New CEO Student Centered Funding Formula Taskforce - PowerPoint Presentation

New CEO Student Centered Funding Formula Taskforce Area 1 – Willy Duncan, Sierra CCD (Co-Chair)At Large – Marlon Hall, Lassen CCD (Co-Chair)Area 2 – Doug Houston, Yuba CCDArea 3 – Tom Burke, Kern CCDArea 4 – Michael Claire, San Mateo CollegeArea 5 – Fred Wood, Contra Costa CCDArea 6 – Dianne Van Hook, Santa Clarita CCDArea 7 – Otto Lee, Los Angeles Harbor CollegeArea 8 – Bill Scroggins, Mt. San Antonio CCDArea 9 – Ed Knudsen, Antelope CollegeArea 10 – Cheryl Marshall, North Orange CCDArea 11 – Kindred Murillo, Southwestern CCDAt Large – Joi Lin Blake, Palomar CCDAt Large – Celia Esposito-Noy, Solano CCDAt Large – John Fernandez, Santiago Canyon College

New CEO Student Centered Funding Formula Taskforce Task force duration will be 1-3 years depending on the implementation of the funding formula and changes that are made.Our goal will be to engage CEOs and other stakeholder groups within the system to provide a forum for feedback and ideas relative to the funding formula. We plan to provide opportunities to hear directly from stakeholders regarding their ideas and concerns. Our input will be communicated to Chancellor Oakley and likely the legislature and the Administration.There will be regular communication out to the field, including a dedicated web page for easy access to documents and information.

Previous CEO Workgroup: Areas of Analysis Impact of regulations such as the FON and 50 percent law Final adjustments of Success for All metrics Impact on noncredit programs (non-CDCP)Reporting alignment within other categorical programs not identified in this recommendationPrograms addressing the needs of older students (25 years and older)District basic allocations to better reflect fixed operating costs associated with serving students Program Transition

Student Centered Funding Formula Update for CIO Fall Conference William H. Duncan, IV Sierra College Superintendent/President

Student Centered Funding FormulaBackground Information Proposed by the Governor in JanuaryStakeholder input to Chancellor, Dept. of Finance and the LegislatureLegislative hearingsSenate rejected the formulaAssembly rejected the formula, but directed the CCCCO and BOG to create a task force to report to legislature by March 1, 2019 Formula was added back to the budget bill during Conference and after negotiation with the Governor

Unique Political Dynamic Governor Edmund G. BrownChancellor Eloy OakleyElection YearGavin NewsomeJanus ruling

Implementation Team Board of GovernorsLegislatureGovernorOversight CommitteeAdvisory Groups The committee consists of 12 members: Four (4) members appointed by the Senate Committee on Rules with at least one a community college classified employee. Four (4) members appointed by the Speaker of the Assembly with at least one a community college faculty member. Four (4) members appointed by the Governor serving a four-year term with at least one a community college administrator. New CEO Taskforce Fifteen (15) CEOs: 1 from each area 4 at large members The Area CEO’s selected their representatives ensuring all areas and types of colleges are represented appropriately

Campus Perspective & Preparation

Campus Perspective & Preparation Reviewed CCCCO budget simulationsIdentified emerging issuesAccurate collection and reporting of data is criticalComprehension of metric definitions integral Formed workgroup to include Budget, Research, Instruction and Student ServicesAligning strategic planning goals with Vision for Success goals

Vision for Success 1. Over five years, increase by at least 20% the number of students who acquire associates degrees, credentials, certificates, or specific skill sets that prepare them for an in-demand job.  2. Over five years, increase by 35% the number of students transferring to a UC or CSU.  3. Over five years, decrease the average number of units accumulated by students earning associate’s degrees, from approximately 87 total units (the most recent system-wide average) to 79 total units—the average among the quintile of colleges showing the strongest performance on this measure. (Associate’s degrees typically require 60 units.) 4. Over five years, increase the percent of exiting CTE students who report being employed in their field of study, from the most recent statewide average of 60% to an improved rate of 69%—the average among the quintile of colleges showing the strongest performance on this measure and ensure the median earning gains of the exiting students are at least twice the statewide consumer price index.  5. Reduce equity gaps across all of the above measures through faster improvements among traditionally underrepresented student groups , with the goal of cutting achievement gaps by 40% within 5 years and fully closing those achievement gaps within 10 years.  6. Over five years, reduce regional achievement gaps across all of the above measures through faster improvements among colleges located in regions with the lowest educational attainment of adults , with the ultimate goal of fully closing regional achievement gaps within 10 years.

