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Board Report #02-17

2002-03 Wisconsin Higher Education Grant and Wisconsin Tuition Grant Program Formulas

 

WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 2001-02 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 that determines the Expected Family Contribution, the number of applicants which relate 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.

2001-02
WISCONSIN HIGHER EDUCATION GRANT
UNIVERSITY OF WISCONSIN SYSTEM

The following formula was implemented in 2001-02 for both dependent and independent students.

Student Budget $3,290
minus Expected Family Contribution
x Student Award Percentage 47%
= Award
MAXIMUM AWARD IS $1,546

2001-02
WISCONSIN HIGHER EDUCATION GRANT
WISCONSIN TECHNICAL COLLEGE SYSTEM

The following formula was implemented in 2001-02 for both dependent and independent students.

Student Budget $7,000
minus Expected Family Contribution
x Student Award Percentage 15%
= Award
MAXIMUM AWARD IS $1,050

Formula Elements Known at This Time

Applicants: The number of 2002-03 UW System applicants will most likely increase slightly. Enrollment within the WTC System schools may continue to increase dramatically.

Federal Methodology (which determines the Expected Family Contributions): There will not be any substantial changes in the formulas for 2002-03.

Appropriation: The 2002-03 appropriations for the UW and WTC WHEG Programs are somewhat unknown at this time. The biennial budget approved last August included increases for both WHEG Programs. However, the State of Wisconsin now faces a deficit. The Governor has presented a proposal that holds harmless the increases included in the biennial budget already passed as well as provides additional increases for these two WHEG Programs. Therefore, one of several scenarios may occur for 2002-03. Two scenarios follow:

First Scenario:
Funding could remain as passed in the biennial budget.
UW System $20,639,600 (4.50% increase over 2001-02)
WTC System $14,074,000 (3.25% increase over 2001-02)

Second Scenario:
Funding could increase and include the Governor's recent proposal.
UW System $21,839,600 (4.50% increase over 2001-02 as well as $1.2 million included in the Governor's proposal)
WTC System $14,874,000 (3.25% increase over 2001-02 as well as $800,000 included in the Governor's proposal)

There of course could be other scenarios where funding would drop below the level included in the biennial budget. It is unknown at this time if this will occur.

Tuition Increase: The UW System tuition is estimated to increase on an average of 10% percent in 2002-03. The WTC System Board 2002-03 tuition percentage increase is estimated to be between 4 and 5%.

Points to Consider in Setting the WHEG Formula

Most recent data indicates that the UW System WHEG will come close to spending the appropriated amount for the academic year or a slight carry forward may occur. It currently appears that the WTC System Board WHEG 2001-02 formulas will overspend the appropriated amount for the academic year due to a dramatic increase in enrollment to the point where funding will most likely need to be carried back.

The 2001-02 WHEG Formulas

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

UW WHEG

  1. If the funding for the 2002-03 UW WHEG Program is held at the biennial budget appropriation amount, the formula could be adjusted to spend 4.5% more for 2002-03.
  2. If the funding for the 2002-03 UW WHEG Program includes the Governor's proposed increase as well as the biennial budget appropriation amount, the formula could be adjusted to spend 10.6% more for 2002-03.
  3. If the funding for the 2002-03 UW WHEG Program includes the Governor's proposed increase and the biennial budget appropriation amount, as well as a possible carry forward, the formula could be adjusted to spend an amount greater than a 10.6% increase for 2002-03.
  4. There is also a possibility that no increases in funding will occur for next year, which would dictate status quo.

WTC WHEG

  1. If a carry back occurs (2002-03 funding is used to fund 2001-02 grants) for the WTC WHEG Program and funding for the 2002-03 WTC WHEG Program is held at the biennial budget appropriation amount, the formula could be adjusted to spend the difference between the carry back and the 3.25% funding increase.
  2. If a carry back occurs (2002-03 funding is used to fund 2001-02 grants) for the WTC WHEG Program and funding for the 2002-03 WTC WHEG Program includes the Governor's proposed increase as well as the biennial budget appropriation amount, the formula could be adjusted to spend the difference between the carry back and the 9.1% funding increase.
  3. There is also a possibility that no increases in funding will occur for next year, which would dictate status quo unless a carry back occurs. If this were to occur, the formula could be adjusted to factor in the carry back amount.

The UW System Administration and the WTC System Board will each forward their recommendations for the 2002-03 WHEG Formulas prior to the March 8th meeting. I, the Executive Secretary, will make recommendations for the 2002-03 WHEG Formulas at the March Board Meeting.

