1980 Educational Attainment and Income CA US FL TX AZ NM $50,000 1980 $43,000 $36,000 AK Personal Income Per Capita CT $29,000 CA NV WY NJ HI IL NY MD DE WA CO MA MN OH PA US OR VA FL WI MI KS NH IA RI OK AZ TX $22,000 IN MO NE MT LA VT GA ID UT ME NM WV KY TN NC SD Correlation = 0.64 ND AL SC AR MS $15,000 10 15 20 25 30 35 40 45 Percent of Adults 25 to 64 with Bachelors Degrees Sources: U.S. Census Bureau, Decennial Census’ and American Community Survey

1990 Educational Attainment and Income CA FL US AZ TX NM $50,000 1990 $43,000 CT NJ $36,000 NY Personal Income Per Capita AK MD MA HI DE CA IL NV VA NH MN RI WA $29,000 FL PA CO US OH MI WI WY NE OR KS IN IA MO VT GA NC ME AZ TX TN OK SD SC ND KY AL ID MT LA $22,000 NM UT WV AR MS Correlation = 0.76 $15,000 10 15 20 25 30 35 40 45 Percent of Adults 25 to 64 with Bachelors Degrees Sources: U.S. Census Bureau, Decennial Census’ and American Community Survey

2000 Educational Attainment and Income CA US FL TX AZ NM $50,000 2000 CT $43,000 NJ MA NY MD NH CO CA MN $36,000 IL WA DE VA Personal Income Per Capita NV PA AK US WY MI RI FL WI HI OH TX GA OR KS VT IN MO NE NC IA $29,000 TN SD ME AZ ND KY SC OK ID UT AL LA MT WV AR NM MS $22,000 Correlation = 0.80 $15,000 10 15 20 25 30 35 40 45 Percent of Adults 25 to 64 with Bachelors Degrees Sources: U.S. Census Bureau, Decennial Census’ and American Community Survey

2005 Educational Attainment and Income CA US FL TX AZ NM $50,000 2005 CT NJ MA $43,000 MD NY NH CO WY MN VA DE CA $36,000 IL NV AK WA PA RI Personal Income Per Capita US HI FL WI NE SD KS VT TX MI OR OH IA IN MO NC ND TN ME GA OK AZ AL $29,000 MT KY SC ID NM UT WV AR MS LA $22,000 Correlation = 0.83 $15,000 10 15 20 25 30 35 40 45 Percent of Adults 25 to 64 with Bachelors Degrees Sources: U.S. Census Bureau, Decennial Census’ and American Community Survey

Projected Change in U.S. Population by Age and Race/Ethnicity From 2000 to 2020 (In Millions) White African-American Hispanic /Latino Asian /Pacific Islander 15 12.40 10 7.12 7.32 6.50 5.49 5 3.69 2.79 2.97 1.87 2.03 2.29 1.57 1.11 1.20 1.41 0.42 0.33 0 to 17 18 to 24 25 to 44 45 to 64 65 and Older -0.88 -1.83 -5 -6.59 Note: Projections based on the 2000 Census are not available for Native Americans -10 Source: US Census Bureau, Population Projections based on the 2000 Decennial Census

Transition and Completion Measures from High School to College Completion for the U.S. – 2004 69.3% 68.8% 31.1% 58.2% 47.8% 62.5% 24.3% 39.7% 54.5% 61.8% 30.3% 45.8% 57.4% 28.6% 36.5% 78.4% 32.7% 64.6% 0% 20% 40% 60% 80% 100% Graduating from High School Within Four Years Attending College Directly Out of High School Three-Year Graduation Rate at Two-Year Colleges Six-Year Graduation Rate at Four-Year Colleges Not Available White Roughly half of Hispanics and African-Americans don’t complete high school within four years. African-American Hispanic /Latino Native American Asian /Pacific Islander Source: National Center for Education Statistics; Common Core Data, Digest of Education Statistics, and IPEDS Graduation Rate Survey

