The Costs of Change (Re) Educating North Carolina’s Workforce

1. The Costs of Change (Re)Educating North Carolina’s Workforce 2006-2007 Consensus Expansion Budget RequestThe North Carolina Community College System H. Martin Lancaster, President

2. North Carolina Community College System • 58 community colleges serving all 100 counties • Almost 800,000 students • North Carolina’s most important resource for economic transformation North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

3. Demographic Changes:Migration • Since 2000, NC’s population growth sixth-highest in USA • 71 percent of growth IN-MIGRATIONfrom other states, other COUNTRIES • Since 1995, NC ranks in top three states nationally in rate of increase of foreign-born people (largely from Mexico, other Latin America, Asia) • Escalating pressure on ESL, literacy, other enrollment; growing demand for student services, financial aid North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

4. Demographic Changes:Age • Baby boomers reaching 60 • Retirees moving in • New demands on health care system, need for health care employees • Growing demand for lifelong learning for leisure, second career North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

5. Regional Changes • Population shifting into Piedmont Corridor, away from northeast, Coastal Plain • Younger people clustered in metros, near military bases • Older people clustered near beaches, in some mountain areas • Mismatch between supply and demand of teachers, health care, other critical workers North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

6. Economic Changes:Shocks to Manufacturing • Foreign trade agreements, shift to knowledge-based industries, corporate mergers, fluctuations in technology market cause drastic and continuing change, eliminating low-skilled jobs • 1970: Manufacturing workforce was 30 percent of state’s total • Today: 17 percent • Last year, manufacturing declined 12.2 percent • Rural areas lose most; since 1997, 74 percent of job growth in Mecklenburg and Wake Counties North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

7. Economic Changes:Where New Jobs Are • Recent job gains • Professional and Business Services 15.5% • Education/Health Services 13.5% • Construction 7.9% • Leisure/Hospitality 7.6% • Fastest growing future jobs through 2012 • Registered nurses, home health aides, nursing aides/orderlies • Food prep, service • Truck drivers • Retail sales, cashiers, customer service North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

8. Technology Changes • Technology at home: connectivity, e-commerce • Technology in class: distance learning, computers • Technology on the job: switch to high-tech industries, bio-tech • Stronger basic education, higher technology skills essential North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

9. Pay for faculty, staff, college presidents Biotechnology, Customized Industry Training, Small Business Centers, other economic development programs Enrollment reserve NCCCS/UNC Partnerships Where are the gaps? Funding Progress North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

10. 1999-2007 Enrollment Increase in NC Community College SystemFull-Time Equivalent Students (FTE)Actual and Projected North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

11. Access and Affordability • Enrollment Growth Reserve $5,988,402 • Regular Term Enrollment Growth $9,181,047 • Multiple College Locations $ 601,171 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

12. Access and AffordabilityAnnual In-State Tuition 68.7% Increase Since 99-00 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

13. Access and AffordabilityBudgeted Tuition vs. Receipts Higher Rates + More Waivers = Growing Gap North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

14. Access and Affordability • Tuition Receipt Adjustment $13,500,000 • Financial Aid $ 1,781,604 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

15. Costs of Compensation • Faculty and Professional Staff $28,722,094 • Current full-time faculty now $12,000 below national average, 46th in nation, 15th out of 16 in SREB • Presidents’ Salary Schedule $ 522,196 • The System Office $ 1,388,552 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

16. Costs of Compensation • Bonus Leave Days $2,449,967 • Restoring College $2,394,665 Benefit Reductions North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

17. Student Services and Support • Who goes to community colleges? • 29% have incomes below $20,000 • 41% are first-generation college students • 33% are parents • 54% work full-time in addition to taking classes • 47% of African-Americans, 56% of Hispanics, and 47% of Native Americans who attend college go to community college • 9% have a disability • Community college students need guidance, counselors, financial aid North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

18. Student Services and Support • Financial Aid Staffing $7,018,476 • Students with Disabilities $3,000,000 • Student Services Staffing $6,766,860 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

19. Economic and Workforce Development • Allied Health Program Funding $28,943,969 • Biotechnology $ 4,240,261 • Regional Customized Training Specialists $ 153,470 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

20. Technology EnhancementsDistance Learning Registrations North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

21. Technology Enhancements • Distance Learning $11,820,560 • Equipment Funding$17,000,000 North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

22. Bonus Leave Days $24,294,135 Equipment $31,319,732 Distance Learning $ 2,283,180 Infrastructure Advance Planning for $29,000,000New Facilities New Program Start-Up $10,000,000 GED Office & Equipment Replacement $ 485,509 Non-Recurring Items System Office North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

23. AccountabilityGetting the Job Done • General Assembly requires performance measures focused on student success and employer satisfaction, offers financial incentive for superior performance. • First year, five of 58 comprehensive community colleges earned "superior" rankings. Next year saw 26, then 31, then 36. • Most recent year, 37 earned “superior” rankings. • Budget did allow performance funding in 2005, with “superior” colleges sharing $6.8 million for equipment, programs and bonuses. • Dramatic and continuing progress shows community college students get jobs, please employers, pass exams, use state’s investment well. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

24. The Costs of Change (Re)Educating North Carolina’s Workforce 2006-2007 Consensus Expansion Budget RequestThe North Carolina Community College System H. Martin Lancaster, President