An Examination of Higher Education Productivity

An Examination of Higher Education Productivity Patrick Kelly The National Center for Higher Education Management Systems

A Time of Increased Pressure on Higher Education Productivity President s Goal Foundation Goals (Lumina, Gates) College Completion Agenda Declining State Resources and Rising Tuition

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $7,479 $7,855 $7,993 $7,988 $7,869 $7,825 $7,607 $7,171 $6,912 $6,994 $7,227 $7,311 $7,547 $7,770 $7,961 $8,035 $7,979 $7,682 $7,211 $6,740 $6,662 $6,986 $7,195 $7,325 $6,951 $6,451 Public FTE Enrollment (Millions) Dollars per FTE $2,274 $2,371 $2,434 $2,501 $2,550 $2,608 $2,691 $2,903 $3,082 $3,186 $3,271 $3,387 $3,419 $3,431 $3,428 $3,337 $3,348 $3,356 $3,431 $3,611 $3,760 $3,935 $4,068 $4,116 $4,178 $4,321 Public FTE Enrollment, Educational Appropriations and Total Revenue per FTE United States from 1985 to 2010 Public FTE Enrollment, Educational Appropriations and Total Educational Revenue per FTE, United States -- Fiscal 1985-2010 14.0 $14,000 12.0 $12,000 10.0 $10,000 8.0 $8,000 6.0 $6,000 4.0 $4,000 2.0 $2,000 0.0 $0 Net Tuition Revenue per FTE (constant $) Educational Appropriations per FTE (constant $) Public FTE Enrollment Note: Constant 2010 dollars adjusted by SHEEO Higher Education Cost Adjustment. Educational Appropriations include ARRA funds. (HECA) Source: SHEEO

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $5,429 $5,577 $5,650 $5,608 $5,501 $5,363 $5,246 $5,027 $4,970 $5,010 $5,102 $4,106 $3,732 $3,786 $4,079 Public FTE Enrollment (Thousands) $4,188 $5,397 $5,565 $5,621 $5,618 $5,669 $5,772 $5,397 $4,379 $4,751 $4,511 $4,779 $5,423 $5,171 Dollars per FTE $3,628 $3,734 $3,860 $3,799 $3,909 $3,778 $3,983 $4,221 $4,480 $4,514 $4,670 $5,589 $5,298 $4,840 $4,820 $4,807 $4,830 $4,675 $4,730 $4,843 $5,802 $6,168 $6,601 Public FTE Enrollment, Educational Appropriations and Total Revenue per FTE Colorado from 1985 to 2010 Public FTE Enrollment, Educational Appropriations and Total Educational Revenue per FTE, Colorado -- Fiscal 1985-2010 200 $12,000 180 160 $10,000 140 $8,000 120 100 $6,000 80 60 $4,000 40 $2,000 20 0 $0 Net Tuition Revenue per FTE (constant $) Educational Appropriations per FTE (constant $) Public FTE Enrollment Note: Constant 2010 dollars adjusted by SHEEO Higher Education Cost Adjustment (HECA). Educational Appropriations include ARRA funds. Source: SHEEO

-9.8 Michigan Oklahoma Rhode Island Minnesota Virginia South Carolina Maine New Jersey Iowa Indiana Kansas North Dakota Arkansas Massachusetts Utah Pennsylvania Mississippi Colorado Ohio Illinois Arizona Missouri West Virginia California Kentucky Connecticut South Dakota United States Oregon Alabama New Mexico Hawaii Washington Delaware New Hampshire Montana Idaho Wisconsin Florida Nebraska Georgia Vermont Alaska Nevada Maryland Louisiana New York Texas North Carolina Tennessee -0.8 Wyoming 0.8 0.5 2.4 1.9 4.1 4.0 3.9 7.4 7.2 6.9 6.9 6.6 6.6 6.5 6.0 5.9 5.3 11.5 11.4 11.1 10.9 10.8 10.4 10.2 10.0 9.4 21.4 21.1 20.7 20.3 19.8 18.6 17.9 17.8 17.5 16.8 16.2 16.1 16.1 15.2 15.2 14.6 14.3 14.2 13.7 13.6 13.5 13.2 13.1 25 Change (%) in Tuition and Fee Revenues as a Percent of Total Public Funding (2000 to 2010) 20 15 10 5 0-5 -10-15 Source: SHEEO, State Higher Education Finance Survey

