1. Discussion Items for Task Force Meeting Chicago, Illinois June 20, 2008 National Center for Higher Education Management Systems 3035 Center Green Drive, Suite 150 Boulder, Colorado 80301-2251

2. 22 Public Agenda for Illinois Higher Education— Goals for College and Career Success 1.Increase Educational Attainment to Match Best- Performing U.S. States and World Countries a.Improve Success of Students—Eliminate Racial, Ethnic and Gender Achievement Gaps b.Increase Number of Adults Reentering Education and Completing a Postsecondary Credential c.Reduce Geographic Disparities in Educational Attainment 2.Ensure College Affordability for Students, Families and Taxpayers (continued)

3. 33 Public Agenda for Illinois Higher Education— Goals for College and Career Success (continued) 3.Increase Production of Postsecondary Credentials to Meet Demands of the Economy a.Increase Production of Certificates, Associate and Baccalaureate Degrees b.Improve Transitions Between Associate and Baccalaureate Degree Levels c.Increase Production of Postsecondary Degrees in Fields Critical to the Illinois Economy—e.g., Nursing and Information Technology d.Improve Student Learning and Skill Levels to Compete Effectively in the Global Marketplace 4.Better Integrate Illinois’ Educational, Research and Innovation Assets to Meet Economic Needs of the State and Its Regions

4. 44 Measuring Progress: Illinois Outcome/Performance Measures

5. 55 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries ► Proportion of Adults Age 25-34 with Associate Degree or Higher ► Proportion of Adults Age 25-34 with Baccalaureate Degree or Higher Benchmarked Against: ■Best-Performing OECD Countries ■Top 5 U.S. States ■Selected Competitor/Neighbor States (continued)

6. 66 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) a.Improve Success of Students—Eliminate Racial, Ethnic and Gender Achievement Gaps ► Proportion of Adults Age 25-34 by Race/Ethnic Group and Gender Who Have: >Completed High School >Attained Associate or Higher >Attained Baccalaureate or Higher ► Difference Between Whites and Each Ethnic Group for Each Attainment Level Above Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States (continued)

7. 77 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) (continued) b.Increase Number of Adults Reentering Education and Completing a Postsecondary Credential ► Number of GEDs Awarded to Adults Age 21-44 as a Proportion of Adults Age 21-44 with Less than a High School Diploma ► First-Time Freshmen Age 25-44 as a Proportion of Adults Age 25-44 with a High School Diploma but No College ► Degrees Awarded to Adults Age 25-44 as a Proportion of Population Age 25-44 with No College Degree Benchmarked Against: ■Illinois Trends ■Best-Performing States

8. 88 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) c.Reduce Geographic Disparities in Educational Attainment ► Difference Between Highest- and Lowest-Attaining Counties in Proportions of Individuals Who Have Attained: >Associate Degree or Higher >Baccalaureate Degree or Higher Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States

9. 99 2.Ensure College Affordability for Students, Families and Taxpayers ► Percent of Family Income for: ■Median Family ■Low-Quintile Family Required to Pay Net Cost of Attendance (Cost Less Grant Aid) at: ■Public 4-Year ■Private 4-Year ■Public 2-Year ► Average Amount of Debt Per Student (continued)

10. 10 2.Ensure College Affordability for Students, Families and Taxpayers (continued) ► Percent of Low-Quintile Family Income Required to Pay Tuition and Required Fees at 2-Year Public Institutions ► State Tax Effort Compared to State Tax Capacity ► State and Local Appropriations Plus Tuition and Fee Revenue per FTE Student—State Share of This Total Revenue per FTE Student Benchmarked Against: ■Illinois Trends ■Best-Performing States

11. 11 3.Increase Production of Postsecondary Credentials to Meet Demands of Economy a.Increase Production of Certificates, Associate and Baccalaureate Degrees ► Produced Each Year by All Institutions in State Benchmarked Against Illinois Trends ► Certificates and Associate Degrees Granted as a Proportion of FTE Enrollments at 2-Year Institutions ► Baccalaureate Degrees Awarded as a Proportion of FTE Undergraduate Enrollments at 4-Year Institutions (Public and Private Not-for-Profit) Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States (continued)

12. 12 3.Increase Production of Postsecondary Credentials to Meet Demands of Economy (continued) b.Improve Transitions Between Associate and Baccalaureate Degree Levels ► Number of Students Who Achieve Transfer-Ready Status ► Proportion of Students Who Achieve Transfer-Ready Status Who Do Transfer and Complete a Degree ► Proportion of Students Who Achieve 12 SCH Who Transfer ► Proportion of SCH Earned by Transfers That Are Not Accepted as Credit for a Major ► Proportion of Students with 2.0 GPA or Better—Transfers Versus Native Students Benchmarked Against Illinois Trends (continued)

13. 13 3.Increase Production of Postsecondary Credentials to Meet Demands of Economy (continued) a.Increase Production of Postsecondary Degrees in Fields Critical to Illinois Economy—e.g., Nursing and Information Technology ► Absolute Number of Associate, Baccalaureate and Master’s Degrees Produced Each Year in Specified Fields – Nursing – Allied Health – IT – Others? Benchmarked Against Illinois Trends ► Associate, Baccalaureate, Master’s and Doctoral Degrees Produced in STEM Fields as a Proportion of All Degrees Granted at Those Levels Benchmarked Against Best-Performing States (continued)