2002-03 WHEG-UW Simulations

2001-02 UW-WHEG
Committed Dollars
March 5, 2002
SIM 1 SIM 2 SIM 3 SIM 4
DEPENDENT  
Applicants 56,370 55,673 55,673 55,673 55,673
% of Applicants 76.99% 76.85% 76.85% 76.85% 76.85%
Awards 12,430 13,180 14,173 14,213 14,353
% of Awards 54.69% 55.16% 56.14% 56.19% 56.35%
% Eligible 22.05% 23.67% 25.46% 25.53% 25.78%
Average $'s $1,081 $1,075 $1,119 $1,141 $1,205
$'s Committed $13,433,820 $14,172,085 $15,861,000 $16,216,670 $17,288,984
  51.23% 51.60% 52.31% 52.33% 52.40%
INDEPENDENT  
Applicants 16,852 16,773 16,773 16,773 16,773
% of Applicants 23.01% 23.15% 23.15% 23.15% 23.15%
Awards 10,298 10,713 11,072 11,082 11,118
% of Awards 45.31% 44.84% 43.86% 43.81% 43.65%
% of Eligible 61.11% 63.87% 66.01% 66.07% 66.29%
Average $'s $1,242 $1,241 $1,306 $1,333 $1,413
$'s Committed $12,790,289 $13,291,603 $14,458,057 $14,771,010 $15,708,092
  48.77% 48.40% 47.69% 47.67% 47.60%
TOTALS  
Applicants 73,222 72,446 72,446 72,446 72,446
Awards 22,728 23,893 25,245 25,295 25,471
% of Eligible 31.04% 32.98% 34.85% 34.92% 35.16%
Average $'s $1,154 $1,149 $1,201 $1,225 $1,295
$'s Committed $26,224,109 $27,463,688 $30,319,057 $30,987,680 $32,997,076
  100.00% 100.00% 100.00% 100.00% 100.00%
COMMITTED  
Appropriation A 132.77% 139.05% 153.51% 156.89% 167.07%
Appropriation B current
2001-02 data
133.06% 149.90% 150.14% 159.87%
Appropriation C 125.75% 138.83% 141.89% 151.09%
Number of Students 22,728 23,893 25,245 25,295 25,471
Average Award $1,154 $1,149 $1,201 $1,225 $1,295
WHEG FORMULA FACTORS  
Student Budget $3,290 $3,290 $3,568 $3,568 $3,568
% Factor 47% 47% 46% 47% 50%
Maximum Award: $1,546 $1,546 $1,641 $1,677 $1,784
Spent thru 3/5/02
Total Spent 2000-2001
Reconciliation 11/1/02
$19,006,499
$20,641,161
$19,587,792
Data from 1st School on FAFSA.

Appropr. A: 01-02 Appropriation $19,750,800
Appropr. B: 02-03 Appropriation $20,639,600
Appropr. C: 02-03 Appropriation plus Governor's proposed increase $21,839,600

SIM 1: Base Simulation - 00-01 Data, 01-02 Formula.
SIM 2: Increase budget to reflect 01-02 UW Madison tuition with a 46% multiplier factor.
SIM 3: Increase budget to reflect 01-02 UW Madison tuition with a 47% multiplier factor.
SIM 4: Increase budget to reflect 01-02 UW Madison tuition with a 50% multiplier factor.

2002-03 WHEG-WTC Simulations

2001-02 WTC-WHEG
Committed Dollars
March 5, 2002
SIM 1 SIM 2 SIM 3 SIM 4
DEPENDENT  
Applicants 15,903 14,460 14,460 14,460 14,460
% of Applicants 36.90% 38.20% 38.20% 38.20% 38.20%
Awards 7,890 7,960 7,768 7,629 7,613
% of Awards 27.79% 29.68% 29.28% 29.04% 29.16%
% Eligible 49.61% 55.05% 53.72% 52.76% 52.65%
Average $'s $758 $784 $707 $667 $640
$'s Committed $5,983,145 $6,081,542 $5,488,898 $5,089,125 $4,869,339
  24.67% 26.48% 25.94% 25.84% 26.80%
INDEPENDENT  
Applicants 27,196 23,392 23,392 23,392 23,392
% of Applicants 63.10% 61.80% 61.80% 61.80% 61.80%
Awards 20,497 18,856 18,765 18,646 18,494
% of Awards 72.21% 70.32% 70.72% 70.96% 70.84%
% of Eligible 75.37% 80.61% 80.22% 79.71% 79.06%
Average $'s $891 $895 $835 $783 $719
$'s Committed $18,270,332 $16,881,086 $15,667,347 $14,606,261 $13,299,205
  75.33% 73.52% 74.06% 74.16% 73.20%
TOTALS  
Applicants 43,099 37,852 37,852 37,852 37,852
Awards 28,387 26,816 26,533 26,275 26,107
% of Eligible 65.86% 70.84% 70.10% 69.42% 68.97%
Average $'s $854 $856 $797 $750 $696
$'s Committed $24,253,477 $22,962,628 $21,156,245 $19,695,386 $18,168,544
  100.00% 100.00% 100.00% 100.00% 100.00%
COMMITTED Commit figures below include an assumed 24%
02-03 commit increase due to increase in applicants.
Appropriation A 171.63%
 
