Table of Contents. List of Charts

Table of Contents Introduction... i Executive Summary... ii Closing the Gaps, 2009 Progress Summary... iii Summary of Findings... v Closing the Gaps in Participation... 1 Closing the Gaps in Success... 8 Closing the Gaps in Excellence... 23 Closing the Gaps in Research... 27 List of Charts Enrollment Growth at Public and Independent Higher Education Institutions since fall 2000... 2 Hispanic Enrollment Growth at Public and Independent Institutions since fall 2000... 4 African American Enrollment Growth at Public and Independent Higher Education since fall 2000... 6 White Enrollment at Public and Independent Institutions since fall 2000... 7 Total Bachelor s Associate s, and Certificates Awarded by Public and Independent Institutions... 9 Total Bachelor s Degrees Awarded by Public and Independent Institutions... 11 Total Associate s Degrees Awarded by Public and Independent Institutions... 11 African American Bachelor s, Associate s, and Certificates Awarded by Public and Independent Institutions... 13 African American BAC Awards by Public and Independent Institutions... 13 Hispanic Bachelor s, Associate s, and Certificates Awarded by Public and Independent Institutions... 15 Hispanic BAC Awards by Public and Independent Institutions... 15 Doctoral Degrees Awarded by Public and Independent Institutions since 2000... 16 Technology Degrees (by Field) Awarded by Public Institutions... 18 Technology BACs Awarded by Public Institutions since 2000... 18 Allied Health and Nursing BACs Awarded by Public Institutions... 20 Teacher Education Initial Certificates, All Routes... 21 Initial Teacher Certifications by Program Route... 21 Teacher Education Initial Certificates in Math and Science... 23 Texas Share of Federal R&D Obligations Relative to Other Top-Performing States... 29 Annual Change in Research Expenditures for R&D at Public Universities and Health-Related Institutions (in constant dollars)... 31 Appendices Appendix A: Participation Data... A-1 Appendix B: Success Data... B-1 Appendix C: Research Data... C-1 i

Introduction In October 2000, the Texas Higher Education Coordinating Board (THECB) adopted Closing the Gaps by 2015: The Texas Higher Education Plan. The goal of the plan is to close educational gaps within Texas and between Texas and other leading states by focusing on the critical areas of participation, success, excellence, and research. When introduced, Closing the Gaps was greeted by strong support from educational, business, and political communities. The plan has maintained a high level of visibility and support from these and other entities because of its potential to strengthen Texas economic base, attract businesses and faculty, generate research funding, improve quality of life, and enhance the overall stature of the state. At the plan s inception, a primary goal and a number of supporting objectives were adopted for each Closing the Gaps goal. Goals for 2015 were set relative to 2000 benchmarks. To assess progress toward meeting the goals, intermediate targets for 2005 and 2010 were identified. Some targets were modified in 2005 in response to new population projections and accelerated progress toward the goals. Adjustments were also made to incorporate the contributions of independent higher education institutions toward Closing the Gaps. Every summer, the Coordinating Board issues an update on the progress made toward achieving the goals of Closing the Gaps. This 2009 Progress Report presents a summary of findings and data on meeting the major goals and supporting targets. The 15-year time frame for Closing the Gaps (2000 to 2015) is over half completed, yet progress toward achieving a number of the plan s targets lags the trend line that serves as a benchmark for incremental advancement. Those target areas toward which insufficient progress has been made will be addressed in an accelerated action plan that will be released this fall. i

Executive Summary When Closing the Gaps by 2015: The Texas Higher Education Plan was adopted in October 2000, the executive summary of the plan cautioned that there was a looming crisis in higher education in Texas At present, the proportion of Texans enrolled in higher education is declining. Too few higher education programs are noted for excellence and too few higher education research efforts have reached their full potential. Texas must take bold steps for the future success of its people. This report presents objective measures of the results of those bold steps, just past the halfway point for achieving the Closing the Gaps goals. There is reason to be hopeful: the proportion of Texans enrolled in higher education increased from 5.0 percent in fall 2000 to 5.4 percent in fall 2008. African American participation increased from 4.6 percent to 5.6 percent during that time and was higher than the participation rate of the White population, Hispanics, and the state as a whole. Hispanic enrollment climbed by 54.5 percent from 2000 to 2008. In the area of student success, 33.8 percent more undergraduate degrees and other awards were earned in FY 2008 than in FY 2000, on track to meet the Closing the Gaps targets. In excellence, UT-Austin moved from number 17 in 1999 to a tie for number 15 in the 2009 U.S. News & World Report rankings of public national universities. Texas public institutions more than doubled their research and development (R&D) expenditures from all sources from $1.45 billion in FY 1999 to $3.10 billion in FY 2008, enabling them to reach the 2015 target seven years early. Despite these successes, Texans need to take more bold steps for higher education. Hispanic participation grew from 3.7 percent of the population in fall 2000 to just 4.0 percent in fall 2008. To reach the 2015 target of 5.7 percent, Hispanics will need to enroll another 310,000 (84.3 percent) students, a daunting task given their high dropout rates in high school and economic disadvantages. Undergraduate degrees and awards in technology were barely higher in 2008 than in 2000 and need to increase by 125 percent to meet the 2015 target. Federal obligations for R&D in science and engineering were virtually unchanged between FY 2005 and FY 2006, leaving Texas institutions share of national obligations unchanged at 5.5 percent, considerably below the 2010 and 2015 targets of 6.2 and 6.5 percent. This report gives higher education leaders the information needed to guide data-driven, bold actions during the remaining years of Closing the Gaps to ensure the future well-being of our state. ii

