The document summarizes the Board of Higher Education's proposed FY2016 budget recommendation. It reviews the FY2015 budget and outlines key initiatives and funding levels for FY2016. The recommendation calls for a total increase of $96.3 million, including $48.9 million more for community colleges and state universities, $42 million additional for need-based financial aid, and increases for programs around dual enrollment, workforce development and strategic initiatives. The goal is to move Massachusetts toward becoming a top 10 public higher education system by 2020 in areas of excellence, access and affordability.

1. Board of Higher Education Meeting | December 9, 2014
FY16 Budget
Recommendation

2. FY16 Budget Recommendation
Current Fiscal Year Review (FY15)
 FY15 Budget was +4% over FY14 [+$32M]
 +$13.2M for the Community Colleges
 +$8M for the State Universities
 +$3M for State Scholarship Line (MASSGrant)
 Collective Bargaining
 $7M appropriated in FY15 reserves
▪ Inadequate to support ratified contracts
▪ Total exposure is between $2.5M and $3M
 Governor’s “9C” Authority to Reduce Appropriations
 -$5.2M in DHE accounts
▪ -$500K for State University Internship Incentive Program
▪ -$2.4M for STEM Starter Academy Initiative
▪ -$550K for Workforce Incentive Training Grants
 No Reduction to Campus Base Appropriations
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3. FY16 Budget Recommendation
FY16 Budget Timeline
December 9, 2014
BHE approves FY16 Budget Request
March 4, 2015
Governor releases “House 1” FY16 Budget Recommendation
Mid-April 2015
House Ways and Means releases FY16 Budget Recommendation
Mid-May 2015
Senate Ways and Means Releases FY16 Budget Recommendation
June 2015
Conference Committee Releases FY2016 Budget Report
July 1, 2015
FY2016 Fiscal Year Begins

4. FY16 Budget Recommendation
Context: Higher Ed. Finance Commission
 Key Goals by 2020
 Top 10 Public System of Higher Education
 Top 10 in Excellence, Access, and Affordability
 Commission’s FY16 Fiscal Recommendations
 +$95M for operating budget support for
three segments
 +$42M for MASSGrant
 +$4.2B for additional bond authorization for
deferred maintenance
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5. Context: Higher Ed. Finance Commission
MA Ranking: Funding per FTE
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Public Higher Ed System Students State Support Per Student
1. Wyoming 25,669 $16,474
2. Alaska 21,131 $12,932
3. Illinois 375,190 $9,439
4. North Carolina 410,622 $8,687
5. New Mexico 101,239 $8,580
6. New York 578,144 $7,843
7. Nebraska 81,175 $7,357
8. Texas 987,506 $7,259
9. Hawaii 41,088 $7,173
10. California 1,478,928 $7,096
26. Massachusetts 171,974 $5,672
Source: SHEEO, State Higher Education Finance FY2013. Data about FY14 rankings will be published in spring 2015.

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

7. Context: Higher Ed. Finance Commission
Trend in MASSGrant Buying Power
80%
70%
60%
50%
40%
30%
20%
10%
0%
9%
Average Grant as % Share of Tuition & Mandatory Fees
FY1988 through FY2014
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: MDHE, 2014. 7

8. FY16 Budget Recommendation
Context: “Big Three” Completion Plan
Key State-Funded Initiatives:
 Vision Project Performance
Incentive Fund
 Massachusetts State
Scholarship Program
 Bridges to College
 Commonwealth Dual
Enrollment Partnership
 Learning Outcomes Assessment
 Low-Income Males &
Males of Color
 STEM Starter Academies
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9. FY16 Budget Recommendation
DHE Administration & Strategic Initiatives
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 DHE Administrative Account FY16: $3.8M +$545K
 State University Internship Incentive [$1M]
▪ Matches state dollars with private donations to support internships. Funded at $1 million in the FY15
budget, later reduced in November 2014 to $500,ooo in the Governor's 9C action.
 Learning Outcomes Assessment [$145K]
▪ Continues Learning Outcomes Assessment initiative which was started in 2010 with support from the
Davis Foundation. Pilot program serves as the key Vision Project outcome of measuring and public
reporting of what our students know and are able to do upon completion of their college studies.
 DHE Initiative: Campus Violence [$150K]
▪ NEWSupports assessment and coordination of system efforts to address campus violence with an
emphasis on campus sexual violence, and addressing the unique needs of the LGBTQ community and
fostering a culture of inclusivity.
 DHE Initiative: Low-Income Males & Males of Color [$250K]
▪ NEWImplements strategies for closing the largest student achievement gap in the Commonwealth for
college participation and completion: the historically underserved populations of low-income males and
males of color on all 29 campuses.

