Higher Education Finance Gary Benson ERDC ARRA SLDS Grant Conference
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Transcript of Higher Education Finance Gary Benson ERDC ARRA SLDS Grant Conference
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MAY 21, 2014
HIGHER EDUCATION FINANCE
GARY BENSON
ERDC ARRA SLDS Grant Conference
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MAY 21, 2014
UTILIZING METRICS DEVELOPED BY THE DELTA COST PROJECT
The Delta Project on Postsecondary Education Costs, Productivity, and Accountability:
•Independent, nonprofit organization•Concerned with productivity and accountability in postsecondary education•Had three basic questions regarding the financing of higher education:
1. Where does the money come from?2. Where does the money go?3. What does the money buy?
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MAY 21, 2014
THE DELTA COST PROJECT
•Developed metrics• Revenue• Expenditures• Productivity
•Developed database• Used IPEDS data
•Produced reports•Developed on-line reports by institution•Database now maintained by National Center for Education Statistics (U.S. Department of Education)•Reports now prepared by American Institute for Research (AIR)
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MAY 21, 2014
WASHINGTON HIGHER EDUCATION FINANCIALS
•Uses the definitions and metrics developed by the Delta Cost Project•Pulled data directly from IPEDS to the P20DW•Looks at only Washington institutions from 2002 to 2012• Where are the students taught?• Where does the money come from?• Where does the money go?• How much are students subsidized?• What does the money buy?• Degrees and completions• Productivity
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MAY 21, 2014
WASHINGTON HIGHER EDUCATION FINANCIALS
•Five sectors:• Private (for-profit and nonprofit) career schools• Private (nonprofit and for-profit) baccalaureate institutions• Public community and technical colleges• Public comprehensive institutions• Public research universities
•All dollar values have been adjusted to 2012 dollars using the IPD-PCE•All dollar values are on a per FTE student basis
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MAY 21, 2014
INSTRUCTIONAL ACTIVITY MOSTLY (81%) TAKES PLACE AT
PUBLIC INSTITUTIONS
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MAY 21, 2014
INSTRUCTIONAL ACTIVITY IS MOSTLY (90%) AT THE
UNDERGRADUATE LEVEL
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MAY 21, 2014
THE PREDOMINANT AMOUNT OF GROWTH IN THE LAST 10 YEARS HAS OCCURRED AT COMMUNITY AND TECHNICAL COLLEGES
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MAY 21, 2014
TUITION IS THE PRIMARY (89%) SOURCE OF REVENUE AT
PRIVATE CAREER SCHOOLS
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MAY 21, 2014
TUITION IS THE PRIMARY (74%) SOURCE OF REVENUE AT
PRIVATE BACCALAUREATE INSTITUTIONS
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MAY 21, 2014
TUITION, STATE APPROPRIATIONS, AND GOVERNMENTAL CONTRACTS ARE MAJOR SOURCES OF REVENUE AT COMMUNITY AND TECHNICAL COLLEGES
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MAY 21, 2014
STATE APPROPRIATIONS PER STUDENT ARE DECLINING WHILE TUITION REVENUE IS INCREASING AT THE
COMMUNITY AND TECHNICAL COLLEGES
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MAY 21, 2014
TUITION IS A GROWING REVENUE SOURCE AT THE
COMPREHENSIVE INSTITUTIONS
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MAY 21, 2014
STATE APPROPRIATIONS PER STUDENT ARE DECLINING WHILE TUITION IS INCREASING AT
THE COMPREHENSIVE INSTITUTIONS
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MAY 21, 2014
TUITION, GOVERNMENTAL CONTRACTS, AND AUXILIARY ENTERPRISES ARE THE PRIMARY REVENUE SOURCES AT
THE RESEARCH UNIVERSITIES
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MAY 21, 2014
MAJOR CHANGES IN STATE APPROPRIATIONS AND TUITION HAVE OCCURRED AT THE
RESEARCH UNIVERSITIES
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MAY 21, 2014
