Session G. Global Financial Crisis – What Does This Mean for Higher Education If The Past Is Prologue The American Story WELLINGTON GROUP FORUM 2008 December.

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Presentation transcript:

Session G. Global Financial Crisis – What Does This Mean for Higher Education If The Past Is Prologue The American Story WELLINGTON GROUP FORUM 2008 December 4, 2008 Sydney, Australia David Longanecker, President Western Interstate Commission for Higher Education (WICHE)

The American Response to Good Times and Bad

Educational Appropriations per FTE Percent Change by State, Fiscal

Total Education Revenue per FTE Percent Change by State, Fiscal

State & Local Public Higher Education Support per Full Time Student (NCHEMS/SHEEO)

Performance Relative to Total Funding per FTE – Overall Index Scores for State Higher Education Systems (NCHEMS) UtahMassachusetts ColoradoRhode Island IowaNorth Dakota Arizona WisconsinMaryland New HampshireWashingtonVirginiaNebraska IllinoisKansas CaliforniaDelaware MissouriMinnesota South Dakota North Carolina Connecticut MontanaNew YorkFlorida PennsylvaniaIndianaMichigan AlabamaOhio OregonOklahoma New MexicoTennesseeTexasHawaii MississippiWyoming Idaho Georgia New JerseyLouisiana South Carolina NevadaVermont West VirginiaArkansas MaineKentucky Alaska

The Federal Financial Aid Piece  Perception of Shift from Grants to Loans Not True  Grants are up: Pell from $2,150 in ‘93 to $4,750 today  Loan volumes are up much more  92 and 98 Amendments  That will moderate  Tax Benefits Are The Big Area of Growth  Net/Net: Feds disproportionately increasing aid to middle-income

Neither Are The States moving away from equity to merit  The States  Five Year % Change  Non-need based Aid: 67%  Need based Aid: 43%  Five Year $ Change  Non-need based Aid: $850 million  Need based Aid: $1.65 billion  Total Amount in  Non-need based Aid: $2.1 billion  Need based Aid: $5.5 billion

The Bottom Line  Higher Ed Is The Balancing Wheel  But this wheel steers in only one direction – higher costs/borne by students