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Board Report #00-11

2000-01
Wisconsin Higher Education Grant and Wisconsin Tuition Grant
Program Formulas

 

WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 1999-2000 WHEG formulas for both the University of Wsiconsin System and the Wisconsin Technical College System to be used as a reference. The general structure of the WHEG formula is outlined in the State Statutes. The components within may be adjusted to incorporate changes in the cost of education, the Federal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Dependent Student Equity Level is increased, the amount awarded to each dependent student would increase and the number of students eligible would increase. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

If the Independent Student Award Percentage is increased, the amount awarded to each independent student would increase and the number of students eligible would increase. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

 

1999-2000
WISCONSIN HIGHER EDUCATION GRANT
UNIVERSITY OF WISCONSIN SYSTEM

Equity Level $1,510
Independent Student Average Percentage 16.20%
Independent Student Budget $9,134

Dependent Student Model
Equity Level $1,510
- Parent's Contribution 0
- Student's Contribution 0

WHEG Award $1,510
Independent Student Model
Student Budget $9,134
- Student's Contribution 0

Equity Ceiling $9,134
x Independnt Student Award Percentage 16.20%

WHEG Award $1,480

 

1999-2000
WISCONSIN HIGHER EDUCATION GRANT
WISCONSIN TECHNICAL COLLEGE SYSTEM

Dependent Student Equity Level $1,300
Independent Student Average Percentage 11.50%
Independent Student Budget $9,134

Dependent Student Model
Equity Level $1,300
- Parent's Contribution 0
- Student's Contribution 0

WHEG Award $1,300
Independent Student Model
Student Budget $9,134
- Student's Contribution 0

Equity Ceiling $9,134
x Independnt Student Award Percentage 11.50%

WHEG Award $1,050

 

Formula Elements Known at This Time

Applicants: The number of 2000-01 UW System applicants will most likely increase slightly. Enrollment within the WTC System schools may also increase slightly.

Federal Methodology (which determines the Expected Family Contribution): There will not be any substantial changes in the formulas for 2000-01.

Appropriation: The 2000-01 appropriation for the UW System WHEG is the same as it is for 1999-2000. The WTC System WHEG appropriation for 2000-01 is 6% greater than the 1999-2000 appropriation. 2000-01 is the second year of the biennial budget period. Funds unused in 1999-2000 may be carried forward and used in 2000-01. Funding for 2000-01 will be as follows assuming no cary forward:

Tuition Increase: The UW System tuition will not increase in 12000-01. The WTC System tuition will most likely increase in 2000-01.

 

Points to Consider in Setting the WHEG Formula

Since 2000-01 is the final year of the biennium, great care must be taken to avoid excessive overawarding as there will be no source of additional funds available should spending be greater than anticipated.

Most recent data indicates that both the UW System WHEG and the WTC System WHEG 1999-2000 formulas could have allowed for more spending. Therefore, some funding may be carried forward from 1999-2000 to 2000-01.

It was recommended in 1999-2000 by both the UW System Administration and the WTC System Board that the independent and dependent student WHEG formulas be collapsed into one. Existing statutory language and other issues prevented that from occurring in 1999-2000. However, through the most recent budget process, the statutory language was changed allowing more flexibility in building WHEG formulas. The other issues that prevented the formula collapse to occur in 1999-2000 no longer exist.

 

The 2000-01 WHEG Formulas

With the preceding information in mind, I put forth the following:

  1. The UW independent and dependent student WHEG formulas could be collapsed into one formula to spend more than last year due to a possible carry forward of funds. The WTC independent and dependent student WHEG formulas could be collapsed into one formula to spend more than last year due to a possible carry forward of funds and an increase in the WTC WHEG appropriation.

  2. 2000-01 formulas could be adjusted for both dependent and independent students to spend more than last year due to a possible carry forward of funds and an increase in the WTC WHEG appropriation.

  3. 2000-01 formulas could be adjusted for dependent students only to spend more than last year due to a possible carry forward of funds and an increase in the WTC WHEG appropriation.

  4. 2000-01 formulas could be adjusted for independent students only to spend more than last year due to a possible carry forward of funds and an increase in the WTC WHEG appropriation.

The UW System Administration and the WTC System Board will each forward their recommendations for the 2000-01 WHEG Formulas prior to the February 25th meeting. The Executive Secretary will make her recommendations for the 2000-01 WHEG Formulas at the February Board Meeting.

