Statewide Issues Conference Saturday, February 15, 2014

 A broad-based public conversation about the community’s priority for higher education as...  an investment of public funds for a nationally competitive Louisiana,  a gateway to the middle class, and  the key to a diverse, robust and shared prosperity 2 FOCUS

 Northern and Central Louisiana Interfaith and member institutions  Grambling State University Faculty Senate  Louisiana Delta Community Council Faculty Council  Louisiana Tech University Senate  University of Louisiana at Monroe Faculty and Staff Senates 3 SUMMIT COALITION

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HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT  Pre-World War II, a college degree was an elitist degree, available to mostly upper-class  G.I. Bill spurred the number of lower-to-middle class people earning a college degree  Post-World War II most prosperous in history, due in part to the earning power of people with college degrees 5 Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century”Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

 1973: 28% of U.S. workforce had a post-high school education  2007: 59% of U.S. workforce had post-high school education  Lifetime earnings for those with a college degree is $1 Million HIGHER than those with a high school education. 6 HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century”Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

 Projected by : two-thirds of jobs will require a post-high school degree  85% of bachelor degree holders VOTED in the 2000 presidential election.  Conclusion? Higher education provides a catalyst to a prosperous economy, and civic participation for people to truly attain the American Dream. 7 HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

 Higher Education is a public investment in the people of Louisiana, not a fixed cost of government.  Affordable access for ALL families to the opportunity to send their children to college.  Public Funding must balance equity and performance measures to optimize the leveraging of public resources in K-12 education. 8 CORE VALUES OF SHARED PROSPERITY

HIGHER EDUCATION PROVIDES SOCIAL AND ECONOMIC VALUE Lack of education cost governments money:  Higher Incarceration rates: 87% of prisoners have a high school diploma or less  Increased Health costs: 93% of people with a high school diploma or less participate in a publically funded health program, i.e., Medicaid  Disproportional Mortality rates: 3.5X higher for high school dropouts than those with some college education 9

INVESTMENT IN HIGHER EDUCATION IS AN INVESTMENT IN LOUISIANA  The state gets $8 returned in the form of economic development for every $1 put into higher education  State cuts to higher education funding resulted in $1 Billion in real dollars lost in Louisiana’s economy.  Result? Using the 8:1 multiplier, $8 Billion in economic activity was lost in Louisiana’s economy. 10 Source: University of Louisiana System Economic Impact Study, 2008

DECLINE OF LOUISIANA TAX REVENUE THROUGH Source: FY La. State Budget

12 Source: FY Louisiana State Budget STATE EXPENDITURES BY AREA: FY

13 Source: FY Louisiana State Budget STATE EXPENDITURES BY AREA: FY

UNIVERSITY JOB LOSSES FY 08-09FY 11-12FY 12-13FY 13-14Job Losses% Grambling % Tech 1,1901,0771, % UL–Monroe 1, % TOTAL UL SYSTEM 10,4778,9348,6268,393-2, % Source: University of Louisiana System - Board of Regents Presentation

THE TAKE AWAY: Overall Higher Ed revenues have declined: due to economic conditions, due to non-revenue neutral tax reductions, due to unfunded mandates such as retirement, health insurance, etc., and no increases to offset changes in the cost of living. Higher Ed has a declining piece of the revenue pie in the face of declining overall state revenue- a double hit!!! 15 Source: University of Louisiana System - Board of Regents Presentation

FORMULA FOR SUSTAINED GROWTH Long-term investment in Higher Ed + Jobs = Sustainable growth in Louisiana's Economy 16

JOBS, JOBS, JOBS A PROJECTION THROUGH Source: Louisiana Department of Labor JOBS BY SECTOR (require Post-Secondary Degree) RMLA 7 SHREVEPORT RMLA 8 MONROE TOTAL 1Nursing5,2502,9508,200 2Teaching (pre-K, Elementary, Secondary)4,3002,1406,440 3Business1,6301,0302,660 4 Health Care (excludes nurses/dentists/doctors/surgeons)1,8101,0202,830 5Information Technology/Computing ,360 6Social Services1, ,510 7Medical Professionals (dentists/doctors/surgeons) ,250 8Financial Engineering ,250 10Accounting Pharmacy Legal Services Governmental Production/Operations Sales Construction Management Architectural502070

FORMULA FOR SUSTAINED GROWTH  Workforce and Innovation for a Stronger Economy (W.I.S.E) Plan is a good start to provide stabilization of higher education funding  Investment in Louisiana’s intellectual capital and human capital  Access for ALL families to have the chance to send their children to college 18