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AGENDA: September 20, 2018 Finance Subcommittee Meeting

Blue Ribbon Commission

Finance Subcommittee Meeting

Agenda

 

Thursday, September 20, 2018

9:00 a.m.

 

Join from PC, Mac, Linux, iOS or Android: https://zoom.us/j/4286201038 
(for audio and video, including the ability to view Power Point slides in real time)

Or Telephone:  646-558-8665, Meeting ID: 428 620 1038 (for audio only)

Anyone who wishes to test their computer audio and video prior to the meeting may contact Chris Treadway at Chris.Treadway@wvhepc.edu or 304-558-1112 x 269


  1. Presentation by Chris Treadway of HEPC Funding Formula
  2. Questions and Discussion relating to Treadway Presentation
  3.  Presentation by President Gilbert on Short Term Adjustment  to Regional Institutions Budget  and Longer Term Funding
  4.  Questions and Discussion relating to Gilbert  Presentation
  5. Scheduling of Future Meetings, including meeting to receive alternative proposals to the HEPC Funding Formula

 

For agenda item number 1:

http://www.wvhepc.edu/wp-content/uploads/2018/03/FundingModelPresentation.pdf

 

http://www.wvhepc.edu/wp-content/uploads/2018/08/StudentFocusedFunding_Commission_24Aug2018_Rev25Aug2018.pdf

 

http://www.wvhepc.edu/wp-content/uploads/2018/08/StrategyLabs_ProposalAnalysis_Aug2018.pdf

 

http://www.wvhepc.edu/wp-content/uploads/2018/08/HEPC_FundingModelComments_23Aug2018.pdf

 

For agenda item number 3:

 

DRAFT - Recommendation from Finance Subcommittee

 

1.      Short Term Adjustment to Address Budget Inequities.

 

Background:  In recent years, funding to four-year institutions of higher learning has not been adjusted to account for enrollment changes.  In 2018, the HEPC began working on a funding formula to make adjustments to funding by taking into account a variety of factors, including enrollment.  The initial output of the formula suggested that there were budget inequities for a number of the regional institutions.  Furthermore, it was noted that approximately $60M has been cut from the higher education funding over the past 6 to 7 years.

 

 

Recommended Actions:  Informed by the initial output of the spring 2018 HEPC funding formula, it is proposed to increase the funding to various regional institutions by asking the WV legislature to allocate an addition $10M in appropriations to the institutions below. 

 

Action 1.1. The legislature will be asked to identify $10M in funds to be added to various regional institutions.  The $10M will be a combination of new money and up to $2M in reallocation from the appropriated HEPC budget.  This will essentially be a restoration of approximately 16.7% of the funds that had been cut from higher education.

 

Action 1.2.  Each identified regional institution will be asked to provide a succinct report to the legislature to explain how the additional revenues will be used to support a sustainable budget for the institution for the next five years. 

 

Action 1.3.  Upon receipt of the report for the institution as indicated in Action 2 above, the following distributions will be made:

 

                         

          Bluefield State College                            $568,000                           
          Concord University                               $1,822,000                                      
          Fairmont State University                    $2,620,000                                              
          Potomac State College of WVU             $302,000                                              
          Shepherd University                             $2,840.000                                              
          West Liberty University                        $1,364,000                                              
          West Virginia State University               $484,000

 

 2.     Longer Term Funding to Higher Education.

Background:  It is important that there be a reliable plan for funding of higher education in West Virginia.  We think that a funding formula should be established after the distribution of the $10M partial restoration of funding to higher education

 

Recommended Actions:   This formula should include elements of productivity and enrollment and also should take into account the unique roles played by the various institutions in the state.  There also needs to be an effort to establish a plan to proportionally tie future funding to higher education to the increase in state revenues in the future.  This funding could then be distributed through the formula.

 

            

Action 2.1.  After providing a short-term adjustment as described in #1 above, convene a group to begin developing a new funding formula.  This group will meet collectively with the institutional presidents and develop consensus around their approach. 

 

Action 2.2.  It will be recommended to the legislature that they develop an approach for long-term funding of higher education that will be tied to the revenues of the state.  As the revenue base of the state increases, a fixed percentage will be directed to higher education.