1. PAUL TURCOTTE PROGRAM DIRECTOR TEXAS HIGHER EDUCATION COORDINATING BOARD TO THE TASSCUBO BUDGET COMMITTEE FEBRUARY 2013 Outcomes-Based Funding

2. Outcomes-Based Funding – Seven Factors 2

3. Outcomes-Based Funding – Factors Defined Total Undergraduate Degrees Total number of Bachelor’s Degrees awarded by an institution in a given year. Time-to-Degree Factor Total Bachelor’s Degrees multiplied by the school’s six-year graduation rate, to incent timely completion. Institutional Mission Factor Degrees divided by Full Time Student Equivalents (FTSEs) and multiplied by 100. This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity among institutions with different missions and student bodies. Cost-to-Degree Factor Degrees weighted using cost-based weights, to compensate for the varying costs associated with differing degree types. Critical Fields Factor Degrees awarded in fields identified as critical workforce needs such as Computer Science, Engineering, Math, Physics, Nursing, Allied Health and Teaching Certificates for Math and Science. At-Risk Factor 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 national average SAT/ACT score, part-time student, GED recipient, or entering higher education at age 20 or older. Persistence Factor Points awarded for students who complete their 30th, 60th, or 90th hour at the institution, to incentivize the use of effective persistence policies. 3

4. Outcomes-Based Funding - Points Funds allocated by weighted points The ratio of an institution’s weighted points to the weighted points earned by all institutions Example InstitutionPoints Percent of Total PointsFunding (millions) A10025$75 B12531$93 C17544$132 Total400100$300 4

5. Outcomes-Based Funding - Points Product of the three-year average and weight  Critical fields weighted two, all others weighted one Example FactorYear 1Year 2Year 3Average Weighted Points Total Undergraduate Degrees1,0001,1001,2001,100 Time-to-Degree400450470440 Institutional Mission29303130 Cost-to-Degree2,0001,9002,0101970 Critical Fields400300350 700 At-Risk600700680660 Persistence3,0001,5003,3002600 TotalN/A 7,500 5

6. Total Undergraduate Degrees Total number of Bachelor’s Degrees awarded by an institution in a given year. Accountability measure #10 Number of degrees reported on the CBM009 – Graduation Report for the fiscal year  Fiscal year 2012 includes fall 2011, spring 2012, and summer 2012 reports Multiple degrees earned by a single student are included Double Majors are counted as a single degree Degrees included  Baccalaureate  Associate of Applied Science (AAS) Excludes certificates 6

7. Time-to- Degree Total Bachelor’s Degrees multiplied by the school’s six- year graduation rate To incent timely completion. 6-Year Graduation Rate – Accountability measure #9  First-time entering degree-seeking students who enrolled in an minimum of 12 semester credit hours their first fall semester who graduated from the same institution or another Texas public or independent institution after four, five, and six academic years. This metric includes Social Security Number changes submitted on the CBM00N. First-time determined by the first-time student flag on the CBM001. Sources: CBM001, CBM002, CBM009, CBM00N Same Fiscal Year as degrees reported  For fiscal year 2012, cohort started in fall 2006 Includes same and other institutions Upper-Level institutions use 3-Year Completion Rate  First-time junior level students transferring in who graduated from the same institution or another Texas public or independent institution after three academic years.  UT-Brownsville, TAMU-Texarkana, UH-Clear Lake, UH-Victoria, and Sul Ross Rio Grande. New institutions calculated with parent graduation rate  TAMU-Central Texas, TAMU-San Antonio, and UNT-Dallas. Example InstitutionDegreesRate Weighted Points A9,00080%7,200 B20030%60 7

8. Institutional Mission Degrees divided by Full-Time Student Equivalents (FTSEs) and multiplied by 100. This aggregate measure adjusts for part-time and transfer students, providing a common framework for comparing degree productivity among institutions with different missions and student bodies. Degrees same as the first factor Undergraduate Full-time student equivalents (FTSE) – Accountability measure #2  Number of semester credit hours (SCH) reported on the CBM004 – Class Report for the fall of the fiscal year  For fiscal year 2012, fall 2011 Includes state funded undergraduate semester credit hours Excludes non-state funded and graduate semester credit hours Undergraduate Semester Credit Hours divided by 15 to convert to FTSE Example DegreesSCH FTSE (SCH/15) Weighted Points (Degrees/(FTSE/100)) 4,930255,00017,00029 8

9. Cost-to-Degree Degrees weighted using cost-based weights To compensate for the varying costs associated with differing degree types. Degrees same as the first factor Cost weights – Upper-Level relative weights for the fiscal year of the degrees.  The CIP code reported for each degree on the CBM009 converted to a fund code using Appendix O of the reporting manual  The corresponding relative weight is matched to each degree by fund code Weighted Point – Sum of the relative weights Example Degree CIP Code Fund Code Relative Weight (Weighted Points) 01.0802011.69 03.0103022.95 13.1327141.76 Total Weighted Points 6.40 9