1. Base Allocation: Primarily credit FTES 70% (ACCESS)         Vision for Success Goal: Base Credit FTES $3,727 per FTES Areas of Focus :   CDCP, Special Admit Credit, and incarcerated credit* $5,547 per FTES Marketing   Non-credit students $3,347 per FTES Onboarding   Dual Enrollment   *Rate remains the same to encourage districts to continue to serve this population of students;   they will also be included in supplemental and Student Success metrics   2. Supplemental Allocation: Low-income students 20% (EQUITY)             Pell $919 per student Areas of Focus : 5 AB540 $919 per student Financial Aid 5 Promise $919 per student Support Services 5 Local Promise   *Unduplicated headcount   3. Student Success Allocation: Outcomes related to Vision for Success 10% (SUCCESS)           Student Success Allocation Measures All Students Promise Pell Total       Funding Rate for Points $440 $111 $111   Point Value/Funding Areas of Focus :   Associate Degree for Transfer (ADT) 4/$1760 4/$444 6/$666 $2,870 Articulation 1 Associate Degree (AA) 3/$1320 3/$333 4.5/$499.50 $2,152.50 Support Services 1 Bachelors Degree 3/$1320 3/$333 4.5/$499.50 $2,152.50 Counseling 1 Certificates (credit, at least 16 units) 2/$880 2/$222 3/$333 $1,435 Professional Dev 1 Completion of Transfer Level Math and English in 1st yr 2/$880 2/$222 3/$333 $1,435 Scheduling 2,3,5 Transfer to 4-year 1.5/$660 1.5/$167 2.25/$250 $1,076.50 Research 2 Completion of 9 or more CTE units 1/$111 1.5/$167 $717.50 1,3 Attainment of regional living wage 1/$111 1.5/$167 $717.50 4,6

Discussion on the Student Centered Funding Formula Chancellor’s Office

“Waves are not measured in feet and inches. They are measured in increments of fear.”

“…state leaders have truly delivered on a promise to put students first and set an example for the rest of the nation by adopting a new funding formula that incentivizes student success…”

Overview September 8, 2018

Principles for Reform In reforming funding for community college districts, we should aim to do the following:Encourage progress toward the Vision for Success adopted by the Board of Governors.Provide groups of students that have faced barriers to success with additional support to meet our goals.Make resources most useful to community college districts by making them stable, predictable, and flexible.We want community college finance to further the activities the Chancellor’s Office is undertaking through the Guided Pathways framework.

Student Centered Funding Formula The new formula calculates apportionments generally using three allocations:Base Allocation—Current factors (primarily credit FTES).Supplemental Allocation—Counts of low-income students.Student Success Allocation—Counts of outcomes related to the Vision for Success, with “premiums” for outcomes of low-income students.Under this structure, noncredit FTES and some credit FTES would be funded at current rates.The rates are calculated to provide a three-year transition to the new funding rates.

New Elements—Supplemental Allocation For the supplemental allocation, a district would receive one “point” based on the counts of all of the following in the prior year:Pell Grant recipients.California College Promise Grant recipients.AB 540 students.

New Elements—Student Success Allocation MeasuresAll StudentsCCPG Recipients 1/Pell Grant RecipientsAssociate degrees for transfer granted446 Associate degrees granted (excluding ADTs) 3 3 4.5 Baccalaureate degree granted 3 3 4.5 Credit certificates (16 units or more) granted 2 2 3 Completion of transfer-level mathematics and English courses within first academic year of enrollment 2 2 3 Successful transfer to four-year university 1.5 1.5 2.25 Completion of nine or more CTE units 1 11.5Attainment of regional living wage111.5 1/ CCPG = California College Promise Grant.

New Elements—Funding Rates 2018-192019-20 /12020-21 /1Base AllocationDollars/Credit FTES$3,727$3,387$3,046 Dollars/Credit FTES of Special Admits $5,457 $5,457 $5,457 Dollars/Credit FTES of Inmates in Correctional Facilities $5,457 $5,457 $5,457 Dollars/Noncredit FTES $3,347 $3,347 $3,347 Dollars/CDCP Noncredit FTES $5,457 $5,457 $5,457 Basic Allocation * * * Supplemental Allocation (Dollars/Point)$919$919$919Student Success Allocation All Students (Dollars/Point) $440 $660$880CCPG and Pell Grant Recipients (Dollars/Point)$111$167$2221/ These totals will be adjusted by the changes in the cost-of-living in those years.