Closing the Gaps 2009 Progress Summary There are currently 18 targets in this report associated with the Texas higher education plan, Closing the Gaps by 2015. As of July 2009 progress relative to these targets was rated as follows: Progress Well Above Target Somewhat Above Target On Target Somewhat Below Target Well Below Target Definition of progress relative to target trend line 10 or more percent above 2 to 9 percent above Within +1 percent 2 to 9 percent below 10 or more percent below Closing the Gaps Measure Participation 1 Progress Relative to Target Trend Line July 2008 Report July 2009 Report Statewide participation Somewhat Below Target Somewhat Below Target African American participation Somewhat Above Target Well Above Target Hispanic participation Well Below Target Well Below Target White participation Somewhat Above Target Somewhat Below Target Success 1 Statewide bachelor s and associate s degrees, and certificates Somewhat Above Target On Target Bachelor s degrees On Target On Target Associate s degrees Well Above Target Somewhat Above Target Doctoral degrees Well Above Target Well Above Target African American bachelor s and associate s degrees, and certificates Somewhat Below Target Somewhat Below Target Hispanic bachelor s and associate s degrees, and certificates Somewhat Below Target Somewhat Below Target Technology bachelor s and associate s degrees, and certificates Well Below Target Well Below Target Allied health and nursing bachelor s and associate s degrees, and certificates Well Above Target Somewhat Above Target Teachers initially certified through all teacher certification routes Well Below Target Well Below Target Math and science teachers certified through all teacher certification routes Well Below Target Well Below Target Excellence 2 National rankings Well Below Target Well Below Target Program recognition On Target On Target Research Federal science and engineering research and development obligations 3 Somewhat Below Target Somewhat Below Target Public institutions research expenditures 4 On Target Well Above Target iii

1 For participation and success, progress was compared to the 2008 value on a target trend line, which assumed linear growth after 2005 to reach 2010 and 2015 goals. 2 Progress in excellence was assessed by methods other than a target trend line. Program recognition, by definition, cannot be better than on target. 3 For research and development obligations, assessment was done relative to the 2006 value (the most recently available data) on a linear target trend line from 2000 to 2015. 4 For research and development expenditures, progress was assessed relative to the 2008 value on a linear target trend line from 1999 to 2015. iv

Summary of Findings Statewide Goal for Participation: By 2015, increase enrollment at public and independent institutions by 630,000 students. The 630,000 more students would bring Texas public and independent higher education enrollment to 1,650,000 students. The target enrollment for 2010 is 1,423,000 students. Statewide enrollment has increased every year since 2000, but growth slowed from 2003 to 2005. Enrollment growth began accelerating in 2006, and 2008 saw the largest percentage increase since 2002. In the first eight years of Closing the Gaps from 2000 to 2008, statewide participation increased by 280,000 students. However, that leaves just seven years to close 56 percent (or 350,000) of the 630,000-student gap in enrollment by 2015. Hispanics had the largest numeric and percentage increases in enrollment from 2000 to 2008 among the three major racial/ethnic groups. But with a participation rate of just 4 percent, Hispanic enrollment lags the most in meeting its Closing the Gaps participation targets. In 2000, the African American participation rate was 4.6 percent of the Texas population, compared to 5.1 percent for whites. By 2008, the African American participation rate grew by a full percentage point to 5.6 percent, while the participation rate for whites only increased to 5.5 percent. Statewide Goal for Success: By 2015, increase the number of bachelor s and associate s degrees and certificates (BACs) to 210,000 at public and independent institutions. By 2010, increase the number of BACs to 171,000. The 2015 target would require awarding 93,800 more BACs annually than in 2000. Although the statewide number of awards in FY 2008 was on target to achieve the Closing the Gaps goal, the growth rate for awards of BACs has slowed since 2002. If the current trend continues, the state will fall short of closing the remaining statewide gap of about 54,000 BAC awards by 2015. BAC awards to African Americans and Hispanics have increased in seven of the last eight years, but not fast enough to keep these measures from falling below the level needed to close the gaps by 2015. Both groups saw a widening gap in 2008. Total undergraduate awards in computer science, engineering, math, and physical science ended their four-year slide in FY 2008 with a sluggish two percent increase. The gap has increased so much since 2003 that awards in these important technology fields must increase by 125 percent to reach the 2015 Closing the Gaps goal. With an 11 percent increase in FY 2008, certifications of new math and science teachers continued on an upward trend that began in FY 2005. The statewide numbers of bachelor s and doctoral degrees were on target and well above target, respectively, with good prospects for meeting or exceeding the 2015 targets. v

Statewide Goal for Excellence: By 2015, substantially increase the number of nationally recognized programs or services at colleges and universities. In the 2009 U.S. News & World Report rankings, The University of Texas at Austin (UT- Austin) and Texas A&M University were in ties for 15th and 24th places, respectively, among the top 50 Public National Universities. The University of Texas at Austin s ranking was virtually unchanged since 1999, while Texas A&M had been at about the same level as UT-Austin since 1999 until it dropped to number 24 in 2003. No other public institutions in Texas made this list. UT-Austin and Texas A&M University both tied for 14th place among public research universities, based on the 2008 report from The Center for Measuring University Performance. The University of Texas Southwestern Medical Center and The University of Texas M.D. Anderson Cancer Center also made the list of top public research universities, but they were at numbers 25 and 28, respectively. Statewide Goal for Research: By 2015, increase the Texas share of federal obligations for science and engineering research and development (R&D) to 6.5 percent of the national total at public and independent institutions. By 2010, increase the share to 6.2 percent. Texas federal obligations for science and engineering R&D have been essentially flat for the last four years, causing its share of national obligations to fall from 6.1 percent in FY 2003 to 5.5 percent in FY 2006 (the most recent year with data available). Texas met 2015 Closing the Gaps goals for research expenditures in FY 2008. vi

Closing the Gaps in Participation Goal: By 2015, close the gaps in participation rates across Texas to add 630,000 more students. By 2008, the student population had grown by 280,000 students since the launch of Closing the Gaps in 2000. Despite the growth, however, Texas is 124,000 students short of the 2010 target and 351,000 behind the 2015 mark. Hispanic enrollments have increased at a faster pace than any other major ethnic group, but current enrollments fall 310,000 students short of the 2015 target. The shortfall accounts for 90 percent of the enrollment increase needed to reach the Closing the Gaps participation goal. The Texas Higher Education Coordinating Board will develop an Accelerated Action Plan that will include a focus on Hispanic participation. The plan will be announced in fall 2009. 1

