample.
22
Kentucky Council on Postsecondary Education 7
Per Capita Income, by State
KY Ranked 45th
60
,65
8
57
,24
8
55
,38
6
54
,46
2
53
,82
6
53
,18
2
52
,82
6
51
,01
3
50
,15
0
48
,83
8
48
,43
4
47
,71
7
47
,50
0
47
,15
7
46
,98
9
46
,98
0
46
,89
7
46
,20
2
46
,03
9
45
,48
3
45
,20
4
44
,81
5
44
,76
5
44
,76
3
44
,41
7
43
,86
2
43
,24
4
41
,86
1
41
,49
7
41
,20
4
41
,04
9
40
,92
4
40
,66
3
39
,84
8
39
,55
8
39
,36
6
39
,23
5
39
,05
5
38
,68
3
38
,62
2
37
,84
5
36
,98
3
36
,69
8
36
,64
0
36
,48
1
36
,21
4
36
,14
6
35
,96
5
35
,83
1 3
5,5
33
3
3,9
13
0
10000
20000
30000
40000
50000
60000
70000
Co
nn
ecti
cut
Mas
sach
use
tts
New
Je
rse
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ew Y
ork
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ako
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ire
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gin
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ois
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ma
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rgia
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exic
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uth
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est
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Source: Bureau of Economic Analysis, 2013
23
Kentucky Council on Postsecondary Education 8
Educational Attainment in KY, SREB, & the U.S.
13%
32%
22%
9%
14%
10%
13%
30%
22%
8%
17%
10%
12%
26%
22%
9%
20%
11%
0
5
10
15
20
25
30
35
Less than High School High School Some College, NoDegree
Associates Degree Bachelor's Degree Graduate, ProfessionalDegree
Kentucky SREB United States
Source: U.S. Census Bureau, 2013 American Community Survey One-Year Public Use Microdata Sample.
24
EDUCATIONAL ATTAINMENT
9
Kentucky Council on Postsecondary Education
There are sizable gaps in educational attainment between white and underrepresented minority adults.
25
Kentucky Council on Postsecondary Education 10
Educational Attainment Gaps in KY: Adults (25-44)
11%
30%
24%
9%
17%
9%
19%
32%
26%
8%
10%
6%
0
5
10
15
20
25
30
35
Less Than High School High School Graduateor GED
Some College, NoDegree
Associate Degree Bachelor's Degree Graduate orProfessional Degree
White Minority
Source: U.S. Census Bureau, 2011-13 American Community Survey (ACS) Public Use Microdata Sample (PUMS) File.
26
Kentucky Council on Postsecondary Education 11
• To increase educational attainment (certificate and above) to 58% by 2025.
• KY’s current attainment level for working-age adults is 45%.
• Developed in consultation with the National Center on Higher Education Management Systems (NCHEMS).
• Based on HB 1 (1997) goal to achieve “a standard of living and quality of life that meets or exceeds the national average,” to be “accomplished through increased educational attainment at all levels.”
The Big Goal
45%
in 2013
58%
in 2025
27
Kentucky Council on Postsecondary Education 12
Higher Education Accountability
• Metrics and targets tied to strategic agenda goals and objectives
• Performance dashboard
• Annual performance presentations
• Institutional scorecards
• Annual accountability report
• Ad hoc reports
• Performance funding
28
Kentucky Council on Postsecondary Education 13
• OPPORTUNITY. How can Kentucky encourage more people to take advantage of postsecondary opportunities?
• SUCCESS. How can Kentucky increase degree and certificate completion, fill workforce shortages, and guide more graduates to a career path?
• IMPACT. How can Kentucky’s postsecondary system create economic growth and development and make our state more prosperous?
