The New American Dilemma Washington, D.C. October 31, 2007 The New American Dilemma Irving Pressley McPhail, Ed.D. Executive Vice President & COO NACME, Inc.

The New American Dilemma Projected U.S. Population Growth: 2000-2050 % of Total Population Population Growth 2000 2010 2020 2030 2040 2050 Hispanic 35,622 47,756 59,756 73,055 87,585 102,560 12.6% 24.4% Black 35,818 40,454 45,365 50,442 55,876 61,361 12.7% 14.6% Asian 10,684 14,241 17,988 22,580 27,992 33,430 3.8% 8.0% All Other Races 7,075 9,246 11,822 14,831 18,388 22,437 2.5% 5.3% Non-Hispanic White 195,729 201,112 205,936 209,176 210,331 210,283 69.4% 50.1% Total U.S. Population 282,125 308,936 335,805 363,584 391,946 419,854 Source: U.S. Census Bureau, 2004

The New American Dilemma Freshmen Enrollments in Engineering: Fall Semester Academic Year African Americans Latinos  American Indians Total Minority Total Non-Minority Total Freshmen Percent Minority 2001-02 8,552 6,114 663 15,329 89,895 105,224 14.6% 2002-03 8,108 6,490 656 15,254 90,331 105,585 14.4% 2003-04 7,619 6,936 642 15,197 87,170 102,367 14.8% 2004-05 7,374 6,875 696 14,945 87,023 101,968 14.7% 2005-06 7,212 6,964 623 14,799 84,238 99,037 14.9% Source: CPST, data derived from Engineering Workforce Commission, Engineering & Technology Enrollments, Fall 2000 to Fall 2005

The New American Dilemma Bachelor’s Degrees Granted in Engineering Academic Year African Americans Latinos   American Indians Total Minority Non-Minority Percent 1999-00 3,150 3,210 347 6,707 56,014 62,721 10.7% 2000-01 3,182 3,146 275 6,603 57,586 64,189 10.3% 2001-02 3,358 3,307 315 6,980 60,677 67,657 2002-03 3,429 3,616 388 7,433 66,562 73,995 10.0% 2003-04 3,699 3,822 362 7,883 67,129 75,012 10.5% 2004-05 3,756 3,925 378 8,059 66,979 75,038 Source: CPST, data derived from Engineering Workforce Commission, Engineering & Technology Degrees, 2000 to 2005

The New American Dilemma Percent of Minority College-Age Population vs. Percent of Engineering Degrees Awarded African Americans Latinos American Indians Total Minority Year % Population Degrees 2000 14.5% 5.0% 17.5% 5.1% 1.2% 0.6% 33.2% 10.7% 2005 14.8% 17.3% 5.2% 0.5% 33.3% Note: Population percentages are the minority group as a percent of the resident college-age population (18- to 24-years-old). Race percentages for the population only include those indicating race alone, not those indicating that race in combination with another race. Population data are for July 1 of the year indicated. Sources: CPST, data derived from Engineering Workforce Commission, Engineering & Technology Degrees, 2000 and 2005 and the U.S. Census Bureau, Population Division, National Population Estimates

The New American Dilemma Economic Facts The U.S. has the world’s largest economy at $11.1 Trillion (EU - $8.0 Trillion; Japan - $5.7 Trillion; China - $2.0 Trillion) Americans are more productive than their global peers The U.S. attracts the most foreign investment R&D in the U.S. is the world’s largest but the pace of growth is accelerating faster in emerging markets – China is leading the pack In May 2007, minority population in the U.S. exceeded 100 Million

The New American Dilemma Education Facts American citizens make up a declining share of science and engineering students In recent years, most of the Ph.D.s granted in the U.S. in science and engineering have been to foreign students The U.S. invests significantly more in education than other countries, yet we rank 22 out of 26 in math performance The U.S. ranks 10th in world for college attainment, ages 25-34 70% of 8th graders are not proficient in reading Of the 3.9 million American 9th grade students in 2002, 1.2 million dropped out, 1.5 million graduated unprepared to go on to college, and only 1.2 million (32%) graduated from high school prepared for college or work

The New American Dilemma URM Education Facts Math test scores: Wide gaps exist and are growing Advanced math completion: White Students - 47%; URM Students - 31% High School graduation rates improving but wide gaps persist College Attendance: White - 28%; Black - 19%; Latino/Hispanic - 12% College graduates by age 26: High income families - 60%; Low income families - 7% In 2002, only 4% of URMs (28K out of 690K) had the requisite math and science courses to qualify for admission to study engineering and technology at the college level - of those 16,800 were admitted

The New American Dilemma NACME Programs

The New American Dilemma NACME Undergraduate Scholarship Program 1,269 Scholars in 2007 - 20% growth Y-T-Y Grants total $1.6M – Growing to $1.8M in 2008 Retention Rate of 82% vs. National Average of 39% 3.1 Average GPA 33% Women Compared to National Average of 24% 49% African American; 43% Latino; 5% American Indian; 3% Other

The New American Dilemma Educational Plans of the 2007 NACME Scholar Graduates 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Some Graduate Coursework Master's Degree PhD Degree Note: Respondents could chose more than one category. Source: NACME Scholar Graduate Survey, 2007

The New American Dilemma NACME Pre-Engineering Programs High School “Academies of Engineering” Partnership to create small learning communities focused on STEM: National Academy Foundation – School Infrastructure Project Lead the Way – Curriculum National Action Council for Minorities in Engineering – Student, Parent, Teacher and Counselor Support Goals Recruit and encourage more high school students to investigate careers in engineering, science and technology Increase the participation of women and URMs in the study of engineering High school graduates ready for postsecondary education and prepared to succeed and graduate with a degree in the field

The New American Dilemma NACME Pre-Engineering Programs Community College Scholarships Goals Increase high school student awareness of career opportunities in engineering Ease transition from high school to 4-year institutions Increase likelihood of engineering degree attainment Encourage establishment of formal articulation agreements between 2-year and 4-year institutions Role of Community Colleges 20.1% of engineering degree holders began their academic careers with at least 10 credits from a community college 40% of 1999 and 2000 engineering bachelor's and master's degree recipients attended a community college Source: Mary Mattis & John Sislin (Eds.), Enhancing the Community College Pathway to Engineering Careers, Washington, DC: NAE/NRC, 2005. .

The New American Dilemma Inhibitors to URM Progress in Engineering Rising College Tuition Costs 500% in the past 25 years Decline in Need-Based Scholarships Pell Grants cover 35% today vs. 85% a generation ago Anti-Affirmative Action Legislation Risk-averse admission policies Reduction in Early Intervention and Academic Support Programs for URMs

The New American Dilemma Call to Action Transform Education in the U.S. Pre-School through Graduate School Study Schools Successful in Educating Children in High-Poverty, High-Minority Environments Adopt their Practices Require Schools to Focus on Outcomes Not Standardized Placement Tests