CLOSING THE GAPS IN PARTICIPATION GOAL: Increase the overall Texas higher education participation rate from 5 percent in 2000 to 5.6 percent by 2010 and to 5.7 percent by 2015. Status: Somewhat Below Target In fall 2008, 5.4 percent of the state s population was participating in higher education. Based on current Texas population institutions must enroll 351,000 more students to meet the 5.7 percent target in 2015. Background Between 2007 and 2008, fall enrollment increased 44,075, the largest gain since 2002, but an annual increase of 50,000 is needed through 2015 to meet the state goal. Enrollment in two-year institutions represents 60 percent of the eight-year enrollment growth. The state participation goal is a composite of the enrollments of white, African American, Hispanic and other groups. African American enrollment is above its target, white enrollment is slightly below, and Hispanic enrollment is well below target. Analysis and Observations With Hispanic enrollment well below target, focused attention is required for this population segment. Increasing enrollments to meet participation targets can be achieved in part with an increase in persistence rates, particularly between the first and second year of enrollment. o At universities, the one-year and two-year persistence rate for first-time, full-time o students improved little between 2000 and 2008. One-year persistence for community colleges first-time, full-time students declined slightly, and the two-year persistence rate decreased by 3 percent. Attracting adults to or back to higher education can help meet the participation goal. While first-time-in-college students coming directly from high school grew by 27,000 from fall 2000 to fall 2008, enrollment rates for other new students decreased during that time from nearly 70,000 in fall 2000 and 82,000 in fall 2003, to 65,000 in fall 2008. Focusing on the unique needs of part-time students may encourage more participation of both adult and traditional-aged segments. Although the segment comprises only a small percentage of university enrollments, part-time students represent the majority of community college participants. In 2008, 69.1 percent of community college students were enrolled part-time, an increase from 63.7 percent enrolled part-time in 2000. 2 All participation data charts show enrollment changes since fall 2000. Data for charts in this report may be found in the Appendices.

Dual credit enrollments grew from 18,000 in fall 2000 to 79,000 in fall 2008 resulting in high school students representing 20 percent of the enrollment growth in higher education. o Texas public high school graduates who participated in dual credit while in high school enroll in higher education at a slightly higher rate than the full population of high school graduates. o Of students enrolled in dual credit in fall 2006, 59 percent have enrolled in higher education as first-time students since then, compared with 55.9 percent of all high school graduates. Universities attracted 23 percent of dual credit students; 31 percent enrolled at two-year institutions; and 5 percent enrolled at independent institutions. P-16 programs focused on improvement in college readiness, coupled with effective developmental education programs, have the potential to significantly improve the persistence rates of less-prepared students. o Students who do not meet the state s Texas Success Initiatives (TSI) standards in the three areas of math, reading, and writing must take developmental education in their deficiency areas. For the fall 2007 cohort of entering university students, 78.5 percent were prepared in all three areas, while only 35.8 percent of community college students were prepared in all areas. o Students who meet the TSI standards in all areas are more likely to return the following fall than those who met the standard in no areas. o Improvements to the provision of development education are essential to helping students progress in their high education careers. Grant funds appropriated by the 81st Legislature will support the provision of developmental education pilot programs. Two-thirds of first-time undergraduate students start their post-secondary education at twoyear institutions. To improve persistence and success of transfer students, the transfer process between two-year and four-year institutions needs to function smoothly and result in a minimal number of semester credit hours that do not apply directly to a degree program. 3

Hispanic Participation Target: Increase the higher education participation rate for the Hispanic population of Texas from 3.7 percent in 2000 to 4.8 percent by 2010 and to 5.7 percent by 2015. Status: Well Below Target Hispanic enrollment between fall 2000 and fall 2008 increased 54.5 percent, the largest increase of any racial/ethnic group. But because, the overall Texas Hispanic population substantially increased, enrollment was only 71 percent of, or 50,000 below, the 2008 target. Background The Hispanic population is projected to grow from 9.1 million in 2008 to 11.8 million in 2015. The percent of growth in Hispanic higher education enrollment must exceed this 29.7 percent growth in population to improve the participation rate. Student enrollments must increase by 310,000 between 2008 and 2015 to meet the target. The number of Hispanic who graduated from public high schools increased from 68,314 in FY 2000 to 94,571 in FY 2008. The number of trackable Hispanic graduates who entered public higher education increased from 34.9 percent in fall 2000 to 44.8 percent in fall 2008. Analysis and Observations Hispanic participation is key to meeting the state s participation goal, and activities to improve participation will be examined in more detail in the Accelerated Action Plan. Improving Hispanic high school graduation rates will increase the pool of potential Hispanic college students. Too few Hispanic students graduate from high school. Only 54.2 percent of Hispanic seventh graders in FY 1995 graduated from a Texas public high school, compared with 61.3 percent of all students. Strategies to offset the impact of economic disadvantage (defined as a student who is eligible to receive free or reduced lunch based on household income) on enrollment rates for Hispanic students should be explored. o A larger percentage of Hispanic high school graduates are economically disadvantaged than graduates of other races/ethnicities. Among the high school graduates in FY 2008, 59 percent of Hispanics were economically disadvantaged, compared with 46 percent of African Americans and 12 percent of whites. o Students who are economically disadvantaged are less likely to enroll in higher education -- 40.5 percent of FY 2007 high school graduates who received free or reduced lunches enrolled in post-secondary education, compared with 58.9 percent of those who did not receive free or reduced lunches. o Economically disadvantaged students are less prepared in math, reading and writing as measured by Texas Success Initiative (TSI) standards - 51.2 percent of FY 2007 high 4

school graduates who received free lunches met the TSI standards in all three areas, compared with 71.9 percent of those who did not receive free or reduced lunches. The rapid increase in the economically disadvantaged Hispanic population makes the performance results for this group of greater significance to the state. The impact of language on participation and success needs to be examined in greater depth. Attendance patterns of first-, second- and third-generation U.S. students should be analyzed. Although the Coordinating Board (CB) data does not collect this data, CB staff will explore information on this topic regarding Texas students. Increasing the persistence rates of Hispanic students is a critical component of meeting Hispanic participation targets. o If a cohort of Hispanic students who start at two-year institutions persisted at the same rates as white students, seven percent more students would be in higher education after six years. For Hispanics starting at four-year institutions and persisting as whites, each cohort would have eight percent more students after six years. o At universities, the one-year persistence rate for first-time, full-time, Hispanic students improved from 83.4 percent to 85.3 percent, and the cohort of these students grew from 10,234 to 15,547. However the two-year persistence rate dropped slightly from 77.4 percent for the 2000 cohort to 77.1 percent for the 2006 cohort. o The one-year persistence rate at community colleges for first-time, full-time, Hispanic students was static at 65.1 to 65.2 percent. The students two-year persistence rate decreased, though, from 53.2 percent for the fall 2000 cohort to 50.7 percent for the fall 2006 cohort. These rates include students persisting at the same institution and those enrolled at other public and independent institutions in Texas. 5

