Presentation on theme: "AHECB Finance Committee Meeting July 25, 2014. AGENDA ITEM NO. 6 OPERATING NEEDS AND RECOMMENDATIONS FOR THE 2015-17 BIENNIUM Tara Smith Senior Associate."— Presentation transcript:
AGENDA ITEM NO. 6 OPERATING NEEDS AND RECOMMENDATIONS FOR THE 2015-17 BIENNIUM Tara Smith Senior Associate Director, Institutional Finance
Institutional Need SSCH decreased 9.8% for Colleges and increased 0.6% for Universities over the previous calendar year used for the 2013-15 Biennium operating need calculations AHECB approved the funding model adjustments at its meeting on April 25, 2014 – Faculty Salaries in the Need models were increased to 2013 SREB Average and Adjusted to the 2015-16 level to reflect the Higher Education Price Index (HEPI) Increase – Tuition Rates were increased to reflect the Higher Education Price Index (HEPI) Increase – Students Services Rates were increased to reflect the Higher Education Price Index (HEPI) Increase (2-YR & Technical Center Models only) – Fringe Benefit component added (University model only) FY16 Need for Higher Education is $936.4 million for institutions and $231.8 million for non-formula entities
ADHE Recommendation ADHE recommends an increase of $143.8 million for all entities. This recommendation will bring all institutions to at least 75% of Need.
Operating Recommendations Table A. Summary of Operating Needs & Recommendations for the 2015-17 Biennium
Operating Recommendations Table B. 2015-17 Four-Year Universities Recommendations
Operating Recommendations Table C. 2015-17 Two-Year Colleges Recommendations
Operating Recommendations Table D. 2015-17 Technical Centers Recommendations
Operating Recommendations Table E. 2015-17 Non-Formula Entities Recommendations
AGENDA ITEM NO. 7 PERSONAL SERVICES RECOMMENDATIONS FOR THE 2015-17 BIENNIUM
Summary of Recommendations Line-item maximum salary increases were considered this biennium, and all line-item maximums were adjusted by 3 percent per year. Arkansas Tech University moved from Four-Year 4 SREB classification to Four-Year 3. Line-item maximum salaries were increased accordingly. Salary recommendations for new positions were based on salaries for similar positions previously established at comparable institutions. Institutions (including UAMS) have 21,841 non-classified positions currently authorized.
Summary of Recommendations ADHE Staff recommends a net increase of 739 non-classified positions for institutions not including UAMS. – Much of the net increase is due to enrollment growth & SREB classification changes Increase of 3.8 percent for a total of 19,990 non-classified positions UAMS had no net new position requests. ADHE Staff recommends a total of 8,801 for UAMS.
AGENDA ITEM NO. 8 CAPITAL FUNDING RECOMMENDATIONS FOR THE 2015-17 BIENNIUM
Capital Funding Requests $5.4 billion E&G current replacement value 47 percent of useful life of campus facilities has been expended $946 million requested for construction, renovation and technology infrastructure Over $2.5 billion requested for deferred maintenance
Capital Funding Requests A total of $225.6 million recommended for all projects – $151 million for renovation, new construction and technology infrastructure – $51.3 million for deferred maintenance – $23.2 million for equipment, library
AGENDA ITEM NO. 9 PERFORMANCE BASED FUNDING (OUTCOMES-CENTERED) MEASURES FOR THE 2015-17 BIENNIUM
Performance Based Funding Recommendation for addition of hold harmless clause to Performance Funding Policy: For the implementation of performance funding, institutions are to be held harmless for complying or participating in an initiative promoted by the Arkansas Department of Higher Education (ADHE) that has the potential to adversely affect the outcomes of compliance with performance funding measures. This includes, but is not limited to degree audits, contributions to economic development, and increases in quality of education provided.
AGENDA ITEM NO. 10 CERTIFICATION OF INTERCOLLEGIATE ATHLETIC REVENUES AND EXPENDITURES FOR 2015-15 Jake Eddington Program Specialist, Institutional Finance
Relevant Information Percentages of funds supporting athletic budgets excluding UAF: – Athletic generated revenues – 26.1% Includes Other Athletic Income – Other Auxiliary profits – 14.7% – Educational and General transfer – 26.0% – Student Athletic fees – 42.2%
AGENDA ITEM NO. 11: ECONOMIC FEASIBILITY OF BOND ISSUE FOR ARKANSAS TECH UNIVERSITY – OZARK CAMPUS Chandra Robinson Program Coordinator, Institutional Finance
Relevant Information $6 million for 30 years @ a rate not to exceed 5.0% Educational and general purposes Revenue Funding Source: Tuition and Fee Revenue Proceeds will be used to construct and equip the Allied Health Building and complete the Roofing Project for the Technology and the Academic Support Building
AGENDA ITEM NO. 12: ECONOMIC FEASIBILITY OF BOND ISSUE FOR NORTHWEST ARKANSAS COMMUNITY COLLEGE Chandra Robinson Program Coordinator, Institutional Finance
Relevant Information $3 million for 20 years @ a rate not to exceed 4.0% Educational and general purposes Revenue Funding Source: Tuition and Fee Revenue and Millage Revenue Proceeds will be used to purchase 20 acres of land in Springdale, Arkansas. Sometime within the next 5 years, Northwest Arkansas Community College will build a center for career and technical training on this property.
