For more information, contact: Robin Henson, (501) 683-2078, robinh@adhe.arknet.edu

Higher Education Coordinating Board

Approves 2007-09 Funding Recommendations

BLYTHEVILLE (Aug. 4, 2006) — The Arkansas Higher Education Coordinating Board (AHECB) approved the Department of Higher Education’s (ADHE) 2007-09 biennial recommendations for public colleges and universities’ operating and capital funding at its regular meeting today at Arkansas Northeastern College. The recommended funding distribution is set to go before the Arkansas General Assembly.

Operating recommendations, www.arkansashighered.com/if/links/16-OperatingRecTablesABCD.pdf, for the 2007-09 biennium continue the proposed four-year schedule for closing the gap between state appropriations and the need of public higher education institutions that was initiated in the current biennium. The total new funding needed for 2005-06 to fund institutions at the same level in constant dollars as 2000-01 was $833.1 million; however, actual funding realized for 2005-06 was $678.8 million. The institutions have had to resort to tuition increases to compensate, at least partially, for lost purchasing power. The operating recommendations call for $109.8 million in new funding for 2007-08 and $125.6 million for 2008-09 if the funding schedule is to be maintained. This provides funds for the state’s general revenue share of a 2.95 percent cost-of-living raise, bringing all public institutions to a minimum of 75 percent of the formula-generated need and additional funds for closing the equity gap. The distribution includes funds for economic development incentives for two-year colleges in the amount of $300,000 to each institution. These funds would be released after the institutions submit proposals to ADHE for approval.

A total of $318 million was recommended for all capital funding projects based on institutional square footage needed, condition of existing facilities, enrollment and historical capital funding. These capital recommendations, www.arkansashighered.com/if/links/CapitalRecommendations.pdf, include $268.9 million for funding technology infrastructure, renovation and new construction priorities, and $16.3 million in secondary priorities. ADHE staff recommended $15.9 million for the National Lambda Rail/e-corridor and approximately $17 million for critical maintenance, equipment and libraries.

The need for increased higher education funding is supported by a report also presented to the AHECB today that shows a significant increase in the number of degrees and certificates awarded by public colleges and universities from 1995 to 2005. The total number of degrees and certificates awarded has increased 57 percent to 21,608 since 1995. Arkansas’ higher education institutions have awarded almost 190,000 degrees and certificates since then. Also since 1995, the number of baccalaureate degrees awarded has increased by 24 percent to 8,843 awards in 2005. Public universities awarded more than 85,000 baccalaureate degrees since 1995. The largest increase in degrees awarded annually is in associate degrees, which increased by 98 percent to 4,971 awards in 2005. Almost 40,000 associate degrees have been awarded since 1995. Other highlights since 1995 include an increase of 26 percent in graduate and first-professional degrees awarded by the universities, while the doctoral degrees awarded increased by 61 percent and master’s degrees by 29 percent.

In her report to the board, Dr. Linda Beene, director of the Arkansas Department of Higher Education, focused on the public’s agenda for higher education, including such benefits as increased lifetime salaries and job opportunities, an enhanced quality of life and improved economic development. “With an enrollment increase of more than 25 percent over the past five years and several new off-campus sites to serve rural communities, the need for these additional funds is easily documented. In terms of constant dollars, 2004-05 funding was at the lowest level per full-time-equivalent student since 1979-80,” she said. “Although there have been individual campus projects, the public higher education institutions have not received new statewide capital funds in over a decade.”

In her discussion of developing statewide college readiness standards and assessments, Dr. Beene related these K-12 measures to the higher education funding recommendations. “The progress that Arkansas is making in improving the public school system is very commendable, but it is critically important that the State also maintain its commitment to higher education. It would be a shame for the state to bring the public schools up to the desired level while letting the colleges and universities fall behind their peers in other states. Such condition for Arkansas higher education would result in a loss of the brightest students and faculty. We must maintain quality institutions that will ensure an increasing number of our high school graduates stay in Arkansas to earn college degrees, work and pay state taxes,” she added.

In other institutional finance business, the AHECB approved the distribution of $1 million in incentive funding for 2007-08. The distribution is based on improvement in the annual graduation rate, exceeding the anticipated graduation rate as determined by a regression model and improvement in retention rates.

The meeting agenda also included 2007-09 biennium personal services recommendations for non-classified personnel, which the AHECB adopted. In accordance with A.C.A. §6-61-209, the number of positions, titles and line-item maximum salaries for all non-classified administrative, academic and auxiliary positions at each Arkansas public institution of higher education were reviewed by ADHE staff before recommending the changes. With currently 22,456 authorized non-classified positions, these institutions requested a net of1,323 new or additional non-classified positions for 2007-09. ADHE staff recommended a net of 988 new and/or additional non-classified positions (4.4 percent increase). According to Dr. Beene, additional positions for higher education do not mean need for new funding. Additionally, the AHECB, in accordance with A.C.A. §6-62-805, accepted the Certification of Intercollegiate Athletic Revenues and Expenditures budgeted for 2006-07.

In other business, ADHE staff presented the annual college-going rate report, which showed that Arkansas had an all-time high college-going rate for fall 2005 at 63.4 percent. The college-going rate measures the proportion of college students enrolling in postsecondary education in the fall semester after finishing high school. This rate is 2.5 percent above the previous fall term. According to the National Center for Education Statistics (NCES), the 2003 (the most recent year national data are available) national college-going rate was 63.9 percent t. Much of the difference between the national and Arkansas rates can be attributed to the out-migration of students. Historically, 10 to 12 percent of Arkansas’ college freshmen initially enroll in out-of-state institutions (NCES data).

Financial aid action taken at the meeting revised the rules and regulations for the Academic Challenge Scholarship and the Workforce Improvement Grant (Act 1796 of 2003). The amendment to the Challenge Scholarship clarifies the academic requirement for the natural science core course requirements. The adopted Workforce Improvement Grant amendments define mandatory fees as “fees required for academic courses” and changes reporting requirements and funds disbursement procedures. Institutions will now report students each semester, and funds will be distributed after the term’s reports are submitted.

New programs approved by the AHECB are: Associate Degree in Nursing at Ouachita Technical College; Bachelor of Applied Technology at the University of Arkansas at Little Rock (UALR); Associate of Arts online at Arkansas State University (ASU)-Newport; Master of Arts in teaching at the University of Central Arkansas; Master of Science in health sciences at UALR; Associate of Applied Science in applied engineering technology and Technical Certificate in engineering design at East Arkansas Community College; Technical Certificate and Certificate of Proficiency in pharmacy technician at ASU-Beebe; Associate of Applied Science in hospitality administration at National Park Community College; and Associate of Applied Science and Technical Certificate in hospitality administration at ASU-Beebe.

Economic feasibility of bonds issuances were also approved by the AHECB for Pulaski Technical College and the University of Arkansas at Fort Smith.

The full AHECB meeting agenda and background information can be found at www.arkansashighered.com/qmeet/2006-08-Aug-Agenda.pdf. For more information about the Arkansas Department of Higher Education, visit www.arkansashighered.com or call (501) 371-2000.

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