African American Participation Target: Increase the higher education participation rate for the African American population of Texas from 4.6 percent in 2000 to 5.6 percent by 2010 and to 5.7 percent by 2015. Status: Well Above Target African American enrollment only needs to increase 13 percent in the next six years to meet the 2015 target. Nearly 153,000 African Americans enrolled in fall 2008, compared with 108,463 in fall 2000 and 145,387 in fall 2007. Background The rapid improvement in the African American participation rate is one of the most important accomplishments since the start of Closing the Gaps. The 5.6 percent African American higher education participation rate in fall 2008 was higher than that for whites, Hispanics or the state as a whole. The number of African American high school graduates increased from 27,507 in FY 2000 to 33,873 in FY 2008, and the percentage attending public higher education increased from 35.8 percent to 43.9 percent. Despite the positive participation rate as a percentage of the population as a whole, the percentage of African American high school graduates in FY 2007 attending public higher education the following academic year is among the lowest of any racial/ethnic group at 49.4 percent, compared with 53.6 percent of all high school graduates. Analysis and Observations Efforts to attract African American males to participate and persist in higher education have not met expectations. The higher education participation rate for African American males is the lowest of all racial/gender groups of recent high school graduates. African American persistence rates must be improved so that improved participation rates translate into more graduates. o At universities, the one-year persistence rate for first-time, full-time African American students improved slightly, and the two-year persistence rate fell slightly from 2000 to 2008. o The one-year community college persistence rate for first-time, full-time African American students dropped four percentage points, and the students two-year persistence rate decreased five points. The African American persistence rates are lower than for Asian, white or Hispanic students. o If a cohort of African American students who start at two-year institutions persisted at the same rates as white students, 15 percent more students would be in higher education after six years. For African Americans starting at four-year institutions and persisting at the same as whites, each cohort would have 17 percent more students after six years. 6

largest White percentage Participation of any racial/ethnic Target: Increase group,. the higher education participation rate for the white population of Texas from 5.1 percent in 2000 to 5.7 percent by 2010 and remain at 5.7 percent through 2015. Status: Somewhat Below Target White enrollment dropped below the CTG trend line for the first time in fall 2008. However, white enrollment rose after three years of decline. Enrollment must grow by 42,700 (6.8 percent) to meet the 2015 target. The higher education participation rate for the white population was 5.5 percent. Background White enrollment totaled 628,605 in fall 2008, up from 570,052 (10.3 percent) in fall 2000. In 2004, white enrollment was substantially above the target line. The following year, enrollment began falling. The 2008 up-tick is a good sign, but even larger increases must be sustained to achieve the 2015 target. The percentage of white public school students is dropping, and white high school graduates now account for less than half of all high school graduates - 51.2 percent in FY 2000 vs. 47.5 percent in FY 2008. The number of white graduates was lower in FY 2008 than in FY 2004. White higher education enrollment decreased for three years prior to the fall 2008 increase and remains below the fall 2004 level. The number of lower-division (freshman and sophomore) white students at universities was actually lower in fall 2008 than in fall 2000. Analysis and Observations Enrollment strategies for whites must consider that the number of white individuals in the 20- to 24-year-old age group has peaked and is starting to decline. To maintain white enrollment at the current level or experience enrollment growth, a greater proportion of young, white Texans will need to enroll in higher education. Strategies for increasing male participation in higher education should include both minority and white males. White male enrollments as a percentage of the total white undergraduate enrollment dropped from 44.5 percent in fall 2000 to 43.8 percent in fall 2008. 7

Closing the Gaps in Success Goal: By 2015, award 210,000 undergraduate degrees, certificates, and other identifiable student successes from high-quality programs. Overall the state is on track to reach the CTG success goal of increasing undergraduate awards. The state is also well above the individual target for increases in doctoral level awards. As important as it is to increase the overall number of undergraduate awards, there are fields critical to the well-being of the state where larger increases are needed. Those fields identified as critical to the state s well-being range from teaching and technology (engineering, computer science, math, and physical science) to nursing. Unfortunately the state is falling short in these critical fields. Increasing the number of well-prepared teachers is essential to not only the success goal, but also to the participation goal of having well-prepared students complete high school and continue into higher education. To reach the 2010 target for the number of teachers, an additional 8,000 teachers will be needed annually. The number of teachers produced through traditional university programs have remained relatively constant over the last eight years, while the number of teachers certified through alternative programs has dramatically increased. Public two-year colleges are responsible for part of that increase as they now offer alternative certification programs. There are currently 22 two-year colleges offering such programs. Progress toward the technology field target has been mixed, with some increase in engineering, but not enough to offset the decline in computer science. Recent efforts have focused on increasing the number of awards in engineering. The state is above the target for adding nursing and allied health degrees and certificates. These increases were made through a combined effort on the part of institutions and the Legislature s commitment of additional funding for incentives. However the Texas Board of Nurses recent analysis suggests that more nurses are needed by 2015 than specified in the CTG target. The accelerated action plan will focus on these critically important success areas where the state is well below the target. 8

CLOSING THE GAPS IN SUCCESS GOAL: Increase the overall number of students completing bachelor s degrees and associate s degrees, and certificates (BACs) to 171,000 by 2010 and to 210,000 by 2015. Status: On Target The growth in bachelor s, associate s, and certificates (BACs) awarded is on track with the CTG goal. In FY 2008, 155,542 BACs were awarded, compared with 116,235 in FY 2000 and 152,058 in FY 2007. Background BAC awards increased by 39,307 or 33.8 percent at public and independent institutions between FY 2000 and FY 2008. Since FY 2002, the pace of increase in BAC awards has slowed. Bachelor s, associate s, and certificates must increase by about 54,000 (35 percent), to reach the 2015 target. Analysis and Observations Graduation rates for entering full-time students must improve if Closing the Gaps success rates are to be achieved. The six-year graduate rate of first-time, full-time cohorts at universities increased steadily during the first five years. Since then, however, it has been flat. To continue progress on the undergraduate success goal, more than 56 percent of all students who enter universities as full-time enrollees must graduate within six years. At community colleges, 25.7 percent of first-time, full-time students completed a bachelor s or associate s degree or a certificate for the cohort completing six years in FY 2000, compared with 30.6 percent for the FY 2005 group, and 30.8 for the most recent FY 2007 group. This growth is encouraging, but the percentage of students enrolling full-time at community colleges is decreasing. Increasing completion rates at two-year institutions in both academic and technical programs is imperative. Efforts to help students persist and succeed in higher education must be increased. Hispanic and African American students persist and graduate at lower rates than whites and Asians. The plateau of graduation rates may reflect the increasing number of these students in the entering cohorts. Understanding the needs and challenges of our state s diverse student participants will be critical for meeting success goals. Strategies for improving success must address the critical role of students preparation for college-level coursework. Efforts must focus on both improving the skills of incoming students and supporting effective and scalable developmental education programs for student who arrive underprepared. Students who do not meet the state s TSI standards in math, reading, and writing must take developmental education in their deficiency areas. o For the fall 2004 cohort of first-time students at universities, only 35.6 percent of these students who were not prepared in math successfully completed a collegelevel math course within three to four years. The percentage earning college 9

