Transcript Slide 1

The Knowledge Economy
“Colleges and universities have never been as
important as they are today. Economic
competitiveness depends upon a state’s ability to
educate and train its citizens and attract and retain
talent.”
National Governors Association Center For
Best Practices
Education Earnings
95,700
Prof. Deg.
70,400
Doctorate
59,500
Master's
49,900
Bachelor's
37,600
Associate's
35,700
Some College
30,800
HS Diploma
21,600
Less than HS
$0
$1
$1
$2
$3
$4
$5
$6
$7
$8
$9
00
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
,00
00
00
00
00
00
00
00
00
00
0
Source: Education Pays 2004, College Board
Average Annual Income for Families by Educational
Attainment of Householder - 1967 to 2004
2004
Source: Postsecondary Education Opportunity
Projected Increases in Job Openings by Education or
Training Required - United States, 2002 -2012
Professional degree
18
Doctorate
36
Master's degree
22
Bachelor's degree plus work experience
20
Bachelor's degree
21
Postsecondary vocational certificate
18
Work Experience/OJT
12
Total
15
0
10
20
30
%
Source: Louisiana: Featured Facts, 2005, SREB
40
50
The Array of Benefits of Higher Education
Public
Economic
Social
Private
Increased tax revenues
Greater productivity
Increased consumption
Increased workforce
flexibility
Decreased reliance on
government financial
support
Higher salaries and benefits
Employment
Higher savings levels
Improved working conditions
Reduced tax revenues
Increased charitable
giving/community service
Increased quality of civic life
Improved ability to adapt to
and use technology
Improved health/life
expectancy
Improved quality of life for
offspring
Better consumer decisionmaking
Per Capita Income vs. Share of Adult Population with a
Bachelor’s Degree or Higher (2003)
32,000 -
Per Capita Income
30,000 -
28,000 -
CT
◆
No state with a
low proportion of
Bachelor’s
degrees has a
high per capita
income.
NJ ◆
26,000 -
AK
◆
24,000 -
NV
◆
22,000 -
TN
20,000 -
KY
18,000 -
WI
WY
OH
IN IA ◆
◆
◆
WV
◆
AR
◆◆
◆
◆
NH VA
◆
◆
NY
DE
◆ MN
◆
◆
IL RI ◆
WA
MI FL
◆
PA
◆
◆
◆◆
◆
GA
◆
◆OR
MO
◆ME
◆
◆
◆AZ NE
SC
◆◆
◆
◆
◆
◆
◆
◆
CO
◆
CA
◆ HI
VT
◆
◆
KS
TX
ND
SD NC
MT
AL ◆
◆
◆ ◆UT
◆ ID
◆
OK
LA
MD MA
◆
◆
NM
No state with a
high proportion of
Bachelor’s
degrees has a
low per capita
income.
MS
16,000 15%
20%
25%
30%
35%
Population with a Bachelor’s Degree or Higher
Source: U.S. Census Bureau, ACS 2003
40%
Highest Educational Attainment of
Population 25 Years and Older in 2005
50
40
35.0
29.0 30.0
30
%
20
18.0
20.0 20.0 20.0
19.5
17.2
15.7
16.1
13.4
10
7.0
10.0 9.0
7.0
7.1
5.0
0
Less Than High High School/No Some College
School
College
US
South
Associate's
Bachelor's
Graduate or
Professional
Louisiana
Source: US Census data:
American Community
Survey, 2005
Per Capita Personal Income as a Percent of U.S. Average—
Louisiana, 1960-2004
120%
100%
86.7%
82.2%
80%
74.3%
77.7%
75.8%
82.6%
60%
1960
1970
1980
Source: U.S. Census Bureau; Statistical Abstract of the United States, 2003
1990
2000
2004
Louisiana Expenditures Per Capita (2002)
National
Rank
Health and Hospitals
Prisons
Higher Education
4th
14th
39th
Elementary/Secondary Education
Highways
43rd
41st
“To close the economic gap, Louisiana
must close the education gap.”
Source: Miles to Go, Southern Education Foundation (2006)
Main Points:
• The economy is rapidly changing.
