Transcript Slide 1

THE DEGREE DIVIDEND:
A strategic plan for higher
education in Colorado
The Higher Education Strategic Planning
Steering Committee
The Governor has charged the steering committee with:
 Defining state higher educational needs and examining
institutional missions.
 Reviewing the governance and structure of the system of higher
education.
 Addressing higher education funding.
 Increasing and improving student access and success.
HESP Membership: Jim Lyons & Dick Monfort (Co-Chairs), Russ George,
Alan Salazar, Theresa Pena, Greg Stevinson, Ray Baker, Jim Polsfut,
Don Elliman (Ex-Officio), John Bliss, Meg Porfido, Rico Munn (ExOfficio), Terry Farina, Jane Rawlings
What is the Degree Dividend?
The Degree Dividend articulates an aggressive agenda to
fund and focus Colorado’s system of higher education
around the economic and demographic realities of our
present and future.
The Degree Dividend seeks to increase Colorado’s economic
standing by fully realizing higher education’s return on
YOUR investment.
Higher Education is a good return on
your investment
Public institutions in Colorado support over 95,500 jobs, contribute $4.25 billion
in wages and salaries, and generate $387 million in state and local taxes
Each dollar paid to higher ed will generate another $.97 in wages and salaries for
employees in other industries as it circulates through the economy.
Our research institutions make an enormous contribution to the state’s
innovation and productivity in areas like bioscience, renewable energies,
medicine, and aerospace. In 2008, CU Boulder received more than $280
million in earmarked federal research awards; CSU in Ft. Collins received $312
million.
Benefits of an educated population include:
• Increased levels of workforce participation and productivity.
• Reduced participation in Medicaid and other social service programs.
• Decreased rates of incarceration.
• Improved health outcomes.
• Higher levels of volunteerism and social engagement.
Successes in Colorado public higher
education
• Enrollment & degrees have been trending up.
• Relatively efficient and productive system of public higher
education at the institutional level.
• We are one of the most economically competitive states in the
nation.
• Good breadth of programs, courses and disciplines.
• Broad geographic presence of colleges and universities
throughout the state.
Challenges in Colorado public
higher education
• Low public awareness of the value of Higher Education.
• Radical demographic shifts.
• Educational achievement gap - our system of Higher Education
is not reaching all Coloradans equally.
• Geographic disparity of higher education attainment.
• Poor and complex systemic funding.
• Continuously high remediation rates and societal costs.
Appropriation Comparison
Scenario #1
Declining Revenue
Like many states, Colorado has used funds from the American Recovery and
Reinvestment Act of 2009 (ARRA) to support essential services in this time of great
economic distress. When the funds disappear in FY11-12, funding for higher
education will roll back to the 2005-06 levels OR LOWER. (F.A. dollars not included)
This presents the state with four likely scenarios…
Four Scenarios for Higher
Scenario
#1
Education
1. Accelerated Erosion- Assuming we continue along the path of diminishing
resources. The consequence?
 Colorado will no longer support higher education.
 The burden will shift to families and students through increased tuition and
fees.
2. Losing Ground- Colorado needs to continue to receive $760 million of general
support for higher education. So far, we have been able to continue to keep doors
open, and institutions have been extremely efficient, with the following results:
 The worst achievement gap in the country.
 A high level of income and degree disparity in the state.
 Tuition and fee growth as high as 120% at some of our institutions.
3. Restoration Funding- Since 1990, the gap between actual funding and where we
should be (if funded only for inflation) is currently -39% (or over $476 million).
4. Competitive Funding- $1.5 billion would place Colorado in the top
third of per student commitment to higher education.
Colorado is currently on the path of Accelerated Erosion
Challenge #1: Failure to Serve the Changing
Demographic
•
•
•
Colorado’s system of higher education is failing to meet the economic demand
created by dramatic demographic shifts.
 We are getting older.
 We are more diverse.
 By 2018, 67% of all jobs in Colorado will require postsecondary education,
ranking Colorado 5th in postsecondary education needs in the U.S.
924,000 job vacancies will be created through retirements and new job
creation. The highest numbers of these jobs will require a bachelor’s or
associates degree.
Our fastest growing demographic (Hispanic) is the most underserved in at all
levels in higher education.
Colorado institutions differ significantly in enrollment of low-income students
relative to the income levels of the counties they serve.