14. 14 3.Increase Production of Postsecondary Credentials to Meet Demands of Economy (continued) d.Improve Student Learning and Skill Levels to Compete Effectively in the Global Marketplace ► Proportion of Adults Age 25-34 Assessed as Proficient in Each of the Areas of the NAAL— Data Acquired Through a State Oversample on the Exam (Scores of College Graduates Versus Non-College Graduates) Benchmarked Against: ■Illinois Trends ■U.S. Average ■Other States for Which State Data Are Available

15. 15 4.Better Integrate Illinois’ Educational, Research, and Innovation Assets to Meet Economic Needs of the State and Its Regions ► Proportion of Jobs Considered to Be “Living Wage” Jobs ► Spin-Off Companies Created Per Billion Dollars of Academic Research ► ???

16. 16 Observations from Regional Forums

17. 17 Principles ► Alignment of Policy with State Goals ► Rewarding Student and Institutional Outcomes that Are Aligned with: ■State Priorities ■Regional Priorities

18. 18 The Management Cycle State Planning Institution State Institution Implementation State Accountability Institution

19. 19 The Policy Tools ► Clear Direction—a “Public Agenda” ► Funding/Resource Allocation ► Accountability ► Regulation ► Policy Leadership/Allocation of Decision Authority

20. 20 Key Areas for Policy Alternatives ► P-20 Alignment of Standards, Curriculum, Assessments and Professional Development for: ■Postsecondary Education ■Work in a Living Wage Job ► Funding Policy ■Institutional ■Students ► Regional Strategies ► Policy Leadership

21. 21 Funding/Resource Allocation—Key Concepts

22. 22 The Flow of Funds Economy Tax Policy Appropriations/GrantsStudent Aid Tuition Scholarships & Waivers Research and Other Grants (Restricted)Student Aid (Restricted) Gifts Income Available State and Local Govt. Funds Federal Government Donors Foundations Corporations K-12 Corrections Health Care Other Govt. Higher Education StudentsInstitutions

23. 23 The Flow of Funds Economy Tax Policy Appropriations/GrantsStudent Aid Tuition Scholarships & Waivers Student Aid (Restricted) Income Available State and Local Govt. Funds Federal Government Higher Education StudentsInstitutions

24. 24 Criteria for Effective Higher Education Finance Policy ► Create and Maintain Necessary Institutional Capacity ► Reinforce Utilization of Capacity to Achieve State Goals ► Contributions Required Are Affordable—to Both State and Students ► Viewed as Being Fair ► Transparent

25. 25 Criteria from Perspective of Different Stakeholders ► Maintains Institutional Capacity ► Promotes Achievement of Priority Outcomes ► Affordable ► Affordability ► Value ► Adequacy ► Equity ► Stability State Students Institutions

26. 26 The Two Purposes of State Funding Policy ► Build Core Capacity—General Purpose Funding ► Promote Capacity Utilization Around State Priorities—Special Purpose Funding

27. 27 Finance Policy—The Options Institution Focused Student Focused Core Capacity Capacity Utilization/ Public Agenda Tuition and Aid Policy Focused on Attainment of Specified Outcomes Base-Plus Formulas Investment Funds Performance Funding Tuition and Aid Policy Focused on Revenue Generation

28. 28 Basic Questions at State Level ► How Much to Allocate ► To Which Recipients—Students or Institutions ► Using Which Mechanisms

29. 29 A Key Distinction ► Investment Funds ■Capacity Building ■A Priori ► Incentive Funds ■Capacity Utilization ■Post Facto

30. 30 Remember—All Funding Mechanisms Provide Incentives for Behavior Central Question: Are the Behaviors Elicited the Ones You Want?

31. 31 Regional Partnerships ► Focus on Regions as the “Community of Solution” for Getting More Students Through Education Pipeline ► Partnership: ■Regional Community/Economic Development ■Higher Education ■P-12 ► Use of State Funding to Provide Incentives for Regional Strategies

32. 32 Student Financial Aid ► Align Student Aid, Tuition and Appropriations ► Implement a Shared Responsibility Model for Student Aid with: ■Student Making Initial Commitment ■State Making Last Dollar Commitment ► Link Student Financial Aid to Incentives for Students Beginning at 7th and 8th Grades

33. 33 Policy Leadership ► Key Point: Must Have a Means to Keep Agenda on Track ■Legislative Ownership of Long-Term Agenda ■Linking Budget and Appropriations to Goals ■Holding Institutions/Systems Accountable ■Sustaining Agenda Over Changes in Political Leadership and Economic Conditions

34. 34 The Policy Options Planning/ Priorities FinanceAccountabilityRegulationGovernance Increase Educational Attainment Ensure College Affordability Increase Production of Postsecondary Credentials Link Educational, Research and Innovation Assets to Economic Development