1. THE DEGREE DIVIDEND: A strategic plan for higher education in Colorado

2. The Higher Education Strategic Planning Steering Committee The Governor has charged the steering committee with:  Defining state higher educational needs and examining institutional missions.  Reviewing the governance and structure of the system of higher education.  Addressing higher education funding.  Increasing and improving student access and success. HESP Membership: Jim Lyons & Dick Monfort (Co-Chairs), Russ George, Alan Salazar, Theresa Pena, Greg Stevinson, Ray Baker, Jim Polsfut, Don Elliman (Ex-Officio), John Bliss, Meg Porfido, Rico Munn (Ex- Officio), Terry Farina, Jane Rawlings

3. What is the Degree Dividend? The Degree Dividend articulates an aggressive agenda to fund and focus Colorado’s system of higher education around the economic and demographic realities of our present and future. The Degree Dividend seeks to increase Colorado’s economic standing by fully realizing higher education’s return on YOUR investment.

4. Higher Education is a good return on your investment Public institutions in Colorado support over 95,500 jobs, contribute $4.25 billion in wages and salaries, and generate $387 million in state and local taxes Each dollar paid to higher ed will generate another $.97 in wages and salaries for employees in other industries as it circulates through the economy. Our research institutions make an enormous contribution to the state’s innovation and productivity in areas like bioscience, renewable energies, medicine, and aerospace. In 2008, CU Boulder received more than $280 million in earmarked federal research awards; CSU in Ft. Collins received $312 million. Benefits of an educated population include: Increased levels of workforce participation and productivity. Reduced participation in Medicaid and other social service programs. Decreased rates of incarceration. Improved health outcomes. Higher levels of volunteerism and social engagement.

5. Successes in Colorado public higher education Enrollment & degrees have been trending up. Relatively efficient and productive system of public higher education at the institutional level. We are one of the most economically competitive states in the nation. Good breadth of programs, courses and disciplines. Broad geographic presence of colleges and universities throughout the state.

6. Low public awareness of the value of Higher Education. Radical demographic shifts. Educational achievement gap - our system of Higher Education is not reaching all Coloradans equally. Geographic disparity of higher education attainment. Poor and complex systemic funding. Continuously high remediation rates and societal costs. Challenges in Colorado public higher education

7. Scenario #1 Appropriation Comparison

8. Declining Revenue This presents the state with four likely scenarios… Like many states, Colorado has used funds from the American Recovery and Reinvestment Act of 2009 (ARRA) to support essential services in this time of great economic distress. When the funds disappear in FY11-12, funding for higher education will roll back to the 2005-06 levels OR LOWER. (F.A. dollars not included)

9. Scenario #1 Four Scenarios for Higher Education 1. Accelerated Erosion- Assuming we continue along the path of diminishing resources. The consequence?  Colorado will no longer support higher education.  The burden will shift to families and students through increased tuition and fees. 2. Losing Ground- Colorado needs to continue to receive $760 million of general support for higher education. So far, we have been able to continue to keep doors open, and institutions have been extremely efficient, with the following results:  The worst achievement gap in the country.  A high level of income and degree disparity in the state.  Tuition and fee growth as high as 120% at some of our institutions. 3. Restoration Funding- Since 1990, the gap between actual funding and where we should be (if funded only for inflation) is currently -39% (or over $476 million). 4. Competitive Funding- $1.5 billion would place Colorado in the top third of per student commitment to higher education. Colorado is currently on the path of Accelerated Erosion

10. Challenge #1: Failure to Serve the Changing Demographic Colorado’s system of higher education is failing to meet the economic demand created by dramatic demographic shifts.  We are getting older.  We are more diverse.  By 2018, 67% of all jobs in Colorado will require postsecondary education, ranking Colorado 5 th in postsecondary education needs in the U.S. 924,000 job vacancies will be created through retirements and new job creation. The highest numbers of these jobs will require a bachelor’s or associates degree. Our fastest growing demographic (Hispanic) is the most underserved in at all levels in higher education. Colorado institutions differ significantly in enrollment of low-income students relative to the income levels of the counties they serve.