• Economic prosperity (employment
opportunity, competitive salaries,
progressive public investments) is
dependent on knowledge-based jobs.
The Issue:
Louisiana’s ability to compete in this
economic environment demands ever larger
numbers of highly-trained and educated
workers.
Recent Progress
Public High School Graduation Rates*
100.0
70.0
68.8
58.5
75.0
%
68.0
50.0
25.0
LA
US
(49th)
LA
US
(33rd)
0.0
1994
2004
*Total Regular Diploma Recipients / 9th Grade Enrollment = H.S. Graduation Rate
Source: Postsecondary Education Opportunity, July 2006
Chance for College by Age 19*
75.0
50.0
40.0
31.2
38.1
37.1
%
25.0
US
LA
(45th)
US
LA
(32nd)
0.0
1994
2004
*Public High School Graduation Rate x College Going Rate
Source: Postsecondary Education Opportunity, July 2006
Degrees Awarded
1994-95
2004-05
Change
3,211
20%*
4,459
63%
14,880 17,537
18%
Certificate/Diploma
Associate:
Baccalaureate:
Master’s
2,730
3,933
5,034
28%
Doctorate
373
425
14%
Professional
711
792
11%
*LTC data were incorporated in 2003. The increase in
certificates/diplomas awarded is for the two-year period 2003-2005.
Source: Board of Regents data
Educational Attainment
Population 25 and Older
2000
2005
Associate’s Degree:
3.1%
5.0%
Bachelor’s Degree:
12.4%
13.4%
6.8%
7.1%
Graduate/Professional
Source: U.S Census data
Public Postsecondary Enrollment Growth
Pre-Katrina/Rita
214,744*
210,484*
210,000
17,563
17,786
185,976
190,000
175,292
178,990
192,921
170,000
196,958
150,000
2000-01
2001-02
2002-03 2003-04* 2004-05*
*Includes LA Technical College, SOWELA and Fletcher
Postsecondary Enrollment Growth
Post Katrina/Rita
214,744
210,484
210,000
17,563
17,786
192,845
185,976
190,000
175,292
178,990
170,000
192,921
196,958
2003-04
2004-05
150,000
2000-01
2001-02
2002-03
2006-07
Note: 2003-04 through 2006-07 totals include LA Technical College, SOWELA and Fletcher
Source: Board of Regents data
38,600
39,700
40,800
41,000
41,000
41,500
41,800
}
41,220
45,589
46,334
46,473
46,776
47,548
46,419
44,915
Katrina/Rita
Impact
43,000
44,373
45,000
44,023
47,000
43,770
49,000
46,488
Louisiana High School Graduates and
Post-Katrina Projections
39,000
2011
2007
2005
Projected
2003
1999
1997
1995
35,000
2001
Actual
2009
37,000
Source: Projection of Total Number of Louisiana High
School Graduates for School Years 2006-2007 TO 20112012; Education Estimating Conference, January 2007
Hurricane Impact on Enrollment
Displaced Public School Students
65,397
Returned to original schools
after having enrolled elsewhere
in Louisiana
52,978
11,863
41,870
Returned to original schools
without enrolling elsewhere in
Louisiana
Did not return to original schools
but enrolled in other Louisiana
schools
Did not enroll in any Louisiana
public school
Source: Student Displacement in Louisiana After the Hurricanes of 2005: Experiences of Public
Schools and Their Students, 2006, Rand.
To recover and improve economically,
Louisiana must expand the
participation of our remaining
population in higher education:
• Traditional Pathway
• Non-traditional Pathway
“The data make it very clear that the largest pool of
potential college students is the population of lowand moderate-income youth who do not complete
high school college-qualified.”
Postsecondary Education Opportunity, March 2007
“The federal Advisory Committee on Student
Financial Assistance estimates that cost factors
prevent 22 percent of college-qualified high school
graduates from attending college.”
Empty Promises: The Myth of College Access in
America, Advisory Committee on Student Financial
Assistance, 2002
Family Income Affects Chance for College
Income categories are broken down as follows: low-income—under $25,000;
middle-income—$25,000 to $74,999; and high-income—$75,000 and above.
