The role of Higher Education in creating Louisiana’s Future Jim Purcell, Commissioner LOUISIANA BOARD OF REGENTS BOARD OF REGENTS FOCUS Three Main Goals • To increase the education attainment of its citizens; • To invest strategically in university research; and • To become a more efficient and accountable enterprise. 2 State Funding for Higher Education 33 “Speed to Market and Close to Customer” Ed Barlow, Futurist “Speed to Market and Close to Customer” 1. Implement a series of initiatives that expedite the number of degrees produced and the speed at which degrees are produced. 2. Enhance the production of degrees in high – demand programs that are needed for the modern Louisiana economy. 3. Give students incentives to complete a degree and to work in Louisiana. Louisiana’s Public Colleges and Universities LSU Health Sciences Center - Shreveport Bossier Parish Community College Louisiana Tech University Grambling State University University of Louisiana Monroe Louisiana Technical College (7 colleges statewide) Louisiana Delta Community College Southern University- Shreveport LSU - Alexandria LSU-Shreveport Louisiana State University Northwestern State University Southern University Baton Rouge Community College Southeastern Louisiana University McNeese State University University of New Orleans SOWELA Technical Community College LSU - Eunice South Louisiana Community College University of Louisiana Lafayette Fletcher Technical Community College Nicholls State University River Parishes Community College Delgado Community College Southern University Nunez New Orleans Community College LSU Health Sciences Center - New Orleans All Regions Total 72.8% Legend Region 1 2 3 4 5 6 7 8 First-Time Freshman Enrollment Mix 100% 90% 80% 79% 70% 56% 60% 50% 44% 40% 30% 20% 10% 21% 0% Fall 2000 Fall 2001 Fall 2002 Fall 2003 Four-Year Fall 2004 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Two-Year/Technical Fall 2010 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Slate.com 43 22% 9.7% 44 A Little History of the World E. H. Gombrich • Anyone who owned a mechanical loom could, with the help of one or two assistants – perhaps his wife and children – do more work than a hundred trained weavers. • So whatever became of all the weavers in a town into which a mechanical loom was introduced? . . . they woke up one day to discover that they weren’t needed any more. Everything it had taken them years to learn, first as apprentices and then as journeymen, was useless. Compression of wages Restructuring of the economy Those that adapt flourish Those that could not . . . 45 • Sunday, November 7, 2011 a Fareed Zakaria GPS primetime special – “Restoring the American Dream: Fixing Education”. The show airs at 8p and 11p ET/PT. • While America was once tops in education, we are now ranked 15th in reading, 23rd in science, and 31st in math. • What happened? How can we dig ourselves out of this deep hole? • In 1970, 74% of the middle class had a high school diploma or less education. • In 2007, only 39% of middle class had a high school diploma or less education. • Middle Class: – Family income range from 35,000 to 91,000 • Help Wanted – Projections of Jobs and Education Requirements through 2018. Carnevale, Smith and Strohl • “postsecondary education has become the gatekeeper to the middle class and the upper class” Nationally, 60% of jobs will require a postsecondary credential by 2018. What was said about Louisiana: • By 2018, more than 50% of jobs will require a postsecondary credential. Louisiana currently has a workforce with less than half of what will be needed. • Unless there are systemic changes, in 2018 Louisiana will: • rank 6th in the nation in the percentage of jobs for high school dropouts; • rank 5th in the nation in the percentage of jobs for high school graduates; • rank 50th in the nation for jobs requiring an associate degree; • rank 45th in the nation in the percentage of jobs for college graduates; • rank 47th in the nation in the percentage of jobs for people with graduate degrees and . . . • rank next to last in the percent of Jobs Requiring Postsecondary Education. We are at a turning point. Louisiana has to decide whether to do a better job at educating its people or serve as a great conveniently located