Different Approaches to Analyzing Productivity Public Investment vs. Performance Institutional Spending vs. Performance Cost Savings and Efficiency General Revenues State and Local Appropriations Tuition and Fees Endowment Income Government Grants and Contracts Private Gifts, Grants and Contracts Other E&G Revenue Outcomes and Performance Degree Production Retention and Graduation Rates External Research General Expenditures Instruction Student Services Academic Support Institutional Support Plant Operation and Maintenance Research Public Service Scholarships and Fellowships Internal Operations Programmatic Costs Student/Faculty Ratios Faculty Workload Faculty and Staff Attrition Administrative Staffing Patterns Academic Program Mix Course Delivery Modes Space Utilization 6

Different Approaches to Analyzing Productivity Public Investment vs. Performance Institutional Spending vs. Performance Cost Savings and Efficiency General Revenues State and Local Appropriations Total Tuition and Fees Unrestricted Endowment Income Revenues Government Grants and Contracts Private Gifts, Grants and Contracts Other E&G Revenue Outcomes and Performance Degree Production Retention and Graduation Rates External Research General Expenditures Instruction Student Services Academic Support Institutional Support Plant Operation and Maintenance Research Public Service Scholarships and Fellowships Internal Operations Programmatic Costs Student/Faculty Ratios Faculty Workload Faculty and Staff Attrition Administrative Staffing Patterns Academic Program Mix Course Delivery Modes Space Utilization 7

Different Approaches to Analyzing Productivity Public Investment vs. Performance Institutional Spending vs. Performance Cost Savings and Efficiency General Revenues State and Local Appropriations Tuition and Fees Endowment Income Government Grants and Contracts Private Gifts, Grants and Contracts Other E&G Revenue Outcomes and Performance Degree Production Retention and Graduation Rates External Research General Expenditures Instruction Education Related Student Services Expenses Academic Support Institutional Support Plant Operation and Maintenance Research Public Service Scholarships and Fellowships Internal Operations Programmatic Costs Student/Faculty Ratios Faculty Workload Faculty and Staff Attrition Administrative Staffing Patterns Academic Program Mix Course Delivery Modes Space Utilization 8

Different Approaches to Analyzing Productivity Public Investment vs. Performance Institutional Spending vs. Performance Cost Savings and Efficiency General Revenues State and Local Appropriations Tuition and Fees Endowment Income Government Grants and Contracts Private Gifts, Grants and Contracts Other E&G Revenue Outcomes and Performance Degree Production Retention and Graduation Rates External Research General Expenditures Instruction Student Services Academic Support Institutional Support Plant Operation and Maintenance Research Public Service Scholarships and Fellowships Internal Operations Programmatic Costs Student/Faculty Ratios Faculty Workload Faculty and Staff Attrition Administrative Staffing Patterns Academic Program Mix Course Delivery Modes Space Utilization 9

NCHEMS Reports/Work on Higher Education Productivity A New Look at the Institutional Component of Higher Education Finance: A Guide for Evaluating Performance Relative to Financial Resources (2005) The Dreaded P Word: An Examination of Productivity in Public Postsecondary Education (2009) On-going work with state policymakers in Colorado, Indiana, Kentucky, Virginia Available at www.nchems.org

Two Types of Productivity Analyses 1. Performance relative to funding and expenditures Unrestricted funds available to institutions Expenditures on student-related activities 2. Funding and Expenditures per Degree Weighted by the value of the degree in the state Weighted by STEM and Health

Measures of Funding and Expenditures State, local, and Tuition and Fee Revenues (unrestricted public funds provided by the state and students) Education and Related Expenditures (expenditures on instruction, student service and part academic support, institutional support, and plant operation and maintenance) calculation provided by the Delta Project on College Costs Source: NCES, IPEDS

Performance Relative to Total Public Revenues

Measures of Performance First-Year Retention Rates Graduation Rates within 150% of Program Time Undergraduate Credentials and Degrees per 100 Undergraduate FTE Students Research Expenditures per 100 FTE Faculty (Research Institutions Only) Source: NCES, IPEDS