credit in a related subject area was better for those who entered underprepared in reading (56.8 percent), and even better for those not meeting TSI in writing (60.5 percent). o Less prepared students are more likely to attend community colleges. Only 15.7 percent of entering 2004 community college students who were underprepared in math successfully completed a college level course within three to four years. As with universities, the percentage of community college students receiving college credit in the other two TSI areas was higher -- 42.7 percent for those deficient in reading and 35.4 percent for those underprepared in writing. 10

Success targets for Bachelor s and Associate s degrees: Increase the number of students completing bachelor s degrees to 100,000 by 2010 and to 112,500 by 2015. Increase the number of students completing associate s degrees to 43,400 by 2010 and to 55,500 by 2015. Bachelor s Degrees Status: On Target Bachelor s degrees have been tracking the target trend line more closely than any other target area. Bachelor s degrees grew from 74,906 in FY 2000 to 95,778 in FY 2008. Background Bachelor s awards increased 20,872 (27.9 percent) from FY 2000 to FY 2008. Institutions must award 17,000 (17.5 percent) more Bachelor s degrees by 2015 to meet the goal. Analysis and Observations While institutions must continue to focus on increasing baccalaureate attainment rates, the consistent improvement in degree attainment is encouraging. Associate s Degrees Status: Somewhat Above Target Associate s degrees have exceeded the trend line since FY 2002, but the rate of growth has slowed. Associate s degree awards grew from 25,505 in FY 2000 to 39,486 in FY 2008. Background Associate s awarded increased 13,981 (54.8 percent) from FY 2000 to FY 2008. Institutions must award 16,000 (40.6 percent) more Associate s degrees by 2015 to meet the target, which requires a 5.8 percent annual growth rate. Analysis and Observations The slowing growth in the award of Associates degrees should be monitored to ensure that Closing the Gaps targets are reached. The initial increase in Associate degrees was due, in part, to some institutions performing degree audits and determining that many of their 11

students had sufficient credits for a degree, but had not been awarded one. Many institutions are now conducting degree audits for this purpose on a regular basis. Reverse transfer opportunities should be encouraged. Reverse transfer of a student s credits earned at universities back to the two-year institution that the student previously attended for application to his or her Associate s degree requirements can earn the student an Associate s degree. 12

African American BAC Success Target: Increase the number of African American students completing bachelor s degrees, associate s degrees, and certificates to 19,800 by 2010 and to 24,300 by 2015. Status: Somewhat Below Target African American students earned 15,568 Bachelor s, Associate s, and certificates in FY 2008, compared with 11,215 in FY 2000, and 15,460 in FY 2007. However, undergraduate degrees and certificates awarded to African Americans fell below the FY 2008 goal. Background BAC awards to African American students increased by 4,353 (38.8 percent) between FY 2000 and FY 2008. Four-year public institutions conferred 6,821 awards (43.8 percent of the total), and public two-year institutions awarded 6,982 (44.8 percent). Since FY 2004, Bachelor s, Associate s, and certificates awarded to African Americans have only increased 6.1 percent, or 1.5 percent annually, which is well below the eight percent annual increase needed for the 2015 goal. Growth in undergraduate awards to African Americans was flat from FY 2004 to FY 2006 and FY 2007 to FY 2008. A modest increase of 5.2 percent in FY 2007 was not enough to keep the number of awards from dipping below the target trend line for the first time since FY 2000. Analysis and Observations More needs to be done to retain and graduate African American students. While enrollments are above the CTG trend line for participation, the number of BACs awarded to African Americans is below identified targets. 13

If a cohort of African American students who start at two-year colleges graduated at the same rates as white students, 12 percent more would earn a Bachelor s degree or higher. A comparable African American cohort at universities would graduate 26 percent more students if graduation rates were consistent with whites. Continued emphasis on the implementation of the Coordinating Board s Minority Male Initiatives will support the effort to improve African American male persistence. 14

Hispanic Success Target: Increase the number of Hispanic students completing bachelor s degrees, associate s degrees, and certificates to 50,000 by 2010 and to 67,000 by 2015. Status: Somewhat Below Target Bachelor s, Associate s, and certificates awarded to Hispanics were about 3,000 awards below the CTG trend line. Background Texas public and independent institutions conferred 39,267 BAC awards to Hispanics in FY 2008, compared with 23,368 in FY 2000 and 37,704 in FY 2007. BACs awards to Hispanics grew by 68 percent from FY 2000 to FY 2008, twice as much as the percentage increase in all BAC awards. To reach the Hispanic 2015 goal of 67,000 BAC awards, 28,000 awards must be conferred, a 70.6 percent increase over FY 2008. Analysis and Observations The 68 percent increase in BACs awarded to Hispanics from FY 2000 to FY 2008 is substantial and important, but even faster growth is needed. Historically, Hispanic students have had lower persistence and graduation rates than white and Asian groups. Effort to increase Hispanic student persistence should pay off with improved success outcomes. If a cohort of Hispanic students who start at two-year institutions graduated at the same rates as white students, 10 percent more would earn a Bachelor s degree or higher. For Hispanics starting at four-year institutions succeeding as whites, each cohort would earn 20 percent more Bachelor s degrees or higher. 15

