Monthly Strategy Call #5: Postsecondary Access and Affordability May 26, 2015 Zakiya Smith, Lumina Foundation Laura Fornash, University of Virginia

Postsecondary Attainment & Affordability May 26, 2015 Postsecondary Attainment & Affordability Trends in Attainment, Pricing, and State Spending on Higher Education over the Last Decade Presented by Zakiya Smith Strategy Director

Post-secondary Attainment Rates

A Stronger Nation: National and Regional Attainment Rates

A Stronger Nation: Attainment by Population

A Stronger Nation: Attainment Rates by Racial/Ethnic Group 2011-2013

A Stronger Nation: State Comparisons

College Pricing

Average College Prices (Sticker) Average Estimated Full-Time Undergraduate Budgets by Sector, 2014-15 (Enrollment-Weighted) SOURCE: The College Board, Trends in College Pricing 2014, Figure 1

College Prices Over Time Inflation-Adjusted Published Tuition and Fees Relative to 1984-85, 1984-85 to 2014-15 SOURCE: The College Board, Trends in College Pricing 2014, Figure 6

Public 2yr Prices Over Time Average Published and Net Prices in 2014 Dollars, Full-Time In-District Undergraduate Students at Public Two-Year Institutions, 1994-95 to 2014-15 SOURCE: The College Board, Trends in College Pricing 2014, Figure 11

Public 4yr College Prices Over Time Average Published and Net Prices in 2014 Dollars, Full-Time In-State Undergraduate Students at Public Four-Year Institutions, 1994-95 to 2014-15 SOURCE: The College Board, Trends in College Pricing 2014, Figure 12

State Funding Trends

SOURCE: The College Board, Trends in College Pricing 2014, Figure 17A Average State Funding for Higher Education per $1,000 in Personal Income, 1989-90 to 2013-14 SOURCE: The College Board, Trends in College Pricing 2014, Figure 17A

Funding Sources Over Time Institutional Revenues per Full-Time Equivalent (FTE) Student in 2011 Dollars at Public Institutions, 2001-02, 2006-07, and 2011-12 SOURCE: The College Board, Trends in College Pricing 2014, Figure 18A

http://www.sheeo.org/sites/default/files/project-files/SHEF%20FY%202014-20150410.pdf

http://www.sheeo.org/sites/default/files/project-files/SHEF%20FY%202014-20150410.pdf

State Policies For Increased Attainment Improve Student Outcomes Kentucky Stronger by Degrees Dashboard Tennessee Complete College Tennessee Act Align Incentives Indiana ASAP Program Create Smarter Pathways Georgia – GSU Improved Advising Platform Examples on Strategy Labs Website: http://strategylabs.luminafoundation.org/higher-education-state-policy-agenda/

Resources On Postsecondary Attainment: On College Affordability: A Stronger Nation Through Higher Education On College Affordability: Trends in College Pricing Trends in Student Aid On State Spending on Higher Education: Grapevine Data SHEEO State Higher Education Funding (SHEF) Report On State Policies to Advance Attainment: Strategy Labs

Overview of Governor McDonnell’s Higher Education Initiative: A Commission and Legislation focused on Greater Access and Affordability Laura W. Fornash Executive Assistant to the President, University of Virginia Former Secretary of Education for Governor Bob McDonnell

Presentation Outline Grow by Degrees Initiative Governor’s Commission on Higher Education Reform, Innovation, and Investment Preparing for the Top Jobs of the 21st Century; The Virginia Higher Education Opportunity Act of 2011 Outcomes

Grow by Degrees Initiative Partnership with business community and higher education stakeholders Development of a campaign to raise awareness for higher education Sustained the efforts during the 2013 election of a new governor

“Preparing for the Top Jobs of the 21st Century” The Virginia Higher Education Opportunity Act of 2011 ECONOMIC OPPORTUNITY – Fueling economic growth and preparing Virginians for the top job opportunities in the knowledge-based economy REFORM-BASED INVESTMENT – Maintaining excellence and achieving global leadership through sustained, reform-based investment and innovation AFFORDABLE ACCESS – Providing all capable Virginians with access to a college degree at an affordable cost

Commission’s Major Recommendations Top Jobs (TJ21) Higher Ed Legislation Commission’s Major Recommendations ECONOMIC OPPORTUNITY 100,000 More Degrees Enrolling more Virginia students Degree completion by Virginians with partial credit Improving retention and graduation rates STEM and Other High-Demand Degrees Economic opportunity metrics STEM degree initiative Research and Development Initiative Statewide R&D strategic roadmap Creation of Virginia Innovation Fund R&D income tax credit

