South Carolina Higher Education Tuition Grants Commission

1. South Carolina Higher Education Tuition Grants Commission Budget Request 2019-20

2. Tuition Grants Appropriations History

3. Current FundingFY 18-19

4. Recurring AppropriationsFY 18-19 • The agency received $8,908 in increased personnel funding, which supported a classified personnel pay increase within pay band due to increased Information Technology and Security duties, in addition to supporting the salary approved by the Agency Head Salary Commission for the Executive Director. The agency received no increased State appropriations for the Tuition Grants Program. Non-Recurring/Capital AppropriationsFY 18-19 • Increased appropriation via Lottery Funds: $1,169,992 • Increased appropriation via the Children’s Education Endowment (through CHE): $224,926 • All funding increases were used to provide a $100 increase to the Maximum Tuition Grant Award Amount per eligible student. The value of the Maximum Tuition Grant for 2018-2019 is $3,300.

5. Carry Forward • FY16-17: $2,582,502 • FY17-18: $1,370,900 • FY18-19: $1,775,093 • Anticipated carry forward funds for FY18-19 automatically includes an additional $2,500,000 in Lottery Funds because of the disbursement pattern for Tuition Grants (25% of funds received annually too late to disburse in current year and always used for first 25% of disbursements in successive year).

6. Other Funds Oversight CommitteeJBRC • The Commission has never appeared before OFOC or JBRC. • The Commission does not anticipate that it will need to appear before OFOC or JBRC after the passage of the budget for FY 19-20.

7. Budget RequestFY 19-20

8. 3% General Fund Reduction Analysis FY 19-20 • $788,801: Tuition Grants • The 3% reduction would effectively reduce the Tuition Grant amount by $60 per student. In the most recently completed academic year, 13,588 South Carolinians qualified for the Tuition Grant.

9. Non-Recurring/Capital RequestFY 19-20 • No request Other/Federal Fund RequestFY 19-20 • No request

10. Recurring Appropriations Request FY 19-20 • $1,569,831: Student Grants Increase • Increase student grants by $150 per student for 2019-2020 (Incremental Step Toward Maximum per Statute) • $3,000: Administration (State Employer Contributions) • This amount will cover the increased cost of providing State employee benefits to eligible employees who qualify for benefits for themselves and their dependents.

11. Recurring Appropriations Request FY 19-20 • $500,000: Tuition Grants - Authority to Spend (NOT A REQUEST FOR NEW FUNDS) • Proactive request for an increase in the agency’s Authority to Spend funds it receives annually through the Children’s Educational Endowment Fund. In the event future funding for this program is increased and the agency receives funds above its current authority of $5.5 million, the agency would be unable to spend the funds without going before the Other Funds Oversight Committee. Approving this request now will eliminate the need to appear before OFOC to request authority to spend funds that have already been appropriated to the agency. 100% of the funds received through this Fund are spend on Need-Based Tuition Grants directly to eligible college students.

12. FTEs • The Commission currently has: • 5 authorized State FTEs, 1 vacant FTE • 0 authorized Federal FTEs • 0 authorized Other Funded FTEs • 5 Total FTEs • There are no requests for additional FTEs.

13. Appendix

14. South Carolina Tuition Grants • Program Statute-Title 59, Chapter 113 • Program administered by the Tuition Grants Commission located in Columbia. • The South Carolina Tuition Grants Program was created to help educate our South Carolina citizenry by making the cost of attending in-state independent colleges more affordable, thereby gaining maximum usage from all available educational facilities located in South Carolina. The Tuition Grants Program also helps preserve the dual system of education in South Carolina and saves the state tax dollars (estimated at almost $868 million since Program creation) by attracting South Carolina residents into the independent college sector, thereby saving the automatic state tax subsidy that goes to all students attending South Carolina’s public colleges regardless of the financial need of the family.

15. South Carolina Tuition Grants • SC Tuition Grants Program was established in 1970 with over 450,000 student grants awarded since then. • In the current academic year, 13,546 students, attending 21 eligible South Carolina independent colleges, are receiving a South Carolina Tuition Grant. • By Statute, all recipients are South Carolina Residents. • SC Tuition Grants are grants, not scholarships, requiring financial need to qualify although, by statute, “academic merit” is also required to qualify. • Tuition Grants are awarded directly to eligible South Carolina students and can only be used to assist in paying their tuition. No funds are provided directly to colleges.