Funding Stability Provisions Line2018-192019-202020-212021-22 and Outyears1SCFF CalculationSCFF CalculationSCFF CalculationSCFF Calculation2 2017-18 Total Computational Revenue (TCR) (No COLA) 2017-18 TCR (No COLA) N/A N/A 3 N/A N/A 2017-18 Credit, Noncredit, and CDCP Noncredit Rates, with Basic Allocation, Applied to 2020-21 Workload (No COLA) 2017-18 Credit, Noncredit, and CDCP Noncredit Rates, with Basic Allocation, Applied to 2021-22 (or Current) Workload (No COLA) 4 N/A Greater of Line 1 or Line 2 in 2018-19 Greater of Line 1 or Line 2 in 2019-20 Greater of Line 1 or Line 3 in 2020-21 (or Prior Year) 5 2017-18 TCR—Adjusted by 2018-19 COLA2017-18 TCR—Adjusted by 2018-19 and 2019-20 COLAs2017-18 TCR—Adjusted by 2018-19, 2019-20, and 2020-21 COLAsN/A

Upcoming Deadlines DeadlineDescriptionOctober 30Districts required to submit data on awards in MIS.November 1Districts required to submit data on financial aid in MIS.November 30Chancellor’s Office makes SCFF data available on Data On Demand for review.November 30Districts required to submit all final corrections in MIS for use as part of the supplemental allocation and student success allocation.Before December 31 Chancellor’s Office makes final SCFF data available on Data On Demand. February 20 SCFF apportionment released for the current fiscal year (2018-19). September 8, 2018

Links to Educational Programs Districts are required to do the following:Goals—Adopt, by January 1, 2019, of goals that are aligned with the Vision for Success.Comprehensive Plans—Align comprehensive plans with those goals and alignment of annual budgets with the comprehensive plans.Capacity—If directed by the chancellor (with approval by the Board of Governors), use funds for technical assistance or professional development.

Links to Educational Programs The legislation also creates several new responsibilities for the Chancellor’s Office—specifically, the development of:Processes to monitor the approval of new awards, certificates, and degree programs.Processes to monitor the number of students who transfer to for-profit postsecondary educational institutions, with required reports on the growth of transfer to these institutions compared to transfer to the UC and the CSU.Minimum standards for the approval of certificates and awards that would count toward the funding formula.September 8, 2018

Links to Educational Programs The 2018-19 budget also established the Student Equity and Achievement Program, with the intent of providing districts with additional flexibility to support students—especially those with the greatest needs—in meeting the outcomes included in the Student Centered Funding Formula.September 8, 2018

Implementation Team

Implementation Team To communicate how the implementation of the SCFF can advance the Vision for Success under the Guided Pathways framework.To apportion funds consistent with the related statutes.To align system policies and practices with these changes.To support community colleges in implementing these policies by providing professional development and technical assistance.To make decisions transparently and with advice from interested parties.

Oversight Committee Budget legislation would create an oversight committee consisting of 12 members appointed by the Senate Rules Committee, the Assembly Speaker, and the Governor.The committee would make recommendations:By January 1, 2020, on use of measures (as part of the supplemental allocation) related to a student’s status as a first-generation college student, a student’s financial need given regional considerations, and a student’s academic proficiency.By June 30, 2021, on funding for noncredit courses and instructional service agreements, as well as methods by which allocations could be adjusted in a recession.

Other Concerns We have heard concerns that a district would not receive points in the student success allocation for the following:A student who has completed a transfer-level mathematics course in the district and a transfer-level English course in another district (or vice versa).A student who has taken some CTE units (less than nine) in the district and some CTE units (less than nine) in another district—even if those units total nine units or more.A “special admit” student (generally a high school student in dual or concurrent enrollment) who has achieved outcomes included in the new formula (e.g., completion of nine CTE units or completion of transfer-level mathematics and English within one year).

Other Concerns We have also heard concerns that the formula might encourage districts to create new certificates or pathways that have limited value for the student, because formula allocates points in the student success allocation based on the total number of outcomes across the categories, with multiple outcomes achieved by the same student counted each time.

Advisory Workgroup on Fiscal Affairs The Chancellor asked the Advisory Workgroup on Fiscal Affairs to lend expertise on the following:The adoption of regulations that clarify the provisions of the related statutes.The development of new reports, including apportionment reports, that reflect the formula and associated processes to collect data from districts.The production of tools that would help business officials and other local leaders forecast revenues under the formula, including new multi-year planning tools.The Chancellor also asked for appointment of members who serve in other roles. This will include a CIO!32

Budget and Legislative Request A primary component of the budget and legislative request for 2019-20 approved by the Board of Governors is an increase an appropriations for the Student Centered Funding Formula, with related changes in statues to adjust funding rates.The costs of a 5-percent adjustment are estimated to be $345 million.In addition, the board is requesting:$250,000 in 2019-20 and 2020-21 ($500,000 total) for support of oversight committee.$250,000 in 2019-20, 2020-21, and 2021-22 ($750,000 total) for evaluation.September 8, 2018