SPENDING AT THE PRIVATE CAREER SCHOOLS IS MOSTLY (90%) ON EDUCATION-RELATED
ACTIVITIES
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MAY 21, 2014
SPENDING AT THE PRIVATE BACCALAUREATE INSTITUTIONS IS PRIMARILY (84%) ON
EDUCATION-RELATED ACTIVITIES
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MAY 21, 2014
SPENDING AT THE COMMUNITY AND TECHNICAL COLLEGES IS MOSTLY (76%) ON
EDUCATION-RELATED ACTIVITIES
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MAY 21, 2014
SPENDING AT THE COMPREHENSIVE INSTITUTIONS IS ORIENTED (66%) TOWARDS
EDUCATION-RELATED ACTIVITIES
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MAY 21, 2014
SPENDING AT THE RESEARCH UNIVERSITIES IS MIXED BETWEEN EDUCATION ALONG WITH RESEARCH AND AUXILIARY ENTERPRISES
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MAY 21, 2014
THE “STUDENT SUBSIDY” IS THE DIFFERENCE BETWEEN EDUCATION-RELATED SPENDING
AND TUITION REVENUE
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MAY 21, 2014
AT THE PRIVATE CAREER SCHOOLS THERE HAVE BEEN YEARS WHEN STUDENTS PAY
MORE THAN IS SPENT ON EDUCATION
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MAY 21, 2014
THE PRIVATE BACCALAUREATE INSTITUTIONS PROVIDE A SUBSIDY TO STUDENTS
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MAY 21, 2014
THE SUBSIDY AT THE COMMUNITY & TECHNICAL COLLEGES IS DECLINING
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MAY 21, 2014
THE SUBSIDY AT THE COMPREHENSIVE INSTITUTIONS HAS BEEN CUT IN HALF IN THE
LAST FOUR YEARS
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MAY 21, 2014
THE SUBSIDY AT THE RESEARCH UNIVERSITIES IS GOING DOWN
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MAY 21, 2014
TUITION IS A GROWING SOURCE OF REVENUE FOR EDUCATION-RELATED SPENDING AT THE PUBLIC
INSTITUTIONS; BUT STILL LESS THAN AT THE PRIVATE INSTITUTIONS
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MAY 21, 2014
THERE WERE 73,500 DEGREES AND 30,000 NON-DEGREE AWARDS EARNED BY STUDENTS
IN 2012
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MAY 21, 2014
NEARLY HALF OF THE AWARDS WERE EARNED AT THE COMMUNITY & TECHNICAL COLLEGES
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MAY 21, 2014
THE PRIVATE CAREER SCHOOLS PRIMARILY AWARDED CERTIFICATES REQUIRING LESS
THAN FOUR ACADEMIC YEARS
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MAY 21, 2014
THE PRIVATE BACCALAUREATE INSTITUTIONS AWARDED MOSTLY DEGREES
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MAY 21, 2014
THE COMMUNITY & TECHNICAL COLLEGES PREDOMINANTLY AWARDED ASSOCIATE’S
DEGREES ALONG WITH SHORT-TERM CERTIFICATES
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MAY 21, 2014
THE PUBLIC COMPREHENSIVE INSTITUTIONS AWARD BACHELOR’S DEGREES ALONG WITH
MASTER’S DEGREES
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MAY 21, 2014
THE PUBLIC RESEARCH UNIVERSITIES AWARD PRIMARILY DEGREES
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MAY 21, 2014
WHILE ALL TYPES OF COMPLETIONS HAVE SHOWN GROWTH OVER THE LAST 10 YEARS, SHORT-TERM CERTIFICATES HAVE EXPLODED
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MAY 21, 2014
THE NUMBER OF COMPLETIONS (DEGREES AND CERTIFICATES) PER 100 FTE STUDENTS
HAS INCREASED SIGNIFICANTLY AT THE CTC’S
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MAY 21, 2014
DEGREES EARNED PER 100 FTE STUDENTS HAS INCREASED IN ALL THE FOUR-YEAR
SECTORS
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MAY 21, 2014
SPENDING PER COMPLETION IS RELATIVELY LOW AT THE CAREER SCHOOLS AND FALLEN
DRAMATICALLY AT THE CTC’S
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MAY 21, 2014
SPENDING PER DEGREE HAS FALLEN AT THE COMPREHENSIVE INSTITUTIONS AND INCREASED IN THE OTHER SECTORS
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MAY 21, 2014
CONTACT THE ERDC
ERDC Websitewww.erdc.wa.gov
ERDC LocationGeneral Administration Building
210 11th Ave SW, Room 318Olympia, WA 98504-3113
ERDC Mailing AddressP.O. Box 43113
Olympia, WA 98504-3113
ERDC Phone/FaxPhone: (360) 902-0599
Fax: (360) 725-5174