Three Priority Areas
29
The Plan
Stronger By Degrees: Kentucky’s 2016-2021 Strategic Agenda for Postsecondary and Adult Education
30
Ensure postsecondary education is broadly accessible to all Kentucky residents, students have college-going resources/support, and students are academically prepared
15
FOCUS AREA 1: OPPORTUNITY
OBJECTIVES: Increase diversity & inclusiveness on campuses Partner with P-12 to increase college readiness Increase college-going, particularly among
underrepresented populations Transition more GED graduates to college Increase financial access to postsecondary education
31
• College Readiness of College Entrants
• College-Going Rate of High School Graduates
• Kentucky Residents (25-64) Enrolled in Postsecondary Education
• Working-Age Population (18-64) Without a High School Diploma
• Number of Kentuckians Earning a GED®
• Percent of Adult Education Students Transitioning to Postsecondary Education
• Net General Fund Appropriations
• Qualified Students Not Receiving Need-Based State Aid
• Average Net Price
• Outcome of Annual Degree Eligibility Review, Linked to Campus Diversity Plans
• Progress of Underprepared Students in English & Math
Draft Metrics
32
Enable more people to complete college with the skills and abilities to be productive, engaged citizens
17
FOCUS AREA 2: SUCCESS
OBJECTIVES: Increase persistence & completion for all students and
accelerate successful outcomes for low-income, underprepared, and underrepresented minority students
Increase the number who transfer from 2-year to 4-year institutions and complete degrees
Promote educational excellence through improvements in teaching & learning
33
Draft State-Level Metrics Draft Metrics
• Six-Year College Completion Rate
• Two to four year transfer *
• 3-Year and 6-Year Graduation Rates, with breakouts from URM and Low Income **
• First-Year to Second-Year Retention **
• Student Progression (30, 60, and 90 hours) *
• Degrees per 100 FTE *
• Average Credit Hours Earned for Graduates
• Academic Quality and Excellence Metrics (varied based on institutional mission and priorities)
34
Strengthen postsecondary education’s ability to advance new knowledge and research, improve communities, increase educational attainment, and produce a well-educated, highly-skilled citizenry
19
FOCUS AREA 3: IMPACT
OBJECTIVES: Increase educational attainment and degrees & credentials
awarded Increase alignment between degrees/credentials & state
workforce needs Increase basic, applied and translational research to create
new knowledge and economic growth Expand regional partnerships, outreach, and public service.
35
Draft Metrics
• Educational Attainment (Percent of Kentuckians 25-64 with a postsecondary credential)
• Percent of Graduates Working or Pursuing Additional Education
• Degrees/Credentials Conferred with breakouts from URM, STEM and Low Income ***
• Percent of Graduates who Complete Internships and/or Co-ops
• Non-Credit Workforce Training (KCTCS only)
• Annual Updates on Regional Development, Outreach and Public Service
36
QUESTIONS?
Kentucky Council on Postsecondary Education 21
37
Tuition Setting
Process for
Academic Year
2017-18
CPE Work Session
November 17, 2016
38
2
• Statutory authority to determine tuition (KRS 164.020)
• Collaborative process involving multiple stakeholders – Council president and staff
– Campus presidents and chief budget officers
– Council members (TDWG)
– Governor and legislative leadership
– Student groups
• Data driven and transparent – Regional and national comparisons of sticker and net prices
– Trends in federal, state, and campus funded student aid
– Net price % of family income and student debt
– Fixed cost increase and tuition revenue estimates
Tuition Setting Process
39
Tuition and Fee Policy
• Funding Adequacy – The Council seeks to balance the affordability of postsecondary
education for Kentucky’s citizens with the institutional funding necessary to accomplish the goals of HB 1 and the Strategic Agenda.
• Shared Benefits and Responsibility – The Council and the institutions believe that funding postsecondary
education is a shared responsibility of state and federal governments, students and families, and postsecondary education institutions.
• Affordability and Access – The Council and the institutions are committed to ensuring that college
is affordable and accessible to all academically qualified Kentuckians, with particular emphasis on adult learners, part-time students, minority students, and students from low and moderate income backgrounds.
3
40
Tuition and Fee Policy (Cont’d)
• Affordability and Access
– The Council believes that no citizen of the Commonwealth who has the drive and ability to succeed should be denied access to postsecondary education in Kentucky because of inability to pay.
– Access should be provided through a reasonable combination of savings, family contributions, work, and financial aid, including grants and loans.
• Nonresident Student Policy
– Nonresident students should pay a larger share of their educational costs than do resident students.
