Presentation to Higher Ed Appropriations Subcommittee- August 2011

Higher Education Appropriations Subcommittee
William A. Sederburg
August 17, 2011

Today’s Topics:
$5.5 million “Change Agenda”
Return on Investment
2

3
Report on $5.5 million one-time funding

$5.5 Million “Change Agenda”
4
Mission Based Funding
Data Integration Project
Technology-Intensive High School Core General Education Courses
UtahFutures.org
Utah Business Education Support Trust (UBEST) Project
Utah Cluster Acceleration Program

Mission Based Funding$1 million
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SB 97, adopted in 2011
$950,000 to Board of Regents for eight institutions’ initiatives for Participation, Completion and Economic Development
$50,000 for study of institutional funding, including equity – Dr. Dennis Jones

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Participation, Completion, Economic Development$950,000
Distributed to fund proposals by institutions for the following strategic priority projects:

Participation
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Completion
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Economic Development
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Data Integration Project$250,000
Annual report on the job and degree needs of Utah
National experts to advise DWS, USHE, UCAT and USOE on best practices
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UtahFutures.org$550,000
UtahFutures.org Steering Committee created
Request for Information drafted
Ideas on best ways to enhance program
New enhancements by January 2012
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Economic Development – UCAP$750,000
Projects
Life Science (U of U, Westminster)
Digital Media (UVU)
Health Care (WSU)
New Projects
First regional/rural, competency based projects at DSC, SUU and USU-Eastern
Snow College is completing “stewardship audit”
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“UCAP is transformational in how Snow College is approaching economic development in central Utah.”
Scott Wyatt, President, Snow College

Technology-Intensive Concurrent Enrollment $2.4 million
Hybrid format (online & class)
General education courses
State of the art resources
State assessment of student achievement on essential learning outcomes
13

Technology-Intensive Concurrent Enrollment
Three demonstration sites up and running by January 1, 2012
Six courses and lead institution for each are:
ART 1010 (Intro to Visual Arts)– DSC
ENGL 1010 (Intro to Writing)– WSU
CHEM 1010 (Elementary Chemistry)– UU
MATH 1010 (Intermediate Algebra)– DSC
MATH 1030 (Quantitative Reasoning)– UU
PSY 1010 (Intro to Psychology)– USU
All courses available for enrollment in Fall 2012
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Utah Business Education Support Trust (UBEST) $500,000
UBEST
Led by business leaders
Coordinated by SLCC
Robust website for business engagement with education
Currently under construction at SLCC
15

Return on Investment in Higher Education
16

Intent Language:
“The Legislature intends that institutions in the Utah System of Higher Education and the Utah College of Applied Technology review the return on the taxpayer's investment … (and) propose ways to maximize the return by providing students with the skills necessary to enter the workforce.”
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Return on Investment:
What benefits are derived from a particular investment of resources?

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Return on Investment:
State Level
Regional Level
Individual Level

ROI: State Level
USHE schools turned $674 million in state tax funds to $4 billion industry! (ROI of nearly 6-to-1 in economic activity)
23,612 employees (UU hospitals & clinics included)
$1.6 billion in wages
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ROI: State Level
USHE Schools are building Utah…
24 capital projects under construction valued at $1.01 billion
$631 M (63%) paid by private, non-state tax dollars
Projects employ 16,235 (directly & indirectly)
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ROI: State Level
Utah’s research universities generate over $400 million a year in external research funding
This results in
Hundreds of Utah companies
Thousands of local jobs
Millions of tax dollars
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ROI: State Level
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Education
183,358 degree-seeking students
61,064 non-degree-seeking students
244,422 Citizens = 12% of adult population
In 2010, there were 28,408 degrees and certificates
6,389 (FTE) more students over 2009
1,418 more degrees
In-spite of reduction of $18 million in state dollars in 2011

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Most state taxes come from Utahns who have attended or graduated from college

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Utahns who have attended college pay for nearly 90% of the state tax collections

To keep taxes low and pay for children’s education, Utahns need higher education
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Return on Investment for Communities
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ROI: Community Level
Workforce
Applied research
Entrepreneurial development
Community outreach
Community leadership
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Utah’s local officials say, “Higher Education is important to our economies.”
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Return on Investment for Individuals
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Average Lifetime Earning by Educational Attainment
$4,650,588
$4,029,948
$3,837,239
$3,380,060
$2,254,765
$2,239,548
$1,767,025
$1,198,447
Source- Georgetown Center on Education and Workforce, June 2010
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Economic Value of College Majors
$62,000
$50,000
Selected from Carnevale, Georgetown University- What’s It Worth? The Economic Value of College Majors, 2009
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Top USHE Vocational Certificates and Earnings
Source: USHE & DWS
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*
* Business and Marketing is another top awarded certificate in which graduates are trained in a broad range of career opportunities,
making salary data difficult to estimate.

ROI – Individual Level
Third most efficient state in producing degrees per dollar spent!
State Spends $5,328 (60%) per student (FTE)
Student Spends $3,679 (40%) in tuition
Increased earning power = $366.9 million annually
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Return on InvestmentIn Utah Average Annual Wages Beyond High School Graduate
Source- Utah System of Higher Education, August 2011
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ROI Commentary
USHE operates in the free market
Individuals make their own choices
We are in constantly changing
Degrees & Programs
Internal Changes
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In Summary…
Taxpayer ROI is $4 billion for $674 million in state tax funds
College-educated Utahns provide 90% of state tax collections
Students benefit directly within a free market

Recommendations for 2012
Fund Mission Based Funding (growth, initiatives & equity)
Make “Change Agenda” On-Going Funding
New CTE Initiative
Fund Targeted Scholarships for Engineering & Computer Science

Thank you

Presentation to Higher Ed Appropriations Subcommittee- August 2011

by HigherEdUtah on Aug 18, 2011

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Presentation to Higher Ed Appropriations Subcommittee- August 2011 — Presentation Transcript