Higher Education Restructuring
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1 Higher Education Restructuring Senate Finance Committee Education Subcommittee December 6, 2007 Jim Alessio Director for Higher Education Restructuring SCHEV
2 2 State Council of Higher Education for Virginia Interrelated Elements of Restructuring Act Six-Year Academic and Financial Plan Performance Standards SCHEV Statewide Strategic Plan
3 3 State Council of Higher Education for Virginia Restructuring Timeline J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J IPS incorporated IPS Restructuring into the revisions/campus Act/11 Goals Appropriations Act - safety standard in Goal 12 added Appropriations Act BOV's commit to goals/sixyear plans Institutions commit to targets Institutions submit sixyear plans Institutions update targets Annual Enrollment/Graduates/Financial Aid Reporting Additional IPS Reporting SCHEV develops Institutional Performance Standards (IPS) SCHEV develops six-year IPS targets SCHEV develops Statewide Strategic Plan SCHEV develops additional standards/updates targets
4 4 State Council of Higher Education for Virginia The Challenge of Restructuring Affordability Student as consumer Controlling Costs
5 5 State Council of Higher Education for Virginia Affordability What does it cost? Who pays and how much? What do student actions tells us about affordability?
6 What Does it Cost? In-state Undergraduate College Tuition and E&G Fees through Four-Year Public Institutions $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000. $500 $ T&F - E&G Trend ( ) Source: Tuition and Fees Reports, SCHEV ( 6
7 Tuition and E&G Fee Increases Six-Year Plans - GF Split (box bottom) vs. No GF Split (box top) 40% 35% 30% 25% 20% 15% 10% 5% 0% CNU CWM GMU JMU LU NSU ODU RU UMW UVA UVAW VCU VMI VT VSU RBC VCCS Source: Six-Year Financial Plans (2007) 7
8 Total Budget $20,000 $15,000 $10,000 $5,000 $0 24% 31% 17% 24% On-/Off- Campus At Home On-/Off- Campus At Home Four-Year Two-Year T&F (E&G) Fees (non-e&g) Room & Board Books & Supplies Personal Expenses Transportation Source: Tuition and Fees Reports, SCHEV ( Trends in College Pricing, College Board ( 8
9 9 State Council of Higher Education for Virginia Who Pays? Virginia s Tuition and Fees Policy 70%/30% Policy (included in-state and out-of-state) 100% out-of-state Joint Subcommittee on Higher Education Funding Policies (1998) purpose to reestablish funding guidelines Base Adequacy Model %/33% Because of the funding split between the state and student, full funding of the model and to achieve the 60 th percentile in faculty salaries over six years would require an average annual tuition and E&G fee increase of approximately 5-8%
10 10 State Council of Higher Education for Virginia Student Actions Students at eight of the four-year institutions registered for less than 15 hours on average At all but one, students earned less than 15 hours on average Earned Mean Semester Credit Hours Fall Registered Source: Course Enrollment Data File, SCHEV
11 11 State Council of Higher Education for Virginia Why? Some students earned credit (AP and dual enrollment) before entering college - a semester or more is possible, but unusual at most institutions Allows more time for the social experience Earn better grades Weak preparation Work but is it worth it? Significant cost implications to students financial aid implications to state
12 12 State Council of Higher Education for Virginia Student as Consumer 1990 s saw a fundamental change in thinking about the student Today, the student is treated as a consumer and the product is education Student as consumer places more demands on the institution Students have higher expectation of services housing, food, access, and other accommodations
13 Controlling Costs Percentage of Expenditures for Instruction and Academic Support Public Four-Year Institutions % 55% 60% 65% 70% 75% HI OK IA WA NE VA ID TX AZ KS NH CA NC IN OH MO ND MN SD KY IL NV FL TN WY MI WI OR UT CO SC LA AL AR NM AK DC GA MT ME NJ WV PA MA MD CT MS NY RI VT DE Virginia Ranked 6 th Source: Finance Data, Fiscal Year 2006, IPEDS 13
14 Controlling Costs Percentage of Expenditures for Administration Public Four-Year Institutions, % 15% 20% 25% 30% 35% 40% DE PA DC VT MS RI MD NY WV CT ME NJ MT MA AL SD OR AK AR UT GA FL WY CA TN LA MO WI NM KY NV OH ND SC AZ NH IN MN CO MI TX IL VA ID KS NE IA OK NC WA HI Virginia Ranked 43 rd Source: Finance Data, Fiscal Year 2006, IPEDS 14
15 Going Forward with Concepts Contained in the Restructuring Act Meet demands of SCHEV s coordinating function Organize and implement reporting schedule and guidelines Serve as resource to institutions and executive and legislative branches Improve communication process answer How are we doing? Boards of Visitors meetings Newsletters Advisory committee briefings Council meeting reporting Keep priority goals in focus connections to other state initiatives Access and the P-16 Council Student retention/degree awards and economic development 15
16 Going Forward with Restructuring Develop remaining measures Measure 4 define affordability Assess impact of tuition and fees net of financial aid on applications and enrollment Access to 100- and 200-level courses Refine reporting on goal 12 campus safety Integration of Higher Education Strategic Plan with sixyear planning process Access Alignment Investment 16
17 Going Forward with Six-Year Planning Integration of Higher Education Strategic Plan with sixyear planning process Access Alignment Investment Review institutional progress toward state goals and performance gaps with policy leaders Legislative retreats Reports to the General Assembly, the Secretary of Education and the Governor SCHEV advisory committees 17
18 Measuring Success with Restructuring Demonstration of measurable success on performance indicators and benchmarks related to the 12 state goals Annual certification process Council member and staff involvement Use of institutional mission distinctions in setting performance standards dialog between institutions and Council members and staff Reliance on the importance of institutional growth and development, all the while contributing to state goals Economic development in rural, transitional areas Commonwealth Education Roundtable goals for K-12 leadership development 18
19 Measuring Success with Restructuring More public confidence in higher education performance and investment View restructuring as work in progress Develop remaining measures and performance standards Strengthen process with 2 nd cycle of certification Determine impact of tuition and fees on access Song sheet similarity: value of increased freedoms and increased alignments to the state and the institutions 19
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