November 18, 2014
Prepared for the Ohio Board of Regents
2014 Program for
Board Members and Trustees
Overview…
I. Big Issues facing higher education—
*AGB’s Top 10 Strategic Issues for Boards
II.
All of this in the context of what’s happening at the Federal Level—
a. College Ratings: ED Department
b. Sexual Misconduct
c. HEA: Reauthorization
d. Recent Elections
III. And in the context of what’s happening in states—
a. Access and affordability: expanding reach and appeal
b. Governance: structured to do what needs to get done?
c. Attainment and workforce development: state plans
Big Issues Facing Higher Education
1. Business Model
2. Affordability
3. Educational Delivery & Technology
4. Educational Quality & Student Learning
5. Attainment, Retention & Completion
6. Market and Mission
Big Issues Facing Higher Education
6. Academic Workforce
7. Globalization
8. Institutional & Governance Risk
9. Public Policy Issues
10.External Influences
*AGB’s Top 10 Strategic Issues for Boards
At the federal level…
House and Senate returned on 11/12 to finish out the 113th
Congress and get ready for the 114th, which begins in
January 2015.
• Republications now lead both Senate and House
• Will refocus higher education agenda
• Sen. L. Alexander (R-TN) is expected to chair Senate HELP;
Rep. B. Scott (D-VA) is expected as ranking House member
At the federal level…(continued)
Senate HELP Committee will lead attempt to reauthorize the
Higher Education Act, which could be a vehicle for deregulation.
• HEA: Omnibus bill that authorizes all the major federal student
aid programs, including TRIO, Gaining Early Awareness and
Readiness for Undergraduate Programs (GEAR UP), and aid to
Historically Black Colleges.
• Not a small undertaking: Congress will conclude without having
finished reauthorization, punting the assignment to the next
Congress.
At the federal level…(continued)
Reauthorization of the Higher Education Act (HEA)...
Areas where there was previous bipartisan support… may shed
light on future areas of compromise:
• Year-round Pell Grants
• Financial advising for students and an income-based
student loan repayment program
• Updates to the FAFSA application processes
• Promotion of competency-based learning
• Improvements in teacher preparation programs
At the federal level…(continued)
•
Republication control=potential stalemate on the
Administration's College Ratings Plan. U.S. Department of
Education is evaluating institutions on:
• Tuition costs and the availability of scholarships
• Access, as measured by, for example, the percentage of
students who receive Pell Grants
• Graduation rates
• Students’ post-graduation earnings
• Student debt levels
• Institutions will be ranked in “peer groups,” not yet defined
At the federal level…(continued)
Republican Congress…
• Could impact student aid (Paul Ryan’s proposed budget for
FY 2015 = $90 billion in cuts to Pell Grant Program)
• Might not impact federal research dollars… 3 Republicans
expected to lead the Senate’s appropriations and science
committees have records of supporting funding for research
• Will receive final report from the Task Force on Federal
Regulation of Higher Education
At the federal level…(continued)
In the remaining weeks, Congress will aim to…
• Fund the government for the fiscal year that began
October 1.
• Negotiations are underway between the House and Senate
Appropriations Committees on a $1 trillion-plus FY 2015
spending bill (a temporary funding measure now in effect
expires December 11.)
• Congressional staff might recommend wrapping annual
spending bills into an omnibus measure.
At the federal level…(continued)
In the remaining weeks…
• Renewing expiring tax incentives, including:
• deductions for qualified tuition and related expenses
• research and development tax credit
• IRA Charitable Rollover (in this case, already expired)
At the federal level…(continued)
U.S. Department of Education: Just released final rules/revisions
to the Clery Act (made by VAWA). Take effect in July 2015.
• Clery Act: expands info. institutions must collect about campus
crime—domestic violence, dating violence, staking.
• Gender identity and national origin now in definition of
hate crimes
• Disciplinary hearings are prompt, fair, impartial
• Protections for victim confidentiality
• Requirements for prevention programs
• AGB Advisory Statement on Sexual Misconduct
http://agb.org/sites/agb.org/files/u3/statement_2013_sexual_misconduct.pdf
At the federal level…(continued)
• Campus Safety and Accountability Act (CASA),
introduced by Senator Claire McCaskill
• AGB Email Alert:
Trustees' Responsibilities in Preventing Sexual
Assaults on Campus
• AGB Advisory Statement on Sexual Misconduct
http://agb.org/sites/agb.org/files/u3/statement_2013_
sexual_misconduct.pdf
At the federal level…(continued)
U.S. Department of Education: Just released final rules in gainful
employment. Take effect in July 2015.
Gainful employment: focus—graduates’ debt-to earning ratios…
• effort to ensure that individuals who enroll in career training
programs will earn enough money to repay their student loans
• Applies to: vocational programs, including most for-profit
institutions. Non-degree programs at traditional colleges and
universities (such as certificate programs) must also comply with
the rules.
• Final rule does not include a student loan default rate as a standard
for evaluating institutions, which was in the draft.
At the federal level…(continued)
Other…
• The College Board: annual report on student aid and college costs
• Student borrowing in on the decline, while costs continue
to rise
• Trends in College Pricing—while tuition and fees did increase in
2014, the rate of increase has slowed. Tuition increases:
• Public four year: 2.9% increase
• Private nonprofit four year: 3.7% increase
• Community colleges: 3.3% increase
Additional Resources at AGB.org
I. AGB Statements on Important Governance Topics:
1. Board Accountability
5. Educational Quality
2. External Influences
6. Institutional Governance
3. Intercollegiate Athletics
7. Sexual Misconduct
4. Conflict of Interest with Compelling Benefit
II. Knowledge Center http://agb.org/knowledge-center
- Videos, Podcasts, Governance Briefs, Data Files,
Governance Database
III. “AGB U” http://agb.org/agbu
IV. AGB’s Report: National Commission on Governance