Undergraduate Credentials Awarded per 100 FTE Students 50 Public Two-Year Institutions: Undergraduate Credentials per 100 FTE Undergraduates and Total Funding per FTE Student (2007-08) KY 35 SD GA LA ND 20 MO WV MN AR FL CO AZ WA SC IL IA MT ME NE MS NC US OK OH AL PA IN VA TN NJ CA TX RI UT KS NH VT ID DE MA NY MI NM HI CT MD OR WY NV 5 3,000 6,000 9,000 12,000 State, Local, and Tuition and Fee Revenues (2008) Source: NCES, IPEDS 2007-08 Completions Survey

Undergraduate Credentials Awarded per 100 FTE Students 30 Public Research Institutions: Undergraduate Credentials per 100 FTE Undergraduates and Total Funding per FTE Student (2007-08) CT 27 UT WA 24 FL IL CA PA 21 18 CO SD MT MO TX OR OK AZ ID US VA GA IN WI KS OH NH SC ME MS NM ND NE NV LA RI WV TN AR MD HI DE WY IA NY MI MA KY VT NC NJ AL MN AK 15 5,000 11,000 17,000 23,000 29,000 35,000 State, Local, and Tuition and Fee Revenues (2008) Source: NCES, IPEDS 2007-08 Completions Survey

Undergraduate Credentials Awarded per 100 FTE Students 28 Public Bachelors and Masters Institutions: Undergraduate Credentials per 100 FTE Undergraduates and Total Funding per FTE Student (2007-08) NH 24 20 16 CO WA NJ IL FL KS CA MD IA ME UT NY CT OR VA MI OK ND MN US TX RI VT WI SC IN MS TN NE KY MT MA PA WV AR MO GA ID AL LA SD NC HI AK NM DE 12 NV OH 8 2,000 6,000 10,000 14,000 18,000 22,000 State, Local, and Tuition and Fee Revenues (2008) Source: NCES, IPEDS 2007-08 Completions Survey

Performance Relative to Funding: First-Year Retention Rate (2007-08) 100 High Performance, Low Funding High Performance, High Funding 95 OSU Performance 90 85 80 75 VCU WVU Carnegie Avg FSU TU UMO UC UIA AVERAGE UUT UKS UI-C UA UL UNM UNR UB UKY UMN UAB 70 UC-D 65 WSU Low Performance, Low Funding Low Performance, High Funding 60 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Total Funding Per FTE

Performance Relative to Funding: Six-Year Graduation Rate (2007-08) 75 70 High Performance, Low Funding OSU FSU UMO High Performance, High Funding 65 UIA UMN Performance 60 55 50 WVU Carnegie Avg VCU TU UKS UA AVERAGE UUT UI-C UNR UB UKY 45 UC UL UNM 40 UAB 35 UC-D WSU Low Performance, Low Funding Low Performance, High Funding 30 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Total Funding Per FTE

35 Performance Relative to Funding: Undergraduate Credentials Awarded per 100 FTE Undergraduates (2007-08) High Performance, Low Funding High Performance, High Funding FSU 30 Performance 25 UUT UMO 20 UC-D Carnegie Avg UC OSU UI-C UA UIA UKS TU AVERAGE UKY UB UMN UAB VCU WVU UNM UL WSU UNR Low Performance, Low Funding Low Performance, High Funding 15 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Total Funding Per FTE

Performance Relative to Funding: Research Expenditures per FT Faculty (2007-08) 175,000 High Performance, Low Funding UA High Performance, High Funding 160,000 UAB 145,000 Performance 130,000 115,000 100,000 85,000 70,000 55,000 UC-D 40,000 Carnegie Avg Low Performance, Low Funding OSU WVU UC VCU UKY UMN UI-C UIA AVERAGE UL UNM WSU UKS UUT FSU UB UMO Total Funding Per FTE Low Performance, High Funding 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 TU UNR

