Expenditure Study Workgroup Higher Education Coordinating Board Lone Star Room, Second Floor 1200 East Anderson Lane, Austin Tuesday, October 25, 2011 1:00 p.m.

Agenda

I. GAFAC Charge 3: Study and make recommendations on the treatment of programs delivered by fewer than three State institutions in the relative weight matrix.

a. Presentation of TAMU Vet Med Cost Structure

b. Discussion of UH Optometry

II. GAFAC Charge 6: Study and make recommendations on funding disciplines taught by general academic and health-related institutions at common rates and weights.

a. Consider draft recommendations

Expenditure Study Workgroup Roster Name Institution Contacts Dr. John Antel, Chair University of System [email protected] Senior Vice President for (832) 842-0550 Academic Affairs and

Dr. John Price, Vice Chair University of North Texas at Dallas [email protected] President (972) 780-3602

Dr. Robert Neely Texas Woman's University [email protected] Provost and Vice President Academic (940) 898-3306 Affairs

Dr. Perry Moore System [email protected] Vice Chancellor for Academic Affairs 200 E 10th Suite 600 (512) 463-1808 Austin, TX 78701 FAX (512) 463-1816

Mr. Rod Mireles Prairie View A&M University [email protected] Associate VP, Financial Administration (936) 261-1900

Ms. Alicia Currin Texas A&M University-Commerce Alicia_Currin@tamu- Associate Vice President & Director commerce.edu Financial Services (903) 866-5034

Dr. Rosemary Haggett University of North Texas System [email protected] Vice Chancellor Academic Affairs and (214) 752-5535 Student Success

Mr. Cesar Valenzuela Sul Ross State University [email protected] Vice President for Finance and (432) 837-8076 Operations

Ms. Terry Spang Texas A&M University [email protected] Associate Vice President (979) 845-4016 Office of the Provost & Executive Vice President Mr. Alan Werchan The University of Texas System [email protected] Assistant Budget Officer (512) 499-4275

Expenditure Study Workgroup Texas Higher Education Coordinating Board Lone Star Room, Second Floor 1200 East Anderson Lane, Austin Wednesday, October 12, 2011 9:00 a.m.

Agenda

I. GAFAC Charge 3: Study and make recommendations on the treatment of programs delivered by fewer than three State institutions in the relative weight matrix.

a. Presentation of TAMU Vet Med Cost Structure

b. Presentation of UH Optometry Program Cost Structure

II. GAFAC Charge 6: Study and make recommendations on funding disciplines taught by general academic and health-related institutions at common rates and weights.

a. Review results of Nursing Shortage Reduction Program

b. Total Nursing Funding

c. Cost of a Nursing Degree by Sector

d. Consider draft recommendation

III. Planning for subsequent meetings.

a. October 25, 2011 at 1:00 p.m. in the Lonestar Room

Expenditure Study Workgroup Roster Name Institution Contacts Dr. John Antel, Chair System [email protected] Senior Vice President for (832) 842-0550 Academic Affairs and Provost

Dr. John Price, Vice Chair University of North Texas at Dallas [email protected] President (972) 780-3602

Dr. Robert Neely Texas Woman's University [email protected] Provost and Vice President Academic (940) 898-3306 Affairs

Dr. Perry Moore Texas State University System [email protected] Vice Chancellor for Academic Affairs 200 E 10th Suite 600 (512) 463-1808 Austin, TX 78701 FAX (512) 463-1816

Mr. Rod Mireles Prairie View A&M University [email protected] Associate VP, Financial Administration (936) 261-1900

Ms. Alicia Currin Texas A&M University-Commerce Alicia_Currin@tamu- Associate Vice President & Director commerce.edu Financial Services (903) 866-5034

Dr. Rosemary Haggett University of North Texas System [email protected] Vice Chancellor Academic Affairs and (214) 752-5535 Student Success

Mr. Cesar Valenzuela Sul Ross State University [email protected] Vice President for Finance and (432) 837-8076 Operations

Ms. Terry Spang Texas A&M University [email protected] Associate Vice President (979) 845-4016 Office of the Provost & Executive Vice President Mr. Alan Werchan The University of Texas System [email protected] Assistant Budget Officer (512) 499-4275