– Institution shall manage tuition and fee rates, price discounting, and scholarship aid for out-of-state students, so that average net tuition and fee revenue per nonresident student equals or exceeds 100% of direct instructional and student services costs per student.
4
41
Key Issues for 2016-17
5
• Enacted reduction of 4.5% (or $40.1 million)
• Large increase in mandated KERS contributions (9.82 % points)
• Fixed and unavoidable cost increases
• Sector differentiation
• Widening tuition gap in comprehensive sector
42
6
Kentucky Public Postsecondary InstitutionCombined Budget Reduction and Fixed Cost IncreasesFiscal Year 2016-17
Enacted (a) Mandated (b) Other Fixed (c) Combined Percent of
Institution Reduction KERS Increases Cost Increases Challenges 2015-16 Base
University of Kentucky ($12,582,500) $0 ($12,138,444) ($24,720,944) -8.8%
University of Louisville ($6,258,500) $0 ($10,754,252) (17,012,752) -12.2%
Eastern Kentucky University ($3,061,500) ($2,721,490) ($2,781,841) (8,564,831) -12.6%
Kentucky State University $0 ($456,000) ($213,000) (669,000) -2.9%
Morehead State University ($1,950,300) ($919,078) ($1,890,766) (4,760,144) -11.0%
Murray State University ($2,161,100) ($1,082,947) ($1,161,451) (4,405,498) -9.2%
Northern Kentucky University ($2,184,200) ($3,800,000) ($904,303) (6,888,503) -14.2%
Western Kentucky University ($3,359,200) ($1,828,025) ($1,714,975) (6,902,200) -9.2%
KCTCS ($8,557,300) ($2,600,000) ($8,194,966) (19,352,266) -10.2%
System Total ($40,114,600) ($13,407,540) ($39,753,998) ($93,276,138) -10.2%
(a) The 2016-18 Budget of the Commonwealth (HB 303) includes an enacted 4.5% reduction each year from the current year base.(b)
HB 303 mandates an employer contribution rate of 48.59% for KERS in fiscal year 2016-17, a 9.82 percentage point increase.(c) Includes M&O, utilities, health insurance, mandated tuition waiver, and contractual obligation cost increases.
Source: Kentucky Budget of the Commonwealth; University and KCTCS Chief Budget Officer estimates.
Budget Cut and Cost Increases
43
7
$40.1
$13.4
$39.8
$33.1
$61.6
Fixed Cost Increases and
State Budget Reductions
Gross Tuition and Fee
Revenue Increase
Budget Challenges for Postsecondary InstitutionsFiscal Year 2016-17
(Dollars in Millions)
$126.4
Growth in Campus FundedStudent Financial Aid
Other Fixed and Unavoidable Cost Increases1
1 Includes M&O, utilities, health insurance, mandated tuition waiver, and contractual obligation cost increases.
Mandated KERS Increases
General Fund Budget Reduction @ 4.5%
Source: Council on Postsecondary Education, Comprehensive Database.
$64.8 Shortfall
44
8
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
EKU KSU MoSU MuSU NKU WKU
Kentucky Comprehensive UniversityGrowing Dispersion of Resident Undergraduate Tuition and Fees
Academic Years 2001-02 through 2016-17
High, WKU@ $9,912
High, WKU@ $2,844
Low, KSU@ $7,796
Low, KSU@ $2,648
AY 2016-17$2,116 Gap
Source: Council on Postsecondary Education, Comprehensive Database.
AY 2001-02$196 Gap
Sticker Prices
Prices include Special Use and Agency Bond fees.
