The Rise of a Premier Public Two-Year College System

The Kentucky Community and Technical College System: The Rise of a Premier Public Two-Year College System Submitted to The Kentucky Community and Technical College System By Patrick J. Kelly October 2014

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Table of Contents Increasing Participation... 2 Improving Student Outcomes... 4 Raising the Educational Attainment in Kentucky... 8 Developing a Stronger Workforce and Economy... 9 Conclusion... 13 List of Figures Figure 1. Annual Headcount Enrollment per 100 Adults Aged 18 to 34 with No College Degree (2012)... 2 Figure 2. Change in Annual Headcount Enrollment per 100 Adults Aged 18 to 34 with No College Degree from 2000 to 2012... 3 Figure 3. Percentage Point Change in Annual Enrollment and the Population from 2000 to 2012 (KY Compared to the U.S. Average)... 4 Figure 4. Number of Credentials Awarded by KCTCS from 2000-01 to 2012-13... 5 Figure 5. All Credentials Awarded per 1,000 Adults Aged 18 to 34 with No College Degree (2012)... 5 Figure 6. Change in All Credentials Awarded per 1,000 Adults Aged 18 to 34 with No College Degree from 2000 to 2012... 6 Figure 7. Associate Degrees Awarded per 1,000 Adults Aged 18 to 34 with No College Degree (2012)... 7 Figure 8. Change in Associate Degrees Awarded per 1,000 Adults Aged 18 to 34 with No College Degree from 2000 to 2012... 7 Figure 9. Percentage of 25 to 34 Year Olds with Associate Degrees in 2012... 8 Figure 10. Percentage Change in 25 to 34 Year Olds with Associate Degrees from 2000 to 2012... 9 Figure 11. KCTCS Median Annual Wages One Year After Completion by Level and Field of Study... 10 Figure 12. KCTCS Median Annual Wages Five Years After Completion by Level and Field of Study.. 11 Figure 13. Demand and Wages for Healthcare Occupations in Kentucky: Setting KCTCS Apart from Other Systems in Their Use of Data and Information... 12

The Kentucky Community and Technical College System: The Rise of a Premier Public Two-Year College System Since 1997, when policymakers in Kentucky passed the Postsecondary Education Improvement Act (House Bill 1), many higher education leaders across the nation have turned their attention to Kentucky. It has been heralded as one of the great success stories a rare instance when a state s governor, legislators, higher education leaders, college and university presidents, and business leaders collectively aligned to implement postsecondary education policies to better serve the residents of the state. The two most unique facets of HB1, relative to what other states had done in the years leading up to the reform, were legislatively mandating that the state reach the national average in college attainment by the year 2020, and the development of the Kentucky Community and Technical College System (KCTCS) in 1998. Policymakers in Kentucky set a college attainment goal for its adult residents more than a decade before the prominent goals established for the nation by President Obama s administration (a declaration for the U.S. to once again become the most educated country in the world), and the Lumina Foundation s goal for the U.S. to reach 60 percent college attainment by the year 2025 (the current college attainment levels of the leading countries). In recent years, more than half of the U.S. states have followed suit by establishing their own college attainment goals. All said, policymakers in Kentucky led the nation s charge in setting an ambitious goal for improving the levels of college attainment for its residents. With the recognition that Kentucky was one of the most under-educated and poorest states in the country, policymakers in the state set out to greatly expand the open access mission and provision of the state s community and technical colleges. In a heated political maneuver, they legislated that the state s community colleges be relinquished from the control of the University of Kentucky, and the technical colleges from the state s Workforce Cabinet; in order to combine the two systems into a comprehensive community and technical college system (KCTCS). Of all the legislative action associated with HB1, this was the most substantial change to the state s postsecondary education system establishing an entirely new system of colleges meant to better serve Kentuckians. With it, came a great deal of expectation not only from those deeply involved in the process and those who expended a great deal of political capital to remove the community colleges from the state s esteemed flagship university, but also from higher education policymakers across the U.S.; who have been very interested in whether the broad-sweeping reforms in Kentucky (mainly the formation of an entirely new system and governance structure in KCTCS) will make a difference in the lives of the state s residents and its economy. A more detailed account of HB1, the development of KCTCS, and key people involved in the process are documented in Metamorphosis: Kentucky Community and Technical College System (http://legacy.kctcs.edu/tenyear/). The primary purpose of this report is to highlight the progress made by KCTCS since the year 2000, and placing the system s progress into a comparative context with other community and technical college systems across the U.S. It specifically highlights the progress of KCTCS regarding: Page 1