Index Score of Overall Performance Relative to Total Public Funds (Average Across all Performance Measures) University of Colorado Denver Ohio State University-Main Campus Florida State University Carnegie Avg University of Arizona University of Missouri-Columbia University of Illinois at Chicago West Virginia University University of Cincinnati-Main Campus University of Utah Virginia Commonwealth University University of Iowa Peer Avg University of Kansas University of Louisville University of New Mexico-Main Campus University of Kentucky University of Minnesota-Twin Cities Temple University University of Nevada-Reno Wayne State University University at Buffalo University of Alabama at Birmingham 139.2 130.0 119.5 113.5 109.7 109.3 109.1 107.2 106.7 105.5 103.1 100.0 96.8 95.9 92.7 92.0 90.7 86.4 84.0 80.5 79.1 71.2 180.8 0 20 40 60 80 100 120 140 160 180 200

Preparation Levels of Incoming Students

Productivity: Ratio of Performance (Graduation Rate) to Total Revenues 7 6 Correlation = 0.50 5 4 3 2 PU-NE IU-NW IU-SB IU-E PU-NE PU-C USI IU-K IUPUFW 1 0 15 17 19 21 23 25 Average Entering ACT Scores of First-Time Freshmen

Productivity: Ratio of Performance (Graduation Rate) to Total Revenues 8 7 Correlation = 0.21 6 5 4 3 ISU BSU PU IU 2 1 IUPUI 0 16 20 24 28 32 Average Entering ACT Scores of First-Time Freshmen

Total Public Revenues per Degree Weighted by STEM and Health

Revenues and Expenditures per Degree Public Investment from State and Students Focus of this Work Costs of Producing Degrees Postsecondary Education Institutions Production of Degrees and Value to Students and the State Internal External Policy Focus

Calculation State, Local, Tuition and Fee Revenues / Total Credentials Awarded (Weighted by Level of Award, and STEM and Health)

STEM and Health Credentials and Degrees STEM = CIP (4, 11, 14, 15, 26, 27, 40, 41). Health Prof = CIP (51). CIP Codes Field CIP Codes Field 1 agriculture, agriculture operations, and related sciences. 29 military technologies 3 natural resources and conservation 30 multi/interdisciplinary studies 4 architecture and related services 31 parks, recreation, leisure, and fitness studies 5 area, ethnic, cultural, and gender studies 38 philosophy and religious studies 9 communication, journalism, and related programs 39 theology and religious vocations 10 communications technologies/technicians and support services 40 physical sciences 11 computer and information sciences and support services. 41 science technologies/technicians 12 personal and culinary services 42 psychology 13 education 43 security and protective services 14 engineering. 44 public administration and social service professions 15 engineering technologies/technicians 45 social sciences 16 foreign languages, literatures, and linguistics 46 construction trades 19 family and consumer sciences/human sciences 47 mechanic and repair technologies/technicians 22 legal professions and studies 48 precision production 23 english language and literature/letters 49 transportation and materials moving 24 liberal arts and sciences, general studies and humanities 50 visual and performing arts 25 library science 51 health professions and related clinical sciences 26 biological and biomedical sciences 52 business, management, marketing, and related support services 27 mathematics and statistics 54 history Sources: NCES, IPEDS

Median Earnings in Virginia by Level, STEM and Health Other Health 27,985 29,984 Indexed to Bachelor s Some College, No Degree STEM 56,970 Other Health STEM 32,983 42,078 54,971 Associate s Other 48,975 Health STEM 47,076 74,961 Bachelor s Other Health 65,966 59,969 Master s STEM 88,954 Other 84,956 Health STEM 93,951 99,948 Doctoral Other Health STEM 84,956 97,949 107,944 Prof 0 20,000 40,000 60,000 80,000 100,000 120,000 Sources: U.S. Census Bureau, 2009 American Community Survey (Public Use Microdata Samples)

