Transcript Budget Decisions in Times of Fiscal Constraint

Discussion Items for
Task Force Meeting
Chicago, Illinois
June 20, 2008
National Center for Higher Education Management Systems
3035 Center Green Drive, Suite 150
Boulder, Colorado 80301-2251
Public Agenda for Illinois Higher Education—
Goals for College and Career Success
1. Increase Educational Attainment to Match BestPerforming U.S. States and World Countries
a. Improve Success of Students—Eliminate Racial, Ethnic
and Gender Achievement Gaps
b. Increase Number of Adults Reentering Education and
Completing a Postsecondary Credential
c. Reduce Geographic Disparities in Educational Attainment
2. Ensure College Affordability for Students, Families
and Taxpayers
(continued)
2
Public Agenda for Illinois Higher Education—
Goals for College and Career Success (continued)
3. Increase Production of Postsecondary Credentials to Meet
Demands of the Economy
a. Increase Production of Certificates, Associate and Baccalaureate
Degrees
b. Improve Transitions Between Associate and Baccalaureate Degree
Levels
c. Increase Production of Postsecondary Degrees in Fields Critical to
the Illinois Economy—e.g., Nursing and Information Technology
d. Improve Student Learning and Skill Levels to Compete Effectively in
the Global Marketplace
4. Better Integrate Illinois’ Educational, Research and Innovation
Assets to Meet Economic Needs of the State and Its Regions
3
Measuring Progress: Illinois
Outcome/Performance
Measures
4
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries
►
Proportion of Adults Age 25-34 with Associate Degree
or Higher
►
Proportion of Adults Age 25-34 with Baccalaureate
Degree or Higher
Benchmarked Against:
■ Best-Performing OECD Countries
■ Top 5 U.S. States
■ Selected Competitor/Neighbor States
(continued)
5
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries (continued)
a.
Improve Success of Students—Eliminate Racial, Ethnic and
Gender Achievement Gaps
►
Proportion of Adults Age 25-34 by Race/Ethnic Group and
Gender Who Have:
> Completed High School
> Attained Associate or Higher
> Attained Baccalaureate or Higher
►
Difference Between Whites and Each Ethnic Group for
Each Attainment Level Above
Benchmarked Against:
■ Illinois Trends Over Time
■ Best-Performing States
(continued)
6
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries (continued)
b.
Increase Number of Adults Reentering Education and
Completing a Postsecondary Credential
► Number of GEDs Awarded to Adults Age 21-44 as a
Proportion of Adults Age 21-44 with Less than a High School
Diploma
► First-Time Freshmen Age 25-44 as a Proportion of Adults
Age 25-44 with a High School Diploma but No College
► Degrees Awarded to Adults Age 25-44 as a Proportion of
Population Age 25-44 with No College Degree
Benchmarked Against:
■ Illinois Trends
■ Best-Performing States
(continued)
7
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries (continued)
c. Reduce Geographic Disparities in Educational
Attainment
► Difference Between Highest- and Lowest-Attaining
Counties in Proportions of Individuals Who Have
Attained:
> Associate Degree or Higher
> Baccalaureate Degree or Higher
Benchmarked Against:
■ Illinois Trends Over Time
■ Best-Performing States
8
2. Ensure College Affordability for Students, Families
and Taxpayers
► Percent of Family Income for:
■
■
Median Family
Low-Quintile Family
Required to Pay Net Cost of Attendance
(Cost Less Grant Aid) at:
■ Public 4-Year
■ Private 4-Year
■ Public 2-Year
► Average Amount of Debt Per Student
(continued)
9
2. Ensure College Affordability for Students, Families
and Taxpayers (continued)
► Percent of Low-Quintile Family Income Required
to Pay Tuition and Required Fees at 2-Year
Public Institutions
► State Tax Effort Compared to State Tax Capacity
► State and Local Appropriations Plus Tuition and
Fee Revenue per FTE Student—State Share of
This Total Revenue per FTE Student
Benchmarked Against:
■ Illinois Trends
■ Best-Performing States
10
3. Increase Production of Postsecondary Credentials to
Meet Demands of Economy
a.
Increase Production of Certificates, Associate and Baccalaureate
Degrees
►
Produced Each Year by All Institutions in State
Benchmarked Against Illinois Trends
►
Certificates and Associate Degrees Granted as a Proportion of
FTE Enrollments at 2-Year Institutions
►
Baccalaureate Degrees Awarded as a Proportion of FTE
Undergraduate Enrollments at 4-Year Institutions (Public and
Private Not-for-Profit)
Benchmarked Against:
■ Illinois Trends Over Time
■ Best-Performing States
(continued)
11
3. Increase Production of Postsecondary Credentials to
Meet Demands of Economy (continued)
b.
Improve Transitions Between Associate and Baccalaureate
Degree Levels
►
►
►
►
►
Number of Students Who Achieve Transfer-Ready Status
Proportion of Students Who Achieve Transfer-Ready Status
Who
Do Transfer and Complete a Degree
Proportion of Students Who Achieve 12 SCH Who Transfer
Proportion of SCH Earned by Transfers That Are Not
Accepted as Credit for a Major
Proportion of Students with 2.0 GPA or Better—Transfers
Versus Native Students
Benchmarked Against Illinois Trends
(continued)
12
3. Increase Production of Postsecondary Credentials to
Meet Demands of Economy (continued)
a.
