2. March 2014 Regents, Trustees, Coordinating Board Institutions Instructions, $ $ $ $ Suggestions, recommendations Texas Legislature

3. Aug-Mar – Formula Advisory Committees meet and make recommendations to the Commissioner Feb-Mar – Staff works through the numbers, Commissioner decides on his recommendations, CAAP Committee Meets April 2014 – CB Adopts Formula Recommendations June 1 st – No later than, staff forwards formula recommendations to LBB/GOBP. Formula Base Period begins with summer semester Nov-Dec – LBB runs formulas using spring, summer, and fall 2014 numbers January 2015 – 84th Texas Legislature convenes March 2014

4. Early January – HB1/SB1 is filed, Formula dollars in bills reflect growth in enrollments only and usually includes change in matrix March 2015 – New formulas are run using certified base year numbers (summer and fall 2014 and spring 2015) Late March or Early April – Each chamber passes its bill, do not include new formula numbers Late April-Late May – Conferees negotiate final bill and decide how much money will flow through the formulas May 2015 – Legislature adjourns sine die June 2015 – No later than, Governor signs bill, no line item veto for higher education March 2014

5. All Funds Formula

6.  Faculty Salaries  Department Operating Expense  Library  Instructional Administration  Student Services  Institutional Support  Research Enhancement  Infrastructure Support March 2014

7.  Auxiliary enterprises ◦ student housing, parking facilities, food service, intercollegiate athletics  Certain fringe benefits  Special Items  New construction and major Repair and Renovation of facilities  Debt service on tuition revenue bonds March 2014

8. Two formulasTwo Supplements Instruction and Operations Teaching Experience Infrastructure Small Institution

9. March 2014

10. Recommendation:  Fund I&O Formula at a rate of $57.30 ($3.9B) Increases 2014-15 rate by 7.3% Anticipates a 4.4% increase in weighted SCH  Fund Infrastructure at a rate of $5.78 ($734M) Increases 2014-15 rate by 2.2% Anticipates a 4% increase in predicted SF Infrastructure rate split according to FY 2014 utility rates Small Institution Supplement – No change  Overall increase of 6.4% or $281M ($4.649B) March 2014

11. Competency-Based Education Funding Recommendation:  Fund 2016-2017 Biennium with current formulas  Conduct cost study on existing programs for next committee’s review March 2014

12. Outcomes Based Funding Recommendation:  Fund on outcomes outside the formula at a level equal to 10% of the undergraduate formula funding. ◦ Fully fund other formula recommendations first  Allocate funds ◦ 7 defined metrics ◦ 3-year rolling average ◦ Latest data available ◦ Scaled ◦ Weighted March 2014

13.  Total Undergraduate Degrees  Total Undergraduate Degrees – adjusted by 6-year graduation rate  Total Undergraduate Degrees - per 100 undergraduate FTSE  At-Risk (Pell, SAT/ACT, Part-time, GED, and First-Time UG 20 or over)  Retention – 30, 60, 90 hours March 2014

15. While the at-risk metric is designed to adjust for the varying student characteristics at individual institutions and the effort needed to see the student succeed, it is noted that the data for measuring student characteristics is not as reliable or readily available as the committee would prefer. The committee recommends that the THECB staff study this issue and make recommendations to the 2015 GAIFAC for potential improvements to the model. March 2014

16.  To ensure that the “at-risk” metric provides adequate incentives for institutions to enroll and succeed with truly at-risk students, suggest that THECB consider alternative ways to define students as “at risk” of not graduating that identify a smaller proportion of the state’s college students as “at risk.”  Current definition, 65 percent of all students attending public four- year institutions are classified as “at risk.”  THECB and the FAC should consider additional options for placing institutions with differing student populations on a more equal footing. March 2014

17. At-Risk Degrees Degrees awarded to students who meet federal criteria for being at high risk for non- completion. Indicators are being a federal Pell Grant recipient, below average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older. One point for each student awarded degrees in the first measure that meets one or more of the conditions 1. Reported by any institution as a “Pell Grant recipient” in the Financial Aid Database System (FADS) during the last 10 years 2. Earned an SAT or ACT score below the national average  Scores reported on the CBM00B – Admissions Report or by the College Board  National Averages posted on www.collegeboard.org or www.act.orgwww.collegeboard.orgwww.act.org 3. Part-Time (taking less than 12 hours) when reported as first-time in college on the CBM001 – Student Report 4. General Education Degree (GED) recipients for the last six years  Data provided by the Texas Education Agency (TEA) upon request 5. 20 or older by date of birth field on the CBM001 – Student Report when reported as first-time in college Student Received Pell Grant Earned a Below Average SAT or ACT Score First- Time in College and Attended less than 12 Received a GED First- Time in College and 20 or OlderPoints AYes 1 BNo YesNo 1 C 0

18. At-Risk – Data Elements Degrees awarded to students who meet federal criteria for being at high risk for non- completion. Indicators are being a federal Pell Grant recipient, below average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older. CBM009 - Graduation 2 - Institution Code 3 - Student Identification Number 6 - Date of Birth 7 - Degree Conferred 8 - Level of Degree or Certificate Conferred 9 - Major CBM001 – Student 2 - Institution Code 3 - Student Identification Number 5 - Classification 6 - Date of Birth 9 - Transfer Student or First-Time-in-College 10A - Semester Credit Hour Load, On-Campus 10 - B Semester Credit Hour Load, Off- Campus 13 - Semester 14 - Year 31 - Dual Credit Course Semester Credit Hours CBM00N – Student Number Change 2 - Institution Code 3 - Current Student Identification Number 4 - Current Date of Birth 6 - Prior Student Identification Number 7 - Prior Date of Birth FAD - Financial Aid Database 1B - FICE 1D - Student Social Security Number/ID Number 31A - Federal Pell CBM00B - Admissions 2 - Institution Code 3 - Student Identification Number 24 - Application Year 25 - ACT Composite Score 26 - SAT Combined Score TEA GED Data Student Identification Number GED Certification Date SAT and ACT National Averages www.collegeboard.org www.act.org