Doctoral Success Target: Increase the number of students completing doctoral degrees to 3,350 by 2010 and to 3,900 by 2015. Status: Well Above Target Doctoral awards exceeded the target trend line by 20.2 percent. In FY 2008, 3,763 doctorates were awarded, compared with 2,629 in FY 2000. Awards of doctoral degrees have risen substantially since FY 2003. Background Doctoral awards rose more than 1,000 (43.1 percent) since FY 2000. Doctoral awards were only 137 degrees (3.5 percent) short of the 2015 target. Analysis and Observations Increasing the number of doctoral degrees awarded while maintaining high-quality programs is critical to meeting Closing the Gaps targets. Doctoral graduates who remain to work and teach in Texas add to the research output, knowledge-base and level of workforce skills in a variety of fields. Those who accept positions outside the state and nation contribute to the status of Texas and its postsecondary institutions. The emphasis of the institutions on graduate education is exhibited by the 43.1 percent growth in doctoral degrees since FY 2000, compared with 27.9 percent for Bachelor s degrees. As the emerging research universities strive toward Tier 1 status, additional emphasis will be placed on expanding doctoral programs. The 18 characteristics of doctoral programs prepared by the Graduate Education Advisory Committee and approved by the CB will serve as an information source for prospective students. Institutions will use the characteristics as input to facilitate self-study. The CB will continue to promote the doctoral guidelines and the strategic plan for doctoral education to help ensure the quality of and need for doctoral programs. The CB also will review the doctoral target to verify that it is sufficient. The National Research University Fund act, established in H.B. 51, 81st Texas Legislature, will assist emerging research universities to achieve national prominence as major research universities. One criterion for determining whether an emerging research institution is eligible for these funds is whether it has awarded at least 200 Doctor of Philosophy (Ph.D.) degrees in the prior two academic years. This provision may spur competing institutions to expand Ph.D. programs and push degree completion, which would increase the number of doctoral degrees at a more rapid rate. H.B. 51 will be mentioned often in discussion of CTG targets related to excellence and research. 16

Science-Technology-Engineering-Mathematics (STEM) Field Success Target: Increase the number of students completing engineering, computer science, math, and physical science (STEM) bachelor s and associate s degrees, and certificates from 12,000 in 2000 to 24,000 by 2010 and 29,000 by 2015. Status: Well Below Target In aggregate, undergraduate degrees and certificates in technology (computer science, engineering, math, and physical science) are basically unchanged from FY 2000. Background Technology undergraduate awards totaled 12,877 in FY 2008, compared with 11,979 in FY 2000 and 12,666 in FY 2007. They are far below the FY 2008 goal and must increase by 125 percent to meet the 2015 target. Undergraduate computer science, engineering, math, and physical science degrees, as well as certificates awarded in FY 2008 were only 7.5 percent greater than in FY 2000. Computer science awards fell during the period from about 4,000 to 2,867; engineering BACs increased by 2,000 awards from about 6,000 to about 8,000. The numbers of awards in math and physical science were much lower. Math awards increased slightly from 744 in FY 2000 to 959 in FY 2008, and physical science BACs dropped from 1,153 awards in FY 2000 to about 800 in FY 2003 but were back over 1,000 by FY 2008. Analysis and Observations Working to better understand the sensitivity of technology fields to workforce fluctuations and rapid innovation will be an important aspect of planning for STEM field growth. Current data reflects the loss of interest in some technology fields after the late 1990s technology bust. 17

Texas must keep pace with national growth rates in STEM fields. Nationally, STEM baccalaureates increased from FY 2000 to FY 2007 in each of the four fields. In Texas, computer science bachelor s were down 33.5 percent for the same period, and physical science degrees decreased by 15.4 percent. Using a Lumina Grant, the Coordinating Board is seeking to improve articulation for students in STEM fields who start at two-year institutions and want to transfer to four-year institutions. H.B. 51, 81st Texas Legislature, which gives incentive funding to universities that increase awards, gives extra weight for awards in critical fields identified in Closing the Gaps, including STEM fields. This may help increase the number of STEM degrees awarded. 18

Allied Health and Nursing Success Target: Increase the number of students completing allied health and nursing bachelor s and associate s degrees, and certificates to 20,300 by 2010 and to 26,100 by 2015. Status: Somewhat Above Target Undergraduate awards in allied health and nursing remained above the CTG trend line. Although the CTG trend line continues to rise, actual awards have plateaued in recent years. Background Allied health and nursing degrees and certificates awarded by public institutions increased steadily from 12,878 in FY 2001 to 18,184 in FY 2008. Two-year institutions conferred 71 percent of the health awards. The growth in awards from FY 2000 to FY 2008 was 4,977 (37.7 percent). Nursing awards grew by 3,432 (45.1 percent), and allied health awards increased 1,545 (27.6 percent). Allied health and nursing awards must increase by 43.5 percent between FY 2008 and FY 2015 to meet the CTG target. Analysis and Observations Response to demand for more nursing and allied health degrees has been encouraging but more needs to be done. By 2003, allied health and nursing graduates reversed a minor decrease in awards conferred. The original target was then revised upwards to reflect the need for more practitioners. The higher growth rate for nursing graduates than for graduates in the allied health fields may be a result of the Professional Nursing Shortage Reduction Program enacted by the 80th Texas Legislature. This program, funded again by the 81st Legislature, provides incentive funding for increased numbers of nursing graduates. The 81st Texas Legislature also funded the $4.05 million Nursing Innovation Grants for increasing enrollment capacity, improving retention rates, and attracting additional nursing faculty. It also provided universities incentive funding weighted for graduates in critical-need fields identified in CTG. The nursing component of the CTG target should be reviewed for possible alignment with the nursing workforce strategic plan. 19

Teachers Success Targets: Increase the number of teachers initially certified through all teacher certification routes to 34,600 by 2010 and 44,700 by 2015. Status: Well Below Target Certifications from traditional teacher education programs at universities and from all other routes, including alternative certifications, were well below the CTG trend line in FY 2008. Background Initial certifications from all routes totaled 11,807 in FY 2000 and 25,229 in FY 2007. In FY 2008, they rose to 26,168, an increase of 14,361 (121.6 percent) over FY 2000. In FY 2000, alternative certification programs accounted for 20 percent of newly certified teachers. Individuals in alternative certification programs earned approximately half of all initial certifications in FY 2008. Actual certifications have been increasing since FY 2000 and only began diverging from the CTG trend line in FY 2006. The decline advanced in FY 2008, with actual certifications 13.6 percent below the trend line. By 2015, 18,532 more new teachers will need to be certified to reach the CTG target, 70.8 percent more than in FY 2008. Analysis and Observations Universities must seek to reinvigorate their teacher certification programs. The number of new teachers coming from traditional programs is stagnant. Preparing additional teachers is a priority for all regions of the state. The Texas Workforce Commission projects public school teachers as one of the fastest growing workforce needs in terms of both numbers and percentages. 20