Increase Production of Postsecondary Degrees in Fields
Critical to Illinois Economy—e.g., Nursing and Information
Technology
►
Absolute Number of Associate, Baccalaureate and Master’s
Degrees Produced Each Year in Specified Fields
– Nursing
– Allied Health
– IT
– Others?
Benchmarked Against Illinois Trends
►
Associate, Baccalaureate, Master’s and Doctoral
Degrees Produced in STEM Fields as a Proportion of All
Degrees Granted at Those Levels
Benchmarked Against Best-Performing States
(continued)
13
3. Increase Production of Postsecondary Credentials to
Meet Demands of Economy (continued)
d. Improve Student Learning and Skill Levels to
Compete Effectively in the Global Marketplace
► Proportion of Adults Age 25-34 Assessed as
Proficient in Each of the Areas of the NAAL—
Data Acquired Through a State Oversample
on the Exam (Scores of College Graduates
Versus Non-College Graduates)
Benchmarked Against:
■ Illinois Trends
■ U.S. Average
■ Other States for Which State Data Are Available
14
4. Better Integrate Illinois’ Educational, Research, and
Innovation Assets to Meet Economic Needs of the
State and Its Regions
► Proportion of Jobs Considered to Be “Living Wage”
Jobs
► Spin-Off Companies Created Per Billion Dollars of
Academic Research
► ???
15
Observations from
Regional Forums
16
Principles
►
Alignment of Policy with State Goals
►
Rewarding Student and Institutional Outcomes
that Are Aligned with:
■ State Priorities
■ Regional Priorities
17
The Management Cycle
State
Planning
Institution
State
State
Accountability
Implementation
Institution
Institution
18
The Policy Tools
►
Clear Direction—a “Public Agenda”
►
Funding/Resource Allocation
►
Accountability
►
Regulation
►
Policy Leadership/Allocation of Decision Authority
19
Key Areas for Policy Alternatives
►
P-20 Alignment of Standards, Curriculum, Assessments
and Professional Development for:
■ Postsecondary Education
■ Work in a Living Wage Job
►
Funding Policy
■ Institutional
■ Students
►
Regional Strategies
►
Policy Leadership
20
Funding/Resource
Allocation—Key Concepts
21
The Flow of Funds
Economy
Available
State and Local
Govt. Funds
•
•
•
•
K-12
Corrections
Health Care
Other Govt.
Higher
Education
Student Aid
Appropriations/Grants
Tuition
Gifts
Students
Institutions
Scholarships &
Waivers
Student Aid (Restricted)
Donors
Foundations
Corporations
Research and Other Grants (Restricted)
Federal
Government
22
The Flow of Funds
Economy
Available
State and Local
Govt. Funds
Higher
Education
Student Aid
Appropriations/Grants
Tuition
Students
Institutions
Scholarships &
Waivers
Student Aid (Restricted)
Federal
Government
23
Criteria for Effective Higher Education
Finance Policy
►
Create and Maintain Necessary Institutional
Capacity
►
Reinforce Utilization of Capacity to Achieve
State Goals
►
Contributions Required Are Affordable—to Both
State and Students
►
Viewed as Being Fair
►
Transparent
24
Criteria from Perspective of Different Stakeholders
State
►
►
►
Maintains Institutional Capacity
Promotes Achievement of Priority Outcomes
Affordable
Students
► Affordability
► Value
Institutions
► Adequacy
► Equity
► Stability
25
The Two Purposes of State Funding Policy
►
Build Core Capacity—General Purpose Funding
►
Promote Capacity Utilization Around State
Priorities—Special Purpose Funding
26
Finance Policy—The Options
Institution
Focused
 Base-Plus
Core Capacity
 Formulas
 Investment Funds
Capacity Utilization/
Public Agenda
Performance
Funding
Student
Focused
Tuition and Aid Policy
Focused on
Revenue Generation
Tuition and Aid Policy
Focused on
Attainment of
Specified Outcomes
27
Basic Questions at State Level
►
How Much to Allocate
►
To Which Recipients—Students or Institutions
►
Using Which Mechanisms
28
A Key Distinction
►
Investment Funds
■ Capacity Building
■ A Priori
►
Incentive Funds
■ Capacity Utilization
■ Post Facto
29
Remember—All Funding Mechanisms
Provide Incentives for Behavior
Central Question:
Are the Behaviors Elicited
the Ones You Want?
30
Regional Partnerships
►
Focus on Regions as the “Community of Solution” for
Getting More Students Through Education Pipeline
►
Partnership:
■ Regional Community/Economic Development
■ Higher Education
■ P-12
►
Use of State Funding to Provide Incentives for
Regional Strategies
31
Student Financial Aid
►
Align Student Aid, Tuition and Appropriations
►
Implement a Shared Responsibility Model for
Student Aid with:
■ Student Making Initial Commitment
■ State Making Last Dollar Commitment
►
Link Student Financial Aid to Incentives for
Students Beginning at 7th and 8th Grades
32
Policy Leadership
►
Key Point: Must Have a Means to Keep Agenda
on Track
■ Legislative Ownership of Long-Term Agenda
■ Linking Budget and Appropriations to Goals
■ Holding Institutions/Systems Accountable
■ Sustaining Agenda Over Changes in Political
Leadership and Economic Conditions
33
The Policy Options
Planning/
Priorities
Finance
Accountability Regulation Governance
Increase Educational
Attainment
Ensure College Affordability
Increase Production of
Postsecondary Credentials
Link Educational, Research
and Innovation Assets to
Economic Development
34