California Higher Education s Advantages, Lost Advantages, and Needed Advantages

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1 California Postsecondary Education Commission (CPEC) Sept. 26, 2007 Sacramento, CA David Longanecker Executive Director Western Interstate Commission for Higher Education (WICHE) TO COMPETE IN A FLAT WORLD California Higher Education s Advantages, Lost Advantages, and Needed Advantages

2 Competing in the Flat World A high-skill/high-wage economy Well educated Indigenous to California Affordable high quality of life And evidence of this A Postsecondary Education system that supports such an economy, society, and personal life style So, how does California stack up?

3 What California has (and needs to keep) As A State A Very Competitive Economy 3 rd on the State New Economy Index Wealth 11 th in personal income Great on ROI to education 1 st in earnings difference between high-school and college (BA or AA) Talent accumulation -- net importer of highly educated talent.

4 California Net Migration of Residents Age by Level of Education, ,843 Bachelor's Degree 22,625 Graduate/Professional Degree 16,522-30,000-20,000-10, ,000 20,000 30,000

5 What California has (and needs to keep) Higher Education s Contribution Research Excellence 7 of the top 25 ranked Research Universities (Shanghai Jiao Tong index) in the West Stanford (2), UC Berkeley (3), Cal Tech (5), UCLA (11), UCSD (12), UW (14), UCSF (16) The Rest East: 7 (1 quasi-public, 6 privates) Mid West: 3 (2 publics, one private) South: 1 (private)

6 Overall State Scores on Measures of Innovation Assets Mississippi Arkansas South Dakota Nevada Louisiana Kentucky West Virginia South Carolina Oklahoma Tennessee Nebraska Missouri Indiana Florida Wyoming Alaska Maine Alabama Kansas Hawaii Idaho North Dakota Georgia Montana Texas Illinois Iowa Wisconsin Oregon North Carolina Ohio Vermont Arizona Michigan New Jersey Pennsylvania Virginia Delaware New York New Mexico Minnesota Washington New Hampshire Colorado Connecticut Utah Maryland Rhode Island California Massachusetts Note: Score is calculated as sum of rankings on ten separate subindex scores. Source: Development Report Card for the States, CFED

7 Science and Engineering Degrees as a Share Science and Engineering Degrees as a Share of Higher Education Degrees Conferred by State, Rhode Island Vermont New York Nevada Florida Hawaii Washington Connecticut Arizona New Hampshire California Missouri Oregon New Jersey Utah Massachusetts Delaware Iowa Georgia Kansas Illinois Minnesota South Carolina United States Alabama Arkansas Michigan Oklahoma Idaho Wyoming Mississippi Ohio Tennessee North Carolina New Mexico Pennsylvania Indiana Colorado Montana Virginia Wisconsin Kentucky Alaska Louisiana West Virginia Texas Nebraska Maryland Maine North Dakota South Dakota Note: Science and Engineering include Agricultural Sciences, Biological and Biomedical Sciences, Physical Sciences, Science Tech, Health Sciences, Computer Science, Mathematics and Statistics, Engineering, and Engineering Tech. Degrees include Associate, Bachelor s, Masters and Doctorate Degrees. Source: NCES, IPEDS 2005 Completions File; c2005_a Final Release Data File

8 What California has (and needs to keep) Higher Education s Contribution Human Capital Leads the nation in adult participation (5.1% of adults enrolled) Process rather than Product Prestige Mission Differentiation An efficient financing structure

9 What does that mean an efficient financing structure Funding Per FTE Student (2004) California WICHE Rank 2 Year Insts $5,599 $6, th BA/Masters 13,151 12,865 7 th Research/Dr 45,295 32,736 2 nd Share of Student by Sector 2 Years 61% 53% 1 st BA/Masters th Research/Dr th

