Transcript Slide 1

SHOW ME THE MONEY!!!
June 2010
Dr. Jenny House, Ph.D.
President, RedRock Reports
Agenda
 Funding trends for education
 K-12 trends
 Community College and 4 Year College
trends
Q & A
RedRock Reports Confidential
ARRA
NCLB
FY 11 Budget
ESEA
Reauthorization
Other
Government
Agencies
Private
Foundations
State Changes
RedRock Reports Confidential
FY 11 Budget
 Graduation Promise Grants
Strengthen high schools
$1.2B over 5 years
 Special Ed
$1,750 per student vs ARRA $3,395
17% vs. promised 40% federal share
 Higher Ed
Increase of $68.6B over 10 years for Pell
grants
RedRock Reports Confidential
Federal Education Funding
RedRock Reports Confidential
Without Reauthorization
Program
2010
Request
Increase
Race to the Top 0
$1.35B
$1.35B
I3
0
$500M
$500M
SIG
$545.6M
$900M
$354.4M
TIF
$400M
$800M
$400M
Tchr Recruit
0
$50M
$50M
School Ldr
$29.2M
$79.2M
$50M
Charter S
$256M
$310M
$54M
Promise
Neighborhoods
$10M
$210M
$200M
RedRock Reports Confidential
Who gets more?
 School Turnaround Grants (now SIG) $354M
(+65%)
 Assessing Achievement (Grants for State
Assessments and Grants for Enhanced
Assessment Instruments) $39.2M (+9.6%)
 Promise Neighborhoods $200M (+2,000%)
 Magnet School Assistance $10M (+10%)
 ELL State Grants $50M (+6.7%)
RedRock Reports Confidential
Critical Issues
 Virtually all of increases in ESEA are for
competitive grants
No stable budget predictions
Districts will not be awarded funds
Favors good grant writing
Freeze in Title I – hard to close achievement
gaps
States facing funding cliffs
RedRock Reports Confidential
Perkins Act
 Current - $1,160.91M
 Proposed - $1,264M
 Proposed changes:
Consolidation of Tech Preps with Basic State
Grants
Basically freezing funding level
Jobs?
RedRock Reports Confidential
ESEA Reauthorization
 Effective Teachers and Leaders
 Teacher and Leader Innovation Fund
 Teacher and Leader Pathways
 Effective Teaching and Learning: Literacy
 Effective Teaching and Learning: STEM
 Effective Teaching and Learning for a
Well-Rounded Education
RedRock Reports Confidential
More…
 College Pathways and Accelerated
Learning
 Successful, Safe and Healthy Students
 Expanding Educational Options
RedRock Reports Confidential
National Priority: Policymakers have identified state
and community colleges as central to economic
recovery
Obama’s “American Graduation Initiative”




Goal: Postsecondary education for every American.
Goal: 5 million more Americans will earn college degrees and certificates.
Goal: World’s highest proportion of college graduates by 2020.
$2.5 billion in challenge grants over 4 years(originally $12 billion over 10 years).
Degrees & Technical Certificates Strengthen Employment Opportunities



Eight years after graduating from high school, 43% of technical certificate holders earn a
median annual salary higher than those with an Associate’s Degree; 27% earned more
than those with a Bachelor’s Degree.1
Those with a college degree are one-half as likely to be unemployed compared to those
with a high school diploma.2
More than half of future jobs will require more than a high school degree but less than a
four-year degree.3
Colleges Step Up to the Challenge

“Democracy’s Colleges Call to Action”: AACC and five other national higher education
organizations have pledged to increase student completion rates by 50%.
RedRock Reports Confidential
Reform Must Address Traditional Barriers
“It's time to reform our community colleges so that they provide
Americans of all ages a chance to learn the skills and
knowledge necessary to compete for the jobs of the future.”
- President Barack Obama
Addressing barriers to credential attainment:





Increase graduation rates - Nearly half of students who enter community college intending to
earn a degree or transfer to a four-year college fail to reach their goal within six years.
Maintain affordability.
Foster communities of students, professors and counselors, and tailor colleges to promote the
success of working adults.
Improve states' efforts to track student progress, completion, and success in the workplace.
Modernize Community College facilities to keep up with rising enrollments and train students in
technical fields.
RedRock Reports Confidential
41 states have cuts assistance to public colleges and
universities
© 2010, Center on Budget and Policy Priorities
RedRock Reports Confidential
Public Institutions Approach ‘The Cliff’
 $54 billion in Fiscal Stabilization Funds to states have helped
colleges cover the gaps.
 American Association of State Colleges and Universities says
states will spend 86% by the close of FY2010 (June 30, 2010
for most states)
 Congress now considering “Keep Our Educators Working Act,”
earmarking $23 billion to replace money states have cut or
will cut from 2010 and 2011 budgets for
elementary/secondary schools and public colleges and
universities.
RedRock Reports Confidential
Federal Funds Available
“Increased funding as a result of the federal stimulus package and
the Obama administration’s recognition of education providers as
critical drivers of social mobility and economic development place
state colleges in a good position.”
- Daniel Hurley, Director of State Relations and Policy Analysis, AASCU
Stimulus funding programs:
 Departments of Agriculture, Commerce, Defense, Education,
Energy, Health & Human Services, Housing & Urban Development,
and Labor.
 EPA, NASA, and NSF.
RedRock Reports Confidential
Recent legislation poses significant opportunities for
institutions to leverage additional resources
 Student Aid and Fiscal Responsibility Act (SAFRA)
 Elements of President Obama’s “American Graduation Initiative,” which
invests in two-year programs. The legislation calls for $3 billion over five
years to be invested in the College Access and Completion Initiative
Program aimed at innovations in college student retention and
completion.
 American Recovery and Reinvestment Act of 2009 (ARRA)
 Included $100 million for the Teacher Quality Enhancement Program.
 Workforce Investment Act (WIA)
 Nearly $4 billion in 2010 funds for employment and training services
 Fund for the Improvement of Postsecondary Education (FIPSE)
 Through annual federal appropriations process, institutions can explore
avenues for creative projects.
RedRock Reports Confidential
Finding Opportunities: Dovetailing with National
Policy Priorities
Public higher education institutions are eligible for stimulus and
other federal funding in specific policy areas targeted by the
Obama Administration as key to economic recovery:
 Healthcare Reform
 Energy Efficiency, Independence & Green Jobs
 Postsecondary Success
 Workforce Preparation/Retraining
 Global Competitiveness
RedRock Reports Confidential
Examples…
The following slides highlight federal
funding initiatives involving awards and/or
eligibility for community and public
colleges in targeted areas of national
policy.
RedRock Reports Confidential
Examples: Healthcare
 Health and Human Services
 $144 Million in Recovery Act Funds to institutions of higher education and
research for ‘Widespread Adoption of Health Information Technology,’
including Electronic Medical Records.
 $250 Million Investment to strengthen primary health care workforce.
 Department of Labor
 More than $225 million for community colleges and state agencies to
prepare workers for healthcare and other high growth fields.
 $5 million for nursing at the Community College of Baltimore County.
 $14.7 million in grants to the AACC and nonprofits for healthcare training
and virtual service-delivery models.
 Grants available to community colleges and other training institutions for
career pathway programs that prepare workers for the health care sector.
 USDA
 $34.9 million in funding for Distance Learning and Telemedicine Projects,
including community and state schools in a dozen states.
RedRock Reports Confidential
Examples: Energy & Green Jobs
 US Department of Energy
 Funding was available in every state for Public School Districts, Public Colleges and
Universities, and State Agencies toward energy efficiency and renewable energy
projects.
 Smart Grid Technology: grants to prepare students for careers in a modernized
energy sector.
 $40 billion of $787 billion in stimulus funds nationally was targeted to clean energy
and energy efficiency.
 $29 million for Weatherization training.
 $76 Million for Advanced Energy-Efficient Building Technologies and Commercial
Building Training Programs.
 US Department of Labor: Competition Grants




$100 million for Energy Training Partnership Grants.
$150 million Pathways Out of Poverty.
$190 million in State Energy Sector Partnership and Training Grants.
Training for Sustainable Energy Technicians.
RedRock Reports Confidential
Examples: Postsecondary School Success
 Health Care and Education Reconciliation Act of 2010 provides $2.6
billion in mandatory funding for Historically Black Colleges and
Universities, and other minority-serving institutions.
 USDA Higher Education Challenge Grants
 Department of Education: Office of Postsecondary Education
 Student Support Services Program: more than $268 million to increase college
retention and graduation rates.
 Higher Education Center for Alcohol, Drug Abuse and Violence Prevention Grants
 President's FY2010 budget includes five-year, $2.5 billion fund to
improve college success and completion, particularly for students
from disadvantaged states.
 Data & Reporting
 Student Aid and Fiscal Responsibility Act (provides funding to expand state data
systems to track students’ performance.
RedRock Reports Confidential
Examples: Workforce




