Chancellor Glen D. Johnson 1 Oklahoma’s Public Colleges and Universities are Moving Forward… 2 We must assemble the tools and resources needed to build a stronger economy…. 3 4 Young adults in America today are expected to finish their formal education with fewer college credits than their parent’s generation 5 “The cornerstone of our success in America has been the opportunity for the next generation to be better educated than the previous generation.” 6 In The Global Economy of the 21st Century, 90 Percent of the FastestGrowing Jobs Will Require a Higher Education. 7 2 If Oklahoma is going to remain economically competitive, we must have the best educated and productive workforce that we can assemble. 8 Nationally, more than one-quarter (27.9 percent) of adults 25 and older have a bachelor’s degree or more, compared to Oklahoma at 22.7 percent. 9 State Per Capita Personal Income v. Share of Adult Population with Bachelor's Degree or Higher No state with a low percentage of its citizens with a college degree has a high per capita income. No state with a high percentage of its citizens with a college degree has a low per capita income. 10 15% 10% 2.4 UNEMPLOYMENT RATE IN 2010 0 0 5% 1.9 20 40 PROFESSIONAL DEGREE $146,659 DOCTORATE DEGREE $116,305 4.0 MASTER’S DEGREE $87,913 5.4 BACHELOR’S DEGREE $68,812 7.0 ASSOCIATE DEGREE $49,835 9.2 SOME COLLEGE NO DEGREE $47,484 10.3 HIGH SCHOOL GRADUATE 14.9 LESS THAN HIGH SCHOOL Source: Bureau of the Census; Bureau of Labor Statistics 60 80 100 120 140 160 ANNUAL SALARIES IN 2009 $39,937 $30,958 11 The Impact of Education on Individuals: Lifetime Earnings Estimated Lifetime Earnings Difference Compared to High School Graduate Less than 9th grade $976,350 -$478,903 High school dropout 1,150,698 -304,555 High school graduate 1,455,253 0 Some college, no degree 1,725,822 270,569 Associate degree 1,801,373 346,120 Bachelor's degree $2,567,174 $1,111,921 Master's degree 2,963,076 1,507,823 Doctorate 3,982,577 2,527,324 Professional degree 5,254,193 3,798,940 Education Level U.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAU 12 Median Net Worth for Households By Education Attainment Source: US Bureau of the Census; $300,000 $245,763 $200,000 $142,518 $100,000 $80,000 $60,000 $42,223 $43,580 $58,861 Some College No Degree Associate’s Degree $40,000 $20,000 $7,270 $0 No High School Diploma High School Only Bachelor’s Degree Graduate/Prof Degree 13 Workers with a high school diploma bore the brunt of the recession’s job losses. Job gains in the recovery are almost exclusively confined to those with education beyond high school. Source: Georgetown University Center for Education and the Workforce 14 Employment Outcomes After One Year Percent of Oklahoma Residents Who Graduate with a Bachelor’s Degree Remain In the State and are Employed In the State One Year After Graduation 89% Remain in the State Source: 2011 Employment Outcomes Report 2008-09 15 Link Academic Programs to the needs of Business • • • • Healthcare, Allied Health and Nursing Engineering Aviation and Aerospace Wind Turbine Technologies 16 History of Appropriations $1,039 billion $1,001 billion $1,003 billion $955 million $945 million FY09 FY10 FY11 FY12 FY13 8.4% Reduction over a Five Year Cycle 17 Higher Education’s Percent of Oklahoma Total State Appropriations 20% 18.6% 15.8% 15.6% 15.3% 15% 14.8% 10% 5% FY80 FY90 FY00 FY10 FY13 18 History of Revenues 100% 80% 75% 60% 50% 40% 40% 39% 20% 0% 1988 2007 2012 2013 19 Medicaid/ Healthcare Funding Corrections Budget 20 Record Enrollment Enrollment Slide 21 Tuition and Mandatory Fees Tuition and Mandatory Fee Increases in 2009 – 2012 5% 5.8% 5.2% 0% 2009 2010 2011 2012 22 Source: College Board, Trends in College Pricing, 2011 $4,125 $6,059 Wyoming Louisiana $5,123 $5,292 Alaska Utah $5,457 $5,456 New Mexico Oklahoma $7,849 $7,668 $7,562 $6,960 2,000 $6,934 4,000 Kansas 6,000 Nebraska Iowa Missouri 8,000 Colorado $8,078 10,000 Texas $12,041 $12,079 $11,600 12,000 Illinois New Jersey Pennsylvania $13,078 $13,507 14,000 Vermont New Hampshire Tuition and Mandatory Fees 4 Year Institutions (Research and Regionals) Tuition and Mandatory Fees 2011-12 23 Minnesota Source: College Board, Trends in College Pricing, 2011 $2,124 California $1,119 $2,049 New Mexico $2,514 $2,426 Texas 1,000 $2,075 $1,498 2,000 