Nursing Appropriations - FY 2010

School Nursing Program for Nursing Rural the Early Shortage Nursing Student Childhood Rural School Nursing Arlington Total Formula Reduction Health Care Nurse Development Masters Nursing Based and Allied Online Nursing FICE Institution Appropriation Funding1 Program Services Stipends Center Nursing Initiative Clinics Health Nursing Simulation 104952 UT-MB-Galveston 6,319,469 6,129,469 190,000 011618 UT-HSC-Houston 8,733,004 8,438,844 294,160 000040 UT-HSC-San Antonio 7,821,329 7,330,641 490,688 000089 TAMU-SHSC 1,312,751 615,152 697,599 000412 Texas Tech-UHSC 11,466,403 10,610,136 856,267 TOTAL 35,652,956 33,124,242 2,528,714 ------

003656 UT at Arlington $10,437,746 $5,058,519 $379,227 $5,000,000 003658 UT at Austin 3,644,042 3,524,042 120,000 003661 UT at El Paso 2,952,714 2,759,862 133,253 59,599 003599 UT - Pan American 1,438,449 1,175,196 263,253 030646 UT at Brownsville 238,952 238,952 011163 UT at Tyler 3,038,242 2,721,229 317,013 003630 Prairie View A&M University 3,247,013 2,330,535 756,508 159,970 003631 Tarleton State University 671,203 579,413 91,790 011161 TAMU Corpus Christi 3,787,781 2,929,163 567,680 290,938 009651 Texas A&M International University 906,825 677,351 229,474 003665 West Texas A&M University 1,656,193 1,490,971 165,222 029269 TAMU Texarkana 135,945 135,945 013231 U of Houston - Victoria 1,914,193 605,120 759,073 550,000 003592 Midwestern State University 1,776,041 1,558,527 217,514 003624 Stephen F. Austin State University 1,952,048 1,021,707 87,081 843,260 003541 2,155,660 802,247 307,413 46,000 1,000,000 003646 Texas Woman's University 7,509,431 6,661,831 490,000 357,600 003581 1,211,842 1,156,768 55,074 003625 Sul Ross State University 45,726 45,726 TOTAL 48,720,045 35,473,103 4,939,575 59,599 159,970 290,938 550,000 843,260 46,000 1,000,000 357,600 5,000,000

003607 Alamo Community College Dist $2,880,684 $1,954,683 $926,001 003539 856,007 856,007 003540 Amarillo College 2,005,715 1,872,361 133,354 006661 Angelina College 1,147,553 917,563 229,990 012015 Austin Community College 3,253,769 2,547,902 705,867 003549 949,810 854,116 95,694 007857 346,039 162,459 183,580 004003 Central Texas College 1,639,781 1,364,412 275,369 003553 Cisco Junior College 848,143 788,143 60,000 003554 Clarendon College 252,997 252,997 003546 Coastal Bend College 876,810 637,382 239,428 007096 Commun 819,086 502,607 316,479 023614 Collin County Community College District 664,595 605,502 59,093 009331 Dallas County Community College District 2,979,380 2,783,001 196,379 003563 Del Mar College 1,703,370 1,611,580 91,790 010387 El Paso Community College Dist 2,396,196 1,627,986 768,210 003568 Frank Phillips College 180,766 180,766 006662 681,241 681,241 003570 Grayson County College 1,227,764 1,090,079 137,685 003573 Hill College 791,987 743,152 48,835 010633 Houston Community College 2,103,581 1,928,248 175,333 003574 Howard College 489,119 461,582 27,537 003580 Kilgore College 1,392,769 1,252,769 140,000 023582 Lamar State Coll-Orange 1,556,165 1,436,580 119,585 023485 Lamar State Coll-Port Arthur 1,351,087 892,138 458,949 003582 Laredo Community College 833,598 695,913 137,685 003583 1,111,129 900,112 211,017 011145 Dist. 3,699,291 3,323,051 376,240 003590 Mclennan Community College 1,381,423 1,257,507 123,916 009797 Midland College 1,285,578 1,215,578 70,000 003593 Navarro College 1,360,536 1,102,216 258,320 003558 North Central Texas College 1,429,365 1,429,365 023154 Northeast Texas Comm College 297,595 297,595 003596 Odessa College 968,979 923,084 45,895 003600 Panola College 1,309,974 961,790 348,184 023413 Palo Alto College 17,401 17,401 003601 Paris Junior College 616,131 616,131 003603 Ranger College 348,355 348,355 029137 San Jacinto Community College 3,181,046 2,866,895 314,151 003611 South Plains College 1,590,282 1,488,797 101,485 031034 South Texas College 3,210,967 2,877,659 333,308 003614 Southwest Texas Junior College 696,686 583,634 113,052 003608 ST. Philip's College 1,024,590 1,024,590 008900 Tarrant County South Campus 2,125,312 1,537,632 587,680 003627 Temple College 1,326,258 1,124,045 202,213 003628 Texarkana College 1,516,214 1,406,066 110,148 003643 Texas Southmost College 1,800,343 1,236,556 563,787 009932 Texas State T. C. West Texas 922,147 683,336 238,811 009225 Texas State T. C. Harlingen 47,589 47,589 003572 Trinity Valley Comm College 1,589,835 1,357,755 232,080 003648 Tyler Junior College 1,917,438 1,787,438 130,000 010060 Vernon College 1,703,762 1,583,762 120,000 003662 Victoria College, The 1,637,308 1,497,308 140,000 003664 Weatherford College 1,061,005 950,857 110,148 009549 Western Texas College 136,105 136,105 003668 Wharton County Junior College 722,548 490,201 232,347 TOTAL 74,263,203 63,773,578 10,489,625 ------Notes: 1. Includes Instruction and Operations formula appropriations for Nursing only. Professional Nursing Graduates Texas Institutions Net Increase of Graduates FY 2004 Through FY 2010 1200

