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The Louisiana Higher Education Master Plan: Current Context and Outlook

The Louisiana Higher Education Master Plan: Current Context and Outlook. Jim Purcell, Commissioner Louisiana Board of Regents. Management Boards: Management powers not vested in Regents; supervision and management of institutions. Regents: Statewide planning ,

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The Louisiana Higher Education Master Plan: Current Context and Outlook

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  1. The Louisiana Higher Education Master Plan: Current Context and Outlook Jim Purcell, Commissioner Louisiana Board of Regents

  2. Management Boards: Management powers not vested in Regents; supervision and management of institutions Regents:Statewide planning, coordination, budgetary responsibility, leadership and direction, capital outlay ranking and budget recommendations to governor and legislature Legislature: Appropriate funds to Management Boards; enact laws to supplement authority of Regents and Management Board and on other education matters Governor: Appoint members to Regents and Management Boards; set goals and priorities; carry out other executive powers Postsecondary Education in La.

  3. Constitution is unclear in Critical Areas • Budgeting powers: BoR has statewide planning and coordination powers and budgetary responsibility under the constitution, its budget recommendations not binding • BoR’s statewide planning and coordination get “scrambled” in the appropriations process through institution-specific or regional interests • Post-appropriation process: appropriations made directly to management boards; no way to enforce adherence to BoR’s recommendations on allocation to institutions and expenditures • Unclear lines of authority even in dire circumstances such as financial exigency; no effective means to avoid adverse impact on educational services and fiscal viability Collaboration Required

  4. Regents: Constitutional Functions (Article VIII, §5) • Planning, coordination, budgetary responsibility for higher ed • Represent the postsecondary education system • Formulate and revise Master Plan • Study merger of institutions, creation of new institutions and management boards; if one is proposed, make written recommendations within 1 year • Develop and adopt funding formula • Approve/eliminate degree programs, departments, etc. • Formulate and recommend operating and capital budget

  5. Planning, coordination, budgetary responsibility for higher ed Formulate and revise Master Plan Louisiana’s Report Card: Statewide Measures “Leaders & Laggards” Report Source: U.S. Chamber of Commerce

  6. Statewide Policy Environment Three components of the state policy environment were assessed: State Goals for Higher Education Outcomes-Based Funding Credit Transfer and Articulation Source: U.S. Chamber of Commerce

  7. LA’s Master Plan, Performance-Based Funding Formula, GRAD Act and Articulation Matrix Are Applauded • “Louisiana’s 2011 Master Plan has hard targets for a number of the state’s goals. Fifteen percent of any institution’s funding is based on six-year performance agreements concerning institution-specific outcomes. Louisiana has a clear articulation policy that includes a course equivalency matrix for individual course transfer.” Source: U.S. Chamber of Commerce

  8. Efficiency & Cost-Effectiveness Four Year Universities Received a C Two Year Institutions Received a B Source: U.S. Chamber of Commerce

  9. Meeting Labor Market Demand Four Year Universities Received a B Two Year Institutions Received a C Source: U.S. Chamber of Commerce

  10. Employment Rate by Degree LevelEighteen Months after Graduation - For All Completers 3 out of 5 of our college and university graduates are in the Louisiana workforce with 18 months of graduating.

  11. Figure 5Employment Rate by Field of StudyEighteen Months after Graduation - For 2008-09 Bachelor’s Degree Completers Louisiana Higher Education is addressing our high-demand workforce needs, but budget cuts may curtail expansion of high cost programs.

  12. Average Calculated Salary by Field of StudyEighteen Months after Graduation - For 2008-09 Bachelor’s Degree Completers Graduates in the right major can expect a middle class income within two years of graduation.

  13. Average Calculated Salary by Field of Study For 2008-09 Associate Degree Completers Graduates in the right major can expect a middle class Income within two years of graduation.

  14. Transparency & Accountability Four Year Universities Received a D Two Year Institutions Received a D Source: U.S. Chamber of Commerce

  15. LA Received a Below Average Score for Its Consumer Information and Public Accountability Resources “The state’s 2011 Employment Outcomes Report looks at employment rates and salaries for graduates, broken down by field of study but not by individual institutions. Louisiana does not measure student learning outcomes.”