Source: The Pell Institute, Indicators of Opportunity in Higher Education
College Participation Rates by State for Students
from Low-Income Families – FY2005
Source:
Postsecondary
Education
Opportunity,
February 2007
Bachelor’s Degree Attainment of 8th Graders
by Family Income - 2000
75
50
%
43
46
Middle
Income
High Income
27
25
16
0
Low Income
Moderate
Income
Source: Analysis of National Education Longitudinal Study of 1998/2000
Children in Louisiana, by Family Income Level
24%
Above
low income
52%
>200% FPL
24%
Low income
48%
(National: 39%)
100-200% FPL
<100% FPL
52%
Source: National Center for Children in Poverty, 2006
LA Approval Rates for Free and ReducedPriced School Lunches – FY1993 - FY2005
70.0
60.0
%
.4
8
5
.5
3
6
50.0
40.0
30.0
1993
2005
Source: Postsecondary Education Opportunity, February 2007
Louisiana Children in Low-Income Families,
by Residence
100
75
%
50
55
46
44
Urban
Suburban
25
0
(129,891)
(146,688)
Rural
(69,575)
Source: National Center for Children in Poverty, 2006
Primary obstacles to access and
success for low- and moderateincome students:
– Inadequate academic preparation
– Insufficient information,
guidance and encouragement
– Unmet financial need
Overall Affordability Rankings:
1. New Hampshire
2. Oklahoma
3. Louisiana
4. Mississippi
5. Georgia
6. North Dakota
7. Kentucky
8. Idaho
9. Utah
10. Wisconsin
Educational Policy Institute (2006)
Affordability 2006
Source: Measuring Up 2006
Affordability 2006
Source: Measuring Up 2006
Adults
Louisiana Adult Participation in
Postsecondary Education
– 2.3% of working population (47th)
Source: National Center for Public Policy and Higher Education
Storm Impact on Enrollment of Students Aged
25 and Over
80,000
72,200
72,790
70,000
60,000
56,529
57,779
61,174
53,116
50,000
40,000
30,000
2000-01
2001-02
2002-03
2003-04* 2004-05* 2005-06*
*Includes LA Technical College, SOWELA and Fletcher
Loan Debt
Student Loan Debt
“At public universities, debt levels for
graduating seniors with student loans has
more than doubled in the past decade.”
Project on Student Debt, National Center for
Education Statistics (NCES), 2006
Percentage of Bachelor’s Degree Recipients
Who Borrowed for Their Undergraduate
Education, 1999-2000
100
72
75
%
68
62
46
50
25
0
Low-income
Lower
middleincome
Upper
middleincome
Highest
income
Source: Choy and Li, 2005
Student Loan Debt
At public universities, debt levels for
graduating seniors with student
loans more than doubled, from
$8,000 to $17,251, over the past
decade (108% increase).
Louisiana’s average student loan
debt: $18,751 (12th in nation)
Student Loan Debt
Selected debt examples:
Avg. Graduate Debt
(2004-05)
Grambling
LSU-BR
La. Tech
Nicholls
Northwestern
Southeastern
Southern-BR
UNO
$30,000
19,258
15,861
12,738
17,442
12,527
23,000
22,272
% of Graduates
with Debt
(2004-05)
85
49
82
48
68
58
90
36
“The most efficient way for a state to expand access to
postsecondary education is to increase its investment
in need-based grant aid.”
Expanding College Access: The Impact of State
Finance Strategies, Lumina (2004)
“Need-based grants have a positive association with
high school graduation rates and a substantial positive
influence on college enrollment rates.”
Perne and Titus (2002)
“Lack of financial aid is one of the major barriers
preventing low-wage workers from enrolling in and
successfully completing postsecondary education.”
Lumina Foundation for Education
“Low-income adults receive less overall financial
assistance and fewer grants than tradition-age
students…Yet the majority of state financial aid policies
are also not well suited for adult workers.