 

2000-2001 PROPOSED UW WHEG FORMULA

  CURRENT
1999-2000

12/19/99
1999-2000 DATA
SIMULATION
2000-2001

12/19/99
1999-2000 DATA
DEPENDENTS
APPLICANTS 53,506 53,506
AWARDS 7,089 12,522
% ELIGIBLE 13.25% 23.40%
AVERAGE $'s $1,108 $977
$'s COMMITTED $7,853,274 $12,238,956
INDEPENDENTS
APPLICANTS 16,028 16,028
AWARDS 13,566 10,444
% ELIGIBLE 84.64% 65.16%
AVERAGE $'s $1,193 $1,207
$'s COMMITTED $16,186,903 $12,603,556
TOTALS
APPLICANTS 69,534 69,534
AWARDS 20,655 22,966
% ELIGIBLE 29.70% 33.03%
AVERAGE $'s $1,164 $1,082
$'s COMMITTED $24,040,177 $24,842,512
  100.00% 100.00%
OVERAWARD 127.19% 131.44%
SIMULATION IS BASED ON THE INDEPENDENT STUDENT MODEL
Equity Level $1510  
Student Budget $9,134 $3,000
Award Percentage 16.20% 50.00%
WHEG AWARD $1,480 $1,500
UW WHEG 2000-01 ALLOCATION $18,900,300
First school listed on FAFSA only.

1999-2000 data used both for current data and simulation.

 

2000-2001 PROPOSED TECH WHEG FORMULA

  ACTUAL
1999-2000

12/19/99
SIMULATION 1
2000-2001

12/19/99
SIMULATION 2
2000-2001

12/19/99
DEPENDENTS
APPLICANTS 12,825 12,825 12,825
AWARDS 2,528 7,457 7,521
% ELIGIBLE 19.71% 58.14% 58.64%
AVERAGE $'s $1,061 $701 $732
$'s COMMITTED $2,683,002 $5,229,689 $5,505,834
  15.40% 27.24% 27.27%
INDEPENDENTS
APPLICANTS 19,755 19,755 19,755
AWARDS 16,625 16,411 16,491
% ELIGIBLE 84.16% 83.07% 83.48%
AVERAGE $'s $886 $851 $890
$'s COMMITTED $14,734,386 $13,966,329 $14,680,679
  84.60% 72.76% 72.73%
TOTALS
APPLICANTS 32,580 32,580 32,580
AWARDS 19,153 23,868 24,012
% ELIGIBLE 58.79% 73.26% 73.70%
AVERAGE $'s $909 $804 $841
$'s COMMITTED $17,417,388 $19,196,018 $20,186,513
  100.00% 100.00% 100.00%
OVERAWARD 139.85% 145.40% 152.91%
SIMULATION USING ONE FORMULA - THE INDEPENDENT MODEL
Equity Level $1300    
Student Budget $9,134 $7,000 $7,000
Award Percentage 11.50% 14.29% 15.00%
Independent Award $1,050 $1,000 $1,050
2000-01 WHEG WTC ALLOCATION $13,201,900 $13,201,900
First school on the FAFSA only.

Data used is 12/19/99 for both actual data and simulations.

 

TRIBAL WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 1999-2000 Tribal WHEG formula to be used as a reference. As indicated above, the general structure of the WHEG formula is outlined in the State Statutes. The components within may be adjusted to incorporate changes in the cost of education, The Federal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Student Equity Level is increased, the amount awarded to each student would increase and the number of students eligible would increase. the number of recipients, however, would decrease if additional fundinf would not be available to support the increase in eligibility.

 

1999-2000
TRIBAL WISCONSIN HIGHER EDUCATION GRANT

Equity Level $1,800
 
Dependent and Independent Student Model
Equity Level $1,800
- Parent's Contribution 0
- Student's Contribution 0

WHEG Award $1,800

 

Formula Elements Known at This Time

Applicants: The number of 2000-01 Tribal College applicants may increase slightly.

Federal Methodology (which determines the Expected Family Contribution): There will not be any substantial changes in the formulas for 2000-01.

Appropriation: The 2000-01 appropriation for the Tribal WHEG is the same as it is for 1999- 2000. 2000-01 is the second year of the biennial period. Funds unused in 1999-2000 may be carried forward and used in 2000-01. Finding for 2000-01 will be as follows assuming no carry forward:

Tuition Increase: The tuition at both Tribal Colleges will either remain the same or increase slightly in 2000-01.

 

Points to Consider in Setting the Tribal WHEG Formula

Since 2000-01 is the final year of the biennium, great care must be taken to avoid excessive overawarding as there will be no source of additional funds available should spending be greater than anticipated.

Most recent data indicates that the 1999-2000 formula will spend what was appropriated. Therefore, it does not appear that funds will be carried forward from 1999-2000 to 2000-01.