source for cheap labor. What is our collective vision of what Louisiana will look like in the future? State Per Capita Personal Income v. Share of Adult Population with Bachelor's Degree or Higher (2008) DC No state with a low proportion of Bachelor’s degrees has a high per capita income. $38,000 $36,000 $34,000 CT NJ Per Capita Income $32,000 $30,000 MD MA VA NY NH DE $28,000 AK $26,000 NV CA IL RI MN WA VT CO No state with a high proportion of Bachelor’s degrees has a low per capita income. WI FL MI PA HI ME GA IA OR KS MO AZ OH NC NE ND TX MT SD SC UT NM WY $24,000 IN TN AL $22,000 KY $20,000 WV AR LA OK ID $18,000 MS $16,000 15% 20% 25% 30% 35% 40% 45% 50% Percentage of Adult Population with a Bachelor's Degree or Higher Source: U.S. Census Bureau, ACS 2006 53 Arkansas Louisiana Nevada West Virginia New Mexico Alaska Oklahoma Arizona Tennessee Texas Alabama Kentucky Mississippi Georgia Idaho South Carolina Wyoming Florida California Delaware Indiana Maine Michigan Montana North Carolina Ohio Oregon Missouri Utah Washington Wisconsin Colorado Hawaii Kansas Virginia Illinois Pennsylvania Rhode Island Nebraska South Dakota Vermont Maryland Connecticut Iowa New Hampshire New Jersey Minnesota New York North Dakota Massachusetts Current percentage of young adults (25-34) with a college degree3 55% 30% 3 53% 50% 45% 40% 35% 28% 25% 20% 15% 10% “College degree” means an associate degree, bachelor’s degree, or higher. National Center for Higher Education Management Systems (NCHEMS), 2008 54 (from U.S. Census Bureau, 2008 American Community Survey Public Use Microdata Sample File.) http://www.higheredinfo.org La. given ‘F’ in skilled workers Advocate business writer • The number and quality of skilled workers in Louisiana is dismal, according to a recent report evaluating the state’s manufacturing abilities. • The 2011 Manufacturing and Logistics National Report by the Center for Business and Economic Research at Ball State University in Indiana gave Louisiana a failing grade in the important area of “human capital.” • All 50 states were included in the study. Cities such as San Antonio, Texas, for instance, ranked as the nation’s “strongest performing,” according to Brookings’ MetroMonitor, with Oklahoma City and Tulsa; Austin, Houston, Dallas and McAllen, Texas; Little Rock, Arkansas; Baton Rouge, Louisiana; and Omaha, Nebraska, rounding out the top ten. 56 Time and Place Those individuals, families, cities, states and – increasingly—countries with the most education are prospering, while those with the least higher education are experiencing relative and often absolute economic decline. --Postsecondary Education OPPORTUNITY, June 2005. For people and communities to thrive in the new economy they will need to have access to a good college and good health care. Top 25 Cities for College Graduates 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. compiled by The Fayetteville, NC Daily Beast published Omaha, Neb. by Newsweek. Oklahoma City, OK Austin, TX Houston, TX Lexington, KY Durham, NC Dallas, TX Tulsa, OK Little Rock, AR Savannah, GA Washington D.C. Boston, MA Corpus Christi, TX Baton Rouge, LA New Orleans, LA Des Moines, Iowa Columbus, OH Stanford, Conn. Shreveport, LA Seattle, WA Albany, NY San Antonio, TX Kalamazoo, Michigan Honolulu, Hawaii Percent of Parish Population With Bachelors and Higher---25 and older State Average 20.64% 20.0% - 32.2% 12.0% - 19.9% 8.3%- 11.9% Source: Data Set: 2005-2009 American Community Survey 5-Year Estimates Survey 75% of persons with bachelor’s live in 8 parishes 61 • Strengthening the Education Pipeline Kids less likely to graduate than parents Education Trust: Your child is less likely to graduate from high school than you were. msnbc.com 2008 98-99 Louisiana 9th Grader’s Progression into High School and College (percent) Fall 2003 LA College Freshmen 100% 63% 36% 31% 25% 12% 9th Grade High School Enrolled First-time Retained Graduated Enrollment Grads Directly into Full-time After 1 Year Within 6 College Degree Years Seeking Cohort 0.5% 11% With Associate Degree With Bachelor Degree 98-99 Louisiana 9th Grader’s Progression into High School and College (number) 40,000 Fall 2003 LA College Freshmen 73,339 46,308 26,677 22,984 18,406 8,458 9th Grade High School Enrolled