13 KAR 2:130 - [Effective 12/2/2024] Comprehensive funding model for the allocation of state general fund appropriations to Kentucky Community and Technical College System institutions
RELATES TO: KRS 48.600-48.630, 164.001, 164.092
NECESSITY, FUNCTION, AND CONFORMITY: KRS 164.092(12) requires the Council on Postsecondary Education to promulgate an administrative regulation to implement a comprehensive funding model for the public postsecondary education system. This administrative regulation establishes the formula by which general fund appropriations shall be distributed in the Kentucky Community and Technical College System sector.
Section 1. Definitions.
(1) "Academic year" means July 1 through June
30 and all terms completed therein.
(2) "Associate degree" means total number of
associate degrees awarded during the academic year, including degrees conferred
to resident and non-resident students.
(3) "Council" is defined by
KRS
164.092(1)(c).
(4) "Equity adjustment" means ten (10)
percent of total KCTCS institution allocable resources divided by sixteen (16)
and allocated to each institution.
(5) "Formula base amount" is defined by
KRS
164.092(1)(e) and includes a
deduction for mandated programs
(6)
"Full time equivalent student enrollment" means the total fall semester credit
hours earned divided by fifteen (15).
(7) "High-wage, high-demand credentials"
means credentials tied to occupations identified in the Kentucky Office of
Employment and Training's Kentucky Occupational Outlooks and annual
Occupational Employment statistics wage data that meet the following criteria:
(a) Have a median annual wage that is greater
than or equal to the wage at the 75th percentile for all occupations in the
state of Kentucky;
(b) Show growth
greater than or equal to the projected percent change for all Kentucky
occupations; or
(c) Have 100 or
more average annual job openings.
(8) "Hold-harmless provision" is defined by
KRS
164.092(1)(f).
(9) "Institution" means a college in the
Kentucky Community and Technical College System.
(10) "KCTCS" is defined by
KRS
164.092(1)(h).
(11) "KCTCS institution allocable resources"
is defined by
KRS
164.092(1)(i)
(12) "Low-income students" means a student
who has received a Federal Pell Grant at any time since 2005-2006 at the
graduating institution.
(13)
"Mandated program" means a research or public service activity not integral to
the instructional mission of the institution that is:
(a) Funded with greater than $200,000 of
state appropriations; and
(b)
Directed by statute, resolution, executive branch budget bill, executive order,
or other legal mandate.
(14) "Non-resident student" means a student
who does not meet the requirements for Kentucky residency for purposes of
tuition set forth in
13
KAR 2:045.
(15) "Resident student" means a student
certified as a Kentucky resident for purposes of tuition pursuant to
13
KAR 2:045 and any non-resident student attending an
institution under a state tuition reciprocity agreement entered into by the
council.
(16) "STEM+H degrees" mean
degrees in the fields of science, technology, engineering, math, and health
sciences as identified to annually by KCTCS.
(17) "Stop-loss provision" is defined by
KRS
164.092(1)(k).
(18) "Targeted industry credentials" means
credentials awarded in Classification of Instructional Programs (CIP) codes
developed by the U.S. Department of Education's National Center for Education
Statistics that crosswalk to occupations with education or training
requirements of an associate degree or below in targeted industry sectors as
identified in a targeted industry CIPs index provided annually by
KCTCS.
(19) "Underprepared
students" mean students who tested into developmental English, math, or reading
at any period of enrollment since the 2010-11 academic year.
(20) "Underrepresented minority students"
mean students who categorized themselves as Hispanic or Latino, American Indian
or Alaska Native, Black or African American, Native Hawaiian or Other Pacific
Islander, or two (2) or more races.
Section 2. Allocable Resources. The council
shall determine total KCTCS institution allocable resources for any given year
by calculating each institution's formula base amount and subtracting the
equity adjustment and any amount protected by a hold harmless provision. These
amounts shall then be combined along with any applicable increase or decrease
in general fund appropriation.
Section
3. Data Sets. Unless indicated otherwise, each metric shall be
calculated using the most recent set of finalized data.
Section 4. Student Success Outcomes.
Thirty-five (35) percent of total KCTCS institution allo-cable resources shall
be certified for distribution to each institution based on its share of the
total volume of student success outcomes as established in
KRS
164.092(8)(a) 1. through 7.,
and in the following denominations:
(1) Ten
(10) percent based on the credentials awarded in an academic year using an
average of the most recent three (3) years of finalized data and weighted in
the following manner:
1.0 for an
undergraduate certificate or diploma which a student can complete in less than
one (1) academic year;
2.0 for an
undergraduate certificate or diploma which a student can complete in at least
one (1), but less than two (2) academic years; and
4.0 for an associate degree.