 

The 2000-01 Tribal WHEG Formula

With the preceding information in mind, I put forth the following:

  1. The 2000-01 formula could be adjusted to spend more than 1999-2000 which would result in wait listing students.

  2. The 2000-01 formula could be adjusted to spend less than 1999-2000 which would result in fewer students being eligible for awards in 2000-01.

  3. The existing 1999-2000 formula could be used in 2000-01 resulting in close to status quo.

The Tribal Colleges will each forward their recommendations for the 2000-01 Tribal WHEG Formula prior to the February 25th meeting. The Executive Secretary will make her recommendations for the 2000-01 Tribal WHEG Formula at the February Board Meeting.

 

2000-2001 PROPOSED TRIBAL WHEG FORMULA

  1999-2000
CURRENT DATA
2000-2001
SIMULATION
DEPENDENTS
APPLICANTS 89 89
AWARDS 48 50
% ELIGIBLE 52.92% 56.18%
AVERAGE $'s $1,325 $1,548
$'s COMMITTED $63,618 $77,429
INDEPENDENTS
APPLICANTS 463 460
AWARDS 382 402
% ELIGIBLE 72.50% 87.39%
AVERAGE $'s $869 $1,003
$'s COMMITTED $331,524 $403,499
TOTALS
APPLICANTS 552 552
AWARDS 430 452
% ELIGIBLE 77.89% 81.88%
AVERAGE $'s $919 $1,064
$'s COMMITTED $395,142 $480,928
 
Student Budget $1,800 $6,560
Award Percentage 0% 27.44%
AWARD IF $0.00 EFC $1,800 $1,800
First school listed on FAFSA only.

Current Formula: $1800 - EFC = Award

2000-2001 Formula: $6560 - EFC x 27.44% = Award

 

WISCONSIN TUITION GRANT

Introduction

I have included the 1999-2000 WTG formula to be used as a reference. The structure of the WTG formula is outlined in State Statutes. The components within may be adjusted to incorporate changes in the cost of education, the Federeal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Inflation Factor (found in Step Four) is increased, the amount awarded each student would decrease as would the number of students showing eligibility.

If the tuition charged increases at a higher percentage than the UW Madison tuition, the amount awarded each student would increase as would the number of students showing eligibility. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

If the Base Maintenance increases at a higher percentage than the Net Tuition, the amount awarded each student would increase as would the number of students showing eligibility. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

 

1999-2000
WISCONSIN TUITION GRANT FORMULA

STEP
ONE
DEPENDENT INDEPENDENT
W/O CHILDREN
INDEPENDENT
W/ CHILDREN
TUITION (insert actual tuition charged) $5,805 $5,805 $5,805
- UW MADISON TUITION $3,405 $3,405 $3,405

NET TUITION $2,400 $2,400 $2,400
STEP
TWO
TUITION (insert actual tuition charged) $5,805 $5,805 $5,805
+ BASE MAINTENANCE $6,245 $6,245 $10,444

TOTAL COST $12,050 $12,050 $16,249
STEP
THREE
NET TUITION $2,400 $2,400 $2,400
DIVIDED BY TOTAL COST $12,050 $12,050 $16,249

FAMILY CONTRIBUTION PERCENTAGE 19.92% 19.92% 14.77%
STEP
FOUR
FAMILY CONTRIBUTION (insert actual EFC) $1 $1 $1
x INFLATION FACTOR 270% 725% 875%

ADJUSTED FAMILY CONTRIBUTION $270 $275 $875
STEP
FIVE
ADJUSTED FAMILY CONTRIBUTION $270 $275 $875
x FAMILY CONTRIBUTION PERCENTAGE 19.92% 19.92% 14.77%

TUITION OFFSET $54 $144 $129
STEP
SIX
NET TUITION $2,400 $2,400 $2,400
- TUITION OFFSET $54 $144 $129

Grant Amount $2,346 $2,256 $2,271
 
UP TO A MAXIMUM GRANT OF $2,300 $2,300 $2,256 $2,271

 

Formula Elements Known at This Time

Applicants: The number of 2000-01 applicants will most likely be similar to 1999-2000 or will increase slightly.

Federal Methodology (which determines the Expected Family Contribution): There will not be any substantial changes in the formulas for 1999-2000.

Appropriation: The WTG appropriation for 2000-01 is 7% greater than the 1999-2000 appropriation. 2000-01 is the second year of the biennial period. Funds unused in 1999-2000 may be carried forward and used on 2000-01. Funding for 2000-01 will be as follows assuming no carry forward:

Tuition Increase: The tuition at the Independent Colleges and Universities will increase on the average by approximately 5-7%. The tuition at UW Madison will not increase in 2000-01.