Change in the Percentage of Adults with a College Degree (Associates and Higher) – From 1990 to 2000 Females Males White African-American Hispanic/Latino Native American/AK Native LEGEND Asian/Pacific Islander 12% 25 to 34 Year Olds 25 to 64 Year Olds 11.0% 10% 8.5% 8.0% 7.7% 8% 7.4% 6% 4.5% 4.2% 4.4% 4.1% 3.8% 4% 3.3% 3.3% 2.1% 2.2% 1.7% 2% 1.5% 0.9% 1.2% 0% -0.9% -2% -1.8% -4% Source: US Census Bureau, Public Use Microdata Samples (Based on the 1990 and 2000 Census’)

Number Changes in Educational Attainment from 2000 to 2020 as a Result of the Projected Changes in Race/Ethnicity (25 to 64 Year Olds) 7,378,402 4,834,077 3,656,845 1,096,163 2,368,743 1,382,160 2,000,000 4,000,000 6,000,000 8,000,000 Less than High School High School Some College Associates Bachelor’s Graduate/Professional Source: NCHEMS, As America Becomes More Diverse: The Impact of State Higher Education Inequality

Difference Between Whites and the Next Largest Racial/Ethnic Groups in the Percentage of Adults 25 to 64 with a Bachelor’s Degree or Higher (2000) Colorado California Connecticut New Mexico New Jersey Massachusetts New York Alaska Texas Rhode Island Arizona Kansas Nebraska Washington Utah Virginia Montana North Dakota Oregon Vermont Idaho South Dakota Illinois Maryland South Carolina Nevada Wisconsin United States Delaware Pennsylvania Georgia Wyoming North Carolina Minnesota Louisiana Iowa Missouri Michigan Ohio Alabama Mississippi Hawaii Indiana Oklahoma Florida Tennessee Arkansas Kentucky New Hampshire West Virginia Maine 28.8 28.6 26.4 24.7 24.2 23.7 23.4 23.1 21.9 21.6 20.5 20.3 19.7 19.4 18.6 18.5 17.9 17.5 17.4 17.1 16.9 15.6 15.5 14.8 14.6 14.2 13.7 13.5 13.4 13.2 12.5 12.3 12.2 12.0 11.4 11.2 11.0 10.9 10.2 9.2 9.1 8.5 8.4 8.3 7.9 7.0 4.7 4.0 10 20 30 Source: U.S. Census Bureau’s Public Use Microdata Samples, Based on 2000 Census

Counties in which 90% of the Total Hispanic/Latino Population Reside and Institutions which Serve 90% of Hispanic/Latino Undergraduates Hispanic/Latino undergraduate enrollment by sector: 36.8% 4-Year 63.2% 2-Year 90% of Hispanic/Latino Population Institutions serving 90% of Hispanic/Latino undergraduates, Fall 2002. Note: One dot may represent multiple institutions within a county. Source: U.S. Census Bureau, 2000 Census. NCES, IPEDS Fall 2002 Enrollments.

Counties in which 90% of the Total African-American Population Reside and Institutions which Serve 90% of African-American Undergraduates African-American undergraduate enrollment by sector: 50.8% 4-Year 49.2% 2-Year 90% of African-American Population Institutions serving 90% of African-American undergraduates, Fall 2002. Note: One dot may represent multiple institutions within a county. Source: U.S. Census Bureau, 2000 Census. NCES, IPEDS Fall 2002 Enrollments.

Changing Demographics Emerging Policy Triangle—Education, the Workforce, and Economic Development Education Economic Development Workforce Demand Changing Demographics

Examples of Measures Economic Strength – 2007 State New Economy Index Degree Production – Undergraduate Degrees Awarded per 1,000 Residents Ages 25 to 44 with a High School Diploma but No College Workforce Demand – Projected Percent Change in Occupations Requiring at Least Some Postsecondary Education Changing Demographics – Change in Ratio of Minorities (Hispanic, African-American, Native American) to Whites from 2000 to 2020

Standardizing for Illustrative Purposes Z Scores > 0 – Challenge/Weakness Compared to Other States < 0 – Strength/Less of a Challenge Compared to Other States

Need for Policy Attention Relative to Other States Texas 2 1.5 1 0.5 Creating a New Economy Degree Production Workforce Changing Demand Demographics -0.5 -1

Need for Policy Attention Relative to Other States Iowa 1 0.5 Workforce Changing Degree Production Demand Demographics Creating a New Economy -0.5 -1 -1.5 -2