11. Colorado’s changing demographics

12. 61%  23%  2.5%  Colorado’s Hispanic Population: 38% have not graduated from high school Only 6% have an associate degree Only 8% have a bachelors degree Most underrepresented in higher education Colorado’s changing demographics *Secondary School Demographics- Source: CDE

13. Source: NCHEMS Educational Attainment & Personal Income by Colorado Counties Disparity of educational attainment and wealth

14. Challenge #2: A Broken Pipeline Colorado’s postsecondary pipeline is broken - performing well below the national average and not reaching all Coloradans equally. Over 630,000 adults in Colorado have accumulated some college credits, but have not completed a certificate or degree. Colorado’s ethnic educational achievement gap is worse than any other state in the United States.

15. 100 Colorado students start 9 th grade 70 Graduate high school 44 Enter college 22 Graduate college within 6 years 29% need remediation Colorado’s Broken Pipeline

16. 29% of all 1 st time college students require remediation (52% at 2 year colleges) 40% - 2 year 16% - 4 year 17% of 1 st time students at 2 year colleges require remediation in all subjects! The state spends over $13 Million per year on remediation!

17. Our ethnic achievement gap is one of the worst in the nation

18. Challenge #3: A disjointed system Board of Regents of Colorado Colorado State University Board of Governors Colorado School of Mines Board of Trustees State Board for Community Colleges and Occupational Ed Area Vocational Schools Aims Community College Board of Trustees Colorado Mountain College Board of Trustees Colorado’s public system of higher education is comprised of 28 colleges and universities. These public postsecondary institutions are under the direction of numerous independent governing boards. The current governance structure does not lead to an intentional advancement of state priorities. UNC Board of Trustees Mesa State Board of Trustees Western State Board of Trustees Adams State Board of Trustees Ft. Lewis College Board of Trustees Metro State Board of Trustees Auraria Higher Education Center Board of Directors Private Nonprofit Institutions Private For Profit Institutions

19. The Critical Recommendations Colorado must increase its investment, and ensure affordability for postsecondary education. We need to create a sustainable funding source for higher education, at a level to make Colorado competitive nationally and internationally, as we cannot afford to be last in the nation. We also need to invest in financial aid at a level that will allow any student who meets admission requirements to obtain a higher education degree or certificate. College Opportunity Funds (COF) and state financial aid funds should be maximized and include incentives for state priorities. Funds should be linked to measurable progress to spurring innovation through outcome based rewards. Certain graduate programs should be funded through “fee for service”. Efficiencies should continue to be implemented. A state fund should created to match locally raised funding. Consider state funding with view to the system.

20. Possible Revenue Streams Restore income and sales tax rates to 5.0% and 3.0%, respectively $445 million Expand sales tax to specific services$550 million Implement 1.0% surcharge on extraction $150 million Implement a 4.0 Mill levy statewide$350 million Implement a 4.0 Mill levy in counties where an institution of higher education is located $240 million

21. COFF EE FOR S ERVICE P ERFORMANCE F UNDING F INANCIAL A ID A CCELERATED E ROSION L OSING G ROUND R ESTORATION F UNDING C OMPETITIVE F UNDING OR Funding Priorities by Scenario

22. The Critical Recommendations Colorado must reduce regional, income and ethnic gaps in college attendance,retention and completion. Support multiple entry points into college. Allow for flexible pathways to completion of degrees and certificates. Make college affordable to all students who meet admission requirements. Provide support structures for students, including adults, to stay on track and complete their education.

23. The Critical Recommendations Colorado must identify systematic approaches that enhance and improve the educational pipeline. Focus on college earlier. Increase alignment and collaboration across P-20 education and workforce systems. Expand effective remediation efforts. Use common data and assessments. Address capacity to meet demands.

24. The Critical Recommendations The Governance of Higher Education should be structured to advance state goals. Maintain current governance structure pending review. Enhance responsibility and authority of the CCHE. Review governance and institutional missions. Implement performance funding. Require consultation with CCHE in appointment of Executive Director of the Colorado Department of Higher Education.

25. For more information: http://highered.colorado.gov/Publications/ General/StrategicPlanning/default.html http://highered.colorado.gov/Publications/ General/StrategicPlanning/default.html