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University of Denver – Strategic Issues Panel The Future of State Government in Colorado Presentation by: David Longanecker President, Western Interstate Commission for Higher Education (WICHE) Public Higher Education: Public Trust, Private Investment, or Lost Cause! The Colorado Story A Perfect Situation University of Denver – Strategic Issues Panel The Future of State Government in Colorado Presentation by: David Longanecker President, Western Interstate Commission for Higher Education (WICHE) Public Higher Education: Public Trust, Private Investment, or Lost Cause! The Colorado Story A Perfect Situation Perfect Storm or Perfect Opportunity The Perfect Storm: Three Converging Waves Wave One: Colorado’s Economic Competitiveness Wave Two: Who We Are – Can Colorado Be Competitive Wave Three: What Colorado Has in Resources to Commit to This Venture The Liberal Borrowings Knocking on the College Door (WICHE) Beyond Social Justice (WICHE) National Center for Higher Education Management Systems (NCHEMS) : www.higheredinfo.org. State Higher Education Executive Officers (SHEEO), SHEF Report, February 2010. The Converging Waves Wave One: Colorado’s Economic Competitiveness Wave Two: Who We Are – Can Colorado Be Competitive Wave Three: What Colorado Has in Resources Relationship Between Educational Attainment, Personal Income, and Economic Strength $30,000 High Income, Low Educational Attainment High Income, High Educational Attainment CT State New Economy Index (2002) Top Tier Personal Income Per Capita, 2000 Middle Tier NJ Low Tier MA MD $25,000 NH VA DE CA AK NV FL OH IN $20,000 TN SC AL KY WV AR OK LA MI ID SD NM 15% 20% VT KS NE UT ND MS Low Income, Low Educational Attainment $15,000 NY MN WA HI RI US WI GA OR PA NC AZ MO IA ME TX WY IL CO 25% MT Low Income, High Educational Attainment 30% 35% Percent of Adults Age 25-64 with a Bachelor’s Degree or Higher 40% Educational Attainment & Personal Income by Colorado Counties $70,000 Pitkin Personal Income per Capita $60,000 $50,000 Arapahoe Douglas Denver Boulder $40,000 Eagle Clear Creek Gilpin CO San Miguel Summit Kiowa Elbert $30,000 Adams Garfield Rio Blanco Yuma Kit Carson Phillips Sedgwick Mesa Logan Weld Montrose Baca Rio Grande Custer Montezuma Otero Moffat Morgan Chaffee Pueblo Prowers Dolores Delta Alamosa Washington Las Animas Fremont Archuleta Lake Costilla Jackson Bent Jefferson Huerfano Saguache Lincoln Conejos Crowley Cheyenne $20,000 Larimer El Paso Park Teller Grand Ouray La Plata San Juan Gunnison Mineral Hinsdale $10,000 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Adults aged 25 - 64 with a Bachelor's Degree or Higher (%) 55.0% 60.0% Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S. and OECD Countries, 2005 Source: Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2007 Differences in College Attainment (Associate and Higher) Between Younger and Older Adults - U.S., 2005 Source: U.S. Census Bureau, 2005 ACS Percent of Adults with an Associate Degree or Higher by Age Group – Colorado, U.S. & Leading OECD Countries Age 25-34 Age 55-64 47.6 44.3 45.8 40.4 37.7 39.6 40.9 39.2 40.8 41.4 41.5 33.2 36.2 34.6 34.8 28.5 16.9 16.0 19.4 22.5 24.9 26.9 30.0 26.8 24.0 19.2 22.9 20 32.8 30.3 30 41.9 42.2 38.1 39.5 43.6 37.5 37.4 40 39.3 43.2 46.2 50 Age 45-54 53.0 54.1 50.8 54.8 60 Age 35-44 10.6 10 0 Canada Japan Korea New Zealand Ireland Belgium Norway France Denmark Source: OECD, Education at a Glance 2008 U.S. Colorado The White Caps on the First Wave We’ve Been A Leader