Presented to the Board of Higher Education by Sean Nelson, Deputy Commissioner for Administration and Finance.

1. FY17 Budget
Recommendation
Board of Higher Education Meeting | December 8, 2015

2. FY17 Budget Recommendation
 +$24M in Fiscal Year 2016 Budget (+ 3.7% over FY15)
 Key Increases:
▪ +$9.2M for the Community Colleges (+ 3.4%)
▪ +$7.8M for the State Universities (+ 3.1 %)
▪ +$2.0M for State Scholarship Line (+ 2.1%)
▪ + $500K for Dual Enrollment (+ 33%)
 Key Decrease:
▪ -$500K for PIF, funded at $2.75M (- 18%)
 Supplemental Funding for the Campuses
 $2.4M to support FY15 collective bargaining liability
 $9.2M to support FY14/FY15 National Guard reimbursements
 Exposures
 FY16 collective bargaining shortfall of $16.8M
 Governor’s “9C” spending reduction authority still possible
Current FiscalYear Review (FY16)
2

3. FY17 Budget Recommendation
December 8, 2015
BHE approves FY17 Budget Request; submits to EOE
January 27, 2016
Governor releases “House 2” FY17 Budget Recommendation
Mid-April 2016
HouseWays and Means releases FY17 Budget Recommendation
Mid-May 2016
SenateWays and Means releases FY17 Budget Recommendation
June 2016
Conference Committee releases FY17 Budget Report
July 1, 2016
FY2017 FiscalYear begins
FY17 BudgetTimeline

4. FY17 Budget Recommendation
Focusing on the “BigThree” in FY17
4

5. FY17 Budget Recommendation
 Performance Incentive Fund FY17: $4.25M +$1.5M
 Primary means of advancing strategic goals of the Vision Project’s
“Big Three.” Focus of additional funding in FY17:
▪ 100 Males to College: Continue pilot program to support the college-going
aspirations and college success of low-income males and males of color in
Gateway cities.
▪ Females in Computer Science: Create campus programs to stimulate
interest in and aptitude for careers in the computer science field, especially
among under-represented female students.
▪ Educator Diversity: Expand campus initiatives to increase diversity of
students enrolled in two-year and four-year educator prep programs, to
better reflect diversity of Commonwealth’s Pre-K–12 classrooms.
▪ Curriculum & Student Success Collaborations: Enhance campus
collaborations with K–12 partners, especially in Gateway cities, to align
curriculum and increase the likelihood of underserved students earning
post-secondary credentials.
Key Investments: Performance Incentive Fund
5

6. FY17 Budget Recommendation
 Commonwealth Dual Enrollment FY17: $1.5M +$500K
 Provide more students with opportunity to take free or reduced-cost
college-level courses and earn credit toward future college degrees
 National research concludes that dual enrollment drastically increases
likelihood of students attending and graduating from college
 Massachusetts State Scholarship FY17: $96.6M +$1M
 Includes additional funding for MASSGrant, the state’s primary
need-based financial aid program for MA-resident undergraduate
students (public & private)
 Also funds Cash Grant, Part-Time Grant, High Demand,
Early Childhood Educators Scholarship
Key Investments: CDEP, Financial Aid
6

7. $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
Puerto Rico
Arkansas
Massachusetts
Alabama
Rhode Island
Michigan
New Mexico
Arizona
Maine
Ohio
Louisiana
District of Columbia
Oklahoma
Montana
Utah
Colorado
Nebraska
Missouri
Florida
Alaska
Connecticut
Delaware
North Dakota
Minnesota
Oregon
Tennessee
Nevada
Kentucky
Virginia
Wisconsin
Kansas
Vermont
South Carolina
North Carolina
West Virginia
Hawaii
Maryland
Pennsylvania
US AVERAGE
Iowa
Indiana
Illinois
Idaho
New York
Washington
Texas
New Jersey
Mississippi
California
National Average: $2,405 per student
Massachusetts Average: $657 per student
National Median: $1,500 per student
FY17 Budget Recommendation
MA Ranking: Need-BasedAid
7Source: SHEEO, State Higher Education Finance FY2013.

8. FY17 Budget Recommendation
Trend in MASSGrant Buying Power
8Source: MDHE, 2014.

9. FY17 Budget Recommendation
DHE Administration and Academic Support
9
 DHE Administrative Account FY17: $4.4M
 State University Internship Incentive [$1M]
 Matches state dollars with private donations to support internships
 DHE Initiative: CampusViolence [$100K]
 Supports continued assessment & coordination of system efforts to
address campus violence
 Added emphasis on addressing racial & cultural bias, and providing
training & resources to campuses
 TRAIN (Training Resources and Internship Networks) Initiative [$1M]
 Community college workforce development grant program
addressing needs of long-term unemployed
 Piloted in FY16 in tandem with Executive Office of Labor &
Workforce Development

10. FY17 Budget Recommendation
Workforce Development
10
 Nursing & Allied Health Initiative FY17: $400K
 Restores FY14 funding level to support development & replication
of pathways for RN-to-BSN in support of healthcare workforce plan
 STEM Pipeline Fund FY17: $1.5M
 Supports initiatives of Governor’s STEM Advisory Council
 STEM Starter Academies FY17: $4.75M
 Increases recruiting, retention & graduation rates for STEM programs
at community colleges
 Community College Workforce Grants FY17: $1.45M
 Supports workforce development initiatives
 Rapid Response Grants FY17: $500K
 Addresses the needs of employers for training programs to be implanted at
community colleges within 90 days, and to provide training for unemployed,
underemployed & incumbent workers

11. FY17 Budget Recommendation
 Community Colleges & FY17: $566M +$49M
State Universities
 Personnel costs: Recognizes importance of establishing baseline costs,
including fiscal impact of collective bargaining contracts
▪ FY16 value of collective bargaining contracts not currently
appropriated [≈ $16.8M]
▪ FY17 projected collective bargaining need of $17.3M for
both segments
 Performance funding: Recommends additional $15M in funding to be
allocated through respective funding formulas
▪ Community Colleges: $9,325,000 [+ 2% ]
▪ State Universities: $5,675,000 [+ 2% ]
Community College & State Universities
11

12. FY17 Budget Recommendation
 Increase of $1.5M for the Performance Incentive Fund
 Increase of $500K for the Dual Enrollment Program
 Increase of $1M for the MA Scholarship line-item
 Increase of $200K for the Nursing and Allied Health Initiative
 Increase of $27M for the Community Colleges
 $9.325 million allocated through funding formula
 Estimated need of over $18 million for FY16/FY17 collective bargaining
 Increase of $22M for the State Universities
 $5.675 million allocated through funding formula
 Estimated need of over $16 million for FY16/FY17 collective bargaining
 Total request of $50M over FY16, overall increase of 7.7%
FY17 Recommendation Summary
12

13. Discussion
13