Increasing Participation Improving Student Outcomes Raising the Educational Attainment of Working-Aged Adults Helping to Develop a Stronger Workforce and Economy Increasing Participation Providing open access to postsecondary education to all adult residents is one of the primary missions of community and technical colleges. The number of students participating in KCTCS has risen dramatically since the system was created from 73,000 in 2000-01 to 135,000 in 2012-13. However, they have increased substantially in other states as well. A good measure of how well state community and technical college systems are serving state residents is the enrollment relative to the number of adults without college degrees. It is a measure of how well the system is penetrating the market of undereducated adults. Figure 1 displays the annual headcount enrollment per 100 adults aged 18 to 34 with no college degree in 2012. Figure 1. Annual Headcount Enrollment per 100 Adults Aged 18 to 34 with No College Degree (2012) Source: U.S. Census Bureau, 2012 American Community Survey; NCES, IPEDS Enrollment Survey Page 2

This age-group was chosen because it is the most likely one that has been impacted by KCTCS since HB1. KCTCS serves 18 percent of the state s adults aged 18 to 34 with no college degree. While it is still below the U.S. average of 21 percent, Kentucky has a relatively large percentage of young working-aged adults without college degrees 76 percent vs. 71 percent for the U.S. (ranked the 9 th highest percentage among states). KCTCS should continue to improve its reach to under-educated adults. Fortunately, the change from the years 2000 to 2012 shows that the system is moving in a very positive direction (Figure 2). Figure 2. Change in Annual Headcount Enrollment per 100 Adults Aged 18 to 34 with No College Degree from 2000 to 2012 Source: U.S. Census Bureau, 2012 American Community Survey; NCES, IPEDS Enrollment Survey From the year 2000, KCTCS ranks 5 th among the nation s community and technical college systems in improvement over time in its reach to younger working-aged adults without college degrees improving by eight percentage points from 10 to 18 percent. Figure 3 shows the dramatic change in KCTCS participation relative to the U.S. average. From 2000 to 2012, KCTCS experienced a 63 percent increase in enrollment, while the population of 18 to 34 year olds in Kentucky only increased by 2 percent. Over the same period, the nation s community and technical colleges experienced a 17 percent growth in enrollment relative to a 10 percent growth in the number of 18 to 34 year olds. While KCTCS is making major progress, it has an opportunity (and need) to expand its service even more to reach the top-performing states. Page 3

Figure 3. Percentage Point Change in Annual Enrollment and the Population from 2000 to 2012 (KY Compared to the U.S. Average) Source: U.S. Census Bureau, 2012 American Community Survey: NCES, IPEDS Enrollment Survey In addition to the large increase in overall headcount enrollment at KCTCS from 2000 to 2013, there has been an explosion in the numbers of students enrolling in distance learning courses over this period. Enrollment in distance learning courses has grown from just over 3,000 in 2000 to nearly 52,000 in 2013. Distance education has clearly become one of the primary modes of instructional delivery in KCTCS affording many more opportunities for place-bound students to earn credentials not previously offered by their local institutions. Improving Student Outcomes KCTCS has dramatically increased its production of credentials since 2000 (Figure 4). While the production of diplomas (certificates 1-2 years in length) has remained relatively flat, associate degree production nearly tripled from 2000-01 to 2012-13 (from 3,300 to 8,900 a year), and the production of shorter-term certificates rose from 1,800 to nearly 18,000 over this period a tenfold increase. One of the reasons for the huge spike in certificate production was the creation of many shorter-term certificate programs beginning in 2003, which were designed to provide clearer career pathways for students to earn workforce-relevant credentials along the way to the longer-term credentials traditionally offered by KCTCS colleges. Page 4

