Agenda item no. 9 : Annual Financial Conditions Report Nick Fuller - PowerPoint Presentation

Agenda item no. 9:Annual Financial Conditions Report Nick FullerDeputy Director

IntroductionReport Purpose:Describe financial conditions of Arkansas’s Public Institutions of Higher EducationDescribe challenges experienced by Arkansas’s Public Institutions of Higher EducationTopics Addressed:Productivity-Based FundingComparison of Arkansas faculty salaries to other SREB statesTuition & FeesFund Balances Institutional Scholarship expendituresAthletic Expenditures

Comparison of Arkansas faculty salaries to other SREB states

Comparison of Arkansas faculty salaries to other SREB states

Comparison of Change in Funds per FTE Students to other SREB states - Universities

Comparison of Change in Funds per FTE Students to other SREB states - Colleges

Tuition and Fees With the Governor’s addition of nearly $10,000,000 in State funding for higher education from the implementation of the Productivity Funding model in fiscal year 2018-19, 4 year institutions were tasked with holding tuition flat year over year and the 2 year institutions were requested to limit tuition increases to the CPI .Even with this freeze, fee increases were needed at institutions causing total Tuition and Fee increases from 2017-18 to 2018-19 to reflect the following:Four-year Institutions = 1-YR Average increase 3.3%Two-year Institutions = 1-YR Average increase 3 .1%

Tuition Increases – 4 Year Institutions

Tuition Increases – 2 Year Institutions

Fund Balances According to industry standards, optimal fund balances should range from 5% to 14% of the E & G operating budget.For 2017-18, all but one of the 4-year institutions’ fund balances were above 5%. For 2017-18, one 2-year institution’s fund balance fell below 5%.

Fund Balances – 4-Year

Fund Balances – 2-Year

Institutional Scholarships (Academic and Performance)A.C.A 6-80-106 set limitations on Institutional Scholarships from tuition and feesAcademic and Performance scholarships awarded to students who qualify for a Pell Grant were excluded in accordance with A.C.A. § 6-80-106. The limit is 20% of E&G tuition and fee revenue14,472 scholarships were awarded at 4-Year Institutions at a cost of $62.7 million compared to 17,993 at a cost of $68.5 million the previous year Scholarships as a percent of tuition and fees were 8.2% compared to 9.2% the previous year

Institutional Scholarships

RecommendationsContinue to work with institutions to monitor and refine the Productivity Funding Model policies to ensure adequate funding is available to meet student needs, innovation is encouraged, and that the policies continue to respond to attainment goals and priorities of the state.AHECB, ADHE and institutions of higher education work with the legislature toward alignment of institutional funding policies, state financial aid policies, and tuition policies in a way that prioritizes higher education affordability.

Agenda item no. 10:Economic Feasibility of a loan for Arkansas RESEARCH AND EDUCATION OPTICAL NETWORK Nick Fuller Deputy Director

Relevant Information$619,416.98 with a term of seven (7) years @ a rate not to exceed 2.74% Educational and general purposes (E&G)Revenue Funding Source: Membership Fee RevenueProceeds from the loan will be used to replace the optical equipment acquired during phase I of the AREON network build out.

Dr. Jessie J Walker Senior Associate Director of Academic Affairs /Research & Analytics

ACADEMIC COMMITTEE CONSENT AGENTA ITEMS

Consent Items *11. University of Arkansas-Fort Smith Master of Education in Education *Numbers refer to main agenda

Agenda Item no. 12Institutional Certification Advisory Committee: Resolutions Alana BolesProgram Director of Private Career and Out-of-State Education

Institutional Certification Advisory Committee (ICAC)5 Colleges and Universities 16 Programs

Agenda Item no. 13Letters of Notification Dr. Jessie J WalkerSenior Associate Director of Academic Affairs/Research & Analytics

Letters of Notification Programs approved by the ADHE DirectorPrograms must be included on the AHECB agenda prior to initiation Programs are reasonable and moderate extensions of existing certificates and degrees

Agenda Item no. 14Letters of Intent Dr. Jessie J WalkerSenior Associate Director of Academic Affairs/Research & Analytics

Letters of Intent Notification of institutional plans to offer new programs or organizational units that require Coordinating Board approval Chief academic officers and chief executive officers can comment on the proposals before consideration by AHECB

Approval of Minutes October 26 Regular Meeting

Agenda item no. 2:REPORT OF NOMINATING COMMITTEE CHAIR CHARLES ALLEN

Report of Nominating CommitteeThe Nominating Committee (Chair Dr. Charles Allen, Dr. Michael Stanton and Dr. Olin Cook) will make a recommendation on the slate of Board officers for 2019-20, and the Board will act upon the recommendation.