01-02 appropriation
plus $500,000
carryback
equals
$14,131,000
192.46% 179.21% 168.49% 157.29%
Appropriation B 205.80% 191.49% 179.93% 167.84%
Appropriation C 187.16% 174.32% 163.94% 153.09%
Appropriation D 199.64% 185.82% 174.65% 162.97%
Appropriation E 178.38% 166.24% 156.41% 146.15%
Appropriation F 189.51% 176.49% 165.96% 154.95%
Number of Students 28,387 26,816 26,533 26,275 26,107
Average Award $854 $856 $797 $750 $696
WHEG FORMULA FACTORS  
Student Budget $7,000 $7,000 $7,000 $7,000 $7,000
% Factor 15% 15.00% 13.93% 13.00% 11.85%
Maximum Award: $1,050 $1,050 $975 $910 $830
Spent to date 3/5/2002
Total Spent 2000-2001
1st Reconciliation 11/1/02
2nd Reconciliation-revised 2/13/02
$13,922,653
$13,880,061
$13,842,917
$14,699,884
NOTES:
1) 1/23/02 "W" and "Z" codes were applied to limit overspending.
2) 2/15/02 $500,000 carryback results in a decrease of committed funds.
Data from 1st School on FAFSA.

Appropr. A: 01-02 Appropriation $13,631,000
Appropr. B: 01-02 Appropriation less projected carryback $12,631,000
Appropr. C: 02-03 Appropriation $14,074,000
Appropr. D: 02-03 Appropriation less projected carryback $13,074,000
Appropr. E: 02-03 Appropriation plus Governor's proposed increase $14,874,000
Appropr. F: 02-03 Appropriation plus Governor's proposed increase, less projected carryback $13,874,000

SIM 1: Base Simulation - 00-01 Data, 01-02 Formula.
SIM 2: Decrease maximum award assuming 02-03 projected carryback.
SIM 3: Decrease maximum award to include wait-listed students.
SIM 4: Decrease maximum award assuming 02-03 projected carryback and including wait-listed students.

 

TRIBAL WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 2001-02 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 that relate 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.

2001-02
WISCONSIN HIGHER EDUCATION GRANT
WISCONSIN TRIBAL COLLEGES

The following formula was implemented in 2001-02 for both dependent and independent students.

Student Budget $6,560
minus Expected Family Contribution
x Student Award Percentage 27.44%
= Award
MAXIMUM AWARD IS $1,800

Formula Elements Known at This Time

Applicants: The number of 2002-03 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 2002-03.

Appropriation: The 2002-03 appropriation for the Tribal WHEG Program is somewhat unknown at this time. The biennial budget approved last August increased the funding level for the Tribal WHEG Program. However, the State of Wisconsin now faces a deficit. The Governor has presented a proposal that holds harmless the funding level included in the biennial budget already passed. Therefore, one of several scenarios may occur for 2002-03. One scenario follows:

Funding could remain as passed in the biennial budget.
Tribal Colleges   $400,000

There of course could be other scenarios where funding would drop below the level included in the biennial budget. It is unknown at this time if this will occur.

Tuition Increase: The tuition at both Tribal Colleges will either remain the same or increase slightly in 2002-03.

Points to Consider in Setting the Tribal WHEG Formula

Most recent data indicates that the Tribal WHEG 2001-02 formula will spend the appropriated amount for the academic year.

The 2001-02 Tribal WHEG Formula

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

If the funding for the 2002-03 Tribal WHEG Program is held at the biennial budget appropriation or if no increases in funding occur for next year, the 2001-02 formula could be implemented.

