Published on February 18, 2014
HIGHER EDUCATION CIVIC ACADEMY CHANGING THE CONVERSATION . . . Statewide Issues Conference Saturday, February 15, 2014
FOCUS A broad-based public conversation about the community’s priority for higher education as . .. an investment of public funds for a nationally competitive Louisiana, a gateway to the middle class, and the key to a diverse, robust and shared prosperity 2
SUMMIT COALITION Northern and Central Louisiana Interfaith and member institutions Grambling State University Faculty Senate Louisiana Delta Community Council Faculty Council Louisiana Tech University Senate University of Louisiana at Monroe Faculty and Staff Senates 3
HIGHER EDUCATION STORIES 4
HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT Pre-World War II, a college degree was an elitist degree, available to mostly upper-class G.I. Bill spurred the number of lower-to-middle class people earning a college degree Post-World War II most prosperous in history, due in part to the earning power of people with college degrees Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011” 21st century” 5
HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT 1973: 28% of U.S. workforce had a post-high school education 2007: 59% of U.S. workforce had post-high school education Lifetime earnings for those with a college degree is $1 Million HIGHER than those with a high school education. Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011” 21st century” 6
HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT Projected by 2018-2020: two-thirds of jobs will require a post-high school degree 85% of bachelor degree holders VOTED in the 2000 presidential election. Conclusion? Higher education provides a catalyst to a prosperous economy, and civic participation for people to truly attain the American Dream. Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011” 7
CORE VALUES OF SHARED PROSPERITY Higher Education is a public investment in the people of Louisiana, not a fixed cost of government. Affordable access for ALL families to the opportunity to send their children to college. Public Funding must balance equity and performance measures to optimize the leveraging of public resources in K-12 education. 8
HIGHER EDUCATION PROVIDES SOCIAL AND ECONOMIC VALUE Lack of education cost governments money: Higher Incarceration rates: 87% of prisoners have a high school diploma or less Increased Health costs: 93% of people with a high school diploma or less participate in a publically funded health program, i.e., Medicaid Disproportional Mortality rates: 3.5X higher for high school dropouts than those with some college education 9
INVESTMENT IN HIGHER EDUCATION IS AN INVESTMENT IN LOUISIANA The state gets $8 returned in the form of economic development for every $1 put into higher education State cuts to higher education funding 2008-2013 resulted in $1 Billion in real dollars lost in Louisiana’s economy. Result? Using the 8:1 multiplier, $8 Billion in economic activity was lost in Louisiana’s economy. Source: University of Louisiana System Economic Impact Study, 2008 10
DECLINE OF LOUISIANA TAX REVENUE 2007-08 THROUGH 2011-2012 Source: FY 2008-12 La. State Budget 11
STATE EXPENDITURES BY AREA: FY 200809 Source: FY 2008-09 Louisiana State Budget 12
STATE EXPENDITURES BY AREA: FY 201112 Source: FY 2011-12 Louisiana State Budget 13
UNIVERSITY JOB LOSSES 2008 - 2014 FY 08-09 FY 11-12 FY 12-13 FY 13-14 Job Losses % 700 541 562 507 -193 -28% Tech 1,190 1,077 1,042 987 -203 -17% UL–Monroe 1,160 982 924 898 -262 -23% TOTAL UL SYSTEM 10,477 8,934 8,626 8,393 -2,084 -20% Grambling Source: University of Louisiana System - Board of Regents Presentation 14
THE TAKE AWAY: Overall Higher Ed revenues have declined: • due to economic conditions, • due to non-revenue neutral tax reductions, • due to unfunded mandates such as retirement, health insurance, etc., • and no increases to offset changes in the cost of living. Higher Ed has a declining piece of the revenue pie in the face of declining overall state revenue- a double hit!!! Source: University of Louisiana System - Board of Regents Presentation 15
FORMULA FOR SUSTAINED GROWTH Long-term investment in Higher Ed + Jobs ----------------------------------------------------------------------------------------= Sustainable growth in Louisiana's Economy 16
JOBS, JOBS, JOBS A PROJECTION THROUGH 2020 JOBS BY SECTOR (require Post-Secondary Degree) 1 2 3 4 5 6 Nursing Teaching (pre-K, Elementary, Secondary) Business Health Care (excludes nurses/dentists/doctors/surgeons) Information Technology/Computing Social Services 7 8 9 10 11 12 13 14 15 16 17 Medical Professionals (dentists/doctors/surgeons) Financial Engineering Accounting Pharmacy Legal Services Governmental Production/Operations Sales Construction Management Architectural Source: Louisiana Department of Labor RMLA 7 SHREVEPOR T RMLA 8 MONROE TOTAL 5,250 4,300 1,630 2,950 2,140 1,030 8,200 6,440 2,660 1,810 840 1,020 1,020 520 490 2,830 1,360 1,510 810 380 920 500 260 150 70 180 220 80 50 440 340 330 310 190 150 120 110 60 40 20 1,250 720 1,250 810 450 300 190 290 280 120 70 17
FORMULA FOR SUSTAINED GROWTH Workforce and Innovation for a Stronger Economy (W.I.S.E) Plan is a good start to provide stabilization of higher education funding Investment in Louisiana’s intellectual capital and human capital Access for ALL families to have the chance to send their children to college 18
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