10. Critical Fields Degrees awarded in fields identified as critical workforce needs such as Computer Science, Engineering, Math, Physics, Nursing, Allied Health and Teaching Certificates for Math and Science. Subset of degrees in the first factor Weighted Points - Degrees with the following CIP codes times 2 Critical FieldDegree CIP Code Computer Science 11.xx- Computer and Information Sciences and Support Services Engineering 14.xx - Engineering 15 - Engineering Technologies and Engineering-Related Fields Mathematics 27.xx - Mathematics and Statistics Physical Sciences 40.xx - Physical Sciences 30.01 - Biological and Physical Sciences Nursing 51.38 - Registered Nursing, Nursing Administration, Nursing Research and Clinical Nursing 51.39 - Practical Nursing, Vocational Nursing and Nursing Assistants Allied Health 51.02 - Communication Disorders Sciences and Services 51.06 - Dental Support Services and Allied Professions 51.07 - Health and Medical Administrative Services 51.08 - Allied Health and Medical Assisting Services 51.09 - Allied Health Diagnostic, Intervention, and Treatment Professions 51.10 - Clinical/Medical Laboratory Science/Research and Allied Professions 51.18 - Ophthalmic and Optometric Support Services and Allied Professions 51.23 - Rehabilitation and Therapeutic Professions 51.26 - Health Aides/Attendants/Orderlies 51.27 - Medical Illustration and Informatics 51.31 - Dietetics and Clinical Nutrition Services 51.32 - Bioethics/Medical Ethics 51.33 - Alternative and Complementary Medicine and Medical Systems 51.34 - Alternative and Complementary Medical Support Services 10

11. Critical Fields – Teaching Certificates Teaching Certificates for Math and Science. Mathematics and Science teacher certificates as reported by the State Board of Educator Certification (SBEC)  Go to www.tea.state. tx.us  In the left hand frame, select “State Board for Educator Certification”  From the expanded menu, select “Reports, Data, Research”  In the left hand frame, select “Interactive Reports”  Under the “SBEC Production Reports”, select “Educator/Teacher Production Counts”  Enter the dates for the fiscal year (one year lag)  Check the “Initial Educator Certificates by Educator Preparation Program Area”  At the bottom on the page, select “Continue”  On the data webpage, select “Click here to download the data in comma delimited form”  Sort the data by Organization and count the certificates issued for the Mathematics and Science certification areas. As of February 1  For the fiscal year 2012 metrics,  Certifications reported for 9/1/2010 to 8/31/2011  Certification counts are believe to only appear once teachers are fingerprinted. This causes a considerable delay. Through observation the staff believes lagging these data one fiscal year is the most equitable way to account for the significant majority of certifications for each institution. Mathematics and Science Only Organization reported by SBEC  Assumed to be the degree granting institution Points not a subset of first factor, but the certificates reported for the period Two points for each teaching certificate 11

12. At-Risk 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 Older Weighted Points AYes 1 BNo YesNo 1 C 0 12

13. 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 13

14. Persistence Points awarded for students who complete their 30th, 60th, or 90th hour at the institution. To incentivize the use of effective persistence policies. One point awarded for students successfully completing 30, 60, or 90 hours at the institution as reported on the CBM00S – Student Schedule Report  Last five years – FY 2012 includes data from fall 2007 to summer 2012  Successful completion reported as A, B, C, D, or Credit/Passed in 24  Prior to summer 2011, students receiving a failing grade are included in counts All undergraduate students enrolled at the institution College-level hours earned at the institution currently enrolled  Exclude hours earned at other institutions  Exclude developmental education hours Examples Student Hours Earned at the Institution in prior Fiscal Years Hours Earned at the Institution in current Fiscal YearTotal Weighted Points 1030 1 22124451 330 601 44512570 56030901 675301051 790301200 82945742 14

15. Persistence – Data Elements Points awarded for students who complete their 30th, 60th, or 90th hour at the institution. To incentivize the use of effective persistence policies. CBM001 – Student 2 - Institution Code 3 - Student Identification Number 5 - Classification 6 - Date of birth 18 - Semester 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 Prior to summer 2011 CBM002 – Texas Success Initiative 2 - Institution Code 3 - Student Identification Number 4 - Reporting period 5 - Year 10A - Semester Credit Hours Completed Summer 2011 and after CBM00S – Student Schedule 2 - Institution Code 3 - Student Identification Number 10 - Semester Credit Hour Value 19 - Developmental Education Course/Intervention Level (value=0) 24 - Course Grade (value=1, 2, 3, 4, 8) 29 - Semester 15