Transcript Document
Strategic Allocation of Resources
ACE’s 87 th Annual Meeting February 14, 2005 James E. Morley, Jr., President National Association of College and University Business Officers (NACUBO) © NACUBO
Overview
• High School Graduate Projections • Rising Enrollments in Postsecondary Education • State Financing of Higher Education • Changes in Revenue Sources • Tuition Discounting Trends • Institutional Debt Levels
Overview (cont.)
• Research and Development Expenditures • Charitable Giving Trends • Title IV Funding • Foreign Student Enrollments in U.S. Institutions • Resources and Successful Practices
High School Graduates
• The number of high school graduates will continue to steadily rise over the next five years.
– In 1988, 2.8 million high school graduates – In 2013, 3.2 million estimated
High School Graduates
High School Graduates With Projections, 1988-2013
3,500 3,000 2,500 2,000 1,500 1,000 500 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year Ending
Total Number of High School Graduates Total Public High School Graduates Total Private High School Graduates Source: U.S. Department of Education. National Center for Education Statistics. Projections of Education Statistics to 2013. Data from 2002 to 2013 are projected.
Rising Postsecondary Enrollments
• Increasing number of high school graduates expected to impact postsecondary enrollments.
•
Enrollment Growth
(year = number of students) – 1950 = 2.3 million – 1990 = 13.8 million – 2004 = 16.5 million (projected) – 2013 = 18.2 million (projected)
Source: U.S. Department of Education. National Center for Education Statistics. Digest of Education Statistics 2003 and Projections of Education Statistics to 2013.
Rising Postsecondary Enrollments
• Carnevale and Fry attributes increases to: –a rise in births from 1982 to 1996 –immigration –increase in older students going to college
Postsecondary Enrollments by Sector
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0
Total Fall Enrollment in Degree-Granting Institutions, 1947-2013
Total Public Private 1947 1950 1953 1957 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1997 2000 2003 2006 2009 2012 Source: U.S. Department of Education. National Center for Education Statistics. Digest of Education Statistics 2003 and Projections of Education Statistics to 2013. Data for years 2001-2013 are projected.
Postsecondary Enrollments by Type
20,000,000
Total Fall Enrollment With Projections at All Degree-Granting Institutions by 2-year and 4-year Classification
18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 Total 4-year 2-year 4,000,000 2,000,000 19 65 19 67 19 69 19 71 19 73 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 Source: U.S. Department of Education. National Center for Education Statistics. Digest of Education Statistics 2003 and Projections of Education Statistics to 2013. Date from 2002 to 2013 are projected.
State Appropriations for Higher Education
• For FY04-05, appropriations rose by 3.8 percent, to $63 billion.
• 11 states still froze or cut appropriations of state tax funds between FY04 to FY05.
• In seven states where higher education spending increased, the increases were not enough to make up for the prior two years of cuts.
State Appropriations vs. Enrollment
State Appropriations for Higher Education Operating Expenses Compared to Total Fall Enrollment for All Degree-Granting Institutions
$70,000,000 17,000 16,500 $60,000,000 $50,000,000 16,000 15,500 $40,000,000 15,000 $30,000,000 $20,000,000 14,500 14,000 $10,000,000 13,500 $ 13,000 FY95 FY00 FY03 FY04 FY05 Total Appropriations (in thousands) Total Fall Enrollment (in thousands) Source: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education System, Fall Enrollment Survey, various years. Total fall enrollment for FY03, FY04, and FY05 are projected.
Revenue Sources for Publics
• In 2000-01, state appropriations contributed 31.9 percent in current funds revenue.
• Total dollars have increased $37 billion over 20 years.
• From 1980-81 to 2000-01, state appropriations as a percentage of campus budgets declined by 12 percentage points.
Revenue at Public Institutions
Major Current-Fund Revenue Sources for All Public Degree-Granting Institutions
100% 80% 60% 40% 20% Other Federal Grants and Contracts Tuition and Fees Sales and Services State Appropriations 0% 1980-81 1985-86 1990-91 1996-97 2000-01 Source: U.S. Department of Education. National Center for Education Statistics. Digest of Education Statistics 2003 .
Revenue Sources for Privates
• Tuition and Fees continue to be the major current-fund revenue source.
• Revenue from private gifts and grants and endowment income has remained relatively constant, contributing around 9 percent and 5 percent, respectively, towards campus budgets.