  16. Southeastern Louisiana University Stopouts Total: 4,133 Legend SELU Students 1 - 19 21 - 34 39 - 57 61 - 133 171 - 256

  17. Legend SUBRStudents 1 - 6 7 - 18 22 - 35 54 - 92 110 - 140 Southern University Stopouts Total: 2,249

  18. Baton Rouge Community College Stopouts Total: 4,429 Legend BRCC Students 1 - 16 19 - 35 38 - 68 81 - 136 160 - 286

  19. Transparency & Accountability • Transparency • Developing data dashboard for Regents’ website • Grad Act web page enhancements • Louisiana Connect/LOSFA (www.louisianaconnect.org) • Accountability • Employment outcomes • Program review • Financial Conditions • GRAD Act Annual Report

  20. UL SystemGrambling State UniversityLouisiana Tech UniversityMcNeese State UniversityNicholls State UniversityNorthwestern State UniversitySoutheastern Louisiana UniversityUniversity of Louisiana at LafayetteUniversity of Louisiana at MonroeUniversity of New OrleansLSU System Louisiana State UniversityLSU Paul M. Hebert LawLSU Agricultural CenterLSU Pennington Biomedical Research Center LSU ShreveportLSU AlexandriaLSU EuniceLSU Health Sciences Center New OrleansLSU Health Sciences Center ShreveportLSU Health Care Services DivisionSU SystemSouthern University, New OrleansSouthern University, Baton RougeSouthern University Law CenterSouthern University, ShreveportSouthern University Agricultural Center LCTCSBaton RougeBossier ParishDelgadoLouisiana DeltaLouisiana TechnicalNunezRiver ParishesSouth LouisianaL.E. FletcherSowela Central Louisiana BOR LONI LOSFA LUMCON Sponsored Programs

  21. Time and Place Those individuals, families, cities, states and –increasingly—countries with the most education are prospering, while those with the least higher education are experiencing relative and often absoluteeconomic decline. --Postsecondary Education OPPORTUNITY, June 2005. For people and communities to thrive in the new economy they will need to have access to a good college and good health care.

  22. Master Plan for Public Postsecondary Education in Louisiana: 2011 • Approved in August, 2011 • Will be implemented over 15 years • Three goals: • Increase the educational attainment of the State’s adult population to the SREB’s States’ average (42%) by 2025 • Foster innovation through research in Science and Technology in Louisiana • Achieve greater accountability, efficiency and effectiveness in the postsecondary education system

  23. Master Plan for Public Postsecondary Education in Louisiana: 2011 • Underlying the three goals are: • 19 objectives • 71 activities • 97 performance measures • Qualitative • Quantitative • Annual reports • Fifteen-year analysis in 2025

  24. First Annual Review of the Master Plan for Postsecondary Education in Louisiana: 2011 “Improving, Innovating and Doing so Efficiently and Effectively”

  25. Goal 1: Increase the Educational Attainment of the State’s Adult Population to the SREB State’s Average (42%) by 2025 54 Quantitative Measures =39 =14 =1 • Graduate more students from high school ready for college or career • 65.8% of the Class of 2011 completed the Regents Core; 69.5% of the Class of 2012 completed the LA Core-4 • ACT composite for the Class of 2010 was 20.1; for the Class of 2011 it was 20.2 • The number of students needing remedial Math decreased by .04% from 2010 to 2011 • The number of students needing remedial English decreased by 4.8% from 2010 to 2011 • Increase enrollment of high school graduates in postsecondary education • 59.25% of the high school graduating class of 2009 enrolled in postsecondary education within 2 fall semesters after graduating from high school; for the class of 2010, that percentage was 59.45% • From AY 10-11 to AY 11-12, the total number of students on GO Grants increased by 4.75%; the number of first-time students on GO Grants , however, decreased 5.1%

  26. Goal 1: Increase the Educational Attainment of the State’s Adult Population to the SREB State’s Average (42%) by 2025 54 Quantitative Measures =39 =14 =1 • Focus on adult learners (age 25 or older) • The number enrolled in Adult Basic Education decreased by 1,096 from AY 09-10 to AY 10-11 • The number receiving GED’s decreased by 48 • The number of adults enrolled in postsecondary education increased by 1% • The number of accelerated degree programs offered through CALL increased from 17 to 21 • Increase retention rates • Overall, statewide 1st to 2nd year retention rates increased modestly from 71.6% to 71.9% • At four year institutions, this metric increased from 80.8% to 81.9% • At two-year colleges, retention decreased from 58.8% to 56.6% • At technical colleges, the retention rate (measured from fall to spring) decreased from 76.9% to 73.9%