The Tribal Colleges will each forward their recommendations for the 2002-03 Tribal WHEG Formula prior to the March 8th meeting. I, the Executive Secretary, will make a recommendation for the 2002-03 Tribal WHEG Formula at the March Board Meeting.

2001-2002 Tribal WHEG Dollars Committed

March 5, 2002
ACADEMIC YEAR
2001-2002
DEPENDENT
Applicants 113
Awards 22
% Eligible 19.47%
Average $'s $1,274
$'s Committed $28,026
  7.85%
INDEPENDENT
Applicants 566
Awards 223
% Eligible 39.40%
Average $'s $1,475
$'s Committed $328,893
  92.15%
TOTAL
Applicants 679
Awards 245
% Eligible 36.08%
Average $'s $1,457
$'s Committed $356,919
  100.00%
2001-02 Appropriation $400,000
Overaward * 89.23%
WHEG FORMULA FACTORS
Student Budget $6,560
Award Percentage 27.44%
Maximum Award $1,800

Spent to date is: $357,190
Total Spent 2000-01 $439,842
"W" Codes 8/31/01
Released by ISIR date to: 9/10/01

* There is currently a waiting list. We are in the process of releasing "W" codes and anticipate 100% to be committed and spent.

 

WISCONSIN TUITION GRANT

Introduction

I have included the 2001-02 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.

2001-02 WISCONSIN TUITION GRANT FORMULA

STEP
ONE
Dependent Independent,
no Children
Independent
with Children
TUITION (insert actual tuition charged) $6,135 $6,135 $6,135
- UW MADISON TUITION $3,735 $3,735 $3,735

NET TUITION $2,400 $2,400 $2,400
STEP
TWO
TUITION (insert actual tuition charged) $6,135 $6,135 $6,135
+ BASE MAINTENANCE $6,245 $6,245 $10,444

TOTAL COST $12,370 $12,370 $16,579
STEP
THREE
NET TUITION $2,400 $2,400 $2,400
DIVIDED BY TOTAL COST $12,370 $12,370 $16,579

FAMILY CONTRIBUTION PERCENTAGE 19.40% 19.40% 14.48%
STEP
FOUR
FAMILY CONTRIBUTION (insert actual EFC) $1 $1 $1
x INFLATION FACTOR 204% 546% 660%

ADJUSTED FAMILY CONTRIBUTION $204 $546 $660
STEP
FIVE
ADJUSTED FAMILY CONTRIBUTION $204 $546 $660
x FAMILY CONTRIBUTION PERCENTAGE 19.40% 19.40% 14.48%

TUITION OFFSET $40 $106 $96
STEP
SIX
NET TUITION $2,400 $2,400 $2,400
- TUITION OFFSET $40 $106 $96

GRANT AMOUNT $2,360 $2,294 $2,304
 
UP TO MAXIMUM GRANT OF $2,300 $2,300 $2,294 $2,300

Formula Elements Known at This Time

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

Federal Methodology (which determines Expected Family Contributions): There will not be any substantial changes in the formulas for 2002-03.

Appropriation: The 2002-03 appropriation for the WTG Program is somewhat unknown at this time. The biennial budget approved last August increased the funding level for the WTG Program. However, the State of Wisconsin now faces a deficit. The Governor has presented a proposal that holds harmless the funding level included in the biennial budget already passed. Therefore, one of several scenarios may occur for 2002-03. One scenario follows:

Funding could remain as passed in the biennial budget.
WTG Program   $22,103,700 (2.5% increase over 2001-02)

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 six. The tuition at UW Madison may increase on an average ten percent in 2002-03.

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 continues to remained stagnant.

The UW Madison tuition reflected in the formula for 2001-02 is the tuition amount for 2000-01.

Most recent data indicates that the WTG 2001-02 formula will spend the appropriated amount for the academic year.

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

The WTG Program no longer has a set maximum award per statute.

The 2001-02 WTG Formula

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

  1. If the funding for the 2002-03 WTG Program is held at the biennial budget appropriation amount, the formula could be adjusted to spend 2.5% more for 2002-03.
  2. There is also a possibility that no increases in funding will occur for next year, which would dictate status quo.

The Wisconsin Association of Independent Colleges and Universities will forward their recommendation for the 2002-03 WTG Formula prior to the March 8th meeting. I, the Executive Secretary, will make a recommendation for the 2002-03 WTG Formula at the March Board Meeting.

