Introduction

I have included below the 2000-01 WHEG formulas for both the University of Wisconsin 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 Student Budget is increased, the amount awarded to each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

If the Student Award Percentage is increased, the amount awarded each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

Formula Elements Known at This Time

Applicants: The number of 2001-02 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 Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the UW System WHEG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the programs will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

UW System	$18,900,300
WTC System	$13,201,900

Tuition Increase: The UW System tuition is estimated to increase between five and seven percent in 2001-02. The WTC System Board 2001-02 tuition percentage increase is unknown at this time.

Points to Consider in Setting the WHEG Formula

Most recent data indicates that both the UW System WHEG and the WTC System Board WHEG 2000-01 formulas will come close to spending the appropriated amount for the academic year. There is however some carry forward funds from 1999-00 that will most likely exist that will be spent through special grant awarding in 2000-01.

The 2001-02 WHEG Formulas

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

Assuming the 2001-02 WHEG Program funding will remain the same, along with other "formula elements," as they were in 2000-01 the following options exist:

1. 2000-01 formulas could be adjusted to spend more in 2001-02 due to possible unspent funds.

2. 2000-01 formulas could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations.

Assuming the 2001-02 WHEG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent at a four-year public institution, the following options exist:

1. 2000-01 formulas could be adjusted to spend more in 2001-02 due to an assumed increase in the WHEG appropriations. However, if the appropriations are not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

2. 2000-01 formulas could be adjusted to spend more in 2001-02 due to possible unspent funds in 2000-01 and an increase in the WHEG appropriations. However, if the appropriations are not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

The UW System Administration and the WTC System Board will each forward their recommendations for the 2001-02 WHEG Formulas prior to the February 16th meeting. The Executive Secretary will make her recommendations for the 2001-02 WHEG Formulas at the February Board Meeting.

Introduction

I have included below the 2000-01 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 that 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 Budget is increased, the amount awarded to each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

If the Student Award Percentage is increased, the amount awarded each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

Formula Elements Known at This Time

Applicants: The number of 2001-02 Tribal College applicants may increase slightly.

Federal Methodology (which determines the Expected Family Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the Tribal WHEG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the program will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

Tribal Colleges   $400,000

Tuition Increase: The tuition at both Tribal Colleges will either remain the same or increase slightly in 2001-02.

Points to Consider in Setting the Tribal WHEG Formula

Most recent data indicates that the Tribal WHEG 2000-01 formula will spend the appropriated amount for the academic year. To date a waiting list for recipients exists for 2000-01.

The 2001-02 Tribal WHEG Formula

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

Assuming the 2001-02 WHEG Program funding will remain the same, along with other "formula elements," as they were in 2000-01 the following options exist:

1. The 2000-01 formula could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations. This would most likely result in a waiting list for recipients for 2001-02.

2. The 2000-01 formula could be adjusted to spend less in 2001-02, which would reduce or eliminate the possibility of a waiting list for recipients for 2001-02.

Assuming the 2001-02 WHEG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent at a four-year public institution, the following options exist:

1. The 2000-01 formula could be used in 2001-02 without any adjustments. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

2. The 2000-01 formula could be adjusted to spend more in 2001-02 due to an assumed increase in the WHEG appropriations. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

Introduction

I have included the 2000-01 WTG formula to be used as a reference. The structure of the WTG 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 Inflation Factor (found in step four) were 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.

Formula Elements Known at This Time

Applicants: The number of 2001-02 applicants will most likely be similar to 2000-01 or will increase slightly.

Federal Methodology (which determines Expected Family Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the WTG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the program will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

WTG Program   $21,038,600

Tuition Increase: The tuition at the Independent Colleges and Universities will increase on the average by approximately five to seven percent. The tuition at UW Madison may increase between five and seven percent in 2001-02.

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 for 2000-01 is the actual tuition amount for that academic year.

Most recent data indicates that the WTG 2000-01 formula will spend the appropriated amount for the academic year. Funding was also carried forward from 1999-00. Data indicates that these funds will also be spent in 2000-01. To date a waiting list for recipients exists for 2000-01.

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

The 2001-02 WTG Formula

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

Assuming the 2001-02 WTG Program funding will consist just of the 2000-01 appropriation, and that other "formula elements" would remain the same as they were in 2000-01 the following options exist:

1. The 2000-01 formula could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations. This would most likely result in the implementation of a waiting list for recipients for 2001-02 much earlier than was implemented in 2000-01 due to the fact the no carry forward funds would be available to spend.

2. The 2000-01 formula could be adjusted to spend less in 2001-02, which would reduce or eliminate the possibility of a waiting list for recipients in 2001-02.

Assuming the 2001-02 WTG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent, the following options exist:

1. The 2000-01 formula could be used in 2001-02 without any adjustments. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

2. The 2000-01 formula could be adjusted to spend more in 2001-02 due to an assumed increase in the WTG appropriations. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

Most recent past practice has been to make adjustments evenly across each population of students (independent and dependent).