Revenue at Private Institutions
100%
Major Current-Fund Revenue Sources for All Private Degree- Granting Institutions
90% 80% 70% 60% 50% 40% 30% 20% Other Endow ment Income Private Gifts and Grants Federal Grants and Contracts Sales and Services Tuition and Fees 10% 0% 1980-81 1985-86 1990-91 1995-96 Source: U.S Department of Education. National Center for Education Statistics. Digest of Education Statistics 2003.
Tuition Discounting
2003 NACUBO Tuition Discounting Survey
• Institutional Categories: –
SCLT
- Small College, Lower Tuition • Enrollment < 850, Tuition and Fees < $22,260 –
SCHT
- Small College, Higher Tuition • Enrollment < 850, Tuition and Fees > $22,260 –
LCU
- Large Colleges and Universities • Enrollment > 850
Average Tuition Discount
Among private institutions, average tuition discounts per FTE Freshmen are creeping up: Small colleges, lower tuition 43.0% (2003) vs. 34.2% (1994) Small colleges, higher tuition 38.1% (2003) vs. 33.3% (1994) Large colleges and universities 33.4% (2003) vs. 27.8% (1994) Average 40.0% (2003) vs. 32.8% (1994)
Source: NACUBO 2003 Tuition Discounting Study
Average Tuition Discount, FTE Freshmen
45% 40% 35% 30% 25% 20%
SCLT LCU SCHT All
15% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: NACUBO 2003 Tuition Discounting Study
Institutional Debt Levels
• In 2003, higher education issued 8 percent of the $2 trillion tax exempt bond market.
• In the last four years, record borrowing due to: stock market drop; low interest rates; increased student demand; research facilities.
% S hare Rising Share of Bond Market 1991-2003 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 91 92 93 94 95 96 97 98 99 OO O1 O2 O3
• In 2004, the median debt per university was estimated at approximately $70 million.
$70 $60 $50 $40 $30 $20 $10 $0 1998 2000 2002 2004 est Median Debt Per University ($million)
Research and Development
• Universities and colleges reported increased R&D expenditures in FY02 compared to the prior six years. • In FY02, total U.S. academic R&D expenditures were $36.3 billion, an increase of close to 11 percent over the FY01 figure of $32.8 billion. • Federal funding supported 60 percent of the R&D expenditures, fueling the growth seen in FY02.
Source: National Science Foundation’s Survey of Research and Development Expenditures at Universities and Colleges. (www.nsf.gov)
R&D at Postsecondary Institutions
Source: National Science Foundation’s Survey of Research and Development Expenditures at Universities and Colleges.
Federal Obligations for R&D at Health and Human Services (HHS)
• HHS has experienced the largest average annual percentage change between FYs 1990-2002 in federal obligations for R&D compared to any other federal agency; 9.1 percent in current dollars and 6.8 percent in constant 1996 dollars.
Federal Research Obligations by Agency
Federal Obligations for R&D by Federal Agency: Average Annual Percentage Change FYs 1990-2002
USDA NSF DOE NASA HHS DoD Total -4% -2% 0% 2% 4% 6% Avg. Annual % Change FYs 1990-2002 ( in millions of constant 1996 dollars) Avg. Annual % Change FYs 1990-2002 ( in millions of current dollars) 8% Source: National Science Foundation. Survey of Federal Funds for Research and Development.
10%
NIH R&D Funding Trends
• In 2003, Congress appropriated $27 billion to NIH’s research budget, two times their 1998 budget; a 15 percent increase from 1998 to 2003. • However, appropriations bill for 2005 provides the NIH with $28.6-billion, an increase of about 2 percent; smallest in 20 years.
Federal Dollars for Research to NIH
Federal Spending on Academic Research Awarded to the National Institutes of Health
$35 $30 $25 $20 $15 $10 $5 $0 1995 1996 1997 1998 1999 2000
Fiscal Years
2001 2002 Source: Chronicle of Higher Education, Outlook 2005. 2003 2004 2005
Charitable Giving Trends
• FY03 showed a stabilization in giving from FY02 1998.
—FY02 giving year was the first decline to higher education since • An estimated $29.3 billion in FY03 was reported in giving to higher education; out of the $31.6 billion given to all education institutions.