10. FY16 Budget Recommendation
DHE Administration & Strategic Initiatives
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 Performance Incentive Fund FY16: $8M +$500K
 Fourth year of funding to support grants that advance the goals of the Vision Project, as well as
collaboration and efficiency initiatives and common course numbering.
 Commonwealth Dual Enrollment FY16: $2M +$1.25M
 Funding for high school students to take college-level courses free or at minimal cost,
earning simultaneous credits toward a HS diploma and a future college degree.
 Bridges to College FY16: $400K
 Continuation of FY14 initiative to assist low-income adult learners via grants to agencies.
 Civic Engagement Initiative FY16: $250K
 Supports competitive grants to programs that encourage civic learning and engagement in
public higher education by providing students with learning experiences intended to cultivate
knowledge, skills, and disposition necessary to be engaged, informed citizens.

11. FY16 Budget Recommendation
Financial Aid
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 Massachusetts State Scholarship FY16: $135.6M +$42M
 Includes funding for MASSGrant, the state’s primary need-based financial aid program; also funds
Cash Grant, Part-Time Grant, and Early Childhood Educators Scholarship.
 Foster Care & Adopted Fee Waiver FY16: $4M +$100K
 Supports the Commonwealth’s commitment to provide tuition and fee assistance to students who
were either adopted or remain in foster care with the Department of Children and Families.
 Foster Care Financial Aid FY16: $1.08M
 Funding for students who elect to remain in the care of the Department of Children and Families
beyond age 18; serves as an incentive for Foster Children to continue their education beyond
high school.
 High-Demand Scholarships FY16: $1M
 Supports previously awarded students who continue to persist in eligible high-demand certificate
and degree programs .

12. FY16 Budget Recommendation
Workforce Development
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 Nursing & Allied Health Initiative FY16: $400K +$150K
 Supports development and replication of pathways for Registered Nurses to Bachelor of Science
in Nursing in support of healthcare workforce plan.
 STEM Pipeline Fund FY16: $1.5M
 Supports initiatives of Governor’s STEM Advisory Council.
 STEM Starter Academies FY16: $4.75M
 Increases recruiting, retention, and graduation rates for STEM programs at community colleges.
 Community College Workforce Grants FY16: $1.45M
 Supports workforce development initiatives at community colleges.

13. FY16 Budget Recommendation
Community College & State Universities
 Community Colleges & State U’s FY16: $555.7M +$48.9M
 Recognizes importance of establishing baseline personnel costs,
including fiscal impact of new collective bargaining contracts.
Three-Step Build for FY16
1. Roll FY15 funding forward into the FY16 campus appropriations.
2. Establish baseline personnel costs.
Build all FY15 and FY16 collective bargaining into base appropriation,
including FY15 deficiency.
3. Recommend additional investment to be allocated through funding formula.
$20 million for the Community Colleges
$15 million for the State Universities
Results in total increase of 9.7%

14. FY16 Budget Recommendation
Summary
Community Colleges [+$25.3M over FY15]
 $20M additional investment;
$5.3M in collective bargaining
State Universities [+$23.6M over FY15]
 $15M additional investment;
$8.6M in collective bargaining
 Massachusetts State Scholarship [$42M]
 Commonwealth Dual Enrollment [$1.25M]
 Performance Incentive Fund [$4.8M]
 DHE Administrative Initiatives [$545K]
 Nursing and Allied Health Initiative [$200K]
 College Health and Welfare [$366K]
 Foster Care and Adopted Fee Waiver [$118K]
 Tufts Veterinary School [-$1.8M]
Total:
+$96.3M
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+$48.9M
+$47.4M

15. Discussion
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