Figure 4. Number of Credentials Awarded by KCTCS from 2000-01 to 2012-13 Source: KCTCS Fact Book The sheer volume of credential production among states has little meaning without determining the need among the populations in this case, the number of adults aged 18 to 34 with no college degree. When accounting for all sub-baccalaureate credentials (certificates and associate degrees), KCTCS ranks 4 th in the nation among state community and technical college systems in its production of credentials relative to 18 to 34 year olds with no college degree (Figure 5). Figure 5. All Credentials Awarded per 1,000 Adults Aged 18 to 34 with No College Degree (2012) Source: U.S. Census Bureau, 2012 American Community Survey; NCES, IPEDS Completions Survey Page 5

While the dramatic increase in shorter-tem certificate production has certainly had an influence on KCTCS overall standings among states, the improvement since 2000-01 is nonetheless impressive (Figure 6). Only one state (New Mexico) improved more over this period in the sub-baccalaureate credentials awarded relative to the population in need. KCTCS rose from 32 nd among states in 2000 to 4 th in 2012. Figure 6. Change in All Credentials Awarded per 1,000 Adults Aged 18 to 34 with No College Degree from 2000 to 2012 Source: U.S. Census Bureau, 2012 American Community Survey; NCES, IPEDS Completions Survey The number of associate degrees awarded relative to the population in need at KCTCS remains slightly below the U.S. average. However, the change from 2000 to 2012 was among the top-performing states. KCTCS improved from being ranked 42 nd in 2000 to 28 th in 2012 (Figure 7 and Figure 8). While there is certainly room for improvement for KCTCS, in the production of college credentials, it has improved by leaps and bounds since its creation. Far more working-aged adults in Kentucky are earning credentials than before. Page 6

Figure 7. Associate Degrees Awarded per 1,000 Adults Aged 18 to 34 with No College Degree (2012) Source: NCES, IPEDS Completion Survey; U.S. Census Bureau, 2012 American Community Survey Figure 8. Change in Associate Degrees Awarded per 1,000 Adults Aged 18 to 34 with No College Degree from 2000 to 2012 Source: U.S. Census Bureau, 2012 American Community Survey; NCES, IPEDS Completions Survey Page 7

Raising the Educational Attainment in Kentucky Since the time of the passage of HB1, no states (their policymakers and institutions) have devoted a more sustained effort to increase the educational attainment of their state residents than Kentucky. In 2011, NCHEMS produced a report for the Kentucky Council on Postsecondary Education (Realizing Kentucky s Educational Attainment Goal: A Look in the Rear View Mirror and Down the Road Ahead) which concluded that Kentucky was among the top five states in its improvement on nearly all of the key metrics of student success in postsecondary education since the year 2000. But the most impressive findings were associated with the impact on the working-aged adults: that the state ranked first among states in its improvement on the percentage of adults aged 25 to 64 with college degrees (associate and higher) from 2000 to 2009, and second in the change among adults aged 25 to 44 with college degrees. The report also concluded that with continued effort, Kentucky s goal of reaching the U.S. average in college attainment by the year 2020 is not completely out of reach. HB1 has had a lasting effect, and KCTCS has certainly been an integral part of its success. While the state still lags the U.S. average in the percentage of adults with college degrees (associate and higher), for the first time in history the state has surpassed the U.S. average in the attainment of associate degrees among younger working-aged adults aged 25 to 34 (Figure 9). Figure 9. Percentage of 25 to 34 Year Olds with Associate Degrees in 2012 Source: U.S. Census Bureau, 2012 American Community Survey Page 8