RecommendationChair, Dr. Jim Carr Vice-Chair, Al BrodellSecretary, Chris GilliamAcademic Committee Chair, Lori GriffinFinance Committee Chair, Keven Anderson

Agenda item no. 3:State Board of Higher Education Foundation Election of Supervisory Committee CHAIR ALLEN

Election of Supervisory CommitteeThe Board for the Foundation includes three annually elected members: a president, a vice president and a secretary/treasurer. The Foundation was established in order to accept private funds for specific projects for the benefit of higher education in Arkansas. The current officers are: President – Chris Gilliam Vice President – Lori GriffinSecretary/Treasurer – Dr. Olin Cook

RecommendationPresident Chris Gilliam Vice President Lori Griffin Secretary/Treasurer Dr. Olin Cook

Agenda item no. 4:REIMBURSEMENT OF EXPENSES FOR MEMBERS OF THE AHECB AND ICAC DR. MARIA MARKHAM

Reimbursement of ExpensesAlthough members of the AHECB and ICAC by law serve without compensation, they may receive expense reimbursement for performing official board duties after following certain procedures set out by Act 1211 of 1995 (A.C.A. §25-16-901 et seq.).

RecommendationBecause Act 1211 of 1995 (A.C.A. §25-16-901 et seq.) is the sole authority for expense reimbursement, it is necessary for the Coordinating Board to adopt a resolution authorizing expense reimbursement for board members and members of the ICAC.

NICK FULLER Agenda item no. 5 : REPORT OF THE DIRECTOR

ADHE Staffing Rich Sanders IT Senior Project Manager Began on January 7, 2019

Institutional LeadershipDiana Arn, Vice President for Academic Services at UACCM, has been named Interim Chancellor, effective January 31 . A U.S. Army veteran, Arn enters the role with 32 years of experience at UACCM. The University of Arkansas Community College at Morrilton (UACCM) Chancellor Dr. Larry Davis will retire at the end of January, after almost nine years of service.

Agency Updates LegislationPolicy and procedure clean up

Agency Projects Policy Review Higher Ed Class/Comp TransitionHigher Ed Master Plan ImplementationStrategic Communications PlanStrategic Staffing PlanPrivate Career Ed TransitionACTS ReviewArkansas FutureWorkforce ChallengeRule Promulgation Guided PathwaysCo-requisite RemediationFunding Model Adjustments15 to FinishMath PathwaysInterstate PassportCareer Pathways InitiativeCarl PerkinsProject Pipeline Repair

TED THOMASCHAIRMAN Arkansas Public Service Commission

ARKANSAS PUBLIC SERVICE COMMISSIONDIVERSITY SUMMIT Provide awareness to Higher Education Professionals, particularly at HBCUsMonday, February 25, 2019 @ 8:30 a.m. – 5:00 p.m.Mosaic Templars Cultural CenterParticipantsHigher Education ProfessionalsUtility Executives Regional Transmission OperatorsPolicy MakersState and Local OfficialsNational Diversity ExpertsOpportunities In Energy

ARKANSAS PUBLIC SERVICE COMMISSIONDIVERSITY SUMMIT ROUNDTABLE DISCUSSION TOPICSHBCU OverviewCareers in EnergyWorkforce DiversityWomen in EnergySupplier Diversity Opportunities In Energy

ARKANSAS PUBLIC SERVICE COMMISSIONDIVERSITY SUMMIT Registration - Eventbritehttps://www.eventbrite.com/e/arkansas-public-service-commision-diversity-summit-tickets-53877306474 Opportunities In Energy

Agenda item no. 6: Annual Enrollment report Sonia HazelwoodAssociate Director for Research & AnalyticsJanuary 25, 2019

Annual Enrollment Report Fall 2018 Enrollment 2017-18 Annual EnrollmentThe total enrollment for the Fall 2018 term for all sectors of higher education required to report data to the Department of Higher Education (public universities, public colleges, as well as private/independent colleges and universities and nursing schools) was 160,615 students; representing a 1-year decrease of 1.6 percent. This annual report to the Coordinating Board will include:

4-Year Universities: -1.3%2-Year Colleges: -2.7%Private/Independent: -0.1%Nursing Schools: -5.9%Fall 2017 – Fall 2018 % Change

4-Year Universities: 2.4% 2-Year Colleges: 5.8%Private/Independent: 3.3%Fall 2017 – Fall 2018 % Change

4-Year Universities: -1.3% 2-Year Colleges: -5.0%Private/Independent: .8%Nursing Schools: -5.9%Fall 2017 – Fall 2018 % Change

4-Year Universities Graduate: -3.4%4-Year Universities First Prof: 1.0%Private/Independent Graduate: -17.4%Private/Independent First Prof: 29.2%Fall 2017 – Fall 2018 % Change

Three universities increased enrollment from Fall 2017 to Fall 2018: ATU increased 2.3%, HSU by 18.7% and UAF had a slight increase of .8%. All other 4-year universities experienced a decline in Fall enrollment, ranging from 1.0% to 15.4%.

Total Fall Term Enrollment Trends – 4-Year Public without UAF.

Out of our six largest 2-Year Colleges, NWACC was the only one to experience an increase in enrollment from Fall 2017 to Fall 2018. They reported a 3.4% gain. The other five colleges reported enrollment losses ranging between a 1.0% loss for UACCM and a 9.7% decline for UAPTC.

