BOARD of GOVERNORS State University System of Florida Tim Jones, Vice Chancellor Finance & Administration June 2, 2019 www.flbog.edu

Q & A Which state is recognized by US News & World report as the Number 1 higher education system in the country? How many members are on the university board of trustees? Where does Florida Undergraduate tuition rank nationally? Where does the SUS rank nationally on 6-year graduation rates among the 10 largest states? What is the SUS total operational budget?

State Organizational Structure

Florida Higher Education Governance 6/16/2015 Florida Higher Education Governance Board of Governors Constitutional 12 State Universities State Board of Education Constitutional K-12 28 Colleges Information Systems Articulation Independent Colleges and Universities of Florida 31 Institutions

Article IX, Section 7 – Florida Constitution Board of Governors – 17 Members Operate Regulate Control Board of Trustees – 13 members Administer

Boards of Trustees Powers and Duties 6/16/2015 Boards of Trustees Powers and Duties Regulation 1.001, University Board of Trustees Powers and Duties, includes: University Administration and Oversight Academic Programs and Student Affairs Personnel Financial Management Property and Purchasing Compliance

SUS 2018-2019 Operating Budget - $13.8 Billion Collects & distributes income from faculty billings for patient services performed at medical schools or clinics General Revenue, lottery and tuition appropriations Financial aid, student activities, athletics, technology, concessions, Board approved fees complete Housing, parking, food services, bookstores, continuing education and other auxiliary units that support the university Federal, state or local

SUS 2018-2019 Operating Budget - $13.8 Billion

SUS 2018-2019 Education & General Operating Budget

SUS 2018-2019 Fixed Capital Outlay

Legislative Budget Process Legislative Budget Requests Legislative Budget Requests are submitted to the Governor, Senate & House of Representatives Governor submits budget recommendations to Senate & House of Representatives Senate & House budget committees hold public meetings to workshop budget issues Senate & House each pass their own budget bills House & Senate members hold public meetings to work out the differences between the budgets A final budget bill called the General Appropriations Act is passed by the Senate & House The final budget is then sent to the Governor who has line item veto power Governor Governor’s Recommended Budget Senate House Budget Committee Meetings Budget Committee Meetings Senate Budget Bill House Budget Bill General Appropriations Act Governor

2019-2020 Legislative Appropriation $5.1 billion E&G budget – Net Increase of $69.5 M $560 M for Performance-based funding ($35 M) base budget reduction $104 M for specific university initiatives Fixed Capital Outlay: $84.4 M for 6 university fixed capital outlay projects No funds for maintenance, repair or renovation

Senate Bill 190 Operations: 7% minimum fund balance Carryfoward can be spent on renovation, repair and maintenance Timeline for completion of each project Fixed Capital Outlay: Develop a points based priority system for requesting funds 6 criteria to consider

Performance-based Funding in the US (FY 2018) Source: https://www.thirdway.org/report/lessons-learned-a-case-study-of-performance-funding-in-higher-education

Board of Governors Performance Funding Model Use metrics that align with Strategic Plan goals Reward excellence or improvement Have a few clear, simple metrics Acknowledge the unique mission of the different institutions 4 Guiding Principles: New funds allocated based on 10 metrics Base funds and new funds, at risk One metric chosen by the Board of Governors and one by the Board of Trustees Institutions evaluated on the excellence or improvement for each metric Data based on one year Key Components:

Board of Governors Performance Funding Model Performance Based Funding Metrics 1. Percent of Bachelor’s Graduates Employed (Earning $25,000+) or Continuing their Education 6. Bachelor’s Degrees Awarded in Areas of Strategic Emphasis 2. Median Wages of Bachelor’s Graduates Employed Full-Time 7. University Access Rate (Percent of Undergraduates with a Pell-grant) 3. Average Cost to the Student (Net Tuition per 120 Credit Hours) 8a. Graduate Degrees Awarded in Areas of Strategic Emphasis 8b. Freshmen in Top 10% of Graduating High School Class (NCF only) 4. Four Year Graduation Rate (Full-time FTIC) 9. Board of Governors Choice – Percent of Bachelor’s Degrees without Excess Hours 5. Academic Progress Rate (2nd Year Retention with GPA Above 2.0) 10. Board of Trustees Choice

History of Institutional & State Investments in Performance Based Funding

Performance Funding Metric Improvement Strategic Plan Goal: 90% 10 point Benchmark: $40,700 10 point Benchmark: $9,000 Strategic Plan Goal: 50%

Performance Funding Metric Improvement Strategic Plan Goal: 50% Strategic Plan Goal: 90% Strategic Plan Goal: 80% Strategic Plan Goal: 60%

2018-19 (& earlier) Allocation Methodology: Performance Funding Allocation Methodology Old vs. New 2018-19 (& earlier) Allocation Methodology: Universities scoring 50 points or less must do an improvement plan. Universities not earning the required 50 point threshold or the three lowest scores will not receive any of the state investment. Universities receive state investment funds proportional to their existing base. The three highest scores are eligible for additional state investment funds based on points earned. Tie breaker used to determine bottom 3 and top 3 2019-20 Allocation Methodology: Universities scoring 50 points or less must do an improvement plan. No Bottom 3 Requirement. Top 3 scores and universities w/ increased scores receive state inv. University score that decreased or stayed the same for 2 consecutive years, must complete a student success plan to receive state inv. University score below 70 could receive up to 50% of the state investment after completing a student success plan Universities receive state investment funds proportional to their existing base. No tie breaker needed

BOARD of GOVERNORS State University System of Florida www.flbog.edu