First-time Retained Graduated Enrollment Grads Directly into Full-time After 1 Year Within 6 College Degree Years Seeking Cohort 345 8,182 With Associate Degree With Bachelor Degree Local Imperative •81% of Louisianans were born in Louisiana •The local population will be your workforce •Student preparation for college/work is key •Local support for local students is needed •Getting adults with with some college to complete their degree can be a strong mechanism for building local communities •Stewards of the community Employment Rate by Degree Level Eighteen Months after Graduation - For All Completers 100% 90% 80% 70% 56.4% 67.6% 72.5% 59.5% 60% 60.5% 50.4% 50% 38.3% 40% 30% 20% 10% 0% Certificate Diploma Associate Bachelor's 2006-07 Master's 2007-08 Doctoral Professional 2008-09 Figure 5 Employment Rate by Field of Study Eighteen Months after Graduation - For 2008-09 Bachelor’s Degree Completers Health Professions Education Engineering Technologies Family & Consumer Sciences Public Admin. & Social Service Transportation & Materials Moving Business, Management, Marketing Liberal Arts & Sci; General Studies Security & Protective Services Personal & Culinary Services Natural Resources & Conservation Architecture Communication, Journalism Agriculture, Agriculture Operations Computer & Information Sciences Psychology Social Sciences History Visual & Performing Arts English Language & Literature Engineering Mathematics and Statistics Legal Professions Foreign Languages, Literatures Parks, Recreation, Leisure, Fitness Biological & Biomedical Sciences Multi/Interdisciplinary Studies Physical Sciences Philosophy & Religious Studies 70% 69% 68% 67% 67% 64% 63% 62% 61% 61% 61% 57% 57% 56% 53% 53% 53% 52% 52% 52% 52% 47% 47% 44% 43% 41% 38% 34% 29% 0% 10% 20% 30% % Found Employed in LA 30% 31% 32% 33% 33% 36% 37% 38% 39% 39% 39% 43% 43% 44% 47% 47% 47% 48% 48% 48% 48% 53% 53% 56% 57% 59% 62% 66% 71% 40% 50% 60% % Not Found Employed in LA 70% 80% 90% 100% Figure 7 Employment Rate by Residency Status Eighteen Months after Graduation - For All Completers (Collective 2006-07, 2007-08, and 2008-09) 80% 73.9% 69.2% 68.8% 70% 63.8% 60.9% 60% 55.4% 53.0% 50% 40% 30% 27.0% 28.4% 26.8% 22.3% 20% 22.7% 20.3% 15.4% 10% 0% Certificate Diploma Associate Bachelor's Louisiana Residents Master's Non-Residents Doctoral Professional Table 5 Average Calculated Salary by Degree Level For All Employed Completers Eighteen Months after Graduation Max Degree Level 2006-07 2007-08 2008-09 As a result of the recession, compression of wages for new hires has occurred. Certificate $23,000 $24,778 $23,622 Diploma $30,607 $30,062 $28,530 Associate $37,799 $37,425 $35,544 Bachelor $35,099 $34,115 $32,742 The trend in other Master $48,737 $49,644 $48,016 Doctoral $59,863 $60,655 $61,023 Professional $65,368 $67,315 $66,786 states show that at five years in the workforce, bachelor’s degree recipients will earn more, on average, than associates. Average Calculated Salary by Field of Study Eighteen Months after Graduation - For 2008-09 Bachelor’s Degree Completers Engineering Health Professions Engineering Technologies Education Natural Resources & Conservation Computer & Information Sciences Business, Management, Marketing Architecture Liberal Arts & Sci; General Studies Agriculture, Agriculture Operations Transportation & Materials Moving Physical Sciences Mathematics and Statistics Philosophy & Religious Studies Public Admin. & Social Service Security & Protective Services Multi/Interdisciplinary Studies History Foreign Languages, Literatures Parks, Recreation, Leisure, Fitness Family & Consumer Sciences Personal & Culinary Services Social Sciences English Language & Literature Communication, Journalism Biological & Biomedical Sciences Visual & Performing Arts Psychology Legal Professions $10,000 $56,853 $46,537 $43,787 $38,415 $34,605 $34,238 $32,326 $30,949 $29,055 $28,640 $27,461 $27,309 $27,229 $26,506 $26,237 $26,092 $25,740 $25,510 $25,144 $24,839 $24,323 $24,170 $23,866 $23,785 $23,572 $23,314 $22,418 $21,580 $21,420 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Average Calculated Salary by Field of Study For 2008-09 Associate Degree Completers Field Of Study Number of Completers Wages Eighteen Months after Graduation Agriculture, Agriculture