  27. Goal 1: Increase the Educational Attainment of the State’s Adult Population to the SREB State’s Average (42%) by 2025 54 Quantitative Measures =39 =14 =1 • Improve transfer and articulation • The number of students declaring a Louisiana Transfer (LT) degree increased by 450% from fall 2010 to fall 2011. • The graduation rate of baccalaureate candidates who began at two-year colleges increased from 45.9% to 46.7% • Increase completers • Overall, the number of completers increased by 10% from AY 09-10 to AY 10-11 • Completer productivity (ratio of graduates to enrollment) decreased slightly from 5.82 to 5.35 • Develop a skilled work-force • The number of Career Readiness Certificates awarded increased by 162% • The number of high school students with dual enrollment in career/technical skills courses increased by 30%

  28. Goal 2: Foster Innovation Through Research in Science and Technology in Louisiana 28 Quantitative Measures =15 =11 =2 • Strengthen the foundational science and technology disciplines • The number of research-active faculty across the foundational sciences is relatively stable despite substantial reductions in state support • Promote multi-disciplinary and multi-institutional collaborative research efforts • Assignable physical space available on campuses for research has increased approximately 25% • Louisiana researchers continue to develop and submit proposals for NSF funding for a Science and Technology or Engineering Research Center • Advance research commercialization and translational activities that promote economic development in Louisiana • The Master Plan Research Advisory Committee (MPRAC) is collaborating closely with the LED/Battelle statewide study, due for completion in December 2012, to identify university research assets which promote economic development. • MPRAC’s Master Plan study, focusing on the same issue, will result during 2013-14 in recommendations to the Regents regarding strategic investment pertaining to research/economic development.

  29. Goal 3: Achieve Greater Accountability, Efficiency and Effectiveness in the Postsecondary Education System 15 Quantitative Measures = 12 = 3 = 0 • Advance performance funding tied to six-year GRAD Act agreements and aligned to each institution’s role, scope and mission • Majority of institution’s met targeted goals, and were subsequently awarded performance based funding, in first two years of GRAD Act reporting • Each institution’s funding recommendation is based upon its SREB category peer group • Serve as the definitive source of information on higher education in Louisiana • Increased research staff by 2 full-time employees • Participated in Complete College America (CCA) • Creation of longitudinal data systems • The 2011 Employment Outcomes Report • Data dashboard in development • Review and eliminate low-completer programs • Low Completer review process developed and will be implemented beginning fall 2012 • Create a more balanced enrollment mix • In fall 2000, 79% of first-time freshmen began at four-year universities. In fall 2011, that statistic was 54%. • The number of transfers from two-year to four-year institutions increased 6.6% from baseline to year 1

  30. 97 Quantitative Measures Total

  31. In the coming year…. • Statewide professional development summit on September 28, 2012 focusing on enrollment management (access, improving retention and increasing graduation rates) • BoR website re-design • Exploration of statewide learning outcomes

  32. Total Postsecondary Education Operating Budget FY 2008-09 Through FY 2012-13 State Funds and Self Generated Only Millions } State General Funds Baseline $1.6B -$426m Reduction of state funds to all of HE since 2008 =26.6%

  33. Mid-year 2008/09 -$55.2m July 1 2009/10 -$309.4m July 1 2009/10 ARRA +$189.7m Mid-year 2009/10 -$76.2m July 1 2010/11 -$124.7m July 1 2010/11 ARRA +$99.9m Mid-year 2010/11 -$34.7m Mid-year 2011/12 -$50.0m July 1 2012/13 -$65.9m Net Change-State General Funds -$426.5m State General Funds Reduction of -26.5%

  34. Total Postsecondary Education Operating Budget FY 2008-09 Through FY 2012-13 State Funds and Self Generated Only Millions Unfunded mandates such as increases in pensions and healthcare } State General Funds Baseline $1.6B -$426m 120 60 } 180 240 -$240m Reduction of state funds to all of HE since 2008 =26.6%

  35. Current Budget Context: • College and University funding comes from multiple sources • Historically, 75% of colleges and universities were funded with state general $ • Since 2008, there has been an 10% increase in enrollment • Since 2008 there has been a 26% decrease in state funding including stimulus funds • Since 2008, there has been a 49% increase in tuition and fee revenue • Even so, Louisiana has the 2nd lowest tuition and fees in the SREB Region • The 2012-2013 budget will fund higher education at 61% of the Southern average.

