higher education finance gary benson erdc arra slds grant conference

MAY 21, 2014

HIGHER EDUCATION FINANCE

GARY BENSON

ERDC ARRA SLDS Grant Conference

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?

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)

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

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

MAY 21, 2014

INSTRUCTIONAL ACTIVITY MOSTLY (81%) TAKES PLACE AT

PUBLIC INSTITUTIONS

MAY 21, 2014

INSTRUCTIONAL ACTIVITY IS MOSTLY (90%) AT THE

UNDERGRADUATE LEVEL

MAY 21, 2014

THE PREDOMINANT AMOUNT OF GROWTH IN THE LAST 10 YEARS HAS OCCURRED AT COMMUNITY AND TECHNICAL COLLEGES

MAY 21, 2014

TUITION IS THE PRIMARY (89%) SOURCE OF REVENUE AT

PRIVATE CAREER SCHOOLS

MAY 21, 2014

TUITION IS THE PRIMARY (74%) SOURCE OF REVENUE AT

PRIVATE BACCALAUREATE INSTITUTIONS

MAY 21, 2014

TUITION, STATE APPROPRIATIONS, AND GOVERNMENTAL CONTRACTS ARE MAJOR SOURCES OF REVENUE AT COMMUNITY AND TECHNICAL COLLEGES

MAY 21, 2014

STATE APPROPRIATIONS PER STUDENT ARE DECLINING WHILE TUITION REVENUE IS INCREASING AT THE

COMMUNITY AND TECHNICAL COLLEGES

MAY 21, 2014

TUITION IS A GROWING REVENUE SOURCE AT THE

COMPREHENSIVE INSTITUTIONS

MAY 21, 2014

STATE APPROPRIATIONS PER STUDENT ARE DECLINING WHILE TUITION IS INCREASING AT

THE COMPREHENSIVE INSTITUTIONS

MAY 21, 2014

TUITION, GOVERNMENTAL CONTRACTS, AND AUXILIARY ENTERPRISES ARE THE PRIMARY REVENUE SOURCES AT

THE RESEARCH UNIVERSITIES

MAY 21, 2014

MAJOR CHANGES IN STATE APPROPRIATIONS AND TUITION HAVE OCCURRED AT THE

RESEARCH UNIVERSITIES

MAY 21, 2014

SPENDING AT THE PRIVATE CAREER SCHOOLS IS MOSTLY (90%) ON EDUCATION-RELATED

ACTIVITIES

MAY 21, 2014

SPENDING AT THE PRIVATE BACCALAUREATE INSTITUTIONS IS PRIMARILY (84%) ON

EDUCATION-RELATED ACTIVITIES

MAY 21, 2014

SPENDING AT THE COMMUNITY AND TECHNICAL COLLEGES IS MOSTLY (76%) ON

EDUCATION-RELATED ACTIVITIES

MAY 21, 2014

SPENDING AT THE COMPREHENSIVE INSTITUTIONS IS ORIENTED (66%) TOWARDS

EDUCATION-RELATED ACTIVITIES

MAY 21, 2014

SPENDING AT THE RESEARCH UNIVERSITIES IS MIXED BETWEEN EDUCATION ALONG WITH RESEARCH AND AUXILIARY ENTERPRISES

MAY 21, 2014

THE “STUDENT SUBSIDY” IS THE DIFFERENCE BETWEEN EDUCATION-RELATED SPENDING

AND TUITION REVENUE

MAY 21, 2014

AT THE PRIVATE CAREER SCHOOLS THERE HAVE BEEN YEARS WHEN STUDENTS PAY

MORE THAN IS SPENT ON EDUCATION

MAY 21, 2014

THE PRIVATE BACCALAUREATE INSTITUTIONS PROVIDE A SUBSIDY TO STUDENTS

MAY 21, 2014

THE SUBSIDY AT THE COMMUNITY & TECHNICAL COLLEGES IS DECLINING

MAY 21, 2014

THE SUBSIDY AT THE COMPREHENSIVE INSTITUTIONS HAS BEEN CUT IN HALF IN THE

LAST FOUR YEARS

MAY 21, 2014

THE SUBSIDY AT THE RESEARCH UNIVERSITIES IS GOING DOWN

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

MAY 21, 2014

THERE WERE 73,500 DEGREES AND 30,000 NON-DEGREE AWARDS EARNED BY STUDENTS

IN 2012

MAY 21, 2014

NEARLY HALF OF THE AWARDS WERE EARNED AT THE COMMUNITY & TECHNICAL COLLEGES

MAY 21, 2014

THE PRIVATE CAREER SCHOOLS PRIMARILY AWARDED CERTIFICATES REQUIRING LESS

THAN FOUR ACADEMIC YEARS

MAY 21, 2014

THE PRIVATE BACCALAUREATE INSTITUTIONS AWARDED MOSTLY DEGREES

MAY 21, 2014

THE COMMUNITY & TECHNICAL COLLEGES PREDOMINANTLY AWARDED ASSOCIATE’S

DEGREES ALONG WITH SHORT-TERM CERTIFICATES

MAY 21, 2014

THE PUBLIC COMPREHENSIVE INSTITUTIONS AWARD BACHELOR’S DEGREES ALONG WITH

MASTER’S DEGREES

MAY 21, 2014

THE PUBLIC RESEARCH UNIVERSITIES AWARD PRIMARILY DEGREES

MAY 21, 2014

WHILE ALL TYPES OF COMPLETIONS HAVE SHOWN GROWTH OVER THE LAST 10 YEARS, SHORT-TERM CERTIFICATES HAVE EXPLODED

MAY 21, 2014

THE NUMBER OF COMPLETIONS (DEGREES AND CERTIFICATES) PER 100 FTE STUDENTS

HAS INCREASED SIGNIFICANTLY AT THE CTC’S

MAY 21, 2014

DEGREES EARNED PER 100 FTE STUDENTS HAS INCREASED IN ALL THE FOUR-YEAR

SECTORS

MAY 21, 2014

SPENDING PER COMPLETION IS RELATIVELY LOW AT THE CAREER SCHOOLS AND FALLEN

DRAMATICALLY AT THE CTC’S

MAY 21, 2014

SPENDING PER DEGREE HAS FALLEN AT THE COMPREHENSIVE INSTITUTIONS AND INCREASED IN THE OTHER SECTORS

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