1. Higher Education: A Presentation to the Budget Trends Commission May 27, 2008 Mark Misukanis Director of Fiscal Policy and Research Office of Higher Education 1

2. Projected Change in Working Age Population (Age 25-64) by Race/Ethnicity, 2000-2030 Source:Minnesota State Demographic Center 7%152%270%169% 75% 341%

3. Projected Percent Minority by Age Group 2000-30 3 Source: Minnesota State Demographic Center

4. Educational Attainment and Rank Among States—Minnesota, 2000 (Percent ) Source: U.S. Census Bureau, 2000 Census 79.3 9.0 92.4 8.9 30.5

5. Minnesota Educational Attainment by Gender and Race/Ethnicity, Age 25-34—Indexed to Top Country 5 Percent with Bachelor’s Degree or HigherPercent with Associate Degree or Higher White African-AmericanHispanic/Latino Native American/ AK Native Asian/ Pacific Islander MaleFemale Male FemaleMaleFemaleMaleFemaleMaleFemale Source:U.S. Census Bureau, Public Use Micro-data Samples (Based on 2000 Census); Organisation for Economic Co- operation and Development (OECD) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Top Country (Norway) US Index = 0.86 Top Country (Canada ) US Index = 0.77 0.0 0.2 0.4 0.6 0.8 1.0 1.2

6. Minnesota High School Graduates 1991-92 through 2014-15 6 Source: Minnesota State Demographer and Office of Higher Education

7. Net Migration by Degree Level and Age Group—Minnesota Source: U.S. Census Bureau, 2000 Census; 5% Public Use Micro-data Sample (PUMS) Files 22- to 29-Year-Olds30- to 64-Year-Olds Less than High School High School Some College Associate Bachelor’s Graduate/Professional Total

8. Post Secondary Headcount Enrollment 1997-2006 8 Source: Office of Higher Education

9. Allocation of Appropriations FY 2008-09 Biennium 9 Source: Department of Finance

10. Higher Education Spending as a Percent of the General Fund 10 Source: Department of Finance: February 2008 Forecast

11. Minnesota State Colleges and Universities Revenue Components (000’s) 11 Source: Integrated Postsecondary Education Data System

12. Minnesota State Colleges and Universities Tuition as a Share of Total Revenue 12 Source: Integrated Postsecondary Education Data System

13. University of Minnesota Revenue Components (000’s) 13 Source: Integrated Postsecondary Education Data System

14. University of Minnesota Tuition as a Share of Total Revenue 14 Source: Integrated Postsecondary Education Data System

15. MnSCU Spending Patterns (000’s) 15 Source: Integrated Postsecondary Education Data System

16. MnSCU Instructional Spending as a Share of Total 16 Source: Integrated Postsecondary Education Data System

17. U of M Spending Patterns (000’s) 17 Source: Integrated Postsecondary Education Data System

18. U of M Instructional Spending as a Share of Total 18 Source: Integrated Postsecondary Education Data System

19. Net Price by Sector by Adjusted Gross Income Dependent Students Private Non-Profit Private For-Profit U of M MnSCU 4 year MnSCU 2 Year 19 Source: Office of Higher Education

20. Student and Parent Saving 20 Minnesota 529 Plan : Operating since 2001 Current Assets of $625 million Account Beneficiaries 48,058

21. Student Borrowing 21 In general, a larger percent of undergraduates in Minnesota had student loans than nationally, and Minnesota students borrowed more, on average, during the 2003-2004 academic year. Among Minnesota undergraduates who attended full-time for the full academic year, 63 percent had student loans. The average annual amount borrowed by all undergraduates was approximately $5,500. Full-time students who attended for the full academic year borrowed an average of $6,600 annually.

22. Student Borrowing (Continued) 22 Much of the recent increase in the percentage of students with loans occurred in the upper income brackets. In 2000, 28 percent of full-time, full-year dependent students in Minnesota coming from families with incomes of $90,000 or more had student loans while, in 2004, 57 percent of similar students had loans. In Minnesota, full-time, dependent students whose parents belong to the middle income categories ($30,000-$89,999) were still more likely to borrow than those in the lowest or highest income categories. In recent years, students have increased their reliance on “alternative” student loans from on-federal sources.

23. Accountability Goals 23 Goal 1:Improve success of all students, particularly students from groups traditionally underrepresented in higher education Goal 2:Create a responsive system that produces graduates at all levels who meet the demands of the economy Goal 3:Increase student learning and improve skill levels of students so they can compete effectively in the global marketplace Goal 4:Contribute to the development of a state economy that is competitive in the global market through research, workforce training and other appropriate means Goal 5:Provide access, affordability and choice to all students

24. Other Topics 24 State Comparisons of Revenue per FTE Higher Education Production and Migration Source: SHEEO and NCHEMS

25. Future Budget Issues 25 1.High School Graduates and Preparation 2.The New Millennial Student 3.Faculty Retirements and Replacement 4.Workforce Supply 5. Facility Utilization and Other Cost Issues

26. 26 Mark Misukanis Director of Fiscal Policy and Research Minnesota Office of Higher Education Mark.Misukanis@state.mn.us