2. Trends and Comparisons in Higher Education Economics: How has Kentucky Fared? William Hoyt, Acting Director Center for Business & Economic Research Policy Conference: 2004 Center for Business and Economic Research

3. “Economics of Higher Education” Issues to consider: –Financing Education State versus Individual (Family & Student) contributions –Returns to Education –Participation and Access –Completion

4. Financing Education State Support –Kentucky has relatively high state support for public higher education High State Spending per Student Higher State Spending per Capita 2 nd highest percentage increase in state and local appropriations 1990-2002, Highest per student Students and Family Support –Relatively Low Tuition (20 th ) –Very low student borrowing and debt –High cost for Lowest Income Households

5. Higher Education Assistance Per Student, 2002

6. Appropriation of State Tax Funds for Higher Education Per Capita - 2004

7. State and Local Appropriations for Higher Education % Change (Real), 1990-2002

8. State and Local Appropriations for Higher Education % Change (Real), 1990-2002

9. Comparisons of Public Salaries, 2002 A. Inflation Adjusted 4-year institutions 2-year TotalUniversityOther 4-year Kentucky55,421863,532750,914844,0456 United States61,957367,992258,007251,5762 Illinois61,386467,565356,247457,6321 Indiana59,744563,344852,658739,8688 Missouri56,748667,231454,650546,4925 Ohio64,029265,971556,861351,3183 Tennessee55,590764,510652,713639,5799 Virginia64,382170,233160,810147,0504 West Virginia50,326958,917946,415942,2127

10. Average Tuition 4-Year Public, 2004

11. Tuition, 2004 & Change, 2000-2004

12. Average Loan Amount Students Borrow Each Year, 2003

13. Share of Income Poorest Families Need to Pay for Tuition at Lowest Priced Colleges, 2003

14. Ability to Pay, Kentucky

15. Education, Earnings, and Income Significant Gross Differences in Earnings between High School Graduates, BA, and Associate Associate –3,400 (KY), 2,500 (US) 22-29 years –8,000 (KY), 7,000 (US) 30 – 64 years BA –7,400 (KY), 9,000 (US), 22-29 years –16,000 (KY), 16,000 (US), 30-64 years

16. Education, Earnings, and Income (2) Significant Differences in Earnings between High School Graduates, BA, and Associate when controlling for characteristics Much greater for female Some College –12-13%, Male –40%, Female BA –50%, Male –100%, Female Graduate –100%, Male –200%, Female

17. Education, Earnings, and Income (3) –Kentucky lags US in jobs in Office and Technology –Lags in % college educated in all categories –Lags in salaries in all categories

18. Median Household Income - 1999

19. Difference in Median Earnings Between a High School Diploma and an Associates Degree 22 to 29 Year Olds 1999

20. Difference in Median Earnings Between a High School Diploma and an Associates Degree 30 to 64 Year Olds 1999

21. Difference in Median Earnings Between a High School Diploma and an Bachelors Degree 22 to 29 Year Olds

22. Difference in Median Earnings Between a High School Diploma and an Bachelors Degree 30 to 64 Year Olds

30. Accessibility and Participation Participation in Higher Education has increases in KY 1990 – 2000 but lags other states “Pipeline” leaks at retention (Sophomore to Graduating)

31. Participation

32. 9th Graders Chance for College by Age 19

33. Percent Loss at Each Stage of Transition (2000)

34. “Pipeline” College Attendance and Graduation

35. College-Going Rates of High School Graduates - Directly from HS - 2000

36. Completion and Level of Education Education (% with BA or Associate) in KY lags US High Variance within Kentucky Increases in % with BA or Associate from 1990 to 2000 but slow progress despite high % attending college

37. 25 to 34 Year Olds with a Bachelor's Degree or Higher - 2000

38. 25 to 34 Year Olds with a Graduate or Professional Degree - 2000

39. Change in Percentage of Population 25 or older with BA or more, 1990-2000

41. Retention Rates - First-Time College Freshmen Returning Their Second Year Four-Year Colleges/Universities - 2002

42. Bachelor's Degrees Awarded Per 100 HS Graduates 6 Years Earlier

44. Kentucky Net In-Migration by Degree Level and Age Group Source: U.S. Census Bureau, 2000 Census; 5% Public Use Microdata 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 6,264 4,978 1,347 870 -1,398 737 12,798 -2,00002,0004,0006,0008,00010,00012,00014,000 10,866 13,760 6,364 824 3,489 798 36,101 010,00020,00030,00040,000

45. Net Migration, All 22 to 29 Year Olds

46. Net Migration, 22 to 29 Year Olds with Associate Degree or Higher

47. Net Migration, 22 to 29 Year Olds with Bachelor’s Degree or Higher

50. High ACT (26 or above) and SAT (combined 1200 or above) Scores Per 1,000 HS Graduates - 2003

51. Total R&D Expenditures Per Capita - 2002