fy18 budget recommendation
TRANSCRIPT
FY18 Budget Recommendation
Board of Higher Education Meeting | December 6, 2016
FY18 Budget Recommendation
December 6, 2016 BHE approves FY18 Budget Request
January 18, 2017Governor releases “House 1” FY18 Budget
Recommendation
Mid-April 2017House Ways and Means releases FY18 Budget
Recommendation
Mid-May 2017Senate Ways and Means Releases FY18 Budget
Recommendation
June 2017 Conference Committee Releases FY18
Budget Report
July 1, 2017 FY2018 Fiscal Year Begins
FY18 Budget Timeline
FY18 Budget Recommendation
DHE line-items 2% increase over FY17; level funded over FY16 New investment aligned with “Big Three” [+$3M] Maintenance funding to support projected need of
mandatory obligations
The 24 Community Colleges and State Universities 2% increase through performance-based funding formulas Funding for FY17 collective bargaining costs into campus base Funding for FY18 collective bargaining costs ▪ Costs still to be determined at this time for AFSCME, APA, and MSCA
FY18 Budget Summary and Principles
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FY18 Budget Recommendation
Focusing Investment on the “Big Three”
FY18 Budget Recommendation
Key Investments: Performance Incentive Fund
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Performance Incentive Fund FY18: $4.25M +$1.5M Additional funding would allow for the expansion of campus partnerships and
for several new initiatives, specifically: The Commonwealth Commitment program. Grants would be awarded in
support of campus efforts to 1) improve transfer advising and 2) expand support services to students with the goal of allowing them to attend college full-time.
The expansion of the 100 Males to College program to support the college-going aspirations for low-income males, and males of color in Gateway cities.
The expansion of campus programs to increase the diversity of students enrolled in educator preparation programs to better reflect the diversity of students in the Commonwealth’s PreK-12 classrooms.
FY18 Budget Recommendation
Key Investments: CDEP, Financial Aid
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Commonwealth Dual Enrollment FY18: $1.5M +$450K Includes an additional investment of $450,000 which will accommodate 60%
more students with the opportunity to take free or reduced-cost college level courses and earn credit toward their future college degrees. National research on dual enrollment concludes that such programs drastically increase the likelihood of students attending and graduating from college.
Massachusetts State Scholarship FY18: $97.6M +$1.1M Includes $1M in additional funding for MASSGrant, the state’s primary need-
based financial aid program that provides financial assistance to undergraduate students who reside in Massachusetts.
An additional $100,000 in funding will study the viability of a pilot initiative to encourage low income families to commit to a long-term college financing plan.
FY18 Budget Recommendation
DHE Administration
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DHE Administrative Account FY18: $3.3M +$259K DHE Initiative: Campus Violence [$150K]
Supports additional funding for the implementation of the FY2017 Campus Safety and Violence Prevention (CSVP) recommendations.
Maintenance funding for DHE operations [$110K] Funding to support the payroll obligations for current staff (no increase in
FTEs); lease escalation. Level funding for State University Internship Incentive program [$1M]
Tufts Veterinary School FY18: $3M -$2M The DHE is requesting a $2M decrease and is also requesting line-item
language that initiates a new teaching partnership between Tufts and the community colleges that offer BHE-approved veterinary technician and veterinary health care programs.
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Community Colleges and State UniversitiesFY18 Budget Recommendation
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FY18 Budget Recommendation
Three-Step Build for FY181.Roll FY17 formula funding allocations
into the FY18 campus line-item appropriations
2.Establish baseline personnel costs, inclusive of known collective bargaining increases
3.Recommend additional investment to be allocated through funding formula
Community Colleges & State U’s
FY18 Budget Recommendation
Focus on Collective Bargaining Costs Fiscal impact of negotiated increases in the respective
collective bargaining agreements for FY17 is recognized in the FY18 recommendation.
FY17 value of collective bargaining contracts not currently appropriated in the campus line-items is ≈ $18.3M.
Funding request is only for staff paid from state appropriation.
FY18 collective bargaining costs not possible to accurately project at this time as AFSCME, MSCA, and APA are still TBD pending negotiation.
APA expires on 12/31/16; AFSCME and MSCA expire on 6/30/2017.
BHE’s FY18 Budget Recommendation requests that state-appropriated funds should support the value of all ratified collective bargaining agreements.
FY18 Budget Recommendation
Annual Increases of Current Contracts
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Unit FY12 FY13 FY14 FY15 FY16 FY17 FY18
AFSCME 3.0% 3.0% 3.0% 3.0% 3.5% 3.5% TBD
MSCA 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% TBD
APA 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% TBD
MCCC 3.5% 3.5% 3.5% 3.5% 2.0% 2.5% 2.5%
APA contract is on calendar year that expires on December 31, 2016 AFSCME and MSCA contracts expire on June 30, 2017 MCCC contract expires on June 30, 2018
Yellow box denotes year one of a three-year contract
Red box denotes costs not funded through direct state appropriation
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FY18 Budget Recommendation
The campuses receive an additional state contribution for benefit-related costs (“fringe”) for those employees paid from the state appropriation About 54% of total campus personnel are supported by
state funding. In FY17 the contribution from the state was approximately
$184M. The campuses are assessed fringe costs for all
campus employees not paid from the state appropriation About 46% of total campus personnel are not supported by
state funding. Collectively, the campuses will pay roughly $150M in fringe
in FY17. Fringe rates, determined by the Commonwealth, have
risen significantly—from 28.8% in FY15 to 35.16% in FY17 The fringe rate increase alone from FY15 to FY17 has
resulted in $28M more in costs to the campuses.
Acknowledging Impact of Fringe
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FY18 Budget Recommendation
The 15 Community Colleges: $5.5M allocated through funding formula▪ $2.75M increase over FY17, a total of 2% over the aggregate funding
for the segment Estimated $9.6M for the FY17 incremental collective bargaining costs FY18 funding for the to-be-determined costs of successor collective
bargaining agreements
The 9 State Universities: $5M allocated through funding formula▪ $2.5M increase over FY17, a total of 2% over the aggregate funding for
the segment Estimated $8.7M for the FY17 incremental collective bargaining costs FY18 funding for the to-be-determined costs of successor collective
bargaining agreements
Recommendation Summary: Campuses
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FY18 Budget Recommendation
Amends motion to add “operating” prior to “budget”
Eliminates projected range of need for FY18 collective bargaining contracts
Adds principle of supporting the FY18 costs of successor collective bargaining agreements
More clearly states the overall FY18 budget ask of 2% over FY17, not including annualized values of collective bargaining contracts
Changes from 11/29 FAAP Discussion
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DiscussionFY18 Budget Recommendation