Consent Agenda Items New Programs Agenda Item No. 13: Arkansas State University-Mountain Home Technical Certificate in Hospitality Management Agenda Item No. 14: Arkansas State University-Jonesboro Doctor of Occupational Therapy Associate of Applied Science in Occupational Therapy Assistant Information/Board Notification Agenda Item No. 15: Letters of Notification Agenda Item No 16: Letters of Intent
AGENDA ITEM NO. 17 COLLEGE OF THE OUACHITAS - SHERIDAN EDUCATION CENTER Cynthia Moten Associate Director, Academic Affairs
AGENDA ITEM NO. 18 ARKANSAS TECH UNIVERSITY: ROLE AND SCOPE CHANGE DOCTOR OF EDUCATION IN SCHOOL LEADERSHIP Cynthia Moten Associate Director, Academic Affairs
ATU Role and Scope Change Doctor of Education in School Leadership Role and Scope Change request to offer initial doctorate degree in School Leadership. External reviewers for role and scope and new program proposals. After discussion, no further concerns expressed about program duplication, program need or institutional readiness. AHECB approval required for additional doctoral degrees.
AGENDA ITEM NO. 19 UNIVERSITY OF ARKANSAS-FORT SMITH: ROLE AND SCOPE CHANGE MASTER OF SCIENCE IN HEALTHCARE ADMINISTRATION Cynthia Moten Associate Director, Academic Affairs
UA-Fort Smith Role and Scope Change Master of Science in Healthcare Administration (For Information and Discussion Only) Role and Scope Change request to offer initial master’s degree in healthcare administration. External team reviewed the role and scope and new program proposals. No concerns expressed by Arkansas institutions. Board will vote on role and scope change and new master’s degree at the next AHECB meeting.
AGENDA ITEM NO. 20 ICAC RESOLUTIONS Alana Boles Program Specialist, Academic Affairs
Previously Certified Institutions Initial Degree Certifications – Distance Technology Argosy University, Orange, California – 1 Degree Arizona State University, Scottsdale, Arizona – 9 Degrees Boise State University, Boise, Idaho – 1 Degree Colorado Technical University, Colorado Springs, Colorado – 1 Degree Concordia University Wisconsin, Mequon, Wisconsin – 7 Degrees Johns Hopkins University, Baltimore, Maryland – 5 Degrees Liberty University, Lynchburg, Virginia – 3 Degrees Mid-America Christian University, Oklahoma City, Oklahoma – 2 Degrees Missouri State University, Springfield, Missouri – 4 Degrees Oregon State University, Corvallis, Oregon – 6 Degrees Simmons College, Boston, Massachusetts – 1 Degree University of Cincinnati, Cincinnati, Ohio – 2 Degrees University of Kansas, Lawrence, Kansas – 1 Degree University of Nebraska at Kearney, Kearney, Nebraska – 1 Degrees University of Nebraska-Lincoln, Lincoln, Nebraska – 1 Degree University of Saint Mary, Leavenworth, Kansas– 1 Degree
Doctor of Osteopathic Medicine New York Institute of Technology Off-Campus Location in Jonesboro, Arkansas Arkansas State University Proposed Arkansas Colleges of Health Education- Arkansas College of Osteopathic Medicine Fort Smith, Arkansas
Agency Updates New Employees – Steven Bell Financial Aid – Tracye McKeown Receptionist New Position – Angela Lasiter Academic Affairs
Faculty Performance Reviews Colleges and universities are required to conduct faculty performance reviews under Arkansas Code Annotated §6-63-104 and AHECB policy 5.5. ADHE staff is required to monitor faculty evaluation processes adopted at Arkansas public institutions and report annually to the AHECB and Legislative Council. All institutions conducted faculty performance reviews during 2013-14 using a variety of methods including assessment by students, classroom visits by administrators, peer review, and self-evaluation activities. ADHE Director’s Report Agenda Item No. 3 July 25, 2014
College-Going Rate AHECB Meeting of July 25, 2014
Rick Jenkins Associate Director, Planning and Accountability
Fourth Year of New Methodology New methodology focuses on students that (1) graduated from an Arkansas public school district in Academic Year 2012-2013, (2) are first-time entering students in 2013 Fall term, and (3) are Arkansas residents. This new methodology more closely follows that used by the National Center for Education Statistics (NCES). However, there are three differences: 1. NCES filters by the age range of 16-24 – ADHE ignores age but focuses on high school graduates from the previous year as most all high school graduates are between the ages of 16 and 24; 2. NCES includes GED students as their report is based on a survey. ADHE does not have data on annual graduating classes of GED students, therefore, GED students are excluded; and 3. Since the NCES report is a survey, it may include private high schools and home school students. ADHE has no data on annual graduating classes of private high schools or home school students. But ADHE does obtain data on graduating classes of Arkansas public high schools (from the Arkansas Department of Education). Therefore, the new methodology is a College-Going Rate calculation for Arkansas public high school graduates only.
The old methodology consisted of the Fall student cohort including (1) first-time, (2) full-time, and (3) on-campus that attend an Arkansas public or independent institution after completing high school or GED. The Old Methodology Did Not Measure College-Going Rate Why Did the Methodology Change?
Private/Independent Institutions: Where They Attend Arkansas Baptist College (ABC) had 142 first-time entering students but no high school graduation year, no high school code, or diploma/GED status. Hendrix College (HC) had 435 first-time entering students but no high school graduation year or diploma/GED status. Williams Baptist College (WBC) had 113 students but had no high school graduation year.