November 18, 2014 Prepared for the Ohio Board of Regents 2014 Program for Board Members and Trustees

Overview… I. Big Issues facing higher education— *AGB’s Top 10 Strategic Issues for Boards II.All of this in the context of what’s happening at the Federal Level— a.College Ratings: ED Department b.Sexual Misconduct c.HEA: Reauthorization d.Recent Elections III.And in the context of what’s happening in states— a.Access and affordability: expanding reach and appeal b.Governance: structured to do what needs to get done? c.Attainment and workforce development: state plans

Big Issues Facing Higher Education 1.Business Model 2.Affordability 3.Educational Delivery & Technology 4.Educational Quality & Student Learning 5.Attainment, Retention & Completion 6.Market and Mission

Big Issues Facing Higher Education 6.Academic Workforce 7.Globalization 8.Institutional & Governance Risk 9.Public Policy Issues 10.External Influences *AGB’s Top 10 Strategic Issues for Boards

At the federal level… House and Senate returned on 11/12 to finish out the 113th Congress and get ready for the 114th, which begins in January Republications now lead both Senate and House Will refocus higher education agenda Sen. L. Alexander (R-TN) is expected to chair Senate HELP; Rep. B. Scott (D-VA) is expected as ranking House member

At the federal level …(continued) Senate HELP Committee will lead attempt to reauthorize the Higher Education Act, which could be a vehicle for deregulation. HEA: Omnibus bill that authorizes all the major federal student aid programs, including TRIO, Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), and aid to Historically Black Colleges. Not a small undertaking: Congress will conclude without having finished reauthorization, punting the assignment to the next Congress.

At the federal level …(continued) Reauthorization of the Higher Education Act (HEA)... Areas where there was previous bipartisan support… may shed light on future areas of compromise: Year-round Pell Grants Financial advising for students and an income-based student loan repayment program Updates to the FAFSA application processes Promotion of competency-based learning Improvements in teacher preparation programs

At the federal level …(continued) Republication control=potential stalemate on the Administration's College Ratings Plan. U.S. Department of Education is evaluating institutions on: Tuition costs and the availability of scholarships Access, as measured by, for example, the percentage of students who receive Pell Grants Graduation rates Students’ post-graduation earnings Student debt levels Institutions will be ranked in “peer groups,” not yet defined

At the federal level …(continued) Republican Congress… Could impact student aid (Paul Ryan’s proposed budget for FY 2015 = $90 billion in cuts to Pell Grant Program) Might not impact federal research dollars… 3 Republicans expected to lead the Senate’s appropriations and science committees have records of supporting funding for research Will receive final report from the Task Force on Federal Regulation of Higher Education

At the federal level …(continued) In the remaining weeks, Congress will aim to… Fund the government for the fiscal year that began October 1. Negotiations are underway between the House and Senate Appropriations Committees on a $1 trillion-plus FY 2015 spending bill (a temporary funding measure now in effect expires December 11.) Congressional staff might recommend wrapping annual spending bills into an omnibus measure.

At the federal level …(continued) In the remaining weeks… Renewing expiring tax incentives, including: deductions for qualified tuition and related expenses research and development tax credit IRA Charitable Rollover (in this case, already expired)

At the federal level …(continued) U.S. Department of Education: Just released final rules/revisions to the Clery Act (made by VAWA). Take effect in July Clery Act: expands info. institutions must collect about campus crime—domestic violence, dating violence, staking. Gender identity and national origin now in definition of hate crimes Disciplinary hearings are prompt, fair, impartial Protections for victim confidentiality Requirements for prevention programs AGB Advisory Statement on Sexual Misconduct

At the federal level …(continued) Campus Safety and Accountability Act (CASA), introduced by Senator Claire McCaskill AGB Alert: Trustees' Responsibilities in Preventing Sexual Assaults on Campus AGB Advisory Statement on Sexual Misconduct sexual_misconduct.pdf sexual_misconduct.pdf

At the federal level …(continued) U.S. Department of Education: Just released final rules in gainful employment. Take effect in July Gainful employment: focus—graduates’ debt-to earning ratios… effort to ensure that individuals who enroll in career training programs will earn enough money to repay their student loans Applies to: vocational programs, including most for-profit institutions. Non-degree programs at traditional colleges and universities (such as certificate programs) must also comply with the rules. Final rule does not include a student loan default rate as a standard for evaluating institutions, which was in the draft.

At the federal level …(continued) Other… The College Board: annual report on student aid and college costs Student borrowing in on the decline, while costs continue to rise Trends in College Pricing—while tuition and fees did increase in 2014, the rate of increase has slowed. Tuition increases: Public four year: 2.9% increase Private nonprofit four year: 3.7% increase Community colleges: 3.3% increase

Additional Resources at AGB.org I. AGB Statements on Important Governance Topics: 1.Board Accountability5. Educational Quality 2.External Influences6. Institutional Governance 3.Intercollegiate Athletics7. Sexual Misconduct 4.Conflict of Interest with Compelling Benefit II. Knowledge Center - Videos, Podcasts, Governance Briefs, Data Files, Governance Database III. “AGB U” IV. AGB’s Report: National Commission on Governance