(2) Two (2) percent based on
STEM+H credentials awarded in an academic year;
(3) Two (2) percent based on credentials
awarded to underrepresented minority students in an academic year;
(4) Two (2) percent based on credentials
awarded to low-income students in an academic year;
(5) Two (2) percent based on credentials
awarded to underprepared students in an academic year;
(6) Two (2) percent based on the number of
students in the cohort who transferred to a baccalaureate degree granting
college or university after the last term a student was enrolled at a KCTCS
institution in the academic year;
(7) Two (2) percent based on targeted
industry credentials awarded in an academic year;
(8) One (1) percent based on high-wage,
high-demand credentials awarded in an academic year;
(9) Two (2) percent based on the number of
full-time and part-time undergraduate students reaching or surpassing fifteen
(15) cumulative earned credit hours in an academic year;
(10) Four (4) percent based on the number of
full-time and part-time undergraduate students reaching or surpassing thirty
(30) cumulative earned credit hours in an academic year; and
(11) Six (6) percent based on the number of
full-time and part-time undergraduate students reaching or surpassing
forty-five (45) cumulative earned credit hours in an academic year.
Section 5. Student Credit Hour
Production. Thirty-five (35) percent of total KCTCS allocable resources shall
be certified for distribution to each institution based on its share of total
volume of weighted student credit hours earned during an academic year as
established in
KRS
164.092(8)(b). Credit hour
weighting by course discipline shall be in accordance with the KCTCS Funding
Model Classification of Instructional Program (CIP) Cost Factors
Index.
Section 6. Operational
Support. Thirty (30) percent of total KCTCS allocable resources shall be
certified for distribution to each institution in support of vital campus
operations as established in
KRS
164.092(8)(c) 1. through 3.
(1) Ten (10) percent shall be allocated based
on facilities' square feet as reported annually to the council and as
established in
KRS
164.092(8)(c) 1.
(2) Ten (10) percent shall be allocated based
on direct instruction and student services costs as reported to The Integrated
Postsecondary Education Data System (IPEDS) and as established in
KRS
164.092(8)(c) 2.
(3) Ten (10) percent shall be allocated based
on total full-time equivalent student enrollment as established in
KRS
164.092(8)(c) 3.
Section 7. Stop-loss and
Hold-Harmless Provisions.
(1) Any final
amounts certified for distribution to any institution shall account for any
hold-harmless or stop-loss provisions established in
KRS
164.092(9).
(2) The council shall determine hold-harmless
amounts for institutions in fiscal year 2018-2019 through application of the
formula established in this administrative regulation.
(3) If the formula total amount generated for
an institution is less than its initial allocable resources, the amount of that
difference shall be certified to KCTCS as that institution's hold-harmless
allocation.
(4) The council shall
apply these hold-harmless allocations to all applicable institutions in
2018-2019 and in any subsequent years as directed by the General
Assembly.
Section 8.
Incorporation by Reference.
(1) "KCTCS Funding
Model Classification of Instructional Program (CIP) Cost Factors Index", June
2017, is hereby incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Council on
Postsecondary Education, 1024 Capital Center Drive, Suite 320, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
Notes
STATUTORY AUTHORITY: KRS 164.092(12)
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
RELATES TO: KRS 48.600-48.630, 164.001, 164.092
NECESSITY, FUNCTION, AND CONFORMITY: KRS 164.092(12) requires the Council on Postsecondary Education to promulgate an administrative regulation to implement a comprehensive funding model for the public postsecondary education system. This administrative regulation establishes the formula by which general fund appropriations shall be distributed in the Kentucky Community and Technical College System sector.
Section 1. Definitions.
(1) "Academic year" means July 1 through June 30 and all terms completed therein.
(2) "Associate degree" means total number of associate degrees awarded during the academic year, including degrees conferred to resident and non-resident students.
(3) "Council" is defined by KRS 164.092(1)(c).
(4) "Equity adjustment" means ten (10) percent of total KCTCS institution allocable resources divided by sixteen (16) and allocated to each institution.
(5) "Formula base amount" is defined by KRS 164.092(1)(e) and includes a deduction for mandated programs
(6) "Full time equivalent student enrollment" means the total fall semester credit hours earned divided by fifteen (15).
(7) "High-wage, high-demand credentials" means credentials tied to occupations identified in the Kentucky Office of Employment and Training's Kentucky Occupational Outlooks and annual Occupational Employment statistics wage data that meet the following criteria:
(a) Have a median annual wage that is greater than or equal to the wage at the 75th percentile for all occupations in the state of Kentucky;
(b) Show growth greater than or equal to the projected percent change for all Kentucky occupations; or
(c) Have 100 or more average annual job openings.
(8) "Hold-harmless provision" is defined by KRS 164.092(1)(f).
(9) "Institution" means a college in the Kentucky Community and Technical College System.
(10) "KCTCS" is defined by KRS 164.092(1)(h).
(11) "KCTCS institution allocable resources" is defined by KRS 164.092(1)(i)
(12) "Low-income students" means a student who has received a Federal Pell Grant at any time since 2005-2006 at the graduating institution.
(13) "Mandated program" means a research or public service activity not integral to the instructional mission of the institution that is:
(a) Funded with greater than $200,000 of state appropriations; and
(b) Directed by statute, resolution, executive branch budget bill, executive order, or other legal mandate.
(14) "Non-resident student" means a student who does not meet the requirements for Kentucky residency for purposes of tuition set forth in 13 KAR 2:045.