But Slip-Sliding Away Losing Ground: Falling Internationally (Comparatively) Mixed Bag Nationally One Size Doesn’t Fit All Two Stories – The Haves & the Have Nots The Public Policy Response: Thinking Here & Elsewhere National/Federal The President’s Goal – Lead Again by 2020 Increased visibility – Education & Workforce Gates and Lumina Regions & Their States East: Status Quo, more or less Mid-West: A Mixed Bag Rhetoric trumps action South: Investing in Education But still disconnects West (and Colorado): Question the Data Blame Immigration Disinvest in Access and Quality The Converging Waves Wave One: Colorado’s Economic Competitiveness Wave Two: Who We Are – Can Colorado Be Competitive Wave Three: What Colorado Has in Resources Public & Nonpublic High School Graduates 1991-92 through 2021-22, Colorado Actual Projected Total = public and non public, all races. Source: WICHE, Knocking at the College Door WICHE Projections of High School Grads Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008. WICHE Projections of High School Grads Source: WICHE, Knocking at the College Door: Projections of High School Graduates by State and Race/Ethnicity 1992-2022. 2008. Difference in Education Attainment Between Whites and Hispanics (2006, Percent) Source: U.S. Census Bureau, 2006 American Community Survey (ACS) Public Use Microdata Sample (PUMS) File. Via NCHEMS Difference Between Whites and Next Largest Race/ Ethnic Group in Percentage of Adults Age 25-34 with an Associate Degree or Higher, 2000 Source: U.S. Census Bureau, PUMS (based on 2000 Census), Via NCHEMS The White Caps on the Second Wave Those with whom we have succeeded are declining Those with whom we have not succeeded are increasing “Average” won’t sustain us, and may not even be achievable And, One Size Doesn’t Fit All Really Two Stories – The Haves & the Have Nots The Public Policy Response: Here and Elsewhere The Good News National Consensus Efforts Complete College America (Colorado is in) NGA focus area for New Governors Equity focus – Nevada, Wisconsin An emerging “Change” agenda – Metro state/NCAT The Other News – Same Old, same old Mission creep Focus on highest achieving (financial aid & enrolment protections) Challenges to diversity & diverse populations Whining trumps Changing -- it’s “their” fault Students for not being smart States for not being supportive The Converging Waves Wave One: Colorado’s Economic Competitiveness Wave Two: Who We Are – Can Colorado Be Competitive Wave Three: What Colorado Has in Resources Life could have been worse Public FTE Enrollment, Educational Appropriations and Total Educational Revenue per FTE, U.S., Fiscal 1983-2009 Source: SHEEO, SHEF 2009 But not in Colorado State/Local Funding plus Tuition Revenues per Student Public FTE Enrollment, Educational Appropriations and (FTE) Colorado Public Institutions, 1983 - 2008 Total Educational Revenue per FTE, U.S., Fiscal 1983-2008 180 $12,000 160 $10,000 $4,706 $6,000 80 $4,213 $4,075 $3,965 $3,681 $3,626 20 $3,991 $5,245 $5,613 $5,513 $5,465 $5,468 $5,413 $5,248 $4,961 $4,871 $4,833 $4,890 $5,101 $5,214 $5,350 $5,453 $5,493 $5,420 $5,276 40 $4,000 $5,052 60 Net Tuition Revenue per FTE (constant $) Educational Appropriations per FTE (constant $) Note: Constant 2008 dollars adjusted by SHEEO Higher Education Cost Adjustment. (HECA) Source: SHEEO SHEF 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 $0 1983 0 $2,000 Public FTE Enrollment Dollars per FTE $5,703 $5,155 $5,434 $5,027 $5,269 $8,000 $4,644 $4,600 $4,546 $4,698 $4,676 $4,688 $4,707 $4,541 $4,389 $4,356 $4,105 $3,873 $3,673 $3,801 $3,694 $3,753 $3,629 $3,526 $3,257 100 $3,255 120 $4,946 Public FTE Enrollment (Thousands) 140 Rankings and Trends in State/Local Funding per Student (FTE) Divergence from U.S. Average in 2008 and past 25 years Rankings and Trends in State/Local Funding per Student (FTE) Divergence from U.S. Average in 2008 and past 25 years Alabam a Al a ska Ari zo n a Arka n sa s C a l i f o rn i a C o l o ra d o C o n n e cti cu t D e l a w a re Fl o ri d a Ge o r g i a Hawaii Id a h o Il l i n o i s In d i a n a Io w a Ka n sa s Ke n tu cky L o u i si a n a Ma i n e M a ry l a n d Ma ssa ch u se tts Mich ig a n Mi n n e so ta Mississip p i Mi sso u ri M o n ta n a N e b ra ska N e va d a N e w H a m p sh i re N e w Je rse y N e w Me xi co N e w Yo rk N o rth C a ro l i n a N o r th D a k o ta Oh i o Okl a h o m a Ore g o n Pe n n sylva n ia Rh o d e Isl a n d So u th C a ro l i n a So u th D a ko ta Te n n e sse e Te xa s U ta h Ve rm o n t Vi rg i n i a Wa sh i n g to n We st Vi rg i n i a Wi sco n si n Wy o m i n g Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Al a b a m a Al a ska Ari zo n a Arka n sa s C a l i f o rn i a C o l o ra d o Rankings and Trends State/Local Funding per Student (FTE) C o n nin e cti cu t Divergence fromDU.S. in 2008 and past 25 years e l a wAverage a re Fl o ri d a Ge o rg i a Hawaii Id a h o Il l i n o i s In d i a n a Io w a Ka n sa s 25 Year Average Dif f erence Ke n tu cky L o u i si a n a FY 2008 Dif f erence Ma i n e Ma ryl a n d Ma ssa ch u se tts Mi ch i g a n Mi n n e so ta Mi ssi ssi p p i Mi sso u ri Mo n ta n a N e b ra ska N e va d a N e w H a m p sh i re N e w Je rse y N e w Me xi co N e w Yo rk N o rth C a ro l i n a N o rth D a ko ta Oh i o Okl a h o m a Ore g o n Pe n n syl va n i a Rh o d e Isl a n d So u th C a ro l i n a So u th D a ko ta Te n n e sse e Te xa s U ta h Ve rm o n t Vi rg i n i a Wa sh i n g to n We st Vi rg i n i a Wi sco n si n Wyo m i n g -$6,000 25 Year Average Dif f erence FY 2008 Dif f erence 25 Year Average Dif ference FY 2008 Dif ference -$4,000 -$2,000 $0 -$6,000 -$4,000 $2,000 $4,000 -$2,000 $0 $2,000 $4,000 Note: All dollars are adjusted by HECA,Mix. Cost of Living Adjustment, and Enrollment Mix. Note: All dollars are adjusted by HECA, Cost of Living Adjustment, and Enrollment Source: SHEEO SHEF $6,000 $6,000 $10,000 Constant Dollar$8,000 Difference from U.S. Average Constant Dollar Difference from U.S. Average Source: SHEEO SHEF $8,000 $10,000 Rankings and Trends in Core Revenues per Student Divergence from U.S. average in 2008 and past 25 years Rankings and Trends in Core Revenues per Student Divergence from U.S. average in 2008 and past 25 years Al a b a m a Al a ska Ari zo n a Arka n sa s C aRankings l i f o rn i a and Trends in Core Revenues per Student CDivergence o l o ra d o from U.S. average in 2008 and past 25 years C o n n e cti cu t D e l a w a re Fl o ri d a Al a b a m a Ge o rg i a Al a ska Ari zo n a 25 Year Average Dif f erence Hawaii Arka n sa s Id a h o FY 2008 Dif f erence C a l i f o rn i a Il l i n o i s C o l o ra d o In d i a n a C o n n e cti cu t Io w a D e l a w a re Fl o ri d a Ka n sa s Ge o rg i a Ke n tu cky 25 Year Average Dif f erence Hawaii L o u i si a n a Id a h o FY 2008 Dif f erence Ma i n e Il l i n o i s Ma ryl a n d In d i a n a Io w a Ma ssa ch u se tts Ka n sa s Mi ch i g a n Ke n tu cky Mi n n e so ta L o u i si a n a Mi ssi ssi p p i Ma i n e Mi sso u ri Ma ryl a n d Ma ssa ch u se tts Mo n ta n a Mi ch i g a n N e b ra ska Mi n n