Source: Council for Aid to Education. (www.cae.org)
Charitable Giving to Education
Giving to Educational Institutions 1963-2003
$35 $30 $25 $20 $15 $10 $5 $0 1963 1968 1973 1978 1983 1988 1993 1998 2003 Current $ Inflation-Adjusted $ Source: The Center on Philanthropy at Indiana University ( www.philanthropy.iupui.edu)
Charitable Giving to Education
• Charitable giving has tripled in the last four decades • Forecasts call for a massive intergenerational transfer of wealth over the next five decades —from $41 to $136 trillion.
Capital Campaigns 2004
• University of Virginia $3 billion • Duke University $2 billion • Washington and Lee University $242 million • Juniata College $92 million
Title IV: Federal Grants and Loans
• Over the past decade, grant aid has increased by 84 percent in real dollars, while education loan volume has increased by 137 percent. • In 2003-04, about one-half of the undergraduate aid was in the form of loans, whereas three-quarters of graduate student aid was loans.
Source: College Board. Trends in Student Aid 2004. (www.collegeboard.com)
Grants and Loans
Grant Aid and Loan Aid in Constant 2003 Dollars, 1993-94 to 2003-04
$80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ 1993 94 1994 95 1995 96 1996 97 1997 98 1998 99 1999 00 2000 01 2001 02 2002 03 2003 04 Source: College Board. Trends in Student Aid 2004.
Grant Aid Loans
Grant and Loan Aid Per FTE
• Grants per FTE rose 64 percent in real dollars, and loans per student rose 111 percent in constant dollars .
$7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000
Source: College Board. Trends in Student Aid 2004.
$ 1993-94
Average Aid per Full-Time Equivalent Student, 1993-04 to 2003-04
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Average Grant Aid Per FTE Average Loan Aid Per FTE
Innovative Practices in Tuition Pricing
• Raised in-state tuition to equal out of-state tuition —Miami University in Ohio • Reduced tuition overall: – Muskingum College – Albertson College – Wells College
Foreign Students
In 2004, the number of foreign students attending U.S. institutions declined by 2.4 percent, the first drop in enrollments since 1971-72.
Why?: Difficulties in receiving student visas, particularly in the fields of science and technology Source: Institute for International Education (IIE). (www.iie.org)
Resources
Western Interstate Commission for Higher Education (WICHE) • 15 Member states • Mission: to expand educational access and excellence for all citizens of the West • Concerns: – Pell Grant value – Transfer and articulation between and within the western states – Growing enrollment now but anticipating reduction in 20 years www.wiche.edu
Resources
State Higher Education Executive Officers (SHEEO) • SHEEO members are chief executive officers serving 26 statewide governing boards and 30 statewide coordinating boards of higher education.
• SHEEO’s focus is to assist members and the states in developing and sustaining excellent systems of higher education.
Recent Projects:
– IPEDS Student Unit Record Feasibility Study – National Commission on Accountability in Higher Education – State Higher Education Finance (SHEF) report www.sheeo.org
Successful Practices Sustainability
Demonstrating environmental leadership: •Tulane University-Greening the Campus (http://www.tulane.edu/~greenclb/thesis/) •The State University of New York at Buffalo (http://wings.buffalo.edu/ubgreen/) •University of Colorado at Boulder (http://www.colorado.edu/cuenvironmentalcenter/) •Associated Colleges of the South (ACS) (http://www.colleges.org/~enviro/)
Successful Practices Information Technology
Drexel University
–Supplies IT services to MCP Hahnemann University, Cabrini College and Neumann College
Appalachian Colleges Association (ACA)
–35 institutions in 5 states –Collaborate on common web site, student technology assistant program, central library, course sharing, and more
Committee on Institutional Cooperation (CIC)
–Library and University Press Collaborations –Inter-institutional sharing of online resources –Purchasing and Licensing coordination –http://www.cic.uiuc.edu/index.shtml
Successful Practices Mission Focused
Lakeland Community College
–Task Force for Managing the Future –Center for Business and Industry
Clemson University
–Tuition and Fee increases –Enrollment cap –Maintain student mix
Successful Practices
Coalitions and Consortia
•EPA Sector Initiative •“Self-Insurance” Program
--Oregon Independent College Employee Benefits Trust
- Florida’s
Independent Colleges and Universities Benefits Association
•University of Cincinnati’s Integrated Planning •Boston Consortium for Higher Education (http://www.boston-consortium.org/)
Contact Information
www.nacubo.org