10 What California has (and needs to keep) A Reasonably Productive System -- OVERALL

11 Performance Relative to Total Funding per FTE Overall Index Scores for State Higher Education Systems (NCHEMS) Alaska Kentucky Maine Arkansas West Virginia Vermont Nevada South Carolina Louisiana New Jersey Georgia Idaho Wyoming Mississippi Hawaii Texas Tennessee New Mexico Oklahoma Oregon Ohio Alabama Michigan Indiana Pennsylvania Florida New York Montana Connecticut North Carolina South Dakota Minnesota Missouri Delaware California Kansas Illinois Nebraska Virginia Washington New Hampshire Maryland Wisconsin Arizona North Dakota Iowa Rhode Island Colorado Massachusetts Utah

12 What California had, but lost (and needs to regain) As A State A Competitive Workforce

13 Percent of Civilian Population Age Participating in the Workforce, West Virginia Louisiana Mississippi Kentucky Alabama New Mexico California Arizona Florida Arkansas Texas New York Oklahoma Tennessee South Carolina Nevada Georgia United States Michigan Hawaii North Carolina Pennsylvania New Jersey Illinois Ohio Virginia Washington Missouri Oregon Idaho Alaska Rhode island Montana Utah Delaware Indiana Wyoming Maine Maryland Massachusetts Colorado Connecticut Kansas Wisconsin Vermont North Dakota Iowa South Dakota New Hampshire Nebraska Minnesota Source: U.S. Census Bureau

14 Differential National Performance: Differences in College Attainment (Associate and Higher) Between Young and Older Adults Percent of Adults with College Degrees Age Age % 45% 35% 14 25% 15% Nevada Arkansas West Virginia Louisiana Mississippi New Mexico Kentucky Oklahoma Alaska Tennessee Alabama Texas Arizona South Carolina Idaho Indiana Maine Florida California Wyoming Oregon Missouri Ohio Georgia North Carolina Michigan Montana United States Utah Hawaii Delaware Kansas Pennsylvania Washington Wisconsin South Dakota Rhode Island Iowa Virginia Illinois Nebraska Maryland New Hampshire Vermont New Jersey New York Colorado Connecticut North Dakota Minnesota Massachusetts Source: U.S. Census Bureau, 2000 Census via NCHEMS

15 Percent of Adults with an Associate Degree or Higher by Age Group Leading OECD Countries, the U.S., and California 60 Age Age Age Age Canada Japan Korea Sweden Belgium Ireland Norway U.S. California

16 International Competitive/Declining Performance: Percent of Adults with an Associate or Higher Degree OECD Countries 25 to to Turkey Czech Republic Italy Slovak Austria Portugal Hungary Luxembourg Mexico Poland Germany Greece Netherlands Iceland Switzerland New Zealand United Kingdom Denmark Australia Ireland France Spain United States Belgium Norway Finland Sweden Korea Japan Canada Source: Organisation of Economic Cooperation and Development, American Community Survey via NCHEMS

17 Projected Percent Change in Occupations Requiring Some Postsecondary Training, West Virginia Kansas Pennsylvania North Dakota Connecticut New York Alaska Illinois Michigan Louisiana Nebraska Oregon Ohio Indiana Maine South Carolina Iowa Wyoming Missouri New Jersey Alabama Delaware Rhode Island Oklahoma Vermont South Dakota Wisconsin Washington Minnesota Hawaii Tennessee United States Arkansas Mississippi Montana Kentucky Maryland California Texas North Carolina New Mexico New Hampshire Georgia Florida Arizona Virginia Idaho Colorado Utah Nevada Note: Some college, Associate, Bachelor s and higher. Source: ACINet, Career InfoNet

18 What California had, but lost (and needs to regain) As A State A Competitive Workforce Talent Accumulation

19 California Net Migration of Residents Age by Level of Education, Less than High School 27,843-19,742-20,168 High School Some College -3,795 Associate Degree Bachelor's Degree 22,625 Graduate/Professional Degree 16,522 Total 23,285-30,000-20,000-10, ,000 20,000 30,000

20 What California had, but lost (and needs to regain) As A State A Competitive Workforce Talent Accumulation A viable education production function

21 What does that mean California has lost a viable production function? California U.S. Rank Grad H.S. on time 70.7% 69.7% 30 th Enter College 30.9% 38.8% 46 th Grad-150% time 16.9% 18.4% 29 th