e so ta N e va d a Mi ssi ssi p p i Mi sso u riN e w H a m p sh i re N e w Je rse y Mo n ta n a N e w Me xi co N e b ra ska N e va d a N e w Yo rk N e w H a m p sh i re N o rth C a ro l i n a N e w Je rse y N o rth D a ko ta N e w Me xi co Oh i o N e w Yo rk Okl a h o m a N o rth C a ro l i n a N o rth D a ko ta Ore g o n Oh i o Pe n n syl va n i a Okl a h o m a Rh o d e Isl a n d Ore g o n Pe n n syl va n i a So u th C a ro l i n a Rh o d e Isl a n d So u th D a ko ta So u th C a ro l i n a Te n n e sse e So u th D a ko ta Te xa s Te n n e sse e U ta h Te xa s Ve rm o n t U ta h Vi rg i n i a Ve rm o n t Wa sh i n g to n Vi rg i n i a Wa sh i n g to n We st Vi rg i n i a We st Vi rg i n i a Wi sco n si n Wi sco n si n Wyo m i n g Wyo m i n g Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland 25 Year Average Difference FY 2008 Difference -$1,000 $2,000 $0 -$3,000 -$2,000 -$3,000 -$1,000 -$2,000 $0 $1,000 $1,000 $4,000 $2,000 $5,000 $3,000 $6,000 $4,000 $7,000 $5,000 $3,000 $6,000 $7,000 Note: All dollars are adjusted by HECA, Cost of Living Adjustment, Enrollment Mix. and TotalEnrollment educational revenue Note: All dollars are adjusted by HECA, Cost ofand Living Adjustment, Mix. Total educational revenue does not include net tuition for debt service. does notrevenue include used net tuition revenue used for debt service. Source: SHEEO SHEF Source: SHEEO SHEF Revenues Per Student from Net Tuition, State, & Local Appropriations Public Research Sources: NCES, IPEDS 2006-07 Finance Files; f0607_f1a and f0607_f2 Final Release Data Files. NCES, IPEDS 2007-08 Institutional Characteristics File; hd2007 Final Release Data File. NCES, IPEDS 2006-07 Enrollment Files; ef2006a, effy2007, and efia2007 Final Release Data Files. Via NCHEMS Revenues Per Student from Net Tuition, State, & Local Appropriations Public Masters and Baccalaureate Sources: NCES, IPEDS 2006-07 Finance Files; f0607_f1a and f0607_f2 Final Release Data Files. NCES, IPEDS 2007-08 Institutional Characteristics File; hd2007 Final Release Data File. NCES, IPEDS 2006-07 Enrollment Files; ef2006a, effy2007, and efia2007 Final Release Data Files. Via NCHEMS Revenues Per Student from Net Tuition, State, & Local Appropriations Public 2-Year Sources: NCES, IPEDS 2006-07 Finance Files; f0607_f1a and f0607_f2 Final Release Data Files. NCES, IPEDS 2007-08 Institutional Characteristics File; hd2007 Final Release Data File. NCES, IPEDS 2006-07 Enrollment Files; ef2006a, effy2007, and efia2007 Final Release Data Files. Via NCHEMS General Operating Revenues Per Student Available to Colorado Community Colleges, 2006-07 $20,000 $18,000 $16,000 $14,000 $12,000 Gen Op Revenues = State + Local + Net Tuition $10,000 $8,000 $6,000 $4,000 $2,000 $0 Colorado Mtn College Aims CC Red Rocks CC Arapahoe CC CC of Aurora Front Range CC Source: NCHEMS NCES IPEDS Finance Survey, 2006-07 Pikes Peak CC Morgan CC CC of Denver Colorado N’eastern N’western Jr College CC Pueblo CC Otero Jr College Lamar CC Projected State and Local Budget Surplus (Gap) as a Percent of Revenues, 2016 Source: NCHEMS; Don Boyd (Rockefeller Institute of Government), 2009 Via NCHEMS The White Caps on the Third Wave Prospects look bleak for much more in the short term New Normal suggests a very different future than past. Triage often sacrifices the most vulnerable The Public Policy Response: Here and Elsewhere A stimulus package that discouraged innovation and change A funding structure that inadequately supports equity oriented institutions Mission creep, which reduces teaching