Virginia Commonwealth University: Degrees Weighted by Value to the State and Individuals: Median Earnings in the State Employment Market Degree-Level Median Earnings Indexed to Bachelor's Degrees Awards Weighted Awards Certificates 22,777 0.54 2 1 Certificates STEM 57,016 1.36 0 0 Certificates Health 28,508 0.68 0 0 Associates 31,454 0.75 0 0 Associates STEM 61,103 1.46 0 0 Associates Health 43,385 1.03 0 0 Bachelors 41,975 1.00 2,699 2,699 Bachelors STEM 75,924 1.81 461 834 Bachelors Health 53,975 1.29 384 494 Masters 59,067 1.41 1,133 1,594 Masters STEM 92,915 2.21 172 381 Masters Health 63,351 1.51 236 356 Doctorates 75,924 1.81 62 112 Doctorates STEM 97,765 2.33 57 133 Doctorates Health 95,027 2.26 133 301 First-Professionals 85,524 2.04 0 0 First-Professionals STEM 75,924 1.81 0 0 First-Professionals Health 97,616 2.33 397 923 TOTAL 5,736 7,828 Total Public Revenues per Degree = State, Local, Tuition and Fee Revenue / Weighted Awards State, Local, Tuition and Fee Revenues / 7,828 Education and Related Expenditures per Degree = Education and Related Expenditures / Weighted Awards

Total Public Revenues per Degree (2007-08) Weighted by STEM and Health University of Colorado Denver Florida State University University of Utah University of Cincinnati-Main Campus University of Missouri-Columbia Wayne State University University of Illinois at Chicago Virginia Commonwealth University West Virginia University University of Louisville Peer Average Ohio State University-Main Campus University of Kansas University of New Mexico-Main Campus Temple University University of Iowa University of Arizona University of Kentucky University at Buffalo University of Minnesota-Twin Cities University of Nevada-Reno University of Alabama at Birmingham 24,776 40,585 44,376 45,957 50,095 51,267 52,889 53,102 55,003 56,434 57,168 57,634 59,282 61,720 63,167 64,367 64,461 64,945 65,384 66,238 74,156 84,691-20,000 40,000 60,000 80,000 100,000

Revenues per Degree (Weighted by Level, STEM, and Health) Virginia Institutions Relative to Peer Averages (2007-08) Christopher Newport University College of William and Mary George Mason University James Madison University Longwood University Norfolk State University Old Dominion University Radford University University of Mary Washington University of Virginia - Main Campus UVA's College at Wise Virginia Commonwealth University Virginia State University Virginia Tech Richard Bland College VCCS 59.6% 57.6% 76.1% 103.1% Peer Average 92.2% 104.7% 106.4% 73.8% 85.4% 78.7% 89.7% 123.2% 92.9% 133.5% 85.3% 129.1% 0% 20% 40% 60% 80% 100% 120% 140% 160% Sources: NCES, IPEDS Finance Survey; U.S. Census Bureau, 2009 American Community Survey (Public Use Microdata Samples)