 

Points to Consider in Setting the WTG Formula

Past practice has been to increase the Base Maintenance at the rate of inflation. The rate of inflation recently has remained stagnant.

The UW Madison tuition reflected in the formula is not the actual tuition rate for 1999-2000. The 1999-2000 rate is $3,735. Steps are necessary to begin bringing the rate used in the formula closer to the actual tuition rate charged.

Since 2000-01 is the final year of the biennium, great care must be taken to avoid excess overawarding as there will be no source of additional funds should spending be greater than anticipated.

Most recent data indicates that the WTG 1999-2000 formulas will spend what was appropriated. Therefore, it does not appear that funds will be carried forward from 1999-2000 to 2000-01.

A statutory requirement exists that limits the WTG Program over commitment to 122%.

 

The 1999-2000 WTG Formula

With the preceding information in mind, I put forth the following:

  1. 2000-01 formulas could be adjusted for both dependent and independent students to spend more than last year due to an increase in the appropriation.

  2. 2000-01 formulas could be adjusted for dependent students only to spend more than last year due to an increase in the appropriation.

  3. 2000-01 formulas could be adjusted for independent students only to spend more than last year due to an increase in the appropriation.

Most recent past practice has been to make adjustments evenly across each population of students.

The Wisconsin Association of Independent Colleges and Universities and the Tribal Colleges will forward their recommendations for the 2000-01 WTG Formula prior to the February 25th meeting. The Executive Secretary will make her recommendations for the 2000-01 WTG Formulas at the February Board Meeting.

 

2000-2001
WISCONSIN TUITION GRANT

  CURRENT DATA
1999-2000

12/22/99
SIMULATION ONE
2000-2001

12/30/99
SIMULATION TWO
2000-2001

12/30/99
DEPENDENTS
APPLICANTS 11,517 11,518 11,518
% OF APPLICANTS 66.16% 66.15% 66.15%
AWARDS 6,812 6,911 7,145
% OF AWARDS 68.55% 68.53% 68.85%
% ELIGIBLE 59.15% 60.00% 62.03%
AVERAGE $'s $2,142 $2,161 $2,170
$'s COMMITTED $14,591,260 $14,931,494 $15,504,427
  68.26% 68.34% 68.69%
SINGLE/MARRIED, NO DEPENDENTS
APPLICANTS 2,907 2,907 2,907
% OF APPLICANTS 16.70% 16.70% 16.70%
AWARDS 1,214 1,234 1,255
% OF AWARDS 12.22% 12.24% 12.09%
% ELIGIBLE 41.76% 42.45% 43.17%
AVERAGE $'s $2,166 $2,252 $2,189
$'s COMMITTED $2,629,015 $2,779,578 $2,746,797
  12.30% 12.72% 12.17%
INDEPENDENT WITH DEPENDENTS
APPLICANTS 2,985 2,986 2,986
% OF APPLICANTS 17.15% 17.15% 17.15%
AWARDS 1,911 1,939 1,977
% OF AWARDS 19.23% 19.23% 19.05%
% ELIGIBLE 64.02% 64.96% 66.21%
AVERAGE $'s $2,174 $2,134 $2,185
$'s COMMITTED $4,155,012 $4,138,197 $4,320,350
  19.44% 18.94% 19.14%
TOTALS
APPLICANTS 17,409 17,411 17,411
AWARDS 9,937 10,084 10,377
% ELIGIBLE 57.08% 57.92% 59.60%
AVERAGE $'s $2,151 $2,167 $2,175
$'s COMMITTED $20,375,286 $21,849,269 $22,571,574
  100.00% 100.00% 100.00%
OVERAWARD 108.71% 103.85% 107.29%
PEOPLE 9,937 10,084 10,377
AVERAGE $2,151 $2,167 $2,175
Formula Factors
UW Tuition $3,405 $3,735 $3,735
Inflation Factors
Dependent Student 270% 270% 251%
Single/Married Independent 725% 725% 674%
Independent with Dependents 875% 875% 814%
Base Maintenance
Dependent/Single $6,245 $6,245 $6,245
Independent with Dependents $10,444 $10,444 $10,444
MAXIMUM AWARD $2,300 $2,300 $2,300
APPROPRIATION $19,662,200 7% increase
$21,038,554
7% increase
$21,038,554

Current Data uses 12/22/99 data.
12/30/99 data set is used for both simumations.

For simulations an increase of 5.5% is used unless the school indicated a different increase in tuition.

1999-2000 funds are $19,662,200.
2000-2001 appropriation is $21,038,554.

 

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