productivity Tax cuts over tax investments The Colorado story – Three Huge Converging Waves Demographics present a challenge, all else being equal The finances are perilous We have been educationally competitive, which has made us economically competitive and comparative just, but: Were slipping And the good life has not been equitably distribute Public Policy inconsistent with the times or their needs The Colorado Story – Three Real Opportunities Opportunity One: Our Economic Competitiveness Opportunity Two: Our Changing Demographics Opportunity Three: Our Revenue Base The Colorado Story – Three Real Opportunities Opportunity One: Our Economic Competitiveness Colorado is relatively wealthy Among highest Nationally in per capata income In the Nation that remains the wealthiest country in the World. We have “the financial capacity” The Colorado Story – Three Real Opportunities Opportunity Two: Our Changing Demographics Colorado starts from a reasonably successful base, over all Improvements in serving Hispanic students, will reap huge benefits The Colorado Story – Three Real Opportunities Opportunity Two: Our Changing Demographics Positive Policy Trends Pay for Outcomes Evidence based Many focused on reducing the Gaps Renewed focus on smart need-based student financial aid Preservation New Initiatives Less is More in the Curriculum Reinvention of Remediation (CAT) Broader adoption of the Equity Scorecard Federal Initiatives – SAFRA & AGI The Colorado Story – Three Real Opportunities Opportunity Three: Our revenue base Colorado Has A Cost Effective System, so investments likely to reap results Productivity: Total Funding per Degree/Certificate (Weighted*, 2006-2007) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 29,075 30,619 33,273 33,756 34,330 34,594 36,498 37,823 38,364 38,365 39,516 39,516 39,918 42,177 42,198 42,408 42,693 42,847 42,873 42,948 43,820 44,272 44,371 45,833 45,904 46,522 46,880 47,453 47,672 47,749 48,611 49,894 52,491 52,572 52,888 53,535 54,553 56,090 56,280 56,888 56,960 59,420 59,465 63,822 64,934 65,975 66,623 72,846 75,744 79,794 86,009 100,000 Tuition and Fees State and Local 20,000 10,000 - Alaska Wyoming Delaware Rhode Island Connecticut Hawaii Massachusetts New Jersey Vermont Maryland Nevada New York Alabama Pennsylvania Maine California New Mexico Tennessee Michigan North Carolina South Carolina Texas Nebraska Indiana Ohio Nation Missouri Virginia Iowa Kentucky Oregon Minnesota Arkansas Arizona Mississippi Illinois New Hampshire Idaho Wisconsin Louisiana Georgia Kansas South Dakota Montana West Virginia Oklahoma North Dakota Utah Washington Colorado Florida Sources: SHEEO State Higher Education Finance Survey 2008; NCES, IPEDS Completions Survey; U.S. Census Bureau, *Adjusted for value of degrees in the state employment market (median earnings by degree type and level) American Community Survey (Public Use Microdata Samples) Sources: SHEEO State Higher Education Finance Survey 2008; NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples) State Tax Capacity & Effort Indexed to U.S. Average State Tax Capacity (Total Taxable Resources Per Capita) 1.7 DE 1.6 1.5 1.4 CT NJ 1.3 MA AK 1.2 NH 1.1 1.0 WY MD VA CO NV IL WA NY MN CA USNE PA SD 0.9 TN 0.8 RI WI NC GA KS HI MOFL IN IA OH VT OR TX AZ ND MI UT KY SC ID NM LA AL OK WV MT AR 0.7 ME MS 0.6 0.6 0.8 1.0 State Tax Effort (Effective Tax Rate) Source: State Higher Education Executive Officers (SHEEO) 1.2 1.4 The Colorado Story – Perfect Storm The Colorado Story – Perfect Storm, or Perfect Opportunity Our Choice