From 2000 to 2012, Kentucky experienced the 7 th largest gain in the percentage of younger adults with associate degrees (Figure 10). It rose from 41 st to 26 th among states over this period. KCTCS dramatic increase in associate degree production has made a direct impact on the state s adult population. Figure 10. Percentage Change in 25 to 34 Year Olds with Associate Degrees from 2000 to 2012 Source: U.S. Census Bureau, 2012 American Community Survey, 2000 Decennial Census Unfortunately, the U.S. Census Bureau does not collect data on the percentage of adults with undergraduate certificates. Given the comparatively high levels of certificate production by KCTCS, it is likely that Kentucky would rank well above the U.S. average, and even among the top states, in the percentage of working-aged adults with certificates. Developing a Stronger Workforce and Economy In addition to the open-access mission, a great deal is expected of community and technical college systems to serve the needs of employers and to contribute to the vitality of local economies. Given NCHEMS experience working with many community and technical college systems across the U.S., this is an area where KCTCS is particularly innovative. While there are no available state-level comparison data to bring to bear, KCTCS has led the nation in its use of data and information on the employment outcomes of its graduates. Figure 11 and Figure 12 display the outcomes of KCTCS graduates by level and field of study one and five years after completion. These data, compiled by staff at KCTCS for a Bill and Melinda Gates project in 2012, reveal positive outcomes for graduates at all levels and fields of study each yielding wages to program completers that are above those experienced by working adults who have not earned college Page 9

credentials. The returns are greatest among graduates in health, trade, and science, technology, engineering and mathematics (STEM) fields. In the current era of heightened accountability across the U.S., the pressure is mounting for postsecondary education systems (and institutions) to provide these types of data. Many state systems either have a great deal of difficulty doing so, or are avoiding it under the scrutiny. KCTCS has been producing them for nearly a decade. Figure 11. KCTCS Median Annual Wages One Year After Completion by Level and Field of Study (2005-06 Credential Completers) Source: KCTCS, official data as reported to CPE; UI wage match, Office of Employment and Training, Kentucky Education Cabinet. Page 10

Figure 12. KCTCS Median Annual Wages Five Years After Completion by Level and Field of Study (2005-06 Credential Completers) Source: KCTCS, official data as reported to CPE; UI wage match, Office of Employment and Training, Kentucky Education Cabinet. On a similar note, KCTCS (to our knowledge) is the only postsecondary education system that brings data together from a variety of sources in order to better inform future programmatic offerings that are both in high demand and yield high wages. Figure 13, and others like it, have gained widespread acclaim in the postsecondary policy community for their effectiveness in displaying data and information in ways that are actionable i.e. clear decisions can be made about which programs need expanding (or opened) to benefit both employers and students, and vise-versa. In the case of healthcare occupations, producing more graduates in the areas of nursing, radiologic technology, and dental hygiene (for example) would provide great benefit to the state with respect to filling needed jobs, and students with respect to earning high wages. Page 11

Figure 13. Demand and Wages for Healthcare Occupations in Kentucky: Setting KCTCS Apart from Other Systems in Their Use of Data and Information Source: KCTCS Office of Research and Policy Analysis; Kentucky Occupational Outlook to 2020; 2012 Occupational Wages (Office of Employment and Training, Kentucky Education Cabinet). Workforce training and bridging the divide between the skills needed in the workforce and those produced by the postsecondary education system is (or should be) a core mission of comprehensive community and technical college systems, and an area where we also particularly struggle to find comparative data across states. KCTCS has a variety of initiatives aimed at more effectively linking postsecondary education and workforce and economic development. While it is beyond the scope of this brief report to highlight them all, a few of the particularly innovative initiatives include: The Kentucky Skills Network. The network provides a single point of contact, streamlined workforce resources, and unified marketing and information to more effectively help employer find individuals with the right skills, and students obtain the skills needed by employers. Through the use of labor market information, assessment of skills, and a variety of employee recruitment strategies, the Kentucky Skills Networks has worked to greatly expand the provision of workforce training. In 2013, more than 2,500 companies were provided workforce training services, more than 80,000 Kentuckians participated in the training, and Kentucky s workforce partners provided more than $13 million in training funds. Page 12

