Using Finance Policy to Advance State Goals

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Using Finance Policy to Advance State Goals

• Dennis Jones, NCHEMSDavid Longanecker, WICHE

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The Management Cycle
State
Institution
Planning
State
State
Institution
Institution
Implement
Accountability
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State Goals

• Enhance and improve the educational pipeline for
  youth and adult learners
• Lessen geographic, economic, and demographic
  disparities in access, retention, and
  completion/graduation from a broad array of
  quality educational programs
• Strengthen the link between K-12, higher
  education, and the states economy

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The Implementation Tools

• Finance
• Accountability
• Regulation
• Policy Leadership and Governance Allocation of
  Decision Authority

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Implementation Tools Selected for Attention

• Provide recommendations the systemic governance
  reform
• Ensure fiscal stability and affordability of
  Colorado public higher education into the future

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Policy Leadership
Strategies for Achieving Goal Attainment Planning and Leadership Finance Regulation Accountability Governance
Goal 1
Goal 2
Goal 3
Alignment
Consistency
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State Role in Financing Public Higher Education

• Ensuring that the capacity needed to meet state
  goals is created and maintained
• Ensuring that this capacity is utilized in ways
  that yield desired outcomes

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The Flow of Funds
Stimulus Funds

• K-12
• Corrections
• Health Care
• Other Govt.

Donors Foundations Corporations
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The Flow of Funds - State
Income
Student Aid
FederalGovernment
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The Flow of Funds
Appropriations/Grants
Student Aid
Tuition
Students
Institutions
Scholarships Waivers
Student Aid
FederalGovernment
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Finance Policy The Options
InstitutionFocused
StudentFocused
Base-Plus Formulas Investment Funds Tuition Aid Policy Focused on Revenue Generation
Performance Funding Tuition Aid Policy Focused on Attainment of Specified Outcomes
Core Capacity
Capacity Utilization/Public Agenda
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State Responsibilities

• Ensure affordability need-based student aid
• Managed at the state level
• Within the broader context of tuition
  policy(e.g., Oregons shared responsibility)
• Purchase services as determined by state goals
• Invest in needed capacity