NationalCenterforHigherEducationManagementSystems

nchems.org• higheredinfo.org

YouAreNotAlonePursuingGoalsintheFaceofBudgetCuts

University ofAlaskaLeadershipSummitAnchorage,Alaska

November29,2016

Alaska’sOverarchingGoal:

65%ofAlaska’sworkingagepopulationwillhaveapostsecondaryeducationcredential– adegreeorcertificate

ofvalue– by2025.

StateswithStatedPostsecondaryAttainmentGoals

Source:LuminaFoundation/StrategyLabs.

=StatedAttainmentGoals

AttainmentGoalDescriptionsState Goal TargetAges GoalDate Notes

Alaska 65% 25-64 2025Arizona 60% 25-64 2030Arkansas 60% 25-64 2030 Arkansashasagoalofincreasingthenumberofpostsecondary

credentialsby40percentover2013-14academicyearlevels.Colorado 66% 25-34 2025 Reduceattainmentgapsamongunderservedpopulations.

Connecticut 40%Bacc;30%Assoc. 25-64 2025 Goalis40%withaBaccalaureateand30%withanAssociate’sDegree.

Georgia 60% 25-34 2020Hawaii 55% 25-64 2025 UHincreaseby6-9%everyyear.Idaho 60% 25-34 2020Illinois 60% 25-64 2025Indiana 60% 25-64 2025Iowa 70% 25-64 2025 Goalis"educationortrainingbeyondhighschool"

Kansas 60% 25-64 2025Kentucky 58% 25-64 2025Louisiana 42% 25-64 2025 Goalof7.2%annualgrowthrate.Maryland 55% 25-64 2025Massachusetts 60% 25-34 2020Minnesota 70% 25-44 2025Missouri 60% 25-64 2020Montana 60% 25-64 2020Nevada 60% 25-64 2020NewHampshire 65% 25-64 2025

Oregon 40-40-20 25-64 2025 40%withaBaccalaureate, 40%withanAssociateDegreeorCertificate,and20%withaHighSchoolDiploma.

RhodeIsland 60% 25-64 2025SouthCarolina 29%w/Bachelor'sor

Higher25-64 2030

Tennessee 55% 25-64 2025Texas 60% 25-34 2030Utah 66% 25-64 2020Virginia 60.50% 25-64 2030 Top10%BenchmarksWashington 70% 25-44 2023

StateRevenueShortfallsHaveBecomeIncreasinglyCommonOverthePastDecade

• Stateshavenotadaptedtothe“newnormal”• Taxstructureshaven’tkeptpacewithchangesinunderlying

economies• Taxcollectionsfallingshortofbudgetedfigures– evenwhen

budgetestimatesareconservative

Statesbehavingasifthey’reinarecession,eventhoughnationisinaprolongedperiodof(albeit

modest)economicimprovement.

StateTaxRevenueEstimates

April-June2015vs.2016,PercentChange

-32%to-5.0%

-4.9%to-0.1%

0%to4.9%

5%to13.8%

NoData

Source:USAToday,October27,2016,FrankPompa,JimSergent.

Dataisestimated forNewMexico,RhodeIsland,Connecticut,andNewJersey

• Moststrategiesfordealingwithbudgetcutsreallyaren’tstrategies.They’restepsofleastinstitutionalinconveniences.– Cutsareanaberration–waitayearortwoandwecanresume

businessasusual– Cutsseldommadeincontextofthelongview

Level1Response

• RaiseRevenue.Thistypicallymeanstakingstepstoincreasetuitionrevenue– Raiserates– Differentialtuitionforhighcostprograms– Enrollmoreoutofstatestudents

StudentShareofEducationCostsColorado

StudentShareofEducationCostsAlaska

Level2Response

• Maketheeasycuts– thosethatdon’tinvolvepeople.– Don’tfillemptypositions– Reduceexpenditureson

• Travel• Supplies• Maintenance• Equipment

– Thereisnothingaboutsuchapproachesthatreferences/protectspursuitofgoals

– Theyarelargelyexercisesinpostponement,notreduction

Level3Response

• Maketheharder,buteasilydefendedcuts.– Cutprogramsthatareleastproductive– SubstitutePTemployeesforFTemployees– Outsourcefunctionsthataren’tcentraltoinstitutionalmission– Eliminateservicesatremotesites

Theseareretrenchmentstrategiesthatlikelyresultinservingfewerstudents– inconsistentwithgoalattainment

Level4Response

• Redesigncourses.– Typicallylarge,lower-divisioncourses– ReengineercoursesinawaysimilartothatadvocatedbytheNational

CenterforAcademicTransformation(NCAT)– Evidenceindicatesthisapproachyields

• Improvedlearningoutcomes• Atreducedcosts(≈ 40%less)

Animportanttactic,butworksbestaspartofalarger,deliberateprocess.

Level5Response

• Redesignprogramsandtheirdelivery.– Redogeneraleducation

• Substantiallyreducethenumber ofcourseseligible forgeneraleducationcredit– Takecuesfromchoicesstudents aremaking

– Standardizemajors– removeoptionsthatresultinsmallclasses– Consideralternativedeliverymodes

• Online• Competency-based

Butdon’tforgettokeepfocusongoalattainment.

Level6Response

• Redesignthesystem– Startwiththepropositionthatneedsofstudentsandemployersinall

partsofthestatemustbemet– Determinethearrayofassetsneededtomeettheseneeds– Differentiatetheeducationalcapacityoneachcampus– Usetechnologytodeliverthiscapacityto

• Studentsonothercampuses• Remotesites

– Ensure“hightouch”servicesareavailableateachsite– Standardizeprocesses– Centralizebackofficeoperations