Colorado’s changing demographics
Colorado’s changing demographics
2.5% h
61% h
23% h
*Secondary School Demographics- Source: CDE
Colorado’s Hispanic Population:
• 38% have not graduated from high school
• Only 6% have an associate degree
• Only 8% have a bachelors degree
Most underrepresented in higher education
Disparity of educational attainment and wealth
Educational Attainment & Personal Income
by Colorado Counties
Source: NCHEMS
Challenge #2: A Broken Pipeline
•
Colorado’s postsecondary pipeline is broken - performing well
below the national average and not reaching all Coloradans
equally.
•
Over 630,000 adults in Colorado have accumulated some
college credits, but have not completed a certificate or degree.
•
Colorado’s ethnic educational achievement gap is worse than
any other state in the United States.
Colorado’s Broken Pipeline
100
Colorado students
start 9th grade
70
Graduate high school
44
Enter college
22
Graduate college
within 6 years
29% need remediation
29% of all 1st time college students require
remediation (52% at 2 year colleges)
40% - 2 year
16% - 4 year
The state spends
over $13 Million
per year on
remediation!
17% of 1st time students at 2 year colleges
require remediation in all subjects!
Our ethnic achievement gap is one of the worst
in the nation
Challenge #3: A disjointed system
Ft. Lewis
College Board
of Trustees
Colorado State
University
Board of
Governors
Aims
Community
College Board
of Trustees
Mesa State
Board of
Trustees
Area Vocational
Schools
Colorado
School of
Mines Board of
Trustees
Private
Nonprofit
Institutions
Colorado
Mountain
College Board
of Trustees
Auraria Higher
Education Center
Board of
Directors
UNC Board of
Trustees
Private For
Profit
Institutions
Board of
Regents of
Colorado
Metro State
Board of
Trustees
Western State
Board of
Trustees
Adams State
Board of
Trustees
State Board for
Community
Colleges and
Occupational Ed
Colorado’s public system of higher education is comprised of 28
colleges and universities. These public postsecondary institutions are
under the direction of numerous independent governing boards.
The current governance structure does not lead to an intentional
advancement of state priorities.
The Critical Recommendations
Colorado must increase its investment, and ensure affordability for
postsecondary education.
We need to create a sustainable funding source for higher education, at a level to
make Colorado competitive nationally and internationally, as we cannot afford to be
last in the nation. We also need to invest in financial aid at a level that will allow
any student who meets admission requirements to obtain a higher education
degree or certificate.
• College Opportunity Funds (COF) and state financial aid funds should be
maximized and include incentives for state priorities.
• Funds should be linked to measurable progress to spurring innovation
through outcome based rewards.
• Certain graduate programs should be funded through “fee for service”.
• Efficiencies should continue to be implemented.
• A state fund should created to match locally raised funding.
• Consider state funding with view to the system.
Possible Revenue Streams
Restore income and sales tax rates
to 5.0% and 3.0%, respectively
Expand sales tax to specific services
Implement 1.0% surcharge on
extraction
Implement a 4.0 Mill levy statewide
Implement a 4.0 Mill levy in
counties where an institution of
higher education is located
$445 million
$550 million
$150 million
$350 million
$240 million
Funding Priorities by Scenario
COF
FEE FOR
SERVICE
PERFORMANCE
FUNDING
FINANCIAL
AID
ACCELERATED
EROSION
OR
LOSING GROUND
RESTORATION
FUNDING
COMPETITIVE
FUNDING
OR
The Critical Recommendations
Colorado must reduce regional, income and ethnic gaps in college
attendance, retention and completion.
• Support multiple entry points into college.
• Allow for flexible pathways to completion of degrees and certificates.
• Make college affordable to all students who meet admission requirements.
• Provide support structures for students, including adults, to stay on track
and complete their education.
The Critical Recommendations
Colorado must identify systematic approaches that enhance and improve
the educational pipeline.
• Focus on college earlier.
• Increase alignment and collaboration across P-20 education and workforce
systems.
• Expand effective remediation efforts.
• Use common data and assessments.
• Address capacity to meet demands.
The Critical Recommendations
The Governance of Higher Education should be structured to advance
state goals.
• Maintain current governance structure pending review.
• Enhance responsibility and authority of the CCHE.
• Review governance and institutional missions.
• Implement performance funding.
• Require consultation with CCHE in appointment of Executive Director of the
Colorado Department of Higher Education.
For more information:
http://highered.colorado.gov/Publications/
General/StrategicPlanning/default.html