Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior Scholar, The Pell Institute for the Study of Opportunity in Higher Education Higher Education Policy Analyst, Postsecondary Education OPPORTUNITY
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
The Perfect Storm Realities: Stages of economic development: Primary: agriculture, natural resources Secondary: manufacturing Tertiary: human capital Dynamic demography Shrinking white/growing minority populations Growing shares of poor children in K-12 and higher education Aging population, living longer Globalization
The Perfect Storm Federal policy choices: Progressive policy era: 1862 to : Morrill Land Grant Act 1895: Second Morrill Land Grant Act 1944: Servicemen’s Readjustment Act 1957: National Defense Education Act 1965: Higher Education Act 1972: Pell Grant program 1978: Middle Income Student Assistance Act Regressive policy era: 1980 to present 1981, 1982, 1994: Pell Grant maximum award reduced 1987: Federal aid moves away from need-based grants Aging population, living longer
The Perfect Storm State policy choices: Progressive policy era: to 1980 Universal K-12 education State teachers’ colleges Junior colleges Need-based grant aid Increased funding efforts for higher education Regressive policy era: 1980 to present Cutbacks in state appropriations efforts Colleges and universities raise tuition charges to students Growth in merit based scholarship programs
The Perfect Storm Institutional policy choices: Progressive policy era: to 1980 Universal K-12 education State teachers’ colleges Junior colleges Need-based grant aid Increased funding efforts for higher education Regressive policy era: 1980 to present Enrollment management Prestige race (U.S. News) Revenue replacement: full pay versus institutional aid, non- residents versus state residents Research versus instruction in public 4-year institutions
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
K-12 School Lunch Program
Upper Family Income Limits for 1 st, 2 nd, & 3 rd Quartiles
Low Income Student Shares of Total
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
Distribution of Revenue Sources for Financing Higher Ed
National Avg Resident Undergrad Tuition & Fees in Public Inst
Need-Based Grant Share of State Student Financial Aid
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
Need-Based Share of Federal Student Financial Aid
Purchasing Power of Pell Grant
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
Core Revenue by Source for Public 4-Year
Changes in Core Revenue by Source for Public 4-Year
State/Local Appropriations Share of Core Revenue at Public 4-Year Institutions
Tuition & fee Share of Core Revenue at Public 4-Year Insts
Core Expenditure Shares by Function for Public 4-Year Insts
Changes in Core Expenditure Shares by Function for Public 4- Year Insts
Instruction Share of Core Expenditures in Public 4-Year Insts
Tuition Share of Instruction + Student Services in Public 4-Year Insts
Public 4-Year Shares of Undergrads with & without Pell Grants
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
Pell Grants Enrolled in Public & Private in Clgs & Univ
Pell Grant Shares in 4-Year & 2- Year
High School Grad Rates by Family Income Quartiles
College continuation Rates by Income Quartiles
Change in College Continuation Rates
Bachelor’s Degree Completion by Age 24
Change in Completion Rate
Distribution of Bachelor’s Degrees Awarded by Age 24
Tertiary Type-A Degree Attain yr olds OECD 2003
Tertiary Type-A Degree Attain OECD 2009
Change in Tertiary Type-A Degree Attain OECD
Projected Tertiary Type-A Degree attain OECD 2020
The Perfect Storm Reality versus Policy Demographics Labor Markets State Policy Choices Federal Policy Choices Institutional Policy Choices Consequences for (some) students Is this class warfare?
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