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Special State Report - FY 2015-17 Indiana Commission for Higher Education Performance Funding Formula - Indiana University Sample Calculations

FY 2015-17

Performance Funding Formula

Indiana University Actual Calculations

 

The performance funding formula (PFF) that determines the FY 2015-17 university operating appropriations sets the amount of performance funding at 4.0% of operating appropriations for all institutions in FY 2016 ($47 million) and 6.5% ($78 million) in FY 2017.  The PFF is financed with a 2.4% reallocation of the FY 2015 university operating appropriation base (excluding the IU Schools of Medicine and Dentistry) plus 1.7% in new state dollars in FY 2016.  For FY 2017, the formula is funded with a 3.2% reallocation of FY 2015 university operating funds plus 3.5% in new state funds (above the FY 2015 operating appropriation base).

There are six PFF metrics applicable to 4-year institutions, rewarding campus improvement in student persistence and degree attainment.  Each of these metrics and the methodology for calculating rewards is described below along with actual calculations for various IU campuses for FY 2016.

 

Overall Degree Completion

The overall degree completion metric rewards institutions for increases in the absolute numbers of resident degrees awarded. Performance funding is calculated by comparing the three-year average of the number of degrees awarded in 2008-2010 with the three-year average of degrees awarded in 2010-2013 with a positive gain resulting in the award of performance funding.  The amount of performance funding for FY 2016 is as follows for each additional degree:

Undergraduate degrees:  $3,283

Masters degrees:  $1,642

Doctoral degrees:  $821

Actual Calculation for IU Bloomington:

Academic

Year

Undergrad

 Degrees

3-Year Average   #

of   Degrees

Change   in

Degrees

2007-08

3,911

 

 

2008-09

3,909

4,018

 

2009-10

4,234

 

 

 

 

 

2010-11

4,308

 

 

2011-12

4,546

4,558

540

2012-13

4,819

 

 

Funding Amount = 540 * $3,283 = $1,772,820

At-Risk Student Degree Completion

The metric rewards increases in the absolute numbers of resident undergraduate degrees awarded to students who received a Pell grant in the year the degree(s) were granted. Performance funding is calculated by comparing the three-year average of the number of degrees awarded in 2008-2010 with the three-year average of degree awarded in 2011-2013 with a positive gain resulting in performance funding award.  The amount of performance funding for FY 2016 is $2,462 for each additional degree.

Actual Calculation for IU East:

Academic

Year

Undergrad

 Degrees

3-Year Average   #

of   Degrees

Change   in

Degrees

2007-08

62

 

 

2008-09

75

84

 

2009-10

114

 

 

 

 

 

2010-11

137

 

 

2011-12

175

173

89

2012-13

207

 

 

Funding Amount = 89 * $2,462 = $219,118

High Impact Degree Completion

This metric incents the production of STEM related degrees (resident undergraduate, masters’ and doctoral) at the research campuses only (excluding Schools of Medicine and Dentistry at IUPUI).  Performance funding is calculated by comparing the three-year average of the number of degrees awarded in 2008-2010 with the three-year average of degree awarded in 2011-2013.  The amount of performance funding for FY 2016 is:

Undergraduate degrees:  $8,208

Masters degrees:  $5,745

Doctoral degrees:  $2,873

Actual Undergraduate Degree Calculation for IUPUI:

Academic

Year

Undergrad

 Degrees

3-year Average   #

of   Degrees

Change   in

Degrees

2007-08

495

 

 

2008-09

503

506

 

2009-10

520

 

 

 

 

 

2010-11

569

 

 

2011-12

631

608

102

2012-13

624

 

 

Funding Amount for undergraduate degree =102 * $8,208 = $837,216

Student Persistence

The student persistence metric calculates the increase in number of resident students reaching “thresholds” of credit hours by comparing the three-year average change in credit hours for 2008 -2010 and 2011 – 2013. For four-year institutions, the formula calculates increases in the number of students completing 30 and 60 credit hours. This metric affects all non-research campuses and applies to all resident undergraduate students. The amount of performance funding for 4-year institutions for FY 2016 is $328 for each student achieving the 30 credit hour interval and $616 for the 60 credit hour interval.