Workforce Strategy Center, December 2006
Distribution of State Grant Aid, 2003-04
26%
74%
U.S. Average
Total need-based state undergraduate aid
Total non-need-based state undergraduate aid
Source: National Association of State Student Grant Aid Programs 2004
Distribution of State Grant Aid, 2003-04
1.3%
24%
26%
98.7%
74%
U.S. Average
Louisiana
Total need-based state undergraduate aid
Total non-need-based state undergraduate aid
Source: National Association of State Student Grant Aid Programs 2004
Undergraduate Grant Dollars/FTE
State Rankings
Louisiana
Merit-Based: $640 – 13th
Need-Based: $8 – 47th
Source: USDOE, National Center for Educational
Statistics (NCES) Integrated Postsecondary Data System
(IPEDS), 2004
Louisiana Need Based Financial
Assistance Program for Lowand Moderate-Income Students
Louisiana “GO Grant”
Simple plan to improve
college access for targeted
population and reduce student
loan debt
Shared responsibility
Targeted at low/moderateincome and low-participating
adults and high school
graduates
Eligibility Criteria
Enrollment Criteria
• Louisiana resident
• Admitted and enrolled as a certificate- or
degree-seeking undergraduate student
• At a Louisiana public or private (LAICU)
college or university:
– As a first time freshman or
– Aged 25 or older and not enrolled in a college
or university in credit bearing courses for at
least three years
Financial Need Criteria
• Financial need is based on information
reported on the Free Application for
Federal Student Aid (FAFSA)
• Student must be awarded the federal Pell
grant (includes calculation of Expected
Family Contribution)
• Student must have an Education Cost Gap
(ECG) (unmet need) greater than zero
ECG for Full-time Students
Tuition and mandatory fees
+
$2,000 for textbooks, supplies, materials and
other related education expenses
=
Louisiana Basic College Cost (LBCC)
LBCC
-
Federal grants (Pell, ACG)
= Education Cost Gap (ECG)
ECG for Part-time Students
Tuition and mandatory fees
+
$1,000 for textbooks, supplies, materials and
other related education expenses
=
Louisiana Basic College Cost (LBCC)
LBCC
-
Federal grants (Pell, ACG)
= Education Cost Gap (ECG)
Award Amount
• Annual award of
– $2,000 for fulltime students
– $1,000 for part-time students
Renewal Eligibility Criteria
• Student eligibility will be reevaluated
annually, using the ECG formula, for
students with continued Pell eligibility who
meet satisfactory academic progress
(consistent with federal guidelines)
Projections
• Approximately 10,000 eligible first-time
freshmen
– 25% of incoming class
• Additional 1,000 students (estimated)
aged 25 and older who have been out of
school 3 years
Louisiana Pell Grant Recipients
Four-Year Institutions
Percentage of Firsttime, Degree-Seeking
with Pell (2004-05)
Grambling
LSU-BR
LSU-Alexandria
LSU-Shreveport
La. Tech
McNeese
Nicholls
Northwestern
Southeastern
Southern-BR
SUNO
UL-Lafayette
UL-Monroe
UNO
73
16
47
50
39
38
43
49
35
79
85
33
46
60
Number of First-time,
Degree-Seeking
with Pell (2004-05)
473
733
243
247
645
578
680
893
870
897
323
865
644
1137
Louisiana Pell Grant Recipients
Two-Year Institutions
BRCC
BPCC
Delgado
La. Delta
L.E. Fletcher
LSU-Eunice
LTC
Nunez
RPCC
SLCC
SU-Shreveport
Sowela
Percentage of Firsttime, Degree-Seeking
with Pell (2004-05)
Number of First-time,
Degree-Seeking
with Pell (2004-05)
74
51
55
N/A
60
45
54
75
52
N/A
90
25
1,152
394
1,433
102
404
2,176
311
106
375
332
Pell Grant Participation Rate for Dependent
Undergraduates by Parental Income
Louisiana Median
Household Income
$36,729
Source: Postsecondary Education Opportunity, March 2007
“Helping more Americans earn a degree is
not only important for our economic standing,
it’s essential to reinforcing what our country
stands for.”
Secretary of Education Margaret Spellings, March 2007
Highest Educational Attainment of
Population 25 Years and Older in 2005
20
17.2
16.1
13.4
%
10.0
10
9.0
7.0
7.1
7.0
5.0
0
Associate's
Bachelor's
US
South
Graduate or Professional
Louisiana
Source: US Census data:
American Community
Survey, 2005