Operations Biological & Biomedical Sciences Business, Management, Marketing Communication, Journalism Communications Technologies Computer & Information Sciences Education Engineering Technologies Family & Consumer Sciences Foreign Languages, Literatures Health Professions Legal Professions Liberal Arts & Sci; General Studies Mechanic & Repair Technologies Multi/Interdisciplinary Studies Natural Resources & Conservation Personal & Culinary Services Physical Sciences Security & Protective Services Visual & Performing Arts 2 2 429 12 26 88 53 396 52 6 957 19 555 20 22 4 32 3 161 39 --$25,347 $20,305 $17,928 $28,531 $25,993 $49,112 $18,149 -$46,784 $28,572 $23,584 $36,430 $19,352 -$27,178 -$30,031 $19,001 Oklahoma Arkansas • El Dorado Promise provides up to five years of funds for undergraduate post-secondary education for students entering college immediately following high school – paid based on length of attendance in the El Dorado Public School District. • Arkadelphia Promise – pays the difference between what the Arkansas Academic Challenge Scholarship pays toward college and mandatory tuition and fees at public Arkansas colleges and universities • Great River Promise – The Great River Promise provides gap scholarship funding for graduates of high schools in Phillips County to attend Phillips Community College of the University of Arkansas (PCCUA). civic involvement volunteer activity by education levels 50% 45.6% (60 hours) B.A. or Higher Percentage Volunteering 40% 34.1% (52 hours) Some College 30% 21.7% (48 hours) 20% 10% 9.9% (48 hours) High School Diploma Less Than High School Diploma 0% Bureau of Labor Statistics. (2003). Volunteering in the United States, 2003. USDL03-888. U.S. Department of Labor. civic involvement blood donation by education level, 1994: percentage who donate regularly Percentage Donating Blood 20% 17% 13% 15% 11% B.A. or Higher Some College High School Diploma 10% 6% 5% Less Than High School Diploma 0% Source: DBD Worldwide. (2000). DBD Lifestyle Survey. Chicago. Available at www.bowlingalone.com government participation assistance programs education level 24.3% Less Than High School Diploma 10.2% High School Diploma 4.6% Some College & Bachelor’s Degree or More Ever Participated in Assistance Programs Source: Postsecondary Education Opportunity, May 28, 1997, pg 47. government incarceration rates by education levels 2.5% Percentage Incarcerated 2.0% 1.9% Less Than High School Diploma 1.5% 1.2% 1.0% 0.5% High School Diploma 0.3% Some College 0.0% 0.1% B.A. or Higher Source: Harlow, C.W. (2003). Education and Correctional Populations. Bureau of Justice Statistics, Department of Justice. NCJ195670. economic Percent Below Poverty Threshold, 2004 Percentage Home Ownership 40% 32% 30% Less Than High School Diploma 20% 15% 10% High School Diploma 10% Some College 0% Census Bureau 4% B.A. or Higher economic unemployment rates and education level, 2004 9.7% 10 Less Than High School Diploma 8 6 7.5% High School Diploma 5.1% Some College 4 2 0 Source: Employment Policy Institute 4.6% B.A. or Higher Quality of Life Home Ownership 80% Percentage Home Ownership 75% B.A. or Higher 69% 70% 60% High School Diploma 58% Less Than High School Diploma 50% Census Bureau, American Housing Survey for the United States:2005 66% Some College Safety Seatbelt Use while intoxicated, 1990 percentage who use seatbelt 78% Percentage Donating Blood 80% 66% B.A. or Higher 60% 52% 40% 39% Less Than High School Diploma 20% Some College 41% 15% 0% Source: American Journal of Public Health High School Diploma 31% 20% 175 125 Income ($000) Average family income by educational attainment, 2003 150 100 75 50 25 Source: Postsecondary Education Opportunity, 2005 0 LT-9 9-12 HSG Some AA BA College MA PhD Prof 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 Source: Federal Reserve Bank of Dallas, 2005 At the end of WWII, the U.S made a bold decision to invest in the future of its economy by providing $1.9 billion annually to the education of returning veterans of the war. This commitment to human capital helped enable the WWII generation to become the “greatest generation.” Possibly, this state’s greatest generation is at the schoolhouse door waiting for the opportunity to propel your state into the global economy.