Cost Estimates

The Commissionís recommendations contained four recommendations with big cost implications. These recommendations and their costs are displayed in the following table. The table identifies the cost of the recommendation in the year 2020 in both nominal and inflated dollars. The three-percent inflation applied is the rate assumed in the current 601 forecast methodology.

Big Ticket Recommendations

Nominal Cost
in 2020

Inflated Cost
in 2020

Expand capacity to meet projected enrollment demand

$ 560 M

$ 1,043 M

Create a scholarship for Certificate of Mastery recipients

$ 151 M

$ 246 M

Raise per-student funding to the wt. Average of peer institutions

$ 114 M

$ 114 M

Create a pool of funds for incentive funding

$ 75 M

$ 75 M

Total

$ 900 M

$ 1,478M

In addition to these recommendations there were several that would reduce costs over time. To show the potential savings to the system the following assumptions were applied.

Several recommendations of the commission have a fiscal impact but have not been calculated, because they are not of the same scale. These include enhance counseling and designate a statewide coordinator for distance learning.

Capital budget implications are not included in the commission's recommendations.