Budget and Legislative Request The Board of Governors is also requesting a 5-percent increase in funding for the Student Equity and Achievement Program, amounting to $23 million (in addition to the $475 million currently budgeted).Further, the bard of authority to establish a methodology for allocation of funds appropriated for the program—a formula that should create appropriate financial incentives for meeting the goals of the Vision for Success.September 8, 2018

Resources to Support Implementation Through Guided Pathways, the Chancellor’s Office is supporting districts in making changes to improve student success. Specifically:Professional DevelopmentVision Resource CenterRegional CoordinatorsWe are also encouraging leaders to participate in upcoming Guided Pathways workshops.35

Upcoming Events There are also two upcoming SCFF webinars:Linking to Local Goals—November 5, 2018, 2:00 pm to 3:30 pmStrengthening Student Equity and Achievement—December 2018The Chancellor’s Office team will also be presenting at many conferences and events this fall—let us know if there are places we should be!

More Information

Deeper Dive—Base Allocation

Credit FTES The funding rate for 2018-19 is $3,727.The base equals the three-year average of current year, prior year, and prior, prior year. For the current year, we assume for purposes of our estimates any restoration of prior year declines.Growth will be calculated from this three-year average base.

Noncredit FTES The funding rate for 2018-19 is $3,347.The funding rate is unchanged from current practice.For purposes of our estimates, we calculate growth from prior year FTES, adding any restoration that occurs.

Career Development and College Preparation (CDCP) FTES The funding rate for 2018-19 is $5,457.The funding rate is unchanged from current practice.For purposes of our estimates, we calculate growth from prior year FTES, adding any restoration that occurs.

Inmates in Correctional Facilities Credit FTES The funding rate for 2018-19 is $5,457.The funding rate is unchanged from current practice for this population of students.This workload measure will be identified on new apportionment reports.

Inmates in Correctional Facilities Noncredit FTES The funding rate for 2018-19 is $3,347.The funding rate is unchanged from current practice for this population of students.This workload measure will be identified on new apportionment reports.

Special Admits Credit FTES The funding rate for 2018-19 is $5,457.Funding rate remains unchanged from current funding rate for this population of students.This workload measure will be identified on new apportionment reports.

Deeper Dive—Supplemental Allocation

Supplemental Allocation The funding rate for 2018-19 is $919 per count of the following:Pell Grant recipients.California College Promise Grant recipients.AB 540 students.Counts are from the prior year.That is, counts will be updated in fall of the current year to determine funding for the budget year.

Deeper Dive—Student Success Allocation

Associate Degrees for Transfer GroupRatesAll Students$1,760Pell Grant Recipients$666California College Promise Grant Recipients$444Note: Count of all ADTs by district, with point assigned to district granting degree. No minimum unit requirement for student to be counted.

Associate Degrees GroupRatesAll Students$1,320Pell Grant Recipients$500California College Promise Grant Recipients$333Note: Count of all associate degrees by district, with point assigned to district granting degree. No minimum unit requirement for student to be counted.

Baccalaureate Degrees GroupRatesAll Students$1,320Pell Grant Recipients$500California College Promise Grant Recipients$333Note: Count of all baccalaureate degrees by district, with point assigned to district granting degree. No minimum unit requirement for student to be counted.

Credit Certificates (16 Units or More) GroupRatesAll Students$880Pell Grant Recipients$333California College Promise Grant Recipients$222Note: Count of all credit certificates by district, with point assigned to district granting certificate. No minimum unit requirement for student to be counted.

Completion of Transfer-Level Mathematics and English within First Year of Enrollment GroupRatesAll Students$880Pell Grant Recipients$333California College Promise Grant Recipients$222Note: MIS special data run. Completion of both math and English in the same academic year (summer, fall, winter, spring).

Successful Transfer to Four-Year University GroupRatesAll Students$660Pell Grant Recipients$250California College Promise Grant Recipients$157Note: MIS special data run. Students must have 12 or more units at a community college to count. Direct match with CSU, UC and Clearinghouse.

Completion of Nine or More CTE Units GroupRatesAll Students$660Pell Grant Recipients$250California College Promise Grant Recipients$157Note: MIS special data run.

Attainment of Regional Living Wage GroupRatesAll Students$440Pell Grant Recipients$167California College Promise Grant Recipients$111Note: MIS special data run. Count of students enrolled in 2015-16 and then attained their county living wage in 2016-17. Use of the Insight Center for Community Economic Development Self-Sufficiency Tool.

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