North Carolina Arizona Kansas Nebraska $2,756 3,000 Missouri $3,043 $4,177 $4,832 6,000 Oklahoma Iowa Massachusetts $5,162 $4,945 5,000 South Dakota $6,520 $6,741 7,000 Vermont New Hampshire Tuition and Mandatory Fees 8,000 2 Year Institutions Tuition and Mandatory Fees 2011-12 4,000 24 Source: “Enterprising States” – A Project of the US Chamber of Commerce and the National Chamber Foundation 25 The United States has declined in Degree Completion From 1st to 16th in the World 26 Governor Mary Fallin and Chancellor Glen D. Johnson Announce College Completion Plan on September 22, 2011 on the campus of the University of Central Oklahoma 27 Complete College Oklahoma Increasing 1,700 Degrees & Certificates per Year Oklahoma Degree and Certificate Goals 67% Increase 50,900 30,500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 28 COMPLETE COLLEGE AMERICA Increase in Annual Degree’s Earned Goal 20,400 students or 67% Increase 50,900 30,500 2011 2023 29 Complete College America A Plan for Increasing Postsecondary Credentials to Fuel a Strong Economy 1 FOCUS ON READINESS 2 TRANSFORM REMEDIATION 3 BUILD BRIDGES TO CERTIFICATES & DEGREES 4 REACH HIGHER FOR ADULT COMPLETION 5 TRACK & REWARD PROGRESS & COMPLETION Higher education and K-12 will work together to develop and implement a strategy that seeks to identify students not on target to be collegeready by graduation and targets activities in the 11th and 12th grades to reduce remediation demands in the transition from high school to college. Every Oklahoma institution will implement transformational models of remedial placement and support through a statewide phased implementation and refinement process. Develop and implement a "Program Equivalent Project" that bridges Career Tech credit hour completion to certificate and A.A.S. degree completion in the community colleges. Further expand and develop Reach Higher as a degree and certificate completion effort that involves the entire system of postsecondary education. Reform Oklahoma’s successful Brain Gain Performance Funding Program to provide metrics and accountability for measuring state and campus progress toward completion goals. 30 31 • Every Oklahoma institution will implement transformation models of remedial placement and support through a statewide phased implementation and refinement process 32 • Develop and implement a “Program Equivalent Project” that bridges Career Tech credit hour completion to certificate and AAS degree completion in the community colleges. 33 CONCURRENT ENROLLMENT CREDIT HOURS 60,000 58,869 56,438 48,741 50,000 50,068 45,690 39,758 40,000 30,000 29,156 20,000 10,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Source: Oklahoma State Regents for Higher Education 34 • Oklahoma universities are coordinating with feeder community colleges to identify students who have completed sufficient coursework after transferring to be awarded an associate degree. • Pilots are started and foundation grants for further development of processes and use of technology are being processed. 35 • State System institutions are implementing ways to routinely review transcripts of students with sufficient credit hours for a degree. • Students may be able to graduate with a different major or be advised of the fewest number of credit hours needed to complete a degree. 36 • Further expand and develop Reach Higher as a degree and certificate completion effort that involves the entire system of postsecondary education. 37 • Our recently adopted higher education funding formula moves Oklahoma from a funding model based on “like-sized and liketype” peer institutions to a 100% performance funding model with financial incentives going to colleges and universities who improve their retention and graduation rates. 38 FallinForBusiness.com Perceptions of Oklahoma’s Business Climate “The Quality of our two/four year college and university system” #1 Business Climate Strength in the State 40 FallinForBusiness.com Perceptions of Oklahoma’s Business Climate Highest Ranked Business Climate Factors 87% 76% 76% 74% 74% Quality of 2/4 year College/University system Access to supplies required to conduct business Career-Tech System Preparation for the workplace Affordable housing options for employees Recreational opportunities 41 Chancellor Glen D. Johnson 42