Recent legislative efforts should contribute to an increase in certifications. The $2.25 million dollars appropriated by the 81st Texas Legislature to fund alternative certification programs at public community colleges will allow colleges to offer the programs at a reduced cost to students. Incentive funding through HB 51 for universities that increases awards gives extra weight for awards in critical fields identified in Closing the Gaps, including teacher certification. 21

Math and Science Teacher Success Targets: Increase the number of math and science teachers certified through all teacher certification routes to 6,500 by 2015. Status: Well Below Target Math and science certifications from university teacher education and postbaccalaureate programs and from alternative certification programs remained well below the CTG trend line. The number of subject area certifications can exceed the number of certified individuals. A person who is qualified and tests in more than one subject area can receive multiple certificates is counted more than once in these figures. Background Math and science certifications from all routes totaled 2,156 in FY 2000, 3,032 in FY 2007, and 3,365 in FY 2008. Preliminary FY 2008 data show the number of math and science teacher certifications awarded has increased by 1,209 (56.1 percent) since FY 2000. Analysis and Observations Adding qualified math and science teachers is a more significant priority for the state now that additional math and science requirements are included in the recommended high school curriculum. Certified teachers for instruction in math and science programs are critical for enhancing student learning and increasing student interest in and readiness for STEM fields. TSI results suggest that better math instruction is needed in high school. One-quarter of entering students who were recent high school graduates did not met the TSI standard for math. 22

Closing the Gaps in Excellence Goal: to substantially increase the number of nationally recognized programs/services. The quality of an institution s educational units and services contributes to its reputation and fosters national recognition. When Closing the Gaps was first articulated, institutions were asked to demonstrate efforts toward achieving excellence by providing a program or service that they wanted to develop to garner national recognition. Many institutions have identified not one, but several programs for this assignment, and most institutions report that at least one program has received some type of national recognition. Consideration of the excellence goal has been increasingly geared toward the need for both individual program excellence and overall institutional quality. Recently, peer accountability groups from Texas public institutions met to discuss a means for encouraging and evaluating excellence through the accountability system. The university groups recommended a faculty profile section for the accountability system and a new metric section for the programmatic areas of excellence. Community colleges proposed the creation of a measure of students in service learning programs. All groups supported a means to measure collaborative initiatives between higher education institutions. The groups also recommended a renewed emphasis on the mission and vision of each institution. Clarifying visions and goals can help an institution to more effectively articulate and develop mission-critical areas, and, as a result, increase progress towards achieving institutional excellence. While little progress toward reaching the excellence goals tied to national rankings has been made, discussions about the nature of excellence and how to best achieve it have refocused attention on this goal. Funding allotments in H.B. 51, 81st Texas Legislature, will provide opportunities to reward institutions that achieve program excellence and, as a consequence, to make progress towards the excellence goals in Closing the Gaps. 23

CLOSING THE GAPS IN EXCELLENCE GOAL: Substantially increase the number of nationally recognized programs/services. Closing the Gaps in Excellence Goal: to substantially increase the number of nationally recognized programs/services. Excellence Targets: Increase the number of research institutions ranked in the top 10 among all research institutions from zero to one, and two additional research universities ranked in the top 30 by 2010; increase the number of public research universities ranked in the top 10 among all public research universities from zero to two, and four ranked among the top 30 by 2015. Increase the number of public liberal arts universities ranked in the top 30 among all public liberal arts institutions from zero to two by 2010, and four by 2015. Increase the number of health science centers ranked among the top 10 medical institutions from zero to one by 2010, and two by 2015. Status: Well Below Target: Regarding top-ranked research institutions, public liberal arts universities, and health science centers, Texas has made no appreciable progress since the start of Closing the Gaps. Background The U.S. News 2009 edition of America s Best Colleges, placed The University of Texas at Austin (UT-Austin) in a tie for 15th place among public universities and Texas A&M University (TAMU) in a tie for 24th place. UT-Austin has stayed at virtually the same level since 1999, while TAMU has stayed at about the same level since dropping to number 24 in 2003. According to U.S. News, UT-Austin tied for 3rd place among public undergraduate programs in business (tied for 6th overall, including independent institutions) and was ranked number one overall for its undergraduate accounting program. It placed 6th among undergraduate programs in engineering at public doctorate-level universities. TAMU s undergraduate program in engineering tied for 9th place among public doctorate-level universities. No public institution in Texas was ranked among the 115 Best Liberal Arts Colleges by U.S. News. One reason is that few public institutions in Texas or anywhere else in the U.S. meet U.S. News definition of a liberal arts college: emphasis on undergraduate education and awarding of at least half of all degrees in the arts and sciences. Midwestern State University became the only officially designated public liberal arts university in Texas when Governor Perry signed H.B. 602 in May 2009. The Center for Measuring University Performance s (CMUP) annual list of Top American Research Universities ranked UT-Austin and TAMU in a tie for 14th place in 2008. The University of Texas Southwestern Medical Center (UT Southwestern) and The University of Texas M.D. Anderson Cancer Center (UT M.D. Anderson) were the only public health-related 24

institutions in Texas that were cited by the CMUP in the top listing. They were ranked at 25 and 28, respectively, in the 2008 listing of top public research universities. Texas institutions have not improved their rankings significantly, and no emerging research universities vying for national research status have broken into the listings of top public institutions. Despite the caliber of UT Southwestern Medical Center and UT M.D. Anderson Cancer Center, their rankings leave them far short of the CTG target of two institutions in the top 10 of health-related institutions. Rankings among National Public Universities by U.S. News Institution 1999 2002 2003 2007 2008 2009 UT-Austin 17 15 14 13 (tie) 13 (tie) 15 (tie) Texas A&M 15 15 24 21 (tie) 23 24 (tie) Rankings among American Research Universities by The Center for Measuring University Performance Rank Among Public and Independent Universities* Rank Among Public Universities* Texas Public Institution 2006 2007 2008 2006 2007 2008 UT-Austin 28 (tie) 25 (tie) 19 (tie) 12 (tie) 8 (tie) 14 (tie) TAMU 32 31 (tie) 30 (tie) 20 14 (tie) 14 (tie) UT Southwestern 43 - - 18 (tie) 23 25 UT M.D. Anderson 51 52 47 (tie) 32 (tie) 32 (tie) 28 *The Center does not actually assign rank numbers to institutions as U.S. News does, but numbers can be assigned using their listing. Analysis and Observations Although the validity of rankings is often questioned, they do influence perceived stature. California has six public universities ranked higher than UT-Austin. Investigating why California s institutions are viewed as better than Texas institutions may identify areas where the state needs to improve. 25