1000

800

600

400

200 Increase in Number of Graduates By By Year Graduates of Number in Increase

0 2005 2006 2007 2008 2009 2010 Net Increase 484 644 479 992 548 1115 Nursing Degree Cost by Sector - FY 2010

When appropriated, $50 per semester credit hour of the General Academic and Health-Related Institution I&O formula funding is funded with statutory tuition. In this presentation, the I&O is reduced by this amount and shown in the Tuition and Fee column. Amounts do no include Books, Room and Board, or Auxiliary Fees. General Revenue includes I&O formula only. GAI and HRI receive general revenue for Infrastructure, AUF, HEAF, Debt Service, and other Special Items not included here. All Sectors receive general revenue from the Nursing Shortage Reduction Program and proportional Benefits. There amounts are not included here.

Instruction and Operation GR Appropriations Tuition Local (FY 2010 times 2) and Fees Taxes Total Health-Related Institution The University of Texas Health Science Center at Houston Traditional BSN 4 Semesters - 60 Hours Plus 4 Semesters of core course at TWU $ 23,700 $ 17,500 $ 41,200 General Academic Institution The University of Texas at Arlington College of Nursing Bachelor of Science in Nursing Campus-Based Program (42 hours of Liberal Arts, 16 hours of Science, and 60 hours of Nursing) $ 7,300 $ 19,100 $ 26,400 General Academic Institution Texas Woman's University College of Nursing Bachelor of Science (BS) in Nursing (42 hours of Liberal Arts, 20 hours of Science, and 58 hours of Nursing) $ 7,900 $ 14,600 $ 22,500 Community College Houston Community College Associate Degree Nursing (288 contact hours of Biology, 192 hours of English, 96 hours of Psychology and 1248 contact hours of Nursing) $ 8,100 $ 3,000 $ 7,000 $ 18,100 Community College Blinn Community College Associate Degree Nursing (96 contact hours of Math, 384 contact hours of Biology, 96 hours of English, 144 hours of Psychology, and 1248 contact hours of Nursing) $ 8,600 $ 6,700 $ 300 $ 15,600 Expenditure Study Workgroup Texas Higher Education Coordinating Board Lone Star Room, Second Floor 1200 East Anderson Lane, Austin Thursday, September 29, 2011 1:00 p.m.

