1. December 3, 2009 Closing The Gaps by 2015 Where We Are Now Closing The Gaps by 2015 Where We Are Now

2. Educational Attainment in Texas was Projected to Drop Source: Texas State Data Center* Projections are shown for the 1.0 scenario THECB 12/2009

3. Annual Average Unemployment Rate in the U.S. as a Function of Educational Attainment Source: Bureau of Labor Statistics Year: 2008 THECB 12/2009

4. TrendsTrends A growing unskilled, under-educated population that cannot meet the demands of a technology-based workplace. A growing unskilled, under-educated population that cannot meet the demands of a technology-based workplace. Average household income in Texas is projected to decline by $5,000 in constant dollars by 2040 (total annual drop of $63.5 billion). Average household income in Texas is projected to decline by $5,000 in constant dollars by 2040 (total annual drop of $63.5 billion). A growing unskilled, under-educated population that cannot meet the demands of a technology-based workplace. A growing unskilled, under-educated population that cannot meet the demands of a technology-based workplace. Average household income in Texas is projected to decline by $5,000 in constant dollars by 2040 (total annual drop of $63.5 billion). Average household income in Texas is projected to decline by $5,000 in constant dollars by 2040 (total annual drop of $63.5 billion). Source: Texas State Data Center THECB 12/2009

5. Goals: By 2015, Close the Gaps in: Participation Participation Success Success Excellence Excellence Research Research Participation Participation Success Success Excellence Excellence Research Research THECB 12/2009

6. GoalsGoals Participation By 2015, close the gaps in enrollment rates across Texas to add 630,000 more students. Participation THECB 12/2009 Success By 2015, award 210,000 undergraduate degrees, certificates and other identifiable student successes from high quality programs. By 2015, award 210,000 undergraduate degrees, certificates and other identifiable student successes from high quality programs.Success

7. 2009 Preliminary Progress Report on Participation PARTICIPATION TARGETPROGRESS TOWARD 2010 TARGET Statewide participationabove target African American participationabove target Hispanic participationbelow target White participationabove target THECB 12/2009

8. Texas’ Participation Rate Has Improved But Remains Lower Than Other States Participation Rate of Total Population – 2000 and (2005) Source: U.S.DOE, IPEDS, and Census Bureau CaliforniaIllinoisMichigan New York Pennsylvania TEXASOhioFloridaGeorgia New Jersey (6.6%) (6.5%) (6.2%) (6.0%) (5.6%) (5.4%) (4.9%) (4.7%) (4.4%) THECB 12/2009

9. Source: Texas Higher Education Coordinating Board The Pipeline Challenge (1995 Cohort of Public High School Students) The Pipeline Challenge (1995 Cohort of Public High School Students) THECB 12/2009

10. Participation Since 2000: 393,311 Increase Participation Since 2000: 393,311 Increase 393,311 630,000 352,683 2009 enrollment is preliminary

11. THECB 12/2009 Percent of HS Grads Entering HE is Increasing Percent of HS Grads Entering HE is Increasing 52.2% 52.3% 52.4% 54.2% Not trackable students excluded. Independent enrollments not available for 2000 and 2001. Not trackable students excluded. Independent enrollments not available for 2000 and 2001. 53.6% 54.5% 55.9%

12. There Are Large Increases in the Percent of Entering Students with the Recommended High School Curriculum There Are Large Increases in the Percent of Entering Students with the Recommended High School Curriculum 55% 53% 65% 73% 78% 53% 83%86% 88% 90% 92% THECB 12/2009

13. 12.2% 18.1% 46.6% 40.8% 9.7% 34.3% 18.8% 22.3% 29.6% 50.9% 0.5% 39.5 61.7% 31.3% 25.6% 6.8% 29.4% 32.3% Percent Change in Enrollments by Region 4-Year and 2-Year Institutions* 4-Year and 2-Year Institutions* 2000 to 2008 2000 to 2008 Percent Change in Enrollments by Region 4-Year and 2-Year Institutions* 4-Year and 2-Year Institutions* 2000 to 2008 2000 to 2008 20.9% 35.4% *Percent change at 4-year institutions listed first for each region, followed by percent change at 2-year institutions. THECB 12/2009

14. Enrollment by Region Needed to Meet 2015 CTG Goal

15. THECB 12/2009 Target to Increase Hispanic Enrollment Remains a Big Challenge Note: Public Institutions only. White Hispanic African Am

16. Hispanic Enrollment by Region Needed to Meet 2015 CTG Goal THECB 12/2009

17. Success : By 2015, award 210,000 undergraduate degrees, certificates, and other identifiable student successes from high-quality programs. THECB 12/2009