Actual Calculation for IU Southeast:

Academic

Year

30   Credit

Hours

3-Year Average   #

of   Students

Change   in

Completion

2007-08

459

 

 

2008-09

465

485

 

2009-10

532

 

 

 

 

 

2010-11

507

 

 

2011-12

675

602

116

2012-13

623

 

 

Funding Amount =116 * $328 = $38,048

 

Academic

Year

60   Credit

Hours

3-Year Average   #

of   Students

Change   in

Completion

2007-08

506

 

 

2008-09

573

569

 

2009-10

627

 

 

 

 

 

2010-11

668

 

 

2011-12

653

650

81

2012-13

629

 

 

Funding Amount = 81 * $616 = $49,896

Total Funding for 30/60 credit hour completion:  $87,944

On-Time Degree Production

The metric rewards institutions for increasing the number of resident students graduating in either two or four years. The metric compares the three year average of degrees produced during 2008 – 2010 with 2011 – 2013.  The on-time degree production metric applies to all institutions but considers only resident, undergraduate, first time, full time students. It measures the graduation rate for institutions based on the type of campus – 2 year institutions are measured by the graduation rate achieved in 2 years, while 4 year institutions are measured by the graduation rate achieved in 4 years. The amount of performance funding for FY 2016 is $9,439 per degree.

Actual Calculation for IU Northwest:

Academic

Year

Undergrad

 Degrees

3-Year Average   #

of   Degrees

Change   in

Degrees

2007-08

28

 

 

2008-09

33

30

 

2009-10

30

 

 

 

 

 

2010-11

38

 

 

2011-12

47

51

21

2012-13

69

 

 

Funding Amount = 21* $9,439 = $198,219

Institution Defined Productivity Metric

The metric is a proxy for the cost of producing a degree, with the goal of reducing cost over time.  The metric takes into account several factors including institutional student financial assistance, tuition levels, and both student persistence and graduation rates.  A reduction in cost results in financial awards as follows, which is multiplied by the campus’ resident undergraduate FTE/100:

            >0%                 $616

            >= 5%              $821

            >= 10%            $1,025

Actual Calculation for IUSB:

2008-10 3-Year Average Cost Per Degree     $86,960

2011-13 3-Year Average Cost Per Degree     $78,527

Percentage Decrease                                     9.7%

Undergraduate Resident FTE                          4,520

Funding Amount = (4,520/100) * $821 = $37,109

  

Performance Funding Formula Metrics

Data Specifications

Overall Degree Completion:  Based on total number of degrees awarded to resident students, including multiple degrees awarded to the same student.

At-Risk Degree Completion:  Based on total number of degrees awarded to resident students, including multiple degrees awarded to the same student.  At-risk status based on student’s receipt of a Pell grant in the same year in which they received their degree.

High Impact Degree Completion:  Based on total number of STEM-related degrees awarded to resident students, including multiple degrees awarded to the same student.  ICHE and institution determine from API those programs meeting the STEM/High Impact degree definition.

On-Time Degree Completion:  Data is cohort-based and applies to first time, full-time (12 or more credit hours) degree seeking students enrolled for the first time at fall census.  Other parameters include a requirement that the student complete the same level of degree they were pursuing when first enrolled (e.g. bachelor), completion of the degree at the same institution at which they began, and completion of the degree by August 31 of the 4th year of enrollment.  To be eligible for an award, the most recent 3-year average cohort graduation rate must have improved.

Student Persistence Award:  Awarded to degree seeking students who reach the credit hour threshold in any semester between July 1 and June 30 of a given year.  Students enrolling at an institution with AP/DC hours and students transferring with credit from another institution are eligible to be included but must meet the credit hour threshold by earning additional credit at the institution (e.g. a student transferring with 15 credits from another institution may be included in data for the 30 credit hour threshold when the student completes another 15 credits at the institution to which they transferred).