Productivity Measures Adopted by the National Governor s Association

Colorado Florida Missouri South Dakota Utah North Dakota Arkansas Oklahoma Montana New Hampshire Washington West Virginia Georgia Tennessee Virginia Kentucky Maine Oregon Arizona Mississippi South Carolina Kansas Michigan Illinois United States Alabama California Wisconsin Texas Ohio Minnesota Louisiana Idaho Iowa Pennsylvania Indiana New York Maryland Massachusetts Rhode Island Nebraska New Jersey North Carolina Nevada New Mexico Delaware Vermont Hawaii Connecticut Wyoming Alaska 0.90 2.19 2.14 2.10 2.08 2.07 2.07 2.02 1.99 1.95 1.94 1.94 1.94 1.92 1.91 1.90 1.89 1.87 1.87 1.86 1.86 1.84 1.84 1.78 1.78 1.78 1.78 1.77 1.75 1.73 1.72 1.71 1.71 1.69 1.69 1.68 1.67 1.64 1.62 1.59 1.57 1.51 1.48 1.40 1.36 1.35 1.18 2.65 2.43 2.41 2.96 Credentials Awarded (One Year and More) per 100,000 of State, Local, and Tuition and Fee Revenues - Public Sector, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Colorado Florida Oregon South Dakota Missouri Utah Montana New Hampshire Illinois Arizona Virginia North Dakota Ohio Michigan Wisconsin Kansas Texas Arkansas Oklahoma California United States Tennessee Washington Georgia South Carolina Nevada Idaho New Mexico Rhode Island North Carolina Indiana Mississippi Louisiana West Virginia Kentucky Alabama Maryland Iowa Massachusetts Maine Delaware Minnesota Hawaii Pennsylvania Nebraska Vermont New York New Jersey Wyoming Connecticut Alaska 0.61 2.26 2.24 2.11 2.11 2.08 2.07 1.99 1.98 1.98 1.90 1.86 1.85 1.82 1.79 1.76 1.76 1.74 1.74 1.73 1.73 1.73 1.72 1.69 1.67 1.61 1.60 1.59 1.58 1.57 1.55 1.54 1.54 1.53 1.53 1.51 1.48 1.45 1.45 1.45 1.37 1.33 1.31 1.26 1.20 1.20 1.16 1.14 1.13 2.52 2.88 Credentials Awarded (One Year and More) per $100,000 of State & Local Appropriations and Tuition & Fees Revenues - Public Research & Medical, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Colorado California Kansas Florida Washington Oregon Pennsylvania Oklahoma Tennessee Nebraska Wisconsin Utah Illinois West Virginia Maryland Alabama Georgia Arkansas United States Texas North Dakota Michigan Missouri New Hampshire New York New Jersey South Dakota Mississippi Kentucky Minnesota South Carolina Rhode Island Virginia Maine Idaho Indiana Massachusetts Louisiana Iowa Connecticut Vermont North Carolina Montana New Mexico Nevada Delaware Hawaii Ohio Alaska 3.07 2.97 2.90 2.82 2.80 2.79 2.61 2.56 2.54 2.52 2.48 2.48 2.47 2.47 2.42 2.39 2.38 2.37 2.36 2.32 2.29 2.27 2.24 2.22 2.19 2.18 2.18 2.14 2.12 2.08 2.06 2.02 2.01 1.97 1.97 1.94 1.92 1.88 1.87 1.81 1.76 1.68 1.45 1.36 1.31 1.31 1.26 1.19 4.54 Credentials Awarded (One Year and More) per $100,000 of State & Local Appropriations and Tuition & Fees Revenues - Public Masters, Bachelors, and Other 4-Year, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Missouri South Dakota West Virginia North Dakota Florida Maine Montana Kentucky Mississippi Indiana Oklahoma Arkansas Iowa Vermont Louisiana South Carolina Colorado Washington Minnesota Georgia Utah New Jersey New Hampshire Massachusetts Tennessee Alabama Arizona Delaware Virginia Ohio United States Idaho Nebraska Michigan Pennsylvania New York Rhode Island North Carolina Hawaii Illinois Kansas Texas New Mexico Nevada Wyoming Wisconsin Maryland Oregon Connecticut California Alaska 0.25 2.89 2.87 2.80 2.78 2.69 2.44 2.38 2.31 2.22 2.20 2.15 2.09 2.04 2.03 2.02 1.95 1.87 1.80 1.80 1.78 1.76 1.76 1.75 1.74 1.73 1.63 1.63 1.60 1.59 1.57 1.55 1.54 1.51 1.49 1.43 1.42 1.42 1.40 1.38 1.32 1.23 1.23 1.21 1.21 1.18 1.16 3.66 3.40 4.01 4.38 Credentials Awarded (One Year and More) per $100,000 of State & Local Appropriations and Tuition & Fees Revenues - Public Associates & Other 2-Year, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Florida Missouri Utah South Dakota North Dakota Arizona West Virginia Montana Oklahoma Georgia New Hampshire Arkansas Virginia Kentucky Maine Idaho Kansas Michigan Mississippi Iowa Rhode Island Alabama New Mexico Ohio Nebraska United States Colorado Illinois Indiana Wisconsin Tennessee Texas Minnesota New Jersey Louisiana Pennsylvania Massachusetts South Carolina Washington Maryland Oregon Nevada North Carolina California Vermont New York Delaware Wyoming Hawaii Connecticut Alaska 1.01 2.41 2.33 2.22 2.21 2.21 2.19 2.18 2.16 2.15 2.06 2.03 1.97 1.97 1.96 1.95 1.93 1.92 1.88 1.85 1.82 1.82 1.82 1.80 1.78 1.77 1.75 1.75 1.74 1.74 1.73 1.73 1.71 1.70 1.69 1.67 1.65 1.63 1.63 1.62 1.57 1.55 1.53 1.47 1.47 1.41 1.36 1.32 1.24 2.69 2.62 Credentials Awarded (One Year and More) per 100,000 of Education and Related Expenditures - Public Sector, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Florida Utah South Dakota Georgia Missouri Montana Arizona New Hampshire New Mexico Virginia North Dakota Colorado Kansas West Virginia Wisconsin Idaho Oregon Mississippi Michigan Ohio Oklahoma Rhode Island Maryland Maine Iowa Illinois Kentucky United States Nevada Louisiana Arkansas Massachusetts South Carolina Alabama North Carolina Indiana Texas Tennessee Nebraska Wyoming Minnesota New York Hawaii Delaware New Jersey Pennsylvania Washington California Connecticut Vermont Alaska 0.81 2.69 2.52 2.49 2.47 2.46 2.36 2.30 2.19 2.19 2.16 2.10 2.02 2.00 1.99 1.98 1.98 1.96 1.96 1.94 1.92 1.92 1.90 1.87 1.86 1.82 1.82 1.80 1.72 1.71 1.71 1.67 1.66 1.62 1.61 1.61 1.56 1.56 1.54 1.49 1.47 1.46 1.45 1.41 1.39 1.39 1.38 1.37 1.27 1.24 3.04 Credentials Awarded (One Year and More) per 100,000 of Education and Related Expenditures - Public Research, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Kansas Oklahoma Florida Washington Texas Arkansas Nebraska Pennsylvania California Utah Alabama Rhode Island Missouri Michigan Tennessee Oregon Illinois West Virginia Iowa New Jersey Georgia Indiana New Hampshire Kentucky Wisconsin North Dakota United States Idaho Virginia Minnesota Vermont New Mexico Maine Mississippi Massachusetts South Carolina South Dakota Maryland Louisiana North Carolina Montana New York Connecticut Colorado Nevada Alaska Ohio Delaware Hawaii 1.39 1.31 1.27 1.21 1.21 1.18 1.04 2.89 2.78 2.76 2.67 2.67 2.62 2.48 2.47 2.45 2.43 2.43 2.43 2.42 2.41 2.34 2.34 2.34 2.28 2.22 2.21 2.19 2.18 2.17 2.17 2.16 2.15 2.13 2.12 2.11 2.11 2.09 1.95 1.91 1.88 1.87 1.83 1.82 1.81 1.76 1.76 1.64 1.61 Credentials Awarded (One Year and More) per 100,000 of Education and Related Expenditures - Public Bachelor s and Masters, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