16. Eligible CollegesAll Based in South Carolina by Statute (59-113-50) All SACS accredited • Allen University • Anderson University • Benedict College • Bob Jones University • Charleston Southern University • Claflin University • Coker College • Columbia College • Columbia International University • Converse College • Erskine College • Furman University • Limestone College • Morris College • Newberry College • North Greenville University • Presbyterian College • Southern Wesleyan University • Spartanburg Methodist College • Voorhees College • Wofford College

17. Five Year Grant History • 2018-2019 – 13,546 Max. Grant - $3,300; Average Grant ~ $3,100 • 2017-2018 – 13,620 Max. Grant - $3,200; Average Grant - $2,905 • 2016-2017 – 13,214 Max. Grant - $3,200; Average Grant - $2,897 • 2015-2016 – 13,340 Max. Grant - $3,100; Average Grant - $2,775 • 2014-2015 – 13,346 Max. Grant - $3,000; Average Grant - $2,672

18. Maximum Grant History 2018-2019 -- $3,300 2017-2018 -- $3,200 2016-2017 -- $3,200 2015-2016 -- $3,100 2014-2015 -- $3,000 2013-2014 -- $2,900 2012-2013 -- $2,800 2011-2012 -- $2,600 2010-2011 -- $2,600 2009-2010 -- $2,800 2008-2009 -- $3,200 The Statutory Maximum Grant for the Tuition Grant may not exceed the average state appropriation for each FTE in the state-supported institutions of higher learning offering four-year undergraduate degree programs in the previous year. For the most recent academic year, the average state appropriation for these FTE students was $3,722

19. 2017-2018 Recipients By College • College AttendedRecipientsTuition Grants • Allen University 224 $662,000 • Anderson University 1,517 $4,369,600 • Benedict College 717 $2,107,965 • Bob Jones University 490 $1,475,910 • Charleston Southern University 1,452 $4,315,279 • Claflin University 1,282 $3,866,357 • Coker College 566 $1,488,121 • Columbia College 416 $1,215,635 • Columbia International University 171 $499,910 • Converse College 511 $1,529,480 • Erskine College 316 $980,450 • Furman University 475 $1,384,260 • Limestone College 842 $1,875,121 • Morris College 400 $1,178,045 • Newberry College 692 $2,067,460 • North Greenville University 1,196 $3,507,793 • Presbyterian College 502 $1,543,951 • Southern Wesleyan University 456 $1,331,590 • Spartanburg Methodist College 568 $1,626,324 • Voorhees College 177 $536,880 • Wofford College 618 $1,914,255 TOTALS: 13,588 $39,476,386

20. Additional Information • The Tuition Grants program appropriation represents approximately 4% of the state’s overall higher education funding • Independent colleges in South Carolina have a combined enrollment of over 33,000 students annually and graduate over 22% of the state’s Bachelor’s degree recipients • Over 16% of South Carolina’s full-time undergraduate students are enrolled at our state’s independent colleges • On average, tuition and fees at South Carolina’s independent colleges has risen 2.2% over the last three years; by comparison, tuition and fees at the state’s public institutions has risen an average of 3.4% over the same time period Sources: South Carolina Tuition Grants Commission, South Carolina Commission on Higher Education, South Carolina Independent Colleges and Universities

21. Additional Information • Many of our state residents, striving to improve their futures via higher education, come from economically challenged families. • The merit-based scholarships offered by the state are very well-funded with far more funding going to those students and at much higher amounts per student than the state’s need-based programs. • Future consideration of increases in need-based funding for economically disadvantaged South Carolina students and their families, including funding for South Carolina Tuition Grants and the state Need-Based Grants for students attending public colleges, would be of great benefit to the long-term future of our great state. • The Tuition Grants Commission supports the current request in recurring funds for the state need-based grants program as requested by the Commission on Higher Education.