A New Conversation: More Degrees for the Dollars We Spend Travis Reindl Higher Education Conference on Enrollment Management Edmond, OK • February 28, 2008 The Attainment Challenge: Adults 25-64 with a Postsecondary Degree, 2005 60% 54% 50% 53% 51% 50% 47% 43% 40% 41% 41% 41% 40% 39% 39% 37% 38% 36% 36% 35% 33% 30% 30% 25-34 35-44 45-54 55-64 30% 27% 24% 22% 22% 20% 18% 22% 17% 10% 10% 0% Canada Japan Korea SOURCE: OECD, Education at a Glance 2007 Norway Ireland Belgium U.S. Slide 2 The Attainment Challenge: Adults 25-64 with College Degrees 60% BENCHMARK FOR INTERNATIONAL COMPETITIVENESS (55% ) 50% 46% 40% 45% 37% 32% 2005 2025 ("business as usual") 30% 20% 10% 0% US SOURCE: NCHEMS OK Slide 3 The Attainment Challenge: Degree Completion Rates, 2004 SURVIVAL RATES IN TERTIARY A (FOUR-YEAR) EDUCATION 100% 91% 90% 83% 83% 80% 68% 69% 69% 66% 67% 67% 64% 65% 65% 70% 60% 71% 71% 73% 74% 74% 74% 76% 78% 79% 60% 54% 54% 50% 40% 30% 20% 10% SOURCE: OECD, Education at a Glance 2007 Japan Korea Ireland Greece United Kingdom Netherlands Turkey Spain Belgium (Fl.) Germany OECD Average Finland Switzerland Mexico Portugal Iceland Australia Poland Czech Republic Austria Hungary Sweden United States New Zealand 0% Slide 4 The Attainment Challenge: A New America We are getting older: Half the states will see zero or negative growth in their 18-24 year old population over the next 20 years. We are becoming more diverse: Groups experiencing fastest growth have historically faced the biggest educational hurdles (students of color, working adults). We are leaving the snow and heading for the sun: States in the Midwest and Northeast will have excess capacity, while states in the Southeast and Southwest will have excess demand. SOURCES: U.S. Census Bureau, NCHEMS/JFF Slide 5 The Finance Challenge: Per Student Spending on Core Educational Services (2004) $20,000 $18,000 $17,738 $16,000 $14,000 $12,000 $10,265 $10,000 $7,664 $8,000 $7,596 $7,445 $6,953 $6,105 $6,000 $4,000 $2,000 $United States Norway OECD Average SOURCE: OECD, Education at a Glance 2007 Belgium Ireland EU Average Korea Slide 6 The Finance Challenge: Short and Long Term Fiscal Squeeze Short Term: Looming recession spells trouble for higher education budgets; several states already planning cuts. Long Term: Competition for public resources will intensify as the population ages, leaving higher education vulnerable: > Higher education’s share of state budgets continues to fall, from 13% in FY97 to 11.2% in FY07. > Every state faces spending commitments that will outpace revenues. SOURCES: NASBO; Rockefeller Institute Slide 7 The Finance Challenge: Too Much on Price, Not Enough on Cost Association of Governing Boards Survey (2007) QUESTION: Did you present expenditures per student (not tuition or room and board costs) to your governing board at any time in the 2006 fiscal year? [all institutions; n=700] 42% 58% SOURCE: AGB Yes No Slide 8 The Political Challenge: A Worried Public THE NUMBER OF AMERICANS WHO SAY MANY QUALIFIED, MOTIVATED STUDENTS DON'T HAVE AN OPPORTUNITY FOR HIGHER EDUCATION IS AT AN ALL-TIME HIGH 65% 62% 60% 60% 57% 55% 50% 47% 45% 45% 40% 1993 1998 SOURCES: NCPPHE, Public Agenda 2000 2003 2007 Slide 9 The Political Challenge: A More Skeptical Public OVER HALF OF AMERICANS SAY THAT COLLEGES TODAY ARE LIKE A BUSINESS, WITH AN EYE ON MOSTLY ON THE BOTTOM LINE 5% 43% 52% SOURCES: NCPPHE, Public Agenda Colleges mainly care about education Colleges mainly care about the bottom line Don't know Slide 10 Making Opportunity Affordable: Productivity with a Purpose Multi-year initiative supported by Lumina Foundation for Education and Wal-Mart Foundation, focusing on three primary strategies: > Building demand and leadership for a productivity agenda > Equipping the field with new knowledge and tools – Investing in Student Success – Innovation Portfolio > Engaging states to improve public policies and institutional practices – Opportunity Grant program Slide 11 A Productivity Agenda for Higher Education Measure what matters: Develop transparent goals and metrics aimed at producing more degrees for a more diverse population for the dollars spent, and report publicly on progress. Fund what matters: Reform state and institutional budget and finance policies to provide real incentives for serving underrepresented groups, increasing persistence and completion, and building capacity where it is needed. Do what matters: Change regulations, policies, and practices to increase operational efficiency and promote reinvestment in academic programs and models aimed at increasing degree production. Slide 12 For More Information Travis Reindl Program Director Jobs for the Future 88 Broad Street Boston, MA 02110 617.728.4446 treindl@jff.org www.makingopportunityaffordable.org Slide 13