45
Key Issues for 2017-18
9
• Nine budget cuts over ten years
• Kentucky one of few states not reinvesting
• Transfer of $42.9 million to Postsecondary Education Performance Fund
• Minimal KERS increase for 2017-18 (less than 1 % point)
• Sector differentiation
• Widening tuition gap in comprehensive sector
46
10
Kentucky Public Postsecondary Institution
Enacted Net General Fund Appropriations
Fiscal Years 2007-08 and 2017-18
2007-08 2017-18
Enacted Net Enacted Net(a)
Dollar Percent
Institution General Fund General Fund Change Change
University of Kentucky $335.1 $253.7 ($81.4) -24.3%
University of Louisville 168.6 126.2 (42.4) -25.1%Eastern Kentucky University 79.8 61.7 (18.0) -22.6%Kentucky State University 27.4 26.7 (b) (0.7) -2.6%Morehead State University 48.2 39.9 (c) (8.3) -17.2%Murray State University 56.1 43.6 (12.5) -22.3%Northern Kentucky University 55.1 48.9 (d) (6.2) -11.3%Western Kentucky University 85.1 70.8 (e) (14.3) -16.8%
KCTCS 228.7 172.5 (56.2) -24.6%
System Totals $1,084.0 $844.0 ($240.0) -22.1%
(a) Figures net of $42.9 million transfer to Postsecondary Education Performance Fund.(b) Includes an additional appropriation of $3,300,000 for KSU's Land Grant Program.(c) Includes an additional appropriation of $580,000 for MoSU's Craft Academy.(d) Includes $5,334,200 in equity adjustment funds at NKU.(e) Includes $2,588,000 in equity adjustment funds at WKU and $750,000 for Kentucky Mesonet Project.
Source: Kentucky Budget of the Commonwealth, multiple biennia.
47
11
$1,084
$915
$1,261
$915$879
$844
$879
$844
$43 $43
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2007-08 2015-16 2016-17 2017-18 2007-08 2015-16 2016-17 2017-18
Net General Fund Appropriations Newly Enacted Budget (HB 303) Performance Reallocation
$887 $887
($374 M)-30%
Kentucky Public Postsecondary SystemEnacted Net General Fund AppropriationsSelected Fiscal Years 2007-08 through 2017-18
($197 M)-18%
Sources: Kentucky Budget of the Commonwealth, multiple biennia.
Nominal Dollars Inflation Adjusted
Dollars(In Millions)
48
12
$8,664$8,404
$7,766
$7,223$6,828
$6,415$6,172 $6,030 $5,937 $6,000
$5,767 $5,535
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
(E) 2
00
7-0
8
(R) 2
00
7-0
8
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
Net General Fund per FTE Enacted Budget GF per FTE Performance Reallocation per FTE
Kentucky Public Postsecondary SystemNet General Fund Appropriations per Full-Time Equivalent Student
Fiscal Years 2007-08 through 2017-18
Dollars(per Student)
Constant 2016 Dollars
(E) = Enacted; (R) = Revised. Note: Figures displayed after 2015-16 are not inflation adjusted and assume no enrollment growth.
Sources: Kentucky Budget of the Commonwealth, multiple biennia; Commonfund Institute, Higher Education Price Index.
$5,817
($2,847)-33%
Equates to
($434 M)
Performance Reallocation = $282 per FTE
49
13
44.6%
11.6%
-4.2% -27.3%
MT
UT
MA
CO SC OR
CA ID
WY
SD HI
TX FL NE
MD RI
IN NY
OH IA
USA M
S
WA CT
NM
MN
NH
VA
DE
MO
ME
KS
AL
NC
AK
GA NJ
WI
TN
AR
NV
MI
WV
VT
KY
OK LA AZ
Note: Kentucky data does not include 2% cuts enacted at the close of FY 16 and currently the subject of litigation.
Source: “Grapevine” Report, Center for the Study of Education Policy and the Association of State Higher Education ExecutiveOfficers, 2016.
Change in State Support for Higher Education Between Fiscal Years 2010-11 and 2015-16
50
Sticker Price Comparison
14
• Sticker prices at Kentucky research and comprehensive institutions are at or below regional averages
• Stickers prices at KCTCS institutions are among the highest in our region (due to lack of local tax revenue)
• Every year since 2009, the Council has adopted tuition and fee ceilings (for resident UG rates)
• Rate increases at research and comprehensive institutions have been below regional and national averages
• Increases at KCTCS have been among the lowest in our region and nationally
51
15
$6,456
$9,415
$10,037
$10,062
$10,110
$10,262
$12,458
$15,258
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
West Virginia
Missouri
Ohio
Tennessee
Kentucky
Indiana
Virginia
Illinois
Flagship Universities in Kentucky and Surrounding StatesResident Undergraduate Tuition and Required Fees
Academic Year 2013-14
Source: Washington Student Achievement Council (WSAC).
