Private Colleges in the Public Interest:Kentucky’s Independent Colleges and Universities

Gary S. Cox, Ph.DPresident

(502) 695-5007gary@mail.aikcu.org

http://aikcu.org

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• 20 independent, nonprofit colleges and universities. All are accredited by the Southern Association of Colleges and Schools (SACS) and meet the same rigorous quality standards as KY’s public colleges and universities.

• 31,000+ total students. 75% Kentucky residents.

• Diverse campuses, missions and student bodies. Provide critical choices and access to postsecondary opportunities. Locations from Pikeville to Mayfield and beyond via traditional campuses, extended sites, KCTCS and business partnerships, distance learning, and study abroad.

• Firmly committed to goals of 1997 House Bill 1. Work closely with CPE to establish and measure sector accountability goals. Regional and local stewards.

Kentucky’s 20 independent colleges and universities: The 10th component of Kentucky’s postsecondary education system

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Diverse campuses serving diverse students

• Geographic: 75% of the 31,000+ students are Kentucky residents. Students from all 120 counties, most states, 108 countries.

• Age: 1 in 5 is an adult student (over 24)

• Racial: 10.1% of undergraduates are minorities. 7.5% of undergrads are African-American. Minority enrollments range from 2% to 28%.

• Economic: 40% receive federal Pell grants

• Academic Preparation: Admissions standards range from open admissions to highly selective

• Program delivery models: traditional residential, distance learning, community-based programs, KCTCS partnerships, accelerated degree completion, graduate programs

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Kentucky’s 20 nonprofit, independent colleges and universities

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Independent colleges are affordable• Average tuitions 1/3 less than national private college average and 1/4 less

than Southern average. 2009-10 average published tuition and fees = $18,055.

• 2009-10 tuition increases under 5%.

• Net price students actually pay is very different from published price. Colleges discount tuition 40%, on average.

• Working aggressively to control costs through partnerships, greater efficiencies and innovations.

• Serving high need students. 40% of all undergraduates qualify for Pell Grants.

• Institutions are largest source of aid for students, providing about $3 for every $1 provided by Kentucky. Three-legged student financial aid partnership (State Aid + Federal Aid + Institutional/Private Aid) is working.

• Timely graduation means quicker entry into workforce or graduate/professional school, therefore fewer tuition payments and less foregone income.

• Relatively low average debt at graduation.

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Kentucky’s investment in AIKCU studentsis less than 4.5% of total state postsecondary spending

84.4%

11.2%

4.4%State postsecondary

appropriation ($1.06 billion)

State financial aid to students in other sectors ($140.6 million)

State financial aid to AIKCU students

($54.9 million)

Sources: CPE - 2008-09 state appropriation budget data. Includes public institutions, CPE operations, adult education and special programs

KHEAA - 2008-09 student financial aid data

Other4%

KEES28%

KTG51%

CAP17%

($15.2 million)

($27.8 million)

($9.5 million)

($2.2 million)

Total State Postsecondary Spending Kentucky’s Investment in AIKCU Students

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Program Maximum Award Eligibility Purpose Total AIKCU

AwardsTotal AIKCU

ReceiptsAverage AIKCU Award

College Access Program (CAP) $1900

• Financial need; tied to Pell Grant eligibility

• At least half-time student

• Assist low income students 5,946 $9,537,569 $1,604

Kentucky Tuition Grant (KTG) $2964

• Financial need• Full-time independent

college student

• Assist low/moderate income students attending independent colleges

• Recognize cost-effective role independent colleges play in educating Kentucky students by providing up to 1/2 of per-student subsidy received by public institutions

10,481 $27,841,839 $2,656

Kentucky Educational Excellence Scholarship

(KEES)

$2500

• Graduate of KY HS or GED program

• HS GPA of 2.5 or better

• ACT score of 15 or better

• Reward academic achievement • Retain Kentuckyʼs best students 9,479 $15,238,495 $1,608

Kentucky’s $52.6 million FY09 investment in financial aid to AIKCU students through CAP, KTG, KEES