Need for Policy Attention Relative to Other States Kentucky 1.5 1 0.5 Changing Demographics Creating a New Degree Production Workforce Economy Demand -0.5 -1

Need for Policy Attention Relative to Other States Rhode Island 0.5 Creating a New Workforce Economy Degree Production Demand Changing Demographics -0.5 -1 -1.5 -2 -2.5

Need for Policy Attention Relative to Other States New Mexico 5 4 3 2 1 Creating a New Degree Production Workforce Changing Economy Demand Demographics

Texas Student Pipeline by Race/Ethnicity– Transition Rates from 7th Grade to College Completion Of 100 7th Graders, How Many… 84.5 64.9 53.3 19.0 79.8 50.4 35.4 7.4 79.5 50.2 34.7 6.8 20 40 60 80 100 Enrolled in 9th Grade (1994) Graduated High School (1997-98) Enrolled in College Anytime After Graduation Completed a Higher Education Degree or Certificate by 2003 White Hispanic/Latino African-American Source: Texas Higher Education Coordinating Board

Challenges for Closing Race/Ethnic Gap Equity Argument Doesn’t Stand Well On Its Own – Must Link to Workforce and Economic Development Most States (policymakers and researchers within them) Still Don’t Do a Very Good Job Making the Case with Sound Data and Information Rising Costs – Well-Targeted Financial Aid Accountability

Development Report Card for the States, 2007—Arizona Employment A Earnings and Job Quality D Equity D Quality of Life D Resource Efficiency B Competitiveness/Existing Businesses F Entrepreneurial Energy A Human Resources D Financial Resources D Infrastructure Resources B Amenity Resources and Natural Capital D Innovation Assets C Performance Business Vitality Development Capacity C D WEAKNESSES (Bottom 10 Rank) Rank Measure 41 Basic Educational Skills Proficiency - Math 41 Affordable Urban Housing 41 Change in High School Attainment 42 Income Distribution 43 Voting Rate 43 Basic Educational Skills Proficiency - Reading 44 Employer-Provided Health Insurance 44 Working Poor 46 Loans to Small Businesses 47 Teen Pregnancy 47 Strength of Traded Sector 47 Uninsured Low-Income Children 47 Toxic Release Inventory 48 Business Closings 48 K-12 Education Expenditures 48 Change in Private Research and Development 49 Manufacturing Investment 49 Change in Business Closings 50 Crime Rate 50 High School Completion 1 Bridge Deficiency 2 Employment Growth: Long Term 2 Change in New Companies 2 Net Migration 3 Royalties and Licenses 3 Change in Toxic Release Inventory 5 Job Creation by Start-Up Businesses 6 Employment Growth: Short Term 7 Initial Public Offerings 7 Per Capita Energy Consumption 8 Five Year Change in New Companies 9 Change in Energy Costs 10 Change in Homeownership Rate STRENGTHS (Top 10 Rank) Rank Measure Source: Development Report Card for the States, CFED

Development Report Card for the States, 2007—Iowa STRENGTHS (Top 10 Rank) Rank Measure 1 Air Pollution 2 Income Distribution 4 Involuntary Part-Time Employment 5 High School Completion 5 Affordable Urban Housing 5 Business Closings 6 Rate of Recycled Waste 8 Voting Rate 9 Employer-Provided Health Insurance 9 Income Distribution Change 9 Working Poor 10 Royalties and Licenses 10 Academic Research and Development Employment D Earnings and Job Quality A Equity A Quality of Life A Resource Efficiency C Competitiveness/Existing Businesses C Entrepreneurial Energy F Human Resources C Financial Resources F Infrastructure Resources D Amenity Resources and Natural Capital A Innovation Assets C Performance Business Vitality Development Capacity B D C 41 SBIC Financing 43 Change in Unemployment Rate 43 Change in Uninsured Low-Income Children 44 Manufacturing Investment 45 Change in Poverty Rate 45 Venture Capital Investments 47 SBIR Grants 48 Change in Homeownership Rate 49 Employment Growth: Long Term 50 New Companies WEAKNESSES (Bottom 10 Rank) Rank Measure Source: Development Report Card for the States, Corporation for Enterprise Development (CFED)