Sticker
Prices
52
16
$5,985
$6,752
$7,713
$8,026
$8,708
$9,561
$9,644
$12,120
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
West Virginia
Missouri
Tennessee
Kentucky
Indiana
Ohio
Virginia
Illinois
Comprehensive Colleges and Universities in Kentucky and Surrounding StatesResident Undergraduate Tuition and Required Fees (State Averages)
Academic Year 2013-14
Source: Washington Student Achievement Council (WSAC).
StickerPrices
53
$3,117
$3,231
$3,380
$3,680
$3,787
$3,865
$3,900
$4,320
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Missouri
West Virginia
Illinois
Indiana
Tennessee
Ohio
Virginia
Kentucky
Community Colleges in Kentucky and Surrounding StatesResident Tuition and Required Fees (Estimated State Averages)
Academic Year 2013-14
Source: Washington Student Achievement Council (WSAC).
StickerPrices
54
18
9.8%
15.4%16.0%
12.8%
11.6%
8.7%8.0%
4.5%
5.4%6.1%
5.2%
3.1%
4.5%3.6%
5.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%20
02-0
3
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
Percent Change from Prior Year
Source: Council on Postsecondary Education, Comprehensive Database.
Kentucky Public Postsecondary SystemAnnual Change in Resident Undergraduate Tuition and Fees
Fiscal Years 2002-03 through 2016-17
Impact of CPE Tuition and Fee Ceilings
AAGR - Average Annual Growth Rate
11.7% AAGR 4.7% AAGR
55
Net Price Comparison
19
• Most students do not pay published sticker prices due to availability of student financial aid
• Since the early 2000s, Kentucky has been a high student financial aid state
• The average net price of college attendance at Kentucky research institutions is below the regional average
• The net price at Kentucky comprehensive universities is among the lowest in our region
• Student aid covers the cost of tuition, fees, and books for all but the highest income students at KCTCS
• College is relatively affordable at KCTCS and comprehensive institutions (based on net price as a % of MFI statistics)
56
20
$0
$2
6
$4
8
$5
2
$6
4
$7
4
$1
16
$
12
1
$1
25
$
13
0
$1
33
$
19
5
$2
36
$
24
8
$2
68
$
28
3
$2
86
$
29
5
$3
55
$
36
7
$4
05
$
41
2
$4
37
$
45
7
$4
57
$
52
0
$5
20
$
55
5
$5
81
$
60
5
$6
29
$
69
6
$7
01
$
70
8
$7
76
$
77
9
$7
92
$
84
4 $9
62
$
97
5
$1
,01
6
$1
,06
2
$1
,09
0
$1
,11
0
$1
,13
3
$1
,14
1 $1
,32
4
$1
,36
8
$1
,51
3
$1
,54
5
$1
,66
8
$1
,96
2
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400 N
H AL
UT
AZ ID HI
RI
KS
MT
SD PR NE
MS
MI
OH
ME
MA CT OR IA ND
MO
NV
CO
MD VT
WI
FL DE
OK
WY
AK IL DC TX
NC
MN PA
VA IN AR
CA
WV
NM NY
KY NJ
WA
TN LA GA SC
Source: National Association of State Student Grant and Aid Programs (NASSGAP), 46th Annual Survey Report on State-Sponsored Student Financial Aid.
State Funded Student Financial Aid Programs in United StatesTotal Undergraduate Grant Dollars per Undergraduate Student Enrollment
Academic Year 2014-15
Low Aid States High Aid States
Dollars(per Student)
57
21
$1,031 $997 $956 $966$1,029
$1,124
$1,719
$1,941$1,766
$1,504$1,438
$778 $781 $829 $821 $762 $757
$993$885
$677$781 $739
$1,693$1,800
$1,952$2,083
$2,224$2,326
$2,078$2,184
$2,579
$2,786$2,932
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Pell and Other Federal Grants State Grants Campus Funded Grants and Scholarships
Kentucky Public Postsecondary SystemStudent Financial Aid per FTE Student by Source
Fiscal Years 2003-04 through 2013-14
Source: Integrated Postsecondary Education Data System (IPEDS); Commonfund Institute, Higher Education Price Index (HEPI).