Agenda

I. GAFAC Charge 3: Study and make recommendations on the treatment of programs delivered by fewer than three State institutions in the relative weight matrix.

a. Item 1 – Optometry Ratliff versus Expenditure-Based

b. Item 2 – Veterinary Medicine Expenditure-Based Weight

II. GAFAC Charge 6: Study and make recommendations on funding disciplines taught by general academic and health-related institutions at common rates and weights.

a. Review of the FY 2008 and FY 2009 HRI Cost Study.

b. Funding outside of the Instruction and Operation Formula

i. Consideration of the mechanics of existing Nursing special item programs mechanics and legislation.

ii. Inclusion into Outcomes-Based Funding Formula

iii. Others

III. Planning for subsequent meetings.

a. October 12, 2011 at 9:00 a.m. in the Lonestar Room

Expenditure Study Workgroup Roster Name Institution Contacts Dr. John Antel, Chair University of Houston System [email protected] Senior Vice President for (832) 842-0550 Academic Affairs and Provost

Dr. John Price, Vice Chair University of North Texas at Dallas [email protected] President (972) 780-3602

Dr. Robert Neely Texas Woman's University [email protected] Provost and Vice President Academic (940) 898-3306 Affairs

Dr. Perry Moore Texas State University System [email protected] Vice Chancellor for Academic Affairs 200 E 10th Suite 600 (512) 463-1808 Austin, TX 78701 FAX (512) 463-1816

Mr. Rod Mireles Prairie View A&M University [email protected] Associate VP, Financial Administration (936) 261-1900

Ms. Alicia Currin Texas A&M University-Commerce Alicia_Currin@tamu- Associate Vice President & Director commerce.edu Financial Services (903) 866-5034

Dr. Rosemary Haggett University of North Texas System [email protected] Vice Chancellor Academic Affairs and (214) 752-5535 Student Success

Mr. Cesar Valenzuela Sul Ross State University [email protected] Vice President for Finance and (432) 837-8076 Operations

Ms. Terry Spang Texas A&M University [email protected] Associate Vice President (979) 845-4016 Office of the Provost & Executive Vice President Mr. Alan Werchan The University of Texas System [email protected] Assistant Budget Officer (512) 499-4275

Program Authority Funds Funding Levels Professional Nursing Shortage General Public and 2010-2011: $47.5M Reduction Program – For “Initial Appropriations Private 2012-2013: $30M Licensure Nursing Programs” Act, SB1, 82nd Universities  Regular Program ($5M Texas Health Science annually) - increases in Legislature, Centers graduates (50% more for Section 37 (page Community education degrees CIP Code III-49) Colleges 51.1699.6)  Under 70% Graduation Rate Program (3.2M annually) – o $20,000 per year per increase in degrees from 2- year programs. o $10,000 per year per increase in degrees from 1- year programs  Over 70% Graduation Rate Program ($6.9M annually) - $10,000 per year per increase in enrollment o Increase headcount of 12% for 2012 and 18% for 2013 Nursing, Allied Health, and Other Texas Education Public and 2010-2011: $4M Health-related Education Grant Code (TEC), private nursing 2012-2013: $4M Program Sections 63.201 schools (Funded by multi-  Develop new initiatives for - 63.203 state Tobacco increased “Initial Licensure Lawsuit Settlement) Nursing Program” enrollment  Provide retention interventions to ensure student success  Distribution by one of three methods o Competitive Grant o Non-Competitive Grant o Formula Allocation

Expenditure Study Workgroup Texas Higher Education Coordinating Board Lone Star Room, Second Floor 1200 East Anderson Lane, Austin Tuesday, September 13, 2011 12:00 p.m.

Agenda

I. Review GAFAC Charge 3: Study and make recommendations on the treatment of programs delivered by fewer than three State institutions in the relative weight matrix.

II. Review GAFAC Charge 6: Study and make recommendations on funding disciplines taught by general academic and health-related institutions at common rates and weights.