Missouri West Virginia South Dakota North Dakota Maine Florida Vermont Oklahoma Indiana Montana Arizona Kentucky Arkansas Mississippi Iowa New Hampshire Minnesota Utah Georgia Ohio Colorado New Jersey Delaware Nebraska Louisiana Washington Virginia Idaho Michigan Tennessee South Carolina United States Texas Massachusetts Alabama Pennsylvania Illinois New Mexico Kansas North Carolina Rhode Island New York Nevada Wyoming Hawaii Wisconsin Maryland California Oregon Connecticut Alaska 0.19 2.24 2.23 2.23 2.13 2.10 1.96 1.96 1.92 1.90 1.88 1.82 1.80 1.71 1.68 1.67 1.62 1.61 1.60 1.58 1.58 1.57 1.57 1.55 1.53 1.52 1.49 1.47 1.46 1.46 1.45 1.40 1.38 1.38 1.35 1.33 1.30 1.28 1.25 1.24 1.22 1.22 1.19 1.13 1.11 0.99 0.97 2.69 2.51 3.03 3.55 Credentials Awarded (One Year and More) per 100,000 of Education and Related Expenditures - Public Two-Year, 2008-09 (Weighted by Median Earnings of Graduates - by Degree-Level and STEM and Health) 4 3.5 3 2.5 2 1.5 1 0.5 0 Sources: NCES, IPEDS Completions Survey; U.S. Census Bureau, American Community Survey (Public Use Microdata Samples)

What s Missing? 1. Measures of quality 2. Measures of actual costs per degree by program, degree-level, etc. 3. Additional desired outcomes e.g. measures of performance associated with public service, engagement with business and employers, research/technology transfer, etc.

At the Institutional Level Why Peers are so Important Comparison to similar institutions Mission Size Program