Excellence Targets: Each college and university will have identified by 2002 at least one program to achieve nationally recognized excellence. Community and technical colleges and universities will have at least one program or service nationally recognized: 75 percent of the institutions by 2010 and 100 percent by 2015. Status: On Target Past progress reports on Closing the Gaps noted that all Texas public higher education institutions had identified at least one program to develop for national recognition, and that all received national recognition of some type in one or more programs. Therefore, the state s colleges and universities are on target for these excellence goals. Background In spring 2008, institutions informed the Coordinating Board of their progress towards achieving excellence in their programs identified for excellence. The process of identifying programs for excellence and then reporting on achievements focuses attention on the quality of specific programs and services and on the totality of institutional performance. Analysis and Observations While the peer accountability groups that focused on excellence in their FY 2009 discussions addressed the difficulties of measuring excellence, their discussions served to highlight many of the processes critical to the development of quality programs. Development of national-quality programs at universities will be aided by H.B. 51, 81st Legislature. The bill includes funding to develop and maintain specific programs of the highest national rank at non-research or -emerging research universities. Incentive grants are authorized for eligible universities that are the most committed to specific program quality. The Coordinating Board, in collaboration with experts from outside the state, will identify three benchmarks to serve as quality standards for each program. Funding is associated with each benchmark met. Once a program has met all three benchmarks, the institution can nominate another program for development. The standards developed for distribution of the excellence fund may be applied to evaluation of the excellent programs that institutions submit as part of their annual Closing the Gaps institutional target update process. For example, most institutions identify many programs and services for recognition. Asking institutions to narrow their lists to only one or two items, agreeing to the standard for measuring achievement, and then requiring that the recognition be achieved before adding another program/service to the excellence list may help institutions refocus efforts related to this goal. 26

Closing the Gaps in Research Goal: Increase the level of federal science and engineering research and development obligations to Texas institutions to 6.5 percent of obligations to higher education institutions across the nation. Capturing a significant portion of the federal science and engineering research and development obligations is, and must remain, a primary focus of the Texas public higher education agenda. The Closing the Gaps research goal serves to keep attention on the need for Texas to compete with other states for national research dollars and projects. 27

CLOSING THE GAPS IN RESEARCH GOAL: By 2015, increase the level of federal science and engineering research and development obligations to Texas institutions to 6.5 percent of obligations to higher education institutions across the nation, from 5.5 percent in FY 2000. Increase to 6.2 percent by 2010. Status: Somewhat Below Target Texas institutions share of federal obligations for research and development (R&D) in science and engineering was 5.5 percent in FY 2006, identical to the state s share in FY 2000. Background Federal science and engineering obligations for R&D received by Texas public and independent higher education institutions totaled $1.4 billion in FY 2006 (the most recent data available), virtually the same as in FY 2005. The FY 1999 total was $834.6 million. Texas share of national R&D obligations dropped from 5.6 percent in 2004 and 2005 to 5.5 percent in 2006, as obligations grew at a faster rate in five of the other top 10 states. Johns Hopkins University, the institution with the highest federal obligations ($1.2 billion), receives 90 percent of the amount attributable to all Texas public and independent institutions. The University of Washington Seattle, the number two institution, receives $615.6 million or 44 percent of the total Texas share. Analysis and Observations In 2003, when Texas had 6.1 percent of national obligations, the state seemed to be on course to meet or exceed the CTG target. However, since 2003, obligations to Texas institutions grew by only 0.8 percent ($11.7 million), while total national obligations grew by 11.6 percent. Texas percentage of federal R&D obligations compared with other states dropped in 2006 when federal expenditures obligations grew 2.2 percent (in constant dollars). The 3.9 percent growth from 2006 to 2007 suggests that Texas might not improve its standing visà-vis other states when 2007 data is available. H.B. 51 from the 81st Texas legislative session responds to the call for more nationally prominent research universities in Texas. Among its provisions are: o The Texas Research Incentive Program (TRIP) which will serve as matching funds to use in leveraging private gifts for the enhancement of research productivity and faculty recruitment at the state s emerging research universities, o The National Research University Fund which would provide matching funds to emerging research universities that meet research and quality standards set out in the bill, and o The Research University Development Fund intended to help research and emerging research universities attract high quality faculty and enhance research productivity. 28

o Appropriated funds are distributed based on an institution s total research expenditures for the most recent three years. The Governing Board of each research and emerging research university is to submit to the Coordinating Board a detailed, long-term strategic plan addressing how it will achieve or enhance its reputation as a research university. Collaboration with the Coordinating Board on these documents should focus attention of the state s Closing the Gaps research goal and target. 29

Research Target: Increase research expenditures by Texas public universities and health-related institutions from $1.45 billion in FY 1999 to $3 billion by 2015 (approximate 5 percent increase per year). Increase expenditures to $2.2 billion in constant (1998 base) dollars by 2007. Status: Well Above Target Public institutions met the 2007 target of $2.2 billion (1998 base) last year and have already exceeded the 2015 target of $3 billion in research and development (R&D) expenditures. Background In FY 2008, public universities and health-related institutions reported $3.1 billion, compared with $1.45 billion in FY 1999. Total R&D expenditures in FY 2008 were up 10.8 percent over FY 2007. Expenditures grew at a faster rate at public universities (12.6 percent) than at public health-related institutions (9.2 percent) from 2007 to 2008. Annual growth in public institutions R&D expenditures has fluctuated from 1.3 to 12.5 percent between FY 1999 and 2008. The federal government was the largest provider of funds for public expenditures in FY 2008, with a 53.6 percent share. State government provided the next largest share (20.1 percent) in appropriations, contracts, and grants. Analysis and Observations HB 51, 81st Texas Legislation, calls for a searchable database on technology research projects. Improved access to the existence of ongoing research projects will increase their exposure and possibly create new linkages with other research efforts. 30