Transcript Budget Decisions in Times of Fiscal Constraint

Discussion Items for
Task Force Meeting
Chicago, Illinois
August 12, 2008
National Center for Higher Education Management Systems
3035 Center Green Drive, Suite 150
Boulder, Colorado 80301-2251
Topics to be Covered
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Observations About Policy Environment for
Implementation
Moving from Goals to Implementation Plan
■ Principles
■ Policy Tools
■ Cross-Cutting Issues
Charge to Work Groups
2
Observations About
Policy Environment for
Implementation
3
Policy Environment
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Strong History of Institution-Oriented PolicyMaking
Splintered Nature of Decision Authority
■ State Level
■ Local/Region
Absence of Mechanisms for Regional Solutions
Culture of “Pilots” But Little Evaluation and
Scaling Up
4
Policy Environment (Continued)
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Uneven Engagement (Time and Geography) of
Business and Civic Leaders in Higher Education
Issues
Many Unfunded Mandates (e.g., Mandated
Scholarships)
Lack of Information Infra-Structure
■ Higher Education
■ P-20
5
Moving from Goals to an
Implementation Plan
6
The Management Cycle
State
Planning
Institution
State
State
Accountability
Implementation
Institution
Institution
7
Basic Principles for Developing
Implementation Strategies
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Use Goals as the Starting Point—Align Policies
with Goals
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Use All the Policy Tools
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Be Consistent—Across Goals and Across Tools
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Focus on Students as Well as Institutions
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Fit Policy to Regional, as Well as Statewide,
Needs
8
The Policy Tools
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Clear Direction—a “Public Agenda”
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Funding/Resource Allocation
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Accountability
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Regulation
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Policy Leadership/Allocation of Decision Authority
Underlying Them All Is
Capacity to Provide Information
9
POLICY TOOLS
GOALS
Planning and
Leadership
Finance
Regulation
Accountability
Governance
1. Increase Education Attainment
2. Ensure College Affordability
ALIGNMENT
3. Increase Production of
High-Quality Credentials
ALIGNMENT
4. Integrate Educational, Research,
and Innovation Assets
10
Cross-Cutting Issues
►
P-20 Alignment of Standards, Curriculum, Assessments
and Professional Development for:
■ Postsecondary Education
■ Work in a Living Wage Job
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Funding Policy
■ Institutional
■ Students
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Regional Strategies
►
Policy Leadership
11
Funding/Resource Allocation—Key
Concepts
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
13
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
14
Criteria from Perspective of Different Stakeholders
State
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Maintains Institutional Capacity
Promotes Achievement of Priority Outcomes
Affordable
Students
► Affordability
► Value
► Access to Key Assets (e.g., Faculty and Technology)
Institutions
► Adequacy
► Equity
► Stability
15
Criteria for Effective Higher Education
Finance Policy
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Create and Maintain Necessary Institutional
Capacity
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Reinforce Utilization of Capacity to Achieve
State Goals
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Contributions Required Are Affordable—to Both
State and Students
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Viewed as Being Fair
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Transparent
16
Basic Questions at State Level
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How Much to Allocate
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To Which Recipients—Students or Institutions
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Using Which Mechanisms
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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
18
A Key Distinction
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Investment Funds
■ Capacity Building
■ A Priori
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Incentive Funds
■ Capacity Utilization
■ Post Facto
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Student Financial Aid
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Align Student Aid, Tuition and Appropriations
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Implement a Shared Responsibility Model for
Student Aid with:
■ Student Making Initial Commitment
■ State Making Last Dollar Commitment
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Link Student Financial Aid to Incentives for
Students Beginning at 7th and 8th Grades
20
Remember—All Funding Mechanisms
Provide Incentives for Behavior
Central Question:
Are the Behaviors Elicited
the Ones You Want?
21
Regional Partnerships
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Focus on Regions as the “Community of Solution” for
Getting More Students Through Education Pipeline
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Partnership:
■ Regional Community/Economic Development
■ Higher Education
■ P-12
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Use of State Funding to Provide Incentives for
Regional Strategies
22
Policy Leadership
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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
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Policy Leadership (Continued)
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►
Creating Mechanism for Developing Regional
Solutions
Using Public/Private Partnerships to Facilitate
Change
24
Charge to Work Groups
25
Charge to Work Groups
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Adhere to Basic Principles:
■ Use Goals as the Starting Point—Align
Policies with Goals
■ Use All the Policy Tools
■ Be Consistent—Across Goals and Across
Tools
■ Focus on Students as Well as Institutions
■ Fit Policy to Regional, as Well as Statewide,
Needs
26
Charge
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Prepare Short List of More Detailed Action Steps
Recommended as Priority Implementation
Initiatives
Indicate Actions Required of Each of Relevant
Entities in Order for Public Agenda to be
Successful (IBHE, ICCB, ISAC, ISBE and
others)
Modify List of Performance Measures and
Benchmarks as Necessary
27
Measuring Progress: Illinois
Outcome/Performance
Measures
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1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries
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Proportion of Adults Age 25-34 with Associate Degree
or Higher
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Proportion of Adults Age 25-34 with Baccalaureate
Degree or Higher
Benchmarked Against:
■ Best-Performing OECD Countries
■ 5 Best-Performing U.S. States
■ Selected Competitor/Neighbor States
(continued)
29
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries (continued)
a.
Improve Success of Students—Eliminate Racial, Ethnic,
Gender and Disability Achievement Gaps
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Proportion of Adults Age 25-34 by Race/Ethnic Group,
Gender, and Disability Status Who Have:
> Completed High School
> Attained Associate Degree or Higher
> Attained Baccalaureate Degree or Higher
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Difference Between Whites and Each Ethnic Group for
Each Attainment Level Above
Benchmarked Against:
■ Illinois Trends Over Time
■ Best-Performing States
(continued)
30
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)
31
1. Increase Educational Attainment to Match Best-Performing
U.S. States and World Countries (continued)
c. Reduce Geographic Disparities in Educational Attainment
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Difference Between Highest- and Lowest-Attaining
Counties in Proportions of Individuals Who Have Attained:
>
Associate Degree or Higher
>
Baccalaureate Degree or Higher
Also Differences Between Counties at 20th and 80th
Percentiles
Benchmarked Against:
■ Illinois Trends Over Time
■ Best-Performing States
32
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)
33
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
34
3. Increase Production of Quality Postsecondary
Credentials to Meet Demands of Economy
a. Improve Student Learning and Skill Levels to
Compete Effectively in the Global Marketplace
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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
(continued)
35
3. Increase Production of Quality Postsecondary
Credentials to Meet Demands of Economy (continued)
b.
Increase Production of Quality Certificates, Associate and
Baccalaureate Degrees
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Produced Each Year by All Institutions in State
Benchmarked Against Illinois Trends
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Certificates and Associate Degrees Granted as a Proportion of
FTE Enrollments at 2-Year Institutions
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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)
36
3. Increase Production of Quality Postsecondary
Credentials to Meet Demands of Economy (continued)
c.
Improve Transitions Between Associate and Baccalaureate
Degree Levels
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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)
37
3. Increase Production of Quality Postsecondary
Credentials to Meet Demands of Economy (continued)
d.
Increase Production of Postsecondary Degrees in Fields
Critical to Illinois Economy—e.g., Nursing, Allied Health, 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
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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)
38
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
► ???
39