  36. Total Funding Per FTE Student By Source 2 Year Institutions 72%

  37. Total Funding Per FTE Student By Source 4 Year Institutions Self-generated funds have sustained Louisiana higher education

  38. Louisiana has both low state support and low tuition 2011 Tuition Equalization legislation for community colleges and GRAD Act tuition increases of 10% will bring Louisiana Community Colleges much closer to their peers

  39. Louisiana has both low state support and low tuition Proposed tuition equalization and stability fee legislation designed to assist Universities failed to move forward in the 2012 session. Even with GRAD Act tuition increases of 10%, Louisiana Universities will remain woefully underfunded.

  40. Fallacies Regarding the funding of Higher Education Higher Education is fat. Too many employees and especially too many administrators False:Even with a large increase in students, employees have been cut 6.34% from Fall 2008 to Fall 2011. If higher education ever was fat, it is not now.

  41. Higher Education reductions in Staff Fall 2008 Fall 2011 Employee Employee Percentage Category Count Count Change Exec/Admin/Managerial 2,463 1,868-24.16% Faculty 13,095 12,447 -4.95% Professionals 10,080 9,796 -2.82% Technical/Paraprofessionals 7,114 7,046 -0.96% Clerical/Secretarial 3,974 3,654 -8.05% Skilled Crafts 1,158 847 -26.86% Service/Maintenance 3,217 2,837 -11.81% Grand Total 41,101 38,495 -6.34%

  42. Fallacies Regarding the funding of Higher Education Too many people making 6 figure salaries. False: Only 142 college staff make > $200,000. 50% of these are research scientists associated with the Ag Center, Pennington or the Health Sciences Centers and 80% have their salary subsidized with non-state funds and bring in funding from grants and research efforts. 13% are connected to athletics. Their salaries are also subsidized. Remaining 37% are a few highly skilled faculty or senior executives with the systems, larger universities and the BOR. Some of these salaries are also supplemented with external funds.

  43. Faculty at Louisiana universities are on average paid $8k (12%) less than their SREB peers and 12k (15%) less than their national peers.

  44. Fallacies Regarding the funding of Higher Education Colleges and universities have over $900 million in fund balances that should be expended before more state funds should be directed to higher education. False:Louisiana has only recently allowed institutions to carry over institutional fund balances. There are $ in foundations, debt obligations, and facility maintenance fund accounts that are required to be maintained by BOR policy or state law or by contractual obligations. These dollars show up on financial statements, but the large majority are dedicated to specific purposes and are not transferable to educational and general educational purposes.

  45. Moving Higher Education Forward Legislation • Funding Stability is essential • A sustainable and appropriate revenue stream is needed • (Not 61% of the SREB Average!) • How? All revenue solutions require legislative approval 2/3 vote for tuition increase or additional state funding • Move tuition approval from Legislature to Systems within BOR defined ranges • Remove professional schools from tuition control by legislature. • Allow differential tuition for high cost programs • Charge per credit hour tuition • Allow tuition rates to be market driven • Allow institutions to keep a fund balance

  46. Moving Higher Education Forward Legislation • Of a $26 billion state budget, roughly $2.4 billion – less than 10 percent – is discretionary general fund. And of that discretionary money, about 86 percent goes to higher education and human services. • There is simply no way to cut large amounts of state spending without negatively affecting the basic building block of a prosperous future: Higher Education

  47. Cutting the Budget 2007-2008 General Fund Total: $9,021,123,490 2011-2012 General Fund Total: $7,794,660,235

  48. Support the Donahue Study Resolution to review the budget, and tax revenue and credits • Review tax credits/ tax breaks • Review all constitutional and statutory dedications – change as appropriate • Reconsider the positives of the Stelly plan • Identify good and bad taxes

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