AHECB Finance Committee Meeting - PowerPoint Presentation

Slide1

AHECB Finance Committee Meeting

July 25, 2014

Slide2

Agenda item no.

6

operating needs and recommendations

for the 2015-17 biennium

Tara Smith

Senior Associate Director, Institutional Finance

Slide3

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

Slide4

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.

Slide5

Operating Recommendations

Table A. Summary of Operating Needs & Recommendations for the 2015-17 Biennium

Slide6

Operating Recommendations

Table

B.

2015-17

Four-Year Universities Recommendations

Slide7

Operating Recommendations

Table

C.

2015-17

Two-Year Colleges Recommendations

Slide8

Operating Recommendations

Table D.

2015-17

Technical

Centers

Recommendations

Slide9

Operating Recommendations

Table

E.

2015-17 Non-Formula Entities

Recommendations

Slide10

Agenda item no.

7

personal services recommendations

for the 2015-17 biennium

Slide11

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.

Slide12

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.

Slide13

Agenda item no.

8

capital funding recommendations

for the 2015-17 biennium

Slide14

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

Slide15

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

Slide16

Agenda item no. 9

Performance Based Funding (Outcomes-Centered) Measures

for the 2015-17 biennium

Slide17

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.

Slide18

Agenda item no. 10

certification of intercollegiate athletic revenues and expenditures

for

2015-15

Jake Eddington

Program Specialist,

Institutional Finance

Slide19

Relevant Information

Athletic Fees Per SSCH

Institution

2013-14 Athletic Fee

2014-15 Athletic Fee

ASUJ

$17.00

$17.00

ATU

$14.00

$14.00

HSU

$

15.00

$

15.00

SAUM

$

14.00

$

17.00

UAF

$0.00

$0.00

UAFS

$

16.00

$

16.00

UALR

$

16.66

$

17

.25

UAM

$

13.00

$

13.00

UAPB

$

16.00

$

17.00

UCA

$

17.00

$

17.00

Slide20

Intercollegiate Athletic

Report for 2014-15

Slide21

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%

Slide22

Agenda item no.

11:

Economic Feasibility of

BOND ISSUE for ARKANSAS TECH UNIVERSITY – OZARK CAMPUS

Chandra Robinson

Program Coordinator,

Institutional Finance

Slide23

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

Slide24

Agenda item no.

12:

Economic Feasibility of

BOND ISSUE for NORTHWEST ARKANSAS COMMUNITY COLLEGE

Chandra Robinson

Program Coordinator, Institutional Finance

Slide25

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.

Slide26

ACADEMIC COMMITTEE

Slide27

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

Slide28

Agenda item no.

17

college of the ouachitas - sheridan

EDUCATION CENTER

Cynthia Moten

Associate Director, Academic Affairs

Slide29

Agenda item no.

18

ARKANSAS TECH UNIVERSITY: Role and Scope change

Doctor of Education in school leadership

Cynthia Moten

Associate Director, Academic Affairs

Slide30

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.

Slide31

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

Slide32

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.

E

xternal 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.

Slide33

Agenda item no. 20

ICAC RESOLUTIONS

Alana Boles

Program Specialist, Academic Affairs

Slide34

Institutional Certification Advisory Committee (ICAC)

28 Colleges

and Universities

108 Programs10

New Institutions – Distance Technology

Initial

Degree Certifications

Ashland University, Ashland, Ohio–

1

Degree

Boston University, Boston, Massachusetts–

5

Degrees

Columbia Southern University, Orange Beach, Alabama– 10 Degrees

Drexel University

,

Philadelphia, Pennsylania–

9

Degrees, 6 Certificates

Emporia State University, Emporia, Kansas – 10 DegreesFreed-Hardeman University, Henderson, Tennessee – 1 Degree

Grantham University, Lenexa, Kansas– 10 DegreesKansas State University, Manhattan, Kansas – 5 Degrees

Northcentral University, Scottsdale, Arizona – 3 DegreesWake Forest University, Winston-Salem, North Carolina – 2 Degrees

Slide35

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

Slide36

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

Slide37

AHECB Meeting

July 25, 2014

Slide38

Agency Overview

Shane Broadway

Director

Slide39

Agency Updates

New Employees

Steven Bell

Financial Aid

Tracye

McKeown

Receptionist

New

Position

Angela Lasiter

Academic Affairs

Slide40

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

Slide41

Newsletter

Slide42

College-Going Rate

AHECB Meeting of July 25, 2014

Slide43

Rick Jenkins

Associate Director, Planning and Accountability

Slide44

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.

Slide45

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?

Slide46

College-Going Rate is Up 1.4%

Slide47

Arkansas v. Nation

NOTE: 2012 Fall is the most recent national College-Going Rate per website of NCES.

Slide48

Distribution by Institution Type: 2013 Fall

Slide49

Distribution by Institution Type: History

Slide50

Gender and Race/Ethnicity

Slide51

4-Year Universities: Where They Attend

Slide52

2-Year Colleges: Where They Attend

Slide53

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.

Slide54

Agenda item no. 5

POLicy

clarificationCONCURRENT ENROLLMENT

(ahecb Policy 5.16)

Cynthia Moten

Associate Director, Academic Affairs

Slide55

AHECB Policy Clarification

Concurrent Enrollment

Clarification Statements -

Participation Requirements for non-public and out-of-state colleges and

universities

Blended

IB/concurrent course

delivery

Minimum academic

credentials for teachers