III. Planning for subsequent meetings

a. Tentative future meeting times

i. September 29, 2011 at 1:00 p.m. in the Lonestar Room

ii. October 12, 2011 at 9:00 a.m. in the Lonestar Room

iii. October 25, 2011 at 1:00 p.m. in the Lonestar Room

Expenditure Study Workgroup Roster Name Institution Contacts Dr. John Antel, Chair University of Houston System [email protected] Senior Vice President for (832) 842-0550 Academic Affairs and Provost

Dr. John Price, Vice Chair University of North Texas at Dallas [email protected] President (972) 780-3602

Dr. Robert Neely Texas Woman's University [email protected] Provost and Vice President Academic (940) 898-3306 Affairs

Mr. Rod Mireles Prairie View A&M University [email protected] Associate VP, Financial Administration (936) 261-1900

Ms. Alicia Currin Texas A&M University-Commerce Alicia_Currin@tamu- Associate Vice President & Director commerce.edu Financial Services (903) 866-5034

Dr. Rosemary Haggett University of North Texas System [email protected] Vice Chancellor Academic Affairs and (214) 752-5535 Student Success

Mr. David Mosley Lamar Institute of Technology [email protected] Coordinator of Institutional Effect (409) 880-2207 Grants

Mr. Cesar Valenzuela Sul Ross State University [email protected] Vice President for Finance and (432) 837-8076 Operations

Ms. Terry Spang Texas A&M University [email protected] Associate Vice President (979) 845-4016 Office of the Provost & Executive Vice President Mr. Alan Werchan The University of Texas System [email protected] Assistant Budget Officer (512) 499-4275

Charge 3 – Study and make recommendations on the treatment of programs delivered by fewer than three State institutions in the relative weight matrix

Charge 3, Item 1 – Optometry Ratliff versus Expenditure-Based

The Board is seeking the committee’s recommendation on the use of expenditure-based weights in place of the continued use of Ratliff weights or a better allocation methodology for funding optometry.

This is a recurring item from previous charges. Optometry weights are held constant at the weights established by Senator Ratliff. The committee last recommended this static weight be continued because the expenditure-based weights remain the product of one institution and their use would be detrimental to that institution with an insignificant gain to the others.

Over the years, the Board staff has attempted to integrate expenditures from other states’ optometry programs into the expenditure study with no avail, as other states do not collect expenditure data in a manner compatible with our study.

Had the expenditure-based weights been applied for the 2012-2013 biennium, the University of Houston would have received 0.18 percent ($451,936) less in instruction and operations formula funding, which would have been reallocated as a 0.01 percent increase to the other institutions. This reduction continues in spite of the dramatically increased weights for the master’s and doctoral levels due to the 31 percent reduction in the special professional weight. Of the hours generated for the courses in the program, 96 percent are at the special professional level.

Optometry Master’s Doctoral Special Professional Ratliff Weights 5.46 19.12 7.00 Expenditure-Based 49.37 71.13 4.84 Hours 139 478 16,440

2012-2013 Biennium Instructions and Operations Formula Funding Appropriations Institution Total as Total with Difference Percent Appropriated Optometry Change with Ratliff Expenditure Weights Weights University of 251,562,253 251,110,317 (451,936) -0.18% Houston

9 THECB July 2011

Charge 3, Item 2 – Veterinary Medicine Expenditure-Based Weight

The Board is seeking the committee’s recommendation on the calculation of the Veterinary Medicine expenditure-based weight using estimated semester credit hours instead of actual semester credit hours.

The expenditure study currently uses the product of the reported Veterinary Medicine headcount and 24 as the number of semester credit hours to allocate costs in the study. The instruction and operations formula uses the hours reported to the Board on the CBM001 report.

Currently, Veterinary Medicine is reporting 510 students or 12,240 estimated semester credit hours and 23,000 actual semester credit hours. This nearly doubles the allocation by nearly doubling the weighted semester credit hours generated for Veterinary Medicine. Because half as many semester credit hours are used to divide the allocated Veterinary Medicine expenditures, the resulting expenditure per semester credit hour and relative weight is nearly doubled.

Since this discipline was original funded as a Health-Related Institution (HRI) and then was transitioned to the General Academic formulas, the estimated hours may have been a mechanism for increasing the funding to HRI levels. However, there is no documentation to support that at the Coordinating Board.

With the use of actual semester credit hours in the formula, the number of weighted semester credit hours generated is twice that of other disciplines.

Veterinary Medicine Special Professional Current 20.04 Proposed 10.48

2012-2013 Biennium Instructions and Operations Formula Funding Appropriations Institution Total as Total with Difference Percent Appropriated Adjusted Change Veterinary Medicine Weight TAMU 437,723,303 417,184,739 (20,538,563) -4.7% Veterinary Medicine 49,512,971 26,061,211 (23,451,760) -47.4% (as a subset of TAMU)

10 THECB July 2011

Charge 6 – Study and make recommendations on funding Health disciplines taught by General Academic Institutions at the Health-Related Institution funding rates and weights

The Board is seeking the committee’s recommendation on Instructions and Operations funding for overlapping General Academic and Health-Related Institution programs from a separate pot of money and at the same rate across the sectors.

