FY 201517
Performance Funding Formula
Indiana University Actual Calculations
The performance funding formula (PFF) that determines the FY 201517 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 4year 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 threeyear average of the number of degrees awarded in 20082010 with the threeyear average of degrees awarded in 20102013 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  3Year Average # of Degrees  Change in Degrees 
200708  3,911 


200809  3,909  4,018 

200910  4,234 




 
201011  4,308 


201112  4,546  4,558  540 
201213  4,819 


Funding Amount = 540 * $3,283 = $1,772,820
AtRisk 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 threeyear average of the number of degrees awarded in 20082010 with the threeyear average of degree awarded in 20112013 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  3Year Average # of Degrees  Change in Degrees 
200708  62 


200809  75  84 

200910  114 




 
201011  137 


201112  175  173  89 
201213  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 threeyear average of the number of degrees awarded in 20082010 with the threeyear average of degree awarded in 20112013. 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  3year Average # of Degrees  Change in Degrees 
200708  495 


200809  503  506 

200910  520 




 
201011  569 


201112  631  608  102 
201213  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 threeyear average change in credit hours for 2008 2010 and 2011 – 2013. For fouryear institutions, the formula calculates increases in the number of students completing 30 and 60 credit hours. This metric affects all nonresearch campuses and applies to all resident undergraduate students. The amount of performance funding for 4year 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  3Year Average # of Students  Change in Completion 
200708  459 


200809  465  485 

200910  532 




 
201011  507 


201112  675  602  116 
201213  623 


Funding Amount =116 * $328 = $38,048
Academic Year  60 Credit Hours  3Year Average # of Students  Change in Completion 
200708  506 


200809  573  569 

200910  627 




 
201011  668 


201112  653  650  81 
201213  629 


Funding Amount = 81 * $616 = $49,896
Total Funding for 30/60 credit hour completion: $87,944
OnTime 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 ontime 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  3Year Average # of Degrees  Change in Degrees 
200708  28 


200809  33  30 

200910  30 




 
201011  38 


201112  47  51  21 
201213  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:
200810 3Year Average Cost Per Degree $86,960
201113 3Year 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.
AtRisk Degree Completion: Based on total number of degrees awarded to resident students, including multiple degrees awarded to the same student. Atrisk 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 STEMrelated 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.
OnTime Degree Completion: Data is cohortbased and applies to first time, fulltime (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 4^{th} year of enrollment. To be eligible for an award, the most recent 3year 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).