(15) "Resident student" means a student certified as a Kentucky resident for purposes of tuition pursuant to 13 KAR 2:045 and any non-resident student attending an institution under a state tuition reciprocity agreement entered into by the council.
(16) "STEM+H degrees" mean degrees in the fields of science, technology, engineering, math, and health sciences as identified to annually by KCTCS.
(17) "Stop-loss provision" is defined by KRS 164.092(1)(k).
(18) "Targeted industry credentials" means credentials awarded in Classification of Instructional Programs (CIP) codes developed by the U.S. Department of Education's National Center for Education Statistics that crosswalk to occupations with education or training requirements of an associate degree or below in targeted industry sectors as identified in a targeted industry CIPs index provided annually by KCTCS.
(19) "Underprepared students" mean students who tested into developmental English, math, or reading at any period of enrollment since the 2010-11 academic year.
(20) "Underrepresented minority students" mean students who categorized themselves as Hispanic or Latino, American Indian or Alaska Native, Black or African American, Native Hawaiian or Other Pacific Islander, or two (2) or more races.
Section 2. Allocable Resources. The council shall determine total KCTCS institution allocable resources for any given year by calculating each institution's formula base amount and subtracting the equity adjustment and any amount protected by a hold harmless provision. These amounts shall then be combined along with any applicable increase or decrease in general fund appropriation.
Section 3. Data Sets. Unless indicated otherwise, each metric shall be calculated using the most recent set of finalized data.
Section 4. Student Success Outcomes. Thirty-five (35) percent of total KCTCS institution allo-cable resources shall be certified for distribution to each institution based on its share of the total volume of student success outcomes as established in KRS 164.092(8)(a) 1. through 7., and in the following denominations:
(1) Ten (10) percent based on the credentials awarded in an academic year using an average of the most recent three (3) years of finalized data and weighted in the following manner:
1.0 for an undergraduate certificate or diploma which a student can complete in less than one (1) academic year;
2.0 for an undergraduate certificate or diploma which a student can complete in at least one (1), but less than two (2) academic years; and
4.0 for an associate degree.
(2) Two (2) percent based on STEM+H credentials awarded in an academic year;
(3) Two (2) percent based on credentials awarded to underrepresented minority students in an academic year;
(4) Two (2) percent based on credentials awarded to low-income students in an academic year;
(5) Two (2) percent based on credentials awarded to underprepared students in an academic year;
(6) Two (2) percent based on the number of students in the cohort who transferred to a baccalaureate degree granting college or university after the last term a student was enrolled at a KCTCS institution in the academic year;
(7) Two (2) percent based on targeted industry credentials awarded in an academic year;
(8) One (1) percent based on high-wage, high-demand credentials awarded in an academic year;
(9) Two (2) percent based on the number of full-time and part-time undergraduate students reaching or surpassing fifteen (15) cumulative earned credit hours in an academic year;
(10) Four (4) percent based on the number of full-time and part-time undergraduate students reaching or surpassing thirty (30) cumulative earned credit hours in an academic year; and
(11) Six (6) percent based on the number of full-time and part-time undergraduate students reaching or surpassing forty-five (45) cumulative earned credit hours in an academic year.
Section 5. Student Credit Hour Production. Thirty-five (35) percent of total KCTCS allocable resources shall be certified for distribution to each institution based on its share of total volume of weighted student credit hours earned during an academic year as established in KRS 164.092(8)(b). Credit hour weighting by course discipline shall be in accordance with the KCTCS Funding Model Classification of Instructional Program (CIP) Cost Factors Index.
Section 6. Operational Support. Thirty (30) percent of total KCTCS allocable resources shall be certified for distribution to each institution in support of vital campus operations as established in KRS 164.092(8)(c) 1. through 3.
(1) Ten (10) percent shall be allocated based on facilities' square feet as reported annually to the council and as established in KRS 164.092(8)(c) 1.
(2) Ten (10) percent shall be allocated based on direct instruction and student services costs as reported to The Integrated Postsecondary Education Data System (IPEDS) and as established in KRS 164.092(8)(c) 2.
(3) Ten (10) percent shall be allocated based on total full-time equivalent student enrollment as established in KRS 164.092(8)(c) 3.
Section 7. Stop-loss and Hold-Harmless Provisions.
(1) Any final amounts certified for distribution to any institution shall account for any hold-harmless or stop-loss provisions established in KRS 164.092(9).
(2) The council shall determine hold-harmless amounts for institutions in fiscal year 2018-2019 through application of the formula established in this administrative regulation.
(3) If the formula total amount generated for an institution is less than its initial allocable resources, the amount of that difference shall be certified to KCTCS as that institution's hold-harmless allocation.
(4) The council shall apply these hold-harmless allocations to all applicable institutions in 2018-2019 and in any subsequent years as directed by the General Assembly.
Section 8. Incorporation by Reference.
(1) "KCTCS Funding Model Classification of Instructional Program (CIP) Cost Factors Index", June 2017, is hereby incorporated by reference.
(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Council on Postsecondary Education, 1024 Capital Center Drive, Suite 320, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
Notes
STATUTORY AUTHORITY: KRS 164.092(12)