1 moving michigan into the knowledge economy michael a. boulus, ph.d. executive director presidents...
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Moving Michigan into the knowledge economy
Michael A. Boulus, Ph.D.Executive Director
Presidents Council, State Universities of Michigan
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Why is higher education importantEconomy requires an educated workforceLumina Foundation Report: By 2018, 62% of MI
jobs will require post-secondary education. MI will need to fill about 1.3 million vacancies resulting from job creation, work retirements and other factors. Of these job vacancies, 836,000 (65%) will require post secondary credentials.
Global competition for educated workersProjected 15 million more college grads needed
in next 15 years in addition to current production
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Higher education: The way forwardProsperity (per cap income) linked closely to %
of college graduates in a stateOf the top 10 states in per cap income, nine are in
top 12 of education attainmentMichigan must transform itself into a
knowledge economy state or become poorerNew factory hires at Ford: $14/hour, no pension2001-2007: 10.7% of “low education” jobs were
lost 1.7% of “high education” jobs were
lost
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Higher education: The way forwardCounty % w/
bachelor degree
Household income
% Unemployme
nt(2009)
Population below
poverty line
Wayne 11.9 $38,192 20.1 24%
Oakland 24.2 $62,308 12.1 9.7%
Macomb 13.6 $50,553 15.4 10.9%
Source: 2009 American Community Survey
1-Year Estimates
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Higher Education in MichiganArticle VIII of the State Constitution:Section 4: Requires Legislature to appropriate funds to maintain Michigan’s 15 public universities.Section 5: Provides for elected boards of control for University of Michigan, Michigan State, and Wayne State.Section 6: Provides for appointed boards of control for remaining universities.Section 5 and 6: Grants each university board control and direction of all expenditures from institution’s funds.
Because of the operational autonomy granted to the universities under the constitution, Michigan is the only state without a statewide board, commission, or agency specifically responsible for higher education administration or oversight.
House Fiscal Agency: December 2010 5
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Michigan and higher education support
Higher education support per capita:
North Carolina $435Minnesota $301
U.S. average $292Michigan $258Indiana $239
Source: State Higher Education Executive Officers report
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Higher Education Share of State GF/GPHigher Education makes up 18.6% of the total state GF/GP budget
FY 2010-11 GF/GP Total = $8,301,784,800
7House Fiscal Agency: December 2010
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Enrollment History
House Fiscal Agency: December 2010 8
Undergraduate FYES
Graduate FYES
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Higher education this decadeState personal income + 12.7 %State spending from state resources + 2.4
State higher education approps - 13.7University FTE enrollment + 12.8
Source: Senate Fiscal Agency
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Michigan’s higher ed cuts among nation’s deepest
State Higher Education Executive Officers, 2010 State Higher Education Finance Report.
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Tuition Rates & State Funding
House Fiscal Agency: December 2010 11
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Due to state cuts, Michigan students now carry heavy burden
State Higher Education Executive Officers, 2010 State Higher Education Finance Report.
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Sources of General Fund Operating Revenue
1972-73 1982-83
1992-93 2010-11
Tuition & Fees25%
Tuition & Fees38%
Tuition & Fees41%
Appropriations75%
Appropriations62%
Appropriations59%
Appropriations26%
Tuition & Fees74%
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House Fiscal Agency: December 2010 14
Public University General Fund Revenue Source History
% o
f Tot
al G
F R
even
ue
Other
State Appropriations
Tuition and Fees
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15House Fiscal Agency, December 2010
Michigan universities have been frugal
Total university GF spending/student
Note: FY 2010-11amounts are estimates
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Our universities have been cutting costs and closing programs where demand is not high
• Disciplined approach to financial management with emphasis on multi-year budget planning.
• Reducing operational costs through deliberate, thoughtful and steady efforts over time.
• Continual reallocation of resources toward highest priorities.
• Keeping education affordable by investing in student financial aid.
• Collaborating together on shared services for cost containment.
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Collaborating for Efficiency and Quality
Michigan Universities Self-Insurance Corporation
Michigan Universities Coalition on Health
Merit Network, Inc.Midwestern Higher Education Compact
Michigan Delivering Extended Agreements Locally
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Health care cost containmentMedical + prescription costs (average family)
Public universities
State government
Total cost $9,046 $11,887
Employer cost $7,863 $10,900
Employee cost $1,183 $987
Employee cost share
13.1% 8.3%
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Collaborating for Efficiency and QualityAcademic Program ReviewMichigan Initiative for Innovation and
EntrepreneurshipIntern in MichiganPromoting The PublicsHigher Education Recruitment ConsortiumMichigan Transfer NetworkJapan Center for Michigan UniversitiesDetroit Compact and Wade McCree
ScholarshipsArts in the LegislatureUndergraduate Professor of the Year
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Final thoughtsHigher education has born a disproportionate
share of state budget cutsDespite that, we have increased enrollment and
graduation numbersWe are collaborating and cutting programs and
costs
In the future, the states and regions with the most college graduates will be prosperousMichigan needs to do more to produce and
retain college graduatesOur universities are on the front lines of both
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Old Chinese Proverb
If you don’t change your direction, you may end up
where you are headed
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Moving Michigan into the knowledge economy