18. Progress Report on Success SUCCESS TARGET COMPARISON WITH TARGET LINE Statewide certificates, associate degrees, and bachelor degrees On target African American awardsSomewhat below target Hispanic awardsSomewhat below target Technology awardsWell below target Allied health and nursing awardsSomewhat above target Teacher certificationsWell below target THECB 12/2009

19. Percent Increase in UG Awards at Public Institutions is Greatest for Underrepresented Groups +18.1% +38.8% +68.0% +63.4% Source: Texas Higher Education Coordinating Board THECB 12/2009

20. Bachelor’s Degrees on Track to Meet State’s 2015 Goal Bachelor’sAssociate’s THECB 12/2009

21. Some Progress Made in Health Awards; Very Little Progress Made in STEM Fields TechnologyNursing/Allied Health THECB 12/2009

22. Educating Teachers is Critical to Texas’ Success Teachers Math & Science Teachers

23. Excellence and Research Goals Excellence : By 2015, substantially increase the number of nationally recognized programs or services at colleges and universities in Texas. Research : By 2015, increase the level of federal science and engineering research funding to Texas institutions to 6.5% of obligations to higher education. Excellence : By 2015, substantially increase the number of nationally recognized programs or services at colleges and universities in Texas. Research : By 2015, increase the level of federal science and engineering research funding to Texas institutions to 6.5% of obligations to higher education. THECB 12/2009

24. Progress Report on Excellence and Research EXCELLENCE TARGET COMPARISON WITH TARGET LINE National rankingsWell below target Program recognitionOn target RESEARCH TARGET COMPARISON WITH TARGET LINE Federal science and engineering research and development obligations Somewhat below target Public universities’ research expenditures Well above target THECB 12/2009

25. Undergraduate Excellence Access to excellent undergraduate education is critical. Access to excellent undergraduate education is critical. 78% of all public university students are undergraduates. 78% of all public university students are undergraduates. 89% of all public college and university students are undergraduates. 89% of all public college and university students are undergraduates. 43% of all public college and university students are freshmen. 43% of all public college and university students are freshmen.

26. UC-Berkeley Has More National Academy Members Than All Texas Institutions ScienceEngineeringMedicineTotal UT Austin1547365 TAMU/TAMUSHSC517224 Rice U212115 UT Med Cntr-Dallas1701633 U of Houston2507 Baylor CO Medicine40913 UTHSC-San Antonio0033 UTHSC Houston2035 UT Med Br-Galveston0022 UT Dallas1203 Other (SMU, MDA, UNT, UTSA, TTU) 2237 State of Texas Total508542177 UC-Berkeley127747208 THECB 12/2009 June 2009

27. Texas’ Share of Federal R&D Obligations Relative to Other Top Performing States 14.9% 13.6% 8.3% 8.1% 6.4% 6.0% 6.6% 5.3% 5.5% 6.2% 5.8% Federal R&D Obligations in Millions of 1998 Constant Dollars THECB 12/2009 Percentages reflect the share of the U.S. total for Federal R&D obligations for the state

28. Texas Ranks 6 th in the Percent of Federal Funds to Colleges and Universities $25.4 Billion Total in Federal Funds FY 2006 Source: National Science Foundation THECB 12/2009

29. Research Expenditures for R&D at Public Universities and Health-Related Institutions 3.7% 6.0% 10.4% 9.6% 15.9% (in billions) 7.0% Annual Change 6.0% 10.8% THECB 12/2009 Change from FY 2007 to FY 2008

30. Research Summary Federal research funding has been declining since FY 2005. Federal research funding has been declining since FY 2005. Proposed budgets for NIH, NSF, and other agencies could be significant if realized. Proposed budgets for NIH, NSF, and other agencies could be significant if realized. The American Recovery & Reinvestment Act (ARRA) of 2009 is providing large amounts of research funding to be obligated through agencies. The American Recovery & Reinvestment Act (ARRA) of 2009 is providing large amounts of research funding to be obligated through agencies. NIH ($10.4 billion) NIH ($10.4 billion) NSF ($3 billion) NSF ($3 billion) DOE, ED, NASA, USDA, and other agencies DOE, ED, NASA, USDA, and other agencies also have stimulus funds for research. Federal research funding has been declining since FY 2005. Federal research funding has been declining since FY 2005. Proposed budgets for NIH, NSF, and other agencies could be significant if realized. Proposed budgets for NIH, NSF, and other agencies could be significant if realized. The American Recovery & Reinvestment Act (ARRA) of 2009 is providing large amounts of research funding to be obligated through agencies. The American Recovery & Reinvestment Act (ARRA) of 2009 is providing large amounts of research funding to be obligated through agencies. NIH ($10.4 billion) NIH ($10.4 billion) NSF ($3 billion) NSF ($3 billion) DOE, ED, NASA, USDA, and other agencies DOE, ED, NASA, USDA, and other agencies also have stimulus funds for research. THECB 12/2009