Commission’s Major Recommendations Top Jobs (TJ21) Higher Ed Legislation Commission’s Major Recommendations REFORM-BASED INVESTMENT Year-Round Utilization Technology-Enhanced Instruction “Virtual Departments” initiative Innovative course redesign Expansion of online course offerings Electronic textbooks and online curriculum Degree Path Initiatives Dual enrollment and advanced placement Community college transfer program Accelerated degree completion College readiness initiatives Restructuring Refinements Community College “Reengineering”

Commission’s Major Recommendations Top Jobs (TJ21) Higher Ed Legislation Commission’s Major Recommendations AFFORDABLE ACCESS Codified Funding Model Four-part framework Restoring predictable state support Reducing reliance on tuition Higher education rainy day fund Per-Student Funding Tuition assistance grants (TAG) “Virginia Promise” enrollment-based support Need-Based Financial Aid Targeting low- and middle-income families Incentives for Economic Impact and Innovation

“Preparing for the Top Jobs of the 21st Century” The Virginia Higher Education Opportunity Act of 2011 Commit the Commonwealth to national and international leadership in college degree attainment and personal income. Put Virginia on a focused and sustainable path of higher education reform, innovation, and investment. Establish a clear state policy that will serve as a roadmap and catalyst for priority investment as the economy and revenues rebound. Provide the framework for developing and funding specific initiatives promoting economic opportunity, reform-based investment, and affordable access.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Establish a Collaborative Planning Process Involving Institutional and State Decision-Makers TJ21 Legislation: Establishes a new Six-Year Plan process that consolidates and streamlines institutional reporting. Provides for systematic feedback/discussion of Six-Year Plans with representatives of Executive and Legislative branches. Recognizes the unique mission and situation of each institution, and provides a mechanism for addressing such differences in the planning and funding process.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Increase Degree Attainment in STEM and Related Fields TJ21 Legislation: Provides for creation of a new statewide and regional public-private partnership to promote STEM education, teacher training, involvement of the business community, etc. Provides for development of direct financial incentives for institutions to increase STEM degree production. Provides for development of “economic opportunity metrics” that indicate value of particular degrees in the marketplace.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Promote Technology-Enhanced Instruction and Resource-Sharing Across Institutions TJ21 Legislation: Funding model includes incentives for technology-enhanced instruction, including course redesign, online course offerings, and resource-sharing across institutions Institutions to include resource-sharing initiatives in their Six-Year Plans. Funding provided for “4VA” partnership with Cisco

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Year-Round Utilization of Physical Facilities and Instructional Resources TJ21 Legislation: Funding model includes incentives for optimizing year-round utilization on an institution-specific basis. Institutions to include year-round utilization strategies in their Six-Year plans.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Increased Enrollment of Virginia Students and Degree Conferral Targets TJ21 Legislation: Funding model includes direct incentives for increased enrollment of Virginia undergraduate students at public and private not-for-profit institutions. Institutions set degree conferral targets in Six-Year Plans. Budget provided incremental funding to institutions that have announced plans for increased enrollment. Rejected in-state/out-state ratio mandates in favor of incentive-based approach.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Increase Financial Aid for Middle-Income Students TJ21 Legislation: Middle-income affordability is an explicit state objective. Funding model includes financial aid for low-income and middle-income students and their families New federal policies and institutional practices on financial aid being assessed by SCHEV. Six-Year Plans address tuition; tuition pressures relieved as state funding rebounds. Rainy Day Fund concept to be explored/developed. TAG funding increased.

Top Jobs (TJ21) Higher Ed Legislation Commission Recommendation: Base Funding that is Predictable, Equitable and Less Subject to Ad Hoc Decisions and Lobbying TJ21 Legislation: Funding model codifies formula for basic operations and instructional funding Provides mechanism for embedding institution-specific adjustments in the model, rather than relying on annual discretionary adjustments or exceptions. Establishes guideline that each institution should receive the same percentage of its base funding from the state as every other institution.

Outcomes ECONOMIC OPPORTUNITY REFORM-BASED INVESTMENT AFFORDABLE ACCESS

Questions and Discussion

Reminders Register for Session 2: August 12-14, 2015 The Brown Palace Denver, Colorado