Source: KHEAA, Jan. 2010

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Alice Lloyd College

Asbury College

Bellarmine University

Berea College

Brescia University

Campbellsville University

Centre College

Georgetown College

Kentucky Christian University

Kentucky Wesleyan College

Lindsey Wilson College

Mid-Continent University

Midway College

Pikeville College

Spalding University

St. Catharine College

Thomas More College

Transylvania University

Union College

University of the Cumberlands

0 20 40 60 80 100

CAP KTG KEES

Percent of KY Resident Undergraduates Receiving State Aid by Program

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• 22% of Kentucky’s bachelor’s degrees.

• Campuses provide well over $1 billion in educational facilities. More than $100 million in new or renovated academic facilities in the last four years.

• 100,000 alumni in Kentucky generate $4 billion in annual earnings and $416 million in state tax revenues.

• Combined total annual economic impact of more than $1.4 billion. Responsible for creating more than 12,000 jobs in Kentucky.

Kentucky’s Return on Investment

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0

100

200

300

400

500

600

700

800

Institutional Expenditures Capital Expenditures

Direct Indirect

Annual Economic Impact of Kentucky’s Independent Colleges and Universities = more than $1.48 billionTotal economic impact (in millions), by spending category

Source: Private Colleges, Public Benefits: The Economic and Community Impact of Kentucky’s Independent Colleges and Universities on the Commonwealth of Kentucky. Human Capital Research Corporation, 2006. http://www.aikcu.org/wp-content/uploads/2007/08/Private%20Colleges,%20Public%20Benefits%20-%20AIKCU%2011-1-06.pdf

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Independent colleges promote timely graduation

0

10

20

30

40

50

4 years 5 years 6 years

Percent of first-time, full-time students who graduate in...

AIKCU KY Public Universities

Source: IPEDS, Fall 2001 GRS Revised Cohort of first-time, full-time bachelor’s degree seeking students

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

31,26430,411

29,04127,44026,908

26,15125,53225,25224,76423,83623,206

AIKCU Total Headcount Fall Enrollment, 1999-2008

Source: CPE Comprehensive Database*Estimated Fall Enrollment

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0

1,050

2,100

3,150

4,200

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

4,1913,8813,8013,9023,779

3,5553,5753,271

3,453

AIKCU Bachelor’s Degrees, 2000-2008

Source: CPE Comprehensive Database

AIKCU enrolls about 19% of KY’s bachelor’s degree seeking students and produces 22% of bachelor’s degrees.

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Growth in transfer from KCTCS to AIKCU

0

275

550

825

1,100

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

1,093

938926

583514

402365351358

Source: CPE Comprehensive Database

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The recession has caused AIKCU members to question and evaluate everything...

• Operations

• Personnel and staffing

• Administrative costs

• Tuition and aid policies

• Strategic plans

• Investments

...except fundamental commitments to

• supporting students

• academic integrity

• institutional missions

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Institutional strategies

• Putting additional institutional funds into need-based aid

• Developing innovative programs and new delivery models

• Promoting collaboration and expanding offerings to adult and underserved populations

• Instituting salary freezes, leaving positions unfilled, combining positions, postponing projects, reducing overtime, etc.

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You can count on me wearing you out with ideas and questions - some of them tough ones - about how we conduct our business.

Centre College President John Roushin a fall 2009 address to faculty and staff

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Already modest endowments have lost a combined $227 million (13.6%) since 2008

Less than $10 million $10 to 30 million $30 to 50 million $100 million plus

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77

AIKCU member endowments by value (2010)

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AIKCU efforts to build strength through collaboration

• Developing business partnerships for cost containment and increased efficiencies: office supplies, insurance, information technology, fuel, many more

• Resource and information sharing

• Providing low cost professional development

• Building relationships with public institutions and agencies (KCTCS, KYVL, CPE, EPSB, MoSU-EKU-AIKCU Appalachian Education Initiative, others) to promote common good

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