Constant 2014 Dollars
Dollars(per Student)
58
22
$9,380
$11,573
$14,069
$14,842
$16,249
$16,872
$17,863
$19,613
$0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000
West Virginia
Indiana
Virginia
Kentucky
Illinois
Missouri
Tennessee
Ohio
Flagship Universities in Kentucky and Surrounding StatesAverage Net Price for Full-Time, Degree-Seeking Undergraduates
Academic Year 2013-14
Source: Integrated Postsecondary Data System.
Net Price
59
23
$8,825
$11,288
$11,830
$12,324
$12,610
$15,420
$15,544
$16,969
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
West Virginia
Kentucky
Tennessee
Indiana
Missouri
Virginia
Ohio
Illinois
Comprehensive Colleges and Universities in Kentucky and Surrounding StatesAverage Net Price for Full-Time, Degree-Seeking Undergraduates
Academic Year 2013-14
Source: Integrated Postsecondary Education Data System.
Net Price
60
24
$7,718 $7,315
$4,665
$2,273
$2,206
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Aid to Lowest Aid to Second Aid to Third Aid to Highest
Income Quartile Income Quartile Income Quartile Income Quartile
($8,394 average) ($29,651 average) ($54,181 average) ($108,812 average)
Need and Merit Based Grants Out-of-Pocket Costs to Student
Sources: CPE Comprehensive Database; Integrated Postsecondary Data System.
Kentucky Community and Technical College SystemAverage Need and Merit Based Grant Aid per Full-Time Resident Undergraduate Student
Academic Year 2013-14Dollars(per Student)
Annual cost of tuition,fees, & books = $4,479
61
25
19% 20
% 21% 22
% 23% 24
%24
%24
%24
% 25% 26
%26
%26
% 27%
27%
27%
27% 28
%28
%28
%28
% 29%
29%
29%
29% 30
%30
%30
%30
% 31%
31% 32
%32
%32
% 33%
33%
33% 34
%34
%34
%34
%34
% 35%
35% 36
% 37%
37% 39
%42
%47
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%A
K
WV LA WY HI
NM IN NC TX IA FL
MN MI
MD
WA AZ
CA
GA
TN NV UT
VT
DE
MA KY
ND
AR
NE
WI
NY
OK ID MT
SD IL VA
MO
ME
OR
KS
CO NJ RI
MS
CT
SC OH AL
NH
PA
Source: Penn Graduate School of Education, Institute for Research on Higher Education, 2016 College Affordability Diagnosis.
Public Research Universities in the United StatesAverage Net Price as a Percent of Median Family Income
Academic Year 2013-14
More Affordable Less Affordable
62
26
19%
19% 20
%20
%20
%20
% 21%
21%
21%
21% 22
% 23%
23%
23% 24
%24
%24
%24
% 25%
25%
25%
25% 26
%26
%26
% 27% 28
%28
%28
% 29%
29% 30
%30
%30
%30
%30
% 31% 32
%32
%32
%32
% 33%
33%
33%
35% 36
% 37%
37%
37%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%A
K RI
WV FL CA
OK HI
NM ND UT
NY
WA
TN KY
LA NC
AR IN TX WI
KS
AZ
OH NE
MO
MT IA
MN MI
MS
GA
NV
CO
MD CT
SD AL
VA ID
MA
OR
VT
SC ME IL DE
PA
NH NJ
Source: Penn Graduate School of Education, Institute for Research on Higher Education, 2016 College Affordability Diagnosis.
Public Four-Year Nondoctoral Colleges in the United StatesAverage Net Price as a Percent of Median Family Income
Academic Year 2013-14
More Affordable Less Affordable
63
27
13%
13% 14
% 15%
15%
15%
15% 16
%16
%16
%16
%16
%16
%16
% 17%
17%
17%
17%
17%
17%
17%
17%
17% 18
%18
%18
%18
%18
%18
%18
%18
%18
%18
%18
% 19%
19%
19%
19% 20
% 21%
21% 22
%22
% 23%
23%
23%
28% 29
%37
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%H
I
MS
MI
GA
NM CT RI
NE
KY
WY
TX IL CA AL
NJ
WV ID VA TN DE
WA
OK
MO AZ
ND SC AR
OH NY FL KS
MA
MD IN NV
PA
NC
UT
MT
LA WI
OR IA CO SD ME
MN VT
NH
Source: Penn Graduate School of Education, Institute for Research on Higher Education, 2016 College Affordability Diagnosis.
