Transcript Higher education financing trends… national patterns and implications for Illinois Jane V. Wellman Illinois Higher Education Finance Commission Chicago, IL August 27, 2010

Higher education financing trends…
national patterns and
implications for Illinois
Jane V. Wellman
Illinois Higher Education Finance Commission
Chicago, IL
August 27, 2010
Topics to be covered
• Major take-aways from national research re:
trends in revenues and spending
• Pricing, spending and subsidy trends
• What the data say about adequacy and
equity
• Recommendations about future focus for IL
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National patterns: Where the money comes from
Total revenues per FTE student by source, AY1998-2008 (in 2008 $)
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
1998 2003 2007 2008 1998 2003 2007 2008 1998 2003 2007 2008 1998 2003 2007 2008 1998 2003 2007 2008 1998 2003 2007 2008
Public Research
Public Master's
Community Colleges
Private Research
Private Master's
Private Bachelor's
Private and affiliated gifts, investment returns, and endowment income*
Auxiliary enterprises, hospitals, independent operations, and other sources
Federal appropriations and federal, state, and local grants and contracts
State and local appropriations
Net tuition
Source: Delta Cost Project IPEDS database, 1987-2008, 11-year matched set.
Note: In private institutions, investment returns include unrealized gains/losses.
3
National patterns: Where the money goes
Operating expenses per FTE by major category, 1998 – 2008, in 2008 $
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
199820032007200819982003200720081998200320072008199820032007200819982003200720081998200320072008
Public Research
Public Master's
Community
Colleges
Private Research
Private Master's Private Bachelor's
Auxiliary enterprises, hospitals, independent operations, and other expenses
Sponsored research, public service, and net scholarships & fellowships*
Education and related expenses
National patterns: Where the money goes within E&R
Spending within E&R, 1998-2008 (in 2008 $)
$18,000
$16,000
$14,000
$12,000
29.0%
27.8%
$10,000
8.2%
29.2%
8.8%
8.8%
29.5%
8.8%
$8,000
36.3%
$6,000
$4,000
10.5%
62.8%
63.5%
62.0%
61.7%
53.2%
36.8%
10.7%
52.6%
37.3%
11.0%
51.6%
37.3%
36.4%
36.9%
11.6%
12.0%
37.8%
38.0%
11.2%
51.5%
52.0%
51.2%
12.0%
11.9%
50.2%
50.2%
$2,000
$0
1998
2003
2007
2008
1998
Public Research
Instruction
2003
2007
Public Master's
Student Services
Source: Delta Cost Project IPEDS database, 1987-2008, 11-year matched set.
2008
1998
2003
2007
2008
Community Colleges
Admin/Support and Maintenance
5
Public Research Institutions:
Average Subsidy/Student share of E&R Spending per student by State, 2008
Illinois
Illinois/National Comparisons - Public
Research Sector - AY 2008
National average
Illinois
Illinois Rank
E&R spending per
student
$15,619
$16,282
20
State and local
subsidy per
student
$8,055
$7,533
28
7
Public Masters’ Institutions:
Average Subsidy/Student share of E&R Spending per student by State, 2008
Illinois
Illinois/National Comparisons - Public
Masters’ AY 2008
National average
Illinois
Illinois Rank
E&R spending per
student
$12,185
$13,560
13
State and local
subsidy per
student
$6,578
$7,203
17
9
Public Community Colleges:
Average Subsidy/Student share of E&R Spending per student by State, 2008
Illinois
Illinois/National Comparisons – Public
Community Colleges AY 2008
National average
Illinois
Illinois Rank
E&R spending per
student
$10,396
$7,836
46
State and local
subsidy per
student
$7,404
$5,422
31
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Public sector changes in E&R spending
per student, and in student share of costs, 2003-2008
National Public
2003
2008
% change
Research sector
$14,219
$15,619
+9.8%
Student share
42%
48%
+14.3%
Masters sectpr
$11,392
12,185
+7.0%
Student share
40%
46%
+15%
Community Colleges
$9,600
$10,396
+8.3%
Student share
27%
28%
+3.7%
Research sector
$14,980
$16,282
+8.7%
Student Share
43%
55%
+28%
Masters sector
$12,750
$13,560
+6.3%
Student share
35%
48%
+37%
Community colleges
$7,052
$7,836
+11%
Student share
27%
31%
+14.8%
Illinois public institutions
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Degrees & Certificates awarded per FTE vs. Total Funding per FTE
(2006-2007)
32
Low Resources, High Production
High Resources, High Production
CO
29
UT
OK
FL
KY
WA
26
Performance:
Degrees
Awarded per
100 FTE 23
KS WI
SDGA MN
AZ
ND
WV
MT
LA
NH
IA
CT
MI
IDIL
VA IN
OH SC
US
NE
TX TN
AR OR
MS MO
PA
ME AL MD
VT
HI
NJ
MA
NY
DE
WY
AK
NC NM
20
RI
NV
17
CA
Low Resources, Low Production
14
5,000
8,000
High Resources, Low Production
11,000
14,000
17,000
20,000
Resources: Total Funding per FTE
slide 13
Source: SHEEO State Higher Education Finance Survey 2008: NCES IPEDS Completions Survey
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Recommendations for future Illinois policy
focus
•
Anchor financing strategy on using resources to meet goals
– Adequacy focus will always put pressure on increasing revenues in
research sector
– Equity considerations and student share of costs appropriate factors to
include
•
Build expectations for strategic cost management and productivity into fund
management
– Look for evidence of sustained investments in core functions
•
Develop – and use – metrics for monitoring spending including costmanagement that address subsidies, prices as a share of costs, and how
resources are used
•
Pay attention to state as well as institutional role in finding long-term solutions
•
Include attention to private providers
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