2002-2003 Tuition Grant Simulations

March 5, 2002
ACADEMIC YEAR
2001-2002
SIM ONE
2002-2003
Academic Year
SIM TWO
2002-2003
Academic Year
SIM THREE
2002-2003
Academic Year
DEPENDENTS  
APPLICANTS 11,774 11,724 11,724 11,724
% OF APPLICANTS 62.80% 62.96% 62.96% 62.96%
AWARDS 7,774 7,858 8,045 8,049
% OF AWARDS 65.89% 66.80% 67.09% 67.10%
% ELIGIBLE 66.03% 67.02% 68.62% 68.65%
AVERAGE $'s $2,157 $2,181 $2,188 $2,231
$'s COMMITTED $16,767,440 $17,139,621 $17,602,082 $17,960,821
  66.45% 66.50% 66.76% 66.78%
SINGLE/MARRIED, NO DEPENDENTS  
APPLICANTS 2,726 2,747 2,747 2,747
% OF APPLICANTS 14.54% 14.75% 14.75% 17.75%
AWARDS 1,025 1,074 1,089 1,090
% OF AWARDS 8.69% 9.13% 9.08% 9.09%
% ELIGIBLE 37.60% 39.10% 39.64% 39.68%
AVERAGE $'s $2,105 $2,178 $2,192 $2,233
$'s COMMITTED $2,157,233 $2,339,311 $2,387,316 $2,434,009
  8.55% 9.08% 9.06% 9.05%
INDEPENDENT WITH DEPENDENTS  
APPLICANTS 4,249 4,151 4,151 4,151
% OF APPLICANTS 22.66% 22.29% 22.29% 22.29%
AWARDS 2,999 2,832 2,857 2,857
% OF AWARDS 25.42% 24.07% 23.83% 23.82%
% ELIGIBLE 70.58% 68.22% 68.83% 68.83%
AVERAGE $'s $2,104 $2,233 $2,229 $2,275
$'s COMMITTED $6,308,546 $6,295,693 $6,368,090 $6,498,844
  25.00% 24.43% 24.16% 24.16%
TOTALS  
APPLICANTS 18,749 18,622 18,622 18,622
AWARDS 11,798 11,764 11,991 11,996
% ELIGIBLE 62.93% 63.17% 64.39% 64.42%
AVERAGE $'s $2,139 $2,191 $2,198 $2,242
$'s COMMITTED $25,233,219 $25,774,625 $26,357,488 $26,893,674
  100.00% 100.00% 100.00% 100.00%
OVERAWARD  
Appropriation A 117.00% 119.52% 122.23% 124.71%
Appropriation B current
2001-02 data
116.61% 119.24% 121.67%
Appropriation C 115.76% 118.38% 120.79%
Appropriation D 113.03% 115.58% 117.93%
STUDENTS 11,798 11,764 11,991 11,996
AVERAGE $2,139 $2,191 $2,198 $2,242
Tuition Grant Factors  
UW Tuition $3,735 $3,735 $3,890 $3,890
Inflation Factors    
Dependent Student 204% 204% 204% 204%
Single/Married Independent 546% 546% 546% 546%
Independent with Dependents 660% 660% 660% 660%
Base Maintenance    
Dependent/Single $6,245 $6,245 $6,245 $6,245
Independent with Dependents $10,444 $10,444 $10,444 $10,444
MAXIMUM AWARD $2,300 $2,300 $2,300 $2,350
Spent to date 3/5/2002
Total Spent 2000-2001
1st Reconciliation 11/1/02
2nd Reconciliation 2/22/02
$19,411,133
$23,247,820
$21,011,270
$20,591,615
FAFSA Data - school one only.

Appropriation A: 01-02 Appropriation $21,564,600
Appropriation B: 02-03 Appropriation $22,103,700
Appropriation C: 01-02 Appropriation plus possible carryover ($700,000) $22,264,600
Appropriation D: 02-03 Appropriation plus possible carryover ($700,000) $22,803,700

SIM ONE: This is the base simulation. 00-01 Data, 01-02 Formula.
SIM TWO: 00-01 Data, 01-02 Formula, $3,890 UW TUITION, and 5.6% increase or ACTUAL tuitions for 02-03.
SIM THREE: 00-01 Data, 01-02 Formula, $2,350 Maximum Award, $3,890 UW TUITION, and ACTUAL tuitions for 02-03.

 

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