22 What does that mean California has lost a viable production function? Community College System Leaks Badly % of those intending to do so, transfer or complete the AA. (Beyond the open door) 74,564 Assoc Degrees in million students (5 percent) Bensimon s work (USC) shows extreme differences in success by race/ethnicity But also shows that intentional action can make a big difference

23 What California had, but lost (and needs to regain) As A State A Competitive Workforce Talent Accumulation A viable education production function The State Resources to Invest

24 Projected State and Local Budget Deficits as a Percent of Revenues, 2013 Alabama Louisiana Mississippi Tennessee Nevada Texas Oregon Washington Missouri South Dakota South Carolina Idaho Florida North Carolina Indiana Iowa California New Mexico Utah Montana United States Rhode Island Alaska Pennsylvania Illinois Hawaii Georgia New York Arizona Michigan Kentucky West Virginia Colorado Minnesota Oklahoma Nebraska Virginia Arkansas Kansas Connecticut North Dakota Ohio Vermont Wisconsin Massachusetts Maryland Maine New Jersey Delaware New Hampshire Source: NCHEMS; Don Boyd (Rockefeller Institute of Government), 2005

25 , , , , , , ,000 50,000 0 Public High School Graduates in California, by Race/Ethnicity, to (Actual), to (Projected) White, non-hispanic Black, non-hispanic Hispanic Asian/Pacific Islander American Indian/Alaska Native

26 What California had, but lost (and needs to regain) Within Higher Education An affordable system

27 How Can That Be We lead in low fees and high financial aid On tuition (06-07) Community Colleges US: $2,272 WICHE: $2,237 CA: $690 4-Year Institutions US: $5,836 WICHE: $4,351 CA: $4,220 On financial aid U.S.: $446 WICHE: $386 California: $514 But that isn t that half of it.

28 How Can It Be So Cheap Isn t Always Efficient Can mean Leaving Money On The Table Bad News California Community Colleges leave substantial federal Pell & Tax Credits unused Cost of living is a unique California challenge

29 What California had, but lost (and needs to regain) Within Higher Education An affordable system A cost-effective system Hold it, you just said...

30 Performance Relative to Total Funding per FTE Overall Index Scores for State Higher Education Systems (NCHEMS) Alaska Kentucky Maine Arkansas West Virginia Vermont Nevada South Carolina Louisiana New Jersey Georgia Idaho Wyoming Mississippi Hawaii Texas Tennessee New Mexico Oklahoma Oregon Ohio Alabama Michigan Indiana Pennsylvania Florida New York Montana Connecticut North Carolina South Dakota Minnesota Missouri Delaware California Kansas Illinois Nebraska Virginia Washington New Hampshire Maryland Wisconsin Arizona North Dakota Iowa Rhode Island Colorado Massachusetts Utah

31 Student Pipeline Result, ND IA MA PA 25 SD NH MN WINJ NE CT VA IN DE RI WY ME VT Performance UT CO OH MO IL CA KS US NY NC MD MT MI WA KY WV AZ AR TN OR ID FLOK MS AL LASC GA TX NV HI NM AK 10 $5,000 $10,000 $15,000 $20,000 Total Funding Per FTE

32 What California had, but lost (and needs to regain) Within Higher Education An affordable system A cost-effective system A strong Community College system THROUGH PUT Has To Improve Resource Starved, Given The Mission Funding Per FTE Student (2004) CaliforniaWICHERank 2 Year Insts $5,599 $6, th

33 What California never had (but really needs) A true accountability structure You lack clear goals what California expects from higher education You lack strong metrics what measures would demonstrate progress toward those goals You lack an integrated data system that is needed to support strong metrics Nothing contemplated on student learning Higher Education needs to be an evidence-based public service

34 Competing in the Flat World America led the world economy in the 20 th Century And California led America Exceptional Higher Education was key Talent accumulation was also key And Community College was the linchpin Competition is no longer within American; it is global. Others Competing successfully on human capital Preparing to compete on research It s a new New World

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