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
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
$ 900 M
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.
- Productivity Savings: beginning in the year 2003 this estimate assumes the system could save 1% of the total cost. Each year thereafter the system would save an additional 1%. (This 1% compounding occurs at the same time the system is receiving a 3 % inflation adjustment each year.) By the year 2020 the system has reduced costs by $ 553 million dollars per year.
- Acceleration Savings: assume that in the year 2005 $200 million a year can be saved through a combination of expanding the Running Start Program, expand College in the High School programs expand offering support for Advanced Placement preparation, and better articulation within post-secondary education. If the savings for this program remain constant at the level but the amount is adjusted for inflation by the year 2020 this set of initiatives would reduce costs by $311 million a year.
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.