Out of the other sixteen 2-Year Colleges, five experienced enrollment increases from Fall 2017 to Fall 2018. Those colleges were BRTC, EACC, SAUT, UACCB, & UACCH. The other eleven colleges reported enrollment losses ranging between 0.5% losses for CCCUA and NAC and a 13.1% decline for UACCRM.

Out of the other sixteen 2-Year Colleges, five experienced enrollment increases from Fall 2017 to Fall 2018. Those colleges were BRTC, EACC, SAUT, UACCB, & UACCH. The other eleven colleges reported enrollment losses ranging between 0.5% losses for CCCUA and NAC and a 13.1% decline for UACCRM.

Out of the 14 private/independent colleges, seven experienced increases in enrollment from Fall 2017 to Fall 2018 ranging from .3% to 96.3%. The other colleges experienced declines between 2.0% and 10.2%.

Total Fall Term Enrollment Trends – By Race/Ethnicity

All but two 4-Year institutions serving high school students reported increased SSCH. UALR and UAM experienced serious declines.

HSU, SAUM, and UAF were the only 4-Year institutions to report increased undergraduate SSCH from Fall 2017 to Fall 2018. UCA reported only a .6% decline in undergraduate SSCH, while UALR claimed the largest decline at 7.0%.

Fall Term Undergraduate SSCH - 4-Year Public Institutions without UAF.

Half of the institutions reported growth in graduate SSCH.

UAMS was the only institution to report a decrease in doctoral and first professional SSCH. UCA reported a 57.7% increase.

Total Annual Enrollment is an unduplicated headcount for the academic year.

Total Annual Enrollment for 4-Year Public Institutions with UAF.

Total Annual Enrollment for 4-Year Public Institutions without UAF.

Alana BolesProgram Director of Private Career and Out-of-State EducationAgenda item no. 7: 2018 Institutional Certification Advisory Committee Annual Report

ICAC Oversight Out-of-State Postsecondary Institutions and For-Profit Institutions Institutions Exempt from Oversight: Institutions offering only church-related training Institutions on military bases Institutions in regional and national reciprocity agreements

Institutions Certified under ICAC Rules2017-18: 38 Institutions 15 Arkansas Campuses 22 institutions with programs delivered only through distance technology 11 institutions offering programs both on Arkansas campuses and delivered through distance technology 4 institutions offering programs only on an Arkansas campus

Institutions Certified under ICAC Rules2016: 43 Institutions 14 Arkansas campuses2015: 62 institutions 12 Arkansas campuses

Degrees OfferedJuly 1, 2017 – June 30, 2018 Type of DegreeNumber of degrees offered Undergraduate182Graduate218Total400July 1, 2016 – June 30, 2017Type of DegreeNumber of degrees offeredUndergraduate203Graduate202Total405

Total Enrollment – 6,662 Online enrollment – 3,065 Arkansas campus enrollment – 3,597Total Graduates – 1,624 Student Enrollment and GraduatesJuly 1, 2017 – June 30, 2018

Total Enrollment – 6,646 Online enrollment – 3,061 Arkansas campus enrollment – 3,585Total Graduates – 1,417 Student Enrollment and GraduatesJuly 1, 2016 – June 30, 2017

Graduates by Degree Type of DegreeNumber of Graduates by Degree Type Certificates392Associate of Applied Science Degrees653Associate of Arts/Science Degrees4Bachelor’s Degrees166Master’s Degrees400Doctoral Degrees9Total1,624July 1, 2017 – June 30, 2018

Graduates by Degree Type of DegreeNumber of Graduates by Degree Type Certificates293Associate of Applied Science Degrees542Associate of Arts/Science Degrees47Bachelor’s Degrees152Master’s Degrees361Doctoral Degrees22Total1,417July 1, 2016 – June 30, 2017

33 institutions offering only church-related training4 institutions offering programs on military installations The majority (51% of total annual enrollment) of students enrolled at the institution located on the military installation must be active or retired military personnel and/or their dependentsOut-of-state institutions approved by state higher education agencies to offer degrees by distance technology through a recognized regional or national education compact such as the Southern Regional Education Board (SREB) or the State Authorization Reciprocity Agreement Institutions Exempt from Certification

ADHE must approve Arkansas colleges and universities offering distance technology programs for SARA participation based on institutional accreditation, financial stability, and student complaint resolution policy and procedures.SARA participation is optional.Arkansas renewed membership in SARA in June; every state has joined SARA except California. 33 Arkansas institutions are in SARA; over 1,650 institutions have joined nationwide.Applications from out-of-state institutions have decreased as more states and institutions have joined SARA. State Authorization Reciprocity Agreements (SARA)

Agenda Item no. 8PROGRAM REVIEW & vIABILITY Dr. Jessie WalkerAcademic Affairs

Program Viability Report 2019Non-Viable Programs Since January 2018Certificate of Proficiency 23Technical Certificate 25 Associate of Applied Science 20Associate of Science 4Associate of Perf/ Media Arts 1Bachelor’s 6Graduate Certificate 3 Master’s 6Doctoral 1Educational Leadership 1 Total 90

Program Viability Report 2019