Aligning Workforce and Economic Development Systems (AWEDS). This initiative, launched in 2013, aims to validate and expand best practices across all KCTCS workforce-related initiatives. The overarching goals are to improve core culture of: (1) the quality of efforts associated with the alignment of workforce and economic development systems, (2) providing change leadership, (3) demonstrating and supporting entrepreneurism, (4) promoting 21 st century career pathways for students, and (5) leading community and economic development. Early successes with several KCTCS colleges are the development of the principles of quality in lean manufacturing, industry sector prioritization and program alignment between employer needs and academic programs, and strategic needs analyses with respect to industry needs and the supply of skills needed among college graduates. KCTCS-TRAINS. Through this initiative, current companies and those wishing to relocate to Kentucky receive funding to assist with the cost of assessing employees for the skills needed in the workplace. Also with KCTCS-TRAINS funds, KCTCS colleges work closely with employers to provide the customized training needed to develop the skills needed (among individuals) to meet their demands. All said, KCTCS devotes a great deal of attention and resources to the mission of workforce and economic development. Like the improvements noted above for student participation and completion since 2000, KCTCS has dramatically improved its response to the employment community in the state, and its ability to better align the skills needed in the workplace to those that the system produces. Conclusion Relative to most other public community and technical college systems in the U.S., KCTCS has improved dramatically on the key measures of student participation and completion. In a state that has not seen much growth in its population, enrollment in the system has nearly doubled since 2000, and its production of college credentials has increased by more than 400 percent. In addition, over this time period, there has been a great deal of energy devoted to expanding and improving its mission to help strengthen the state s workforce and economy. Despite its improvement in many of the areas discussed above, KCTCS continues to seek innovative practices in what it does to serve the state s residents and employers. It has remained actively involved in many of the major national initiatives aimed at improving student success and institutional performance. Among them are Complete College America, the National Governors Association s Effectiveness and Efficiency Metrics, the American Association of Community College s Voluntary Framework of Accountability, and Jobs for the Future s Accelerating Opportunity. KCTCS remains committed to learning (and applying) the best-practices around the country in order advance the system and improve its ability to serve Kentuckians. While specific colleges are not mentioned in this report, KCTCS has the distinction of having at least one of its colleges as top-ten finalists in each of the three rounds of the Aspen Prize for Community College Excellence an award given to community and technical colleges that exhibit exemplary performance and best-practices in a wide array of areas that are core to the two-year college mission. Even more Page 13

KCTCS colleges have routinely made it to the round 1 application phase of the Aspen Prize the top 120 community and technical colleges (of more than 1,000 nationwide) invited to apply for the prize. Only one other state (Florida) has had greater representation among its two-year colleges in the Aspen Prize. Since the passage of HB1 in 1997, and the full implementation of KCTCS a few years later, the public postsecondary two-year system in Kentucky has risen from a fragmented system of technical and transfer-oriented colleges into one of the most comprehensive community and technical college systems in the U.S. The vision set forth for KCTCS by Governor Paul Patton and other state policymakers, when they passed HB1, has become a reality. It has happened in large part because of the sustained commitment to leadership, support, and service from the staff at KCTCS; and the diligent efforts to serve their communities among the 16 colleges (and their staffs). The system is still hard at work to improve the lives of Kentuckians. The residents of Kentucky are greatly benefitting from all of their efforts. This report is timely given the retirement of KCTCS President Michael McCall in January 2015. He has led the system and its rise to a premier system since it was created. His leadership has been paramount to its success, and has firmly set the stage for even greater success in the future. Page 14