Would the committee recommend a Health-Related Discipline set-aside for General Academic Institutions that would provide awards similar to those provided at the Health-Related institutions?

Funding per Full-Time Student Equivalent per year for the FY 2012-2013 Biennium

Discipline General Health-Related

Academic Institution

Nursing $3,994 $9,592

Health Services/Allied Health $3,171 $8,429

Pharmacy $7,393 $14,077 Optometry/ Dentistry $9,358 $38,783

These disciplines are currently allocated funding by weighted semester credit hours. Had the Legislature funded these disciplines at the Health-Related Institution (HRI) levels, the allocations for the 2012-2013 biennium would have shifted as indicated on the next page.

The result is the funding of Nursing, Health Services, Pharmacy, and Optometry at the HRI rates, then allocating the remaining funding using the weighted semester credit hours of the other disciplines. The overall amount of funding to the General Academic Institutions was not increased.

16 THECB July 2011

Institution 2012-2013 2012-2013 Difference Percent Biennium as Biennium Change Funded Adjusted UT-Arlington $192,886,811 $196,037,797 $3,150,986 1.6% UT-Austin 408,989,559 401,887,259 (7,102,300) -1.7% UT-Dallas 137,189,318 134,535,523 (2,653,796) -1.9% UT-El Paso 115,539,464 115,776,940 237,475 0.2% UT-Pan American 96,918,039 97,832,866 914,827 0.9% UT-Brownsville 24,198,133 24,123,312 (74,821) -0.3% UT-Permian Basin 17,822,871 17,583,668 (239,203) -1.3% UT-San Antonio 152,628,717 150,845,234 (1,783,483) -1.2% UT-Tyler 32,918,034 33,684,020 765,986 2.3% TAMU 437,723,303 434,000,098 (3,723,204) -0.9% TAMU-Galveston 16,437,775 16,263,133 (174,642) -1.1% Prairie View 46,773,158 47,187,059 413,901 0.9% Tarleton 45,363,963 45,415,405 51,442 0.1% TAMU-Central 11,149,067 10,945,107 (203,959) -1.8% TAMU-CC 54,185,525 54,720,345 534,820 1.0% TAMU-Kingsville 37,702,679 37,603,129 (99,550) -0.3% TAMU-San Antonio 14,254,865 13,996,858 (258,007) -1.8% TAMI 28,923,394 29,111,819 188,425 0.7% WTAMU 39,707,489 39,958,074 250,585 0.6% TAMU-Commerce 58,532,536 57,952,311 (580,225) -1.0% TAMU-Texarkana 8,702,491 8,580,253 (122,238) -1.4% UH 251,562,253 263,867,696 12,305,443 4.9% UH- 48,747,021 48,221,424 (525,597) -1.1% UH-Downtown 47,240,727 46,391,593 (849,134) -1.8% UH-Victoria 21,151,446 21,081,044 (70,402) -0.3% Midwestern 28,522,871 29,855,752 1,332,881 4.7% UNT 195,635,210 195,458,569 (176,641) -0.1% UNT-Dallas 6,814,046 6,794,333 (19,713) -0.3% SFA 62,655,709 62,844,372 188,663 0.3% TSU 57,506,668 58,176,570 669,902 1.2% TTU 219,323,674 216,572,417 (2,751,258) -1.3% Angelo 31,299,910 31,985,193 685,283 2.2% TWU 81,062,305 82,258,132 1,195,827 1.5% Lamar 73,802,492 74,195,067 392,575 0.5% 89,844,476 88,671,175 (1,173,301) -1.3% TxStU-SM 158,791,205 158,224,291 (566,913) -0.4% Sul Ross 9,914,472 9,872,909 (41,563) -0.4% Sul Ross - RG 4,868,947 4,779,876 (89,072) -1.8% Total $3,367,290,622 $3,367,290,622 $ - 0.0%

17 THECB July 2011