State Workforce Investment Board

David Buhler, Commissioner of Higher Education

January 10, 2013

Overview

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1. Higher Ed as an Economic Driver2. Creation of Innovation3. Expanding the Talent Force

Research Universities•University of Utah (Flagship)

–medical school, law school, pharmacy school, etc.

•Utah State University (Land Grant)– includes regional campuses

Regional Universities/Colleges•Weber State University•Utah Valley University•Southern Utah University (Liberal Arts &

Sciences)

•Dixie State College

Community Colleges•Snow College•Salt Lake Community College

Utah’s Eight Public Colleges & Universities

Higher Education Fuels the State’s EconomyDegrees & Credentials

• Certificates; 2,152• Associates: 10,067• Bachelors: 13,699• Masters, PhD, Prof: 4,058

Space Inventory• 25,047,104 square feet (67% of state inventory)

Funding per FTE• Tuition = 51%• Taxes = 49%

1) Higher Ed as an Economic Driver

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A $4.5 Billion Enterprise

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Tuition/Fees; $592,409,100

State Appro-priations;

$703,119,511

Everything Else;

$3,231,202,187

State Funds $968,433,400

Donations &Federal,

$1,103,629,900

Revenue Bonds $1,255,477,400

Student Fees $117,766,300

28% 72%

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Leveraging State DollarsUSHE provides $2.6 for every state dollar of capital development

USHE Capital Funding by Source (1996-2012)

A major employerUSHE Institutions 33,162

Tax funded:15,204

Other:17,958

Intermountain Healthcare:32,000State of Utah:25,000Hill Air Force Base:15,000Wal-Mart (in Utah):20,000

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$19,316

$26,355 $30,632

$41,273

$59,843

8.2%7.6%

5.5%

4.1%

1.4%

Individual Benefits of Higher Ed are Undeniable

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Median Wage Unemployment Rate

Sources: American Communities Survey 201 0, Utah Department of Workforce Services

Benefits of Higher Education – for the State

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12%

40%

48%

34%38%

28%

Taxes Paid Population

State Tax Contributions & Population (by educational attainment) 

Sources: US Census, Utah System of Higher Education

2) The Creation of Innovation

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Creation of InnovationBasic Research and USTAR (since 2005)• 202 patents (106 UU, 96 USU)• 330 disclosure (142 UU, 188 USU)• 120 startups at University of UtahApplied Research• Support for gov’t and business on specific

projects• All institutions participate in applied

research in varying degrees– Example: Bureau of Economic and

Business Research12

Alan KayXerox/Apple

Just like these innovators…

Tom StockhamSoundstream

Ivan Sutherland

John WarnockAdobe

Ed CatmullPixar/Disney

David EvansEvans &

Sutherland

Inspiring the Next Generation of Entrepreneurs

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Fueling Entrepreneurships And New Business

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USHE campuses institutions provide critical geographic hubs:• 10 of 11 Small Business Development Centers

located on USHE campuses• 6 of 7 USTAR Regional offices centers located on

USHE campuses.

Other Regional and Statewide Business Development• PTAC, Rural Development, SBA, etc.

• Resulting in enriched student experience relevant to the regions/industries– Internships– Undergraduate and Applied Research– Business Incubation– Business and Entrepreneur resources (market

research, capital, consulting)

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Fueling Entrepreneurships And New Business

3) Expanding the Talent Force

(Preparation, Participation, Completion)

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Expanding the Talent Force

• By 2018, 66% of jobs in Utah will require postsecondary education.

• Utah is currently at 43%.• 20 highest-paying occupations in

Utah currently require at least a Bachelor’s degree.

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Expanding the Talent Force

More Participation Needed…• Enrollment growth is not keeping up with

population growth• Between 1994 and 2009:

– Youth (18-24) population grew 40%– First time freshmen enrollment grew

20%• 49% of 18-24 year olds not enrolled in

college19

Source: Dr. Jeff Strohl, Center on Education and the Workforce, Georgetown University

Most Common Majors*Utah’s 5-Star Jobs (2010-

2020)(high growth, high demand, high wage)

In Utah Utah

Health Professions Registered Nurses

Business & Marketing General and Operations Managers

Social Science & Public Admin. Sales, Manufacturing

Education Accountants & Auditors

Vocational Studies First-Line Supervisors in Construction

Engineering & Related Technologies Secondary School Teachers

Psychology Management Analysts

Communications Software Developers, Software

Visual & Performing Arts Sales, Manufacturing (Technical/Scientific)

Computer & Info Sciences Computer Programmers

*Does not include General Studies Associates degrees primarily for transfer into 4-year programsUSHE 2012 Data Book(http://www.higheredutah.org/wp-content/uploads/2009/07/Tab-B-Degrees-and-Awards1.pdf)

Department of Workforce Services, Utah Job Outlook, long-term (http://jobs.utah.gov/opencms/wi/pubs/outlooks/state/index.html)

Expanding the Talent Force

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Increase degrees 4% annually to reach 66%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2030000

32000

34000

36000

38000

40000

42000

44000

46000

45,000+

31,339

Annual Growth in Certificates (>1 yr) and Degrees to USHE students

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InnovationLeverage use of technology

• Online/hybrid courses• Open courseware

Broaden reach to K-12 students• College readiness• 1st generation college-

goersFocus on industry needs

• STEM• Health Professions

InvestmentIn Capacity and Completion    $30M increases capacity in critical programs+ $10M scholarships to assist in completion_________________________________     Total: $40 million investment $20M/$20M Investment Plan    $20M state contribution+  $20M institutional innovation & investment_________________________________     Total: $40 million investment  

66%: Expand Teaching Capacity & Completions by 2020

• Year 1 of 7-year plan• Invest in STEM & health professions• Student preparation for high-income

careers• Build teaching/completion capacity for

7,300 new degrees and certificates

66%: Expand Teaching Capacity & Completions by 2020

Benefits of Higher Education - for the State

If Utah reaches the 66% goal:• Wage income would increase annually

by between $1.5B and $3B annually.• 5%-10% increase in total state wage

share of GDP.

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Source: Dr. Jeff Strohl, Center on Education and the Workforce, Georgetown University

Summary

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1. Higher Ed is a large enterprise.2. Higher Ed is critical to workforce

development and innovation.3. We must expand capacity to expand the

talent force.4. Continue building partnerships with

business and industry.5. Strategies for our state require support of

all stakeholders.

Thank YouQuestions/Discussion

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