Where Are the Cost Efficiencies in Higher Education?

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1 Texas Higher Education Coordinating Board 2009 Texas Higher Education Leadership Conference Accelerating Closing the Gaps: Making Opportunity More Affordable for Texas and Texans Where Are the Cost Efficiencies in Higher Education? Dr. Jorge Klor de Alva Former President, President, Nexus Research and Policy Center

2 UOPX is a Proud Contributor to Texas Higher Education Alaska Vancouver, BC Calgary, AB Also includes locations in Mexico and The Netherlands Seattle Portland Spokane Billings Minneapolis San Jose Sacramento Reno San Diego Honolulu Maui So. Cal Boise Las Vegas Phoenix Tucson Salt Lake City Albuquerque Denver Cheyenne Wichita Colorado Springs Santa Teresa Sioux Falls Austin San Antonio Omaha Tulsa Oklahoma City Dallas Des Moines Houston Milwaukee St. Louis Kansas City Little Rock New Orleans Chicago Grand Rapids Detroit Cleveland Columbus Indianapolis Nashville Memphis Atlanta Birmingham Tampa Cincinnati Louisville Columbus Jacksonville Orlando Pittsburgh Raleigh Charlotte Columbia Ft Lauderdale Jersey City Philadelphia Wilmington Baltimore Reston Guaynabo, PR Worcester Boston Includes states in which the University is licensed to operate. At the current time we do not have locations in Alaska or Montana

3 UOPX Is a Comprehensive University: Offering Associate, Bachelor, Master, and Doctorate Programs

4 Helping to Close the Gap Between Educational Attainment of Different Ethnic Groups in Texas and Nationwide Caucasian 51% Other/Unknown 4% Native American/Alaskan 1% Asian/ Pacific Islander 3% African American 30% National Enrollment Other/Unknown 10% Native American/Alaskan 1% Asian/ Pacific Islander 6% African American 12% Caucasian 61% Hispanic 11% As of 02/29/2008 Enrollment 2009 Hispanic 10% Source: NCES 2005

5 Cost Efficiencies Through Innovation: A New Learning Platform Again

6 Online Modality For Students Onsite and Online: Full Integration of Technology Online Campus (Established in 1989, Before WWW available to general population) 1996 enrollment 2, enrollment >200,000 Resource: Digitizing Education Products and Services All course materials delivered via electronic portal Allows for rapid revision of materials Includes rich media Permits 24/7 access from anywhere

7 Online Course Delivery: Comprehensive and Multidimensional courses maintained by Colleges courses completely electronically enabled with Electronic textbooks (over 1,800 works) Electronic articles (online library <20million articles; 65K publications; 114 databases) UPX-owned writings Discussion questions Web links 260+ courses use Simulations (<140K unique users/month) 400+ courses use Virtual Organizations (over 76K unique users per month) 100+ courses have Web tutorials 100+ courses use Electronic Portfolios (over 15K unique users per month)

8 Online Delivery of Support: Student-centered, Ubiquitous Center for Writing Excellence WritePoint sm (Immediate feedback; <600K papers/month) Tutor Review (Faculty reviewed, within 48 hrs; <6K papers/month) Spanish Writing Lab (El Centro de RedAcción) Dissertation Services Tutorials and Guides Turnitin Plagiarism Checker (promotes originality and improves writing and research skills; <400K papers/month; 15 minute turnaround) Center for Mathematics Excellence Running Start Online Tutoring (< 4K live tutoring sessions per month; approximately 10K students per month access site for assistance) Self-Assessments University Library

9 Onsite Support for Online and Onground Modalities Local Resource Centers Nationwide First centers were established in Texas 25 new centers by end of last year Drop-in centers for computer usage, tutoring, etc. Open and staffed 7 days a week Available to all students and faculty both online & onsite Creates community for students and faculty of both modalities

10 Does All This Technology-Based Support Lead To Success?

11 Key Predictors of Degree Completion for Open Enrollment Institutions High School Grades Transfer Credits Risk Factors All only partially predict success

12 Number of Risk Factors vs. Bachelor Graduation Rate (%) DOE 1996 Data UPX Data Note: Almost all UOPX students in the cohort studied had R6 (financially independent) and R7 (working full time) risk factors as determined by USDOE because UOPX required students at that time to be working and at least 23 years old.

13 Transfer Credits vs. UPX Bachelor Graduation Rate (%) to to to to 60 Over 60 Data Source: UPX cohort 11/1998 to 3/2000. Transfer Credits

14 Cost Efficiencies To the State: Net Cost to Taxpayers Per Students Taxpayer Costs Public Not-for-Profit For-Profit UPX Direct Government Support 2 $11, $5, $ $0.00 Student Loans Interest Rate Subsidy 4 Expected Future Loss Due to Loan Default 5 Taxes Forgone on Investment , Income of Endowments 6 Taxes Forgone on Additions to Endowments 7 Taxes Forgone on Gifts, , Grants, and Contracts 8 Taxes Forgone on Corporate 2, , Profits 9 Sales & Other Taxes Forgone 10 Total Costs $15, $21, $1, $ Taxpayer Credits Tax on Corporate Profit , Sales and Other Taxes Taxpayer Credits , Net Cost to Taxpayers $15, , (140.82) Research Expense 13 2, , NET COST TO TAXPAYERS WITH RESEARCH EXPENSE REMOVED $13, $16, $ ($140.82)

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