Public Two-Year Colleges in the United StatesAverage Net Price as a Percent of Median Family Income
Academic Year 2013-14
More Affordable Less Affordable
64
Student Loan Debt Comparison
28
• Average student loan debt and the proportion graduating with debt are important measures of college affordability
• Staff performs annual assessments of loan debt as part of the tuition setting process
• About 64% of the class of 2015 graduated with debt
• Average loan debt for the class of 2015 was 4.95% higher than loan debt for the class of 2014
• Graduates from Kentucky institutions have relatively low loan debt compared to graduates from surrounding states
• Kentucky has historically been a low student loan debt state, but has begun to move toward the US average
65
29
$14,250$15,861 $15,406
$16,972$15,951
$19,112 $19,375
$22,287 $22,384
$24,693$25,939
$27,22552%
60%63% 64%
57%54%
58%60%
62%59%
64% 64%
0%
10%
20%
30%
40%
50%
60%
70%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Average Student Loan Debt Percent Graduating With Debt
Kentucky Public and Private Four-Year UniversitiesAverage Student Loan Debt and Percent Graduating with Debt
Graduating Classes 2004 through 2015Dollars
(Avg. Debt)Percent
(With Debt)
Source: The Project on Student Debt, Student Debt and the Class of 2015, October 2016.
Graduating Classes
66
30
$26,083
$27,225
$27,480
$27,713
$27,717
$29,022
$29,305
$30,239
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
Tennessee
Kentucky
Missouri
West Virginia
Virginia
Indiana
Illinois
Ohio
Source: The Project on Student Debt, Student Debt and the Class of 2015, October 2016.
Kentucky Public and Private Four-Year UniversitiesAverage Student Loan Debt in Kentucky and Surrounding States
Graduating Class of 2015
Average Loan Debt of Students Graduating with Debt
67
31
$1
8,8
73
$
20
,19
3
$2
2,1
91
$
22
,68
3
$2
3,3
79
$
23
,45
6
$2
3,4
62
$
23
,78
0
$2
4,6
00
$
24
,84
9
$2
5,6
45
$
25
,84
0
$2
6,0
82
$
26
,08
3
$2
6,1
71
$
26
,23
5
$2
6,2
80
$
26
,86
5
$2
7,2
25
$
27
,32
4
$2
7,4
80
$
27
,63
9
$2
7,6
72
$
27
,69
7
$2
7,7
13
$
27
,71
7
$2
7,7
54
$
27
,76
5
$2
8,0
08
$
28
,28
3
$2
9,0
22
$
29
,15
3
$2
9,3
05
$
29
,32
0
$2
9,3
64
$
29
,46
0
$2
9,5
47
$
29
,64
4
$2
9,6
44
$
29
,94
2
$3
0,0
45
$
30
,10
4
$3
0,2
39
$
30
,56
4
$3
1,5
26
$
32
,92
0
$3
3,8
49
$
34
,77
3
$3
4,7
98
$
36
,10
1
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000 U
T
NM CA WY FL HI
NV AZ
WA
OK
NC
CO AR
TN AK
NE
MT LA KY TX
MO ID
MD
OR
WV
VA
GA
US
KS VT IN AL IL NY
SD WI
IA
MA
ME
MS
MI
NJ
OH SC
MN RI
DE
CT PA NH
Source: The Project on Student Debt, Student Debt and the Class of 2015, October 2016.
Public and Private Four-Year UniversitiesAverage Student Loan Debt by State
Graduating Class of 2015Dollars
(Average Debt)
Low Debt States High Debt States
68
Tuition Setting
Process for
Academic Year
2017-18
CPE Work Session
November 17, 2016
69