Trade Adjustment Assistance for Communities: Community College and Career Training
Grant Program received $500 million in mandatory annual funding for FY2011 - FY2014
(2010 Reconciliation Act). Revisions to this bill would clarify that only public and nonprofit educational institutions are eligible for this program.
US Department of Labor
 YouthBuild and Prisoner Re‐Entry
 $1.4 million in Trade Adjustment Assistance Technical Assistance and Outreach
Partnership Grants to three organizations to provide services in 10 states, with public
& community colleges among the service providers.
 $125 million in grants for Community-Based Job Training Grants
 With HHS, nearly $1 Billion Recovery Act Investment in Advancing Use of Health IT,
Training Workers for Health Jobs of the Future, including training at community
colleges
Health Care and Education Reconciliation Act of 2010 includes $2 billion over four years
for community colleges to help unemployed Americans.
“JobsNow: 12 in 6”: community colleges in North Carolina receive d$13.4 million in
federal stimulus funds to train students in less than six months for 12 job areas.
RedRock Reports Confidential
Examples: Global Competitiveness
 Department of Commerce
 National Institutes of Standards and Technology (NIST) grants for
construction/expansion of scientific research facilities.
 With USDA, colleges targeted for federal investments in
broadband & community infrastructure.
 Gainesville, FL Region receives $1.67 million for Allied Health and
Biotechnology Jobs.
 University Center Economic Development Program funds make
universities resources available to economic development
communities.
 “America Competes Act” provides $40 billion for STEM
(Science, Technology, Engineering, and Math) education
RedRock Reports Confidential
Private Funding Trends: College Access and
Completion
 Bill & Melinda Gates Foundation: Postsecondary Success Initiative
Up to $100 million to replace weak remedial college programs, identify and
mitigate barriers to completion.
 Carnegie Foundation: Urban and Higher Education
In 2010, nearly $7 million in projects for systemic change K - 16, with
particular emphasis on secondary and higher education, and success for
historically underserved populations and immigrants.
 Lumina Foundation
Grants aimed at increasing higher education attainment rate in the US to 60
percent by 2025 – an increase of 23 million graduates.
RedRock Reports Confidential
Private Funding Trend: Research & Best Practices
“Institutions have begun experimenting with innovations such as online teaching,
redefining the role of professors, rethinking the connection between academic programs
and labor market readiness, and creating entirely new colleges. Still, there has been
little research on efforts to innovate or increase productivity within higher education” –
American Enterprise Institute for Public Policy Research
 Jobs for the Future (sample projects)
 Achieving the Dream: helping community college students earn valued credentials.
 Time to Completion: Builds on experiments by states, systems, and institutions to
improve timely postsecondary degree completion.
 Completing College America
 Increase number of Americans with a college degree or credential, and closes
attainment gaps through policy change.
 Support from Bill & Melinda Gates Foundation, Carnegie Corporation of New York, Ford
Foundation, Lumina Foundation for Education, W.K. Kellogg Foundation
 MDRC: Opening Doors
 Study factors affecting college enrollment and completion and produce a policy brief
in 2010.
RedRock Reports Confidential
Summary
 A concerted effort is underway by public and private funders
to improve student access and graduation rates in community
and state colleges.
 Federal stabilization funds intended to make up for state
budge cuts will soon be spent down.
 Recovery Act and federal programs intended to build
infrastructure and worker capacities are funding state and
community colleges as centers of training and innovation.
 Initiatives to access and leverage funding should align with:





Healthcare
Energy efficiency
Postsecondary success
Workforce preparation
Global Competitiveness
 The time to act is now.
is nowRedRock Reports Confidential
Resources:
 Considerations for State Colleges and Universities in a Post-Recession
America
http://www.aascu.org/media/publications/09hurleywhpaper.pdf
 AASCU, President Barack Obama and America’s Public Colleges and
Universities http://www.congressweb.com/aascu/obama_higher_ed.htm
 www.cef.org
RedRock Reports Confidential
For more information contact:
Jenny House, Ph.D.
RedRock Reports
[email protected]
650-561-9223