31. Accomplishments 2000 - 2009 The percentage of students entering higher education from public high schools is increasing. The percentage of students entering higher education from public high schools is increasing. By fall 2009, over 390,000 additional students are enrolled in public and independent higher education. By fall 2009, over 390,000 additional students are enrolled in public and independent higher education. The percentage of students entering higher education from public high schools is increasing. The percentage of students entering higher education from public high schools is increasing. By fall 2009, over 390,000 additional students are enrolled in public and independent higher education. By fall 2009, over 390,000 additional students are enrolled in public and independent higher education.

32. THECB 12/2009 Accomplishments 2000 - 2009 By fall 2008, more than 98% of university and 86% of community college students enrolling directly from high school had completed the RHSP or above. By fall 2008, more than 98% of university and 86% of community college students enrolling directly from high school had completed the RHSP or above. 39,000 additional undergraduate degrees and certificates are awarded annually. 39,000 additional undergraduate degrees and certificates are awarded annually. By fall 2008, more than 98% of university and 86% of community college students enrolling directly from high school had completed the RHSP or above. By fall 2008, more than 98% of university and 86% of community college students enrolling directly from high school had completed the RHSP or above. 39,000 additional undergraduate degrees and certificates are awarded annually. 39,000 additional undergraduate degrees and certificates are awarded annually.

33. THECB 12/2009 Accomplishments 2000 - 2009 Undergraduate nursing degrees have increased by 3,076. Undergraduate nursing degrees have increased by 3,076. Undergraduate engineering awards have increased by 1,930. Undergraduate engineering awards have increased by 1,930. In 2003, the 78 th Texas Legislature allowed universities, like health-related institutions, to retain 100% of their research indirect cost revenue. In 2003, the 78 th Texas Legislature allowed universities, like health-related institutions, to retain 100% of their research indirect cost revenue. Undergraduate nursing degrees have increased by 3,076. Undergraduate nursing degrees have increased by 3,076. Undergraduate engineering awards have increased by 1,930. Undergraduate engineering awards have increased by 1,930. In 2003, the 78 th Texas Legislature allowed universities, like health-related institutions, to retain 100% of their research indirect cost revenue. In 2003, the 78 th Texas Legislature allowed universities, like health-related institutions, to retain 100% of their research indirect cost revenue.

34. Texas Review New population projections have increased by approximately 2 million. New population projections have increased by approximately 2 million. 1.6 million increase in the Hispanic population. 1.6 million increase in the Hispanic population. Hispanics continue to participate and graduate at lower rates. Hispanics continue to participate and graduate at lower rates. Traditional college-age population (18-24) is a declining proportion of the total population for all racial/ethnic groups. Traditional college-age population (18-24) is a declining proportion of the total population for all racial/ethnic groups. The White 18-24 population is declining after 2009. The White 18-24 population is declining after 2009. The African American 18-24 population peaks numerically in 2013. The African American 18-24 population peaks numerically in 2013. New population projections have increased by approximately 2 million. New population projections have increased by approximately 2 million. 1.6 million increase in the Hispanic population. 1.6 million increase in the Hispanic population. Hispanics continue to participate and graduate at lower rates. Hispanics continue to participate and graduate at lower rates. Traditional college-age population (18-24) is a declining proportion of the total population for all racial/ethnic groups. Traditional college-age population (18-24) is a declining proportion of the total population for all racial/ethnic groups. The White 18-24 population is declining after 2009. The White 18-24 population is declining after 2009. The African American 18-24 population peaks numerically in 2013. The African American 18-24 population peaks numerically in 2013. THECB 12/2009

35. “A Tale of Two States – and One Million Jobs” The payoff to achieving the objectives of Closing the Gaps is enormous. By 2030, annual gains (in 2006 dollars) are projected to be: –$489.6 billion in total spending –$194.5 billion in gross state product –$121.9 billion in personal income –1,023,281 permanent jobs The payoff to achieving the objectives of Closing the Gaps is enormous. By 2030, annual gains (in 2006 dollars) are projected to be: –$489.6 billion in total spending –$194.5 billion in gross state product –$121.9 billion in personal income –1,023,281 permanent jobs Source: Ray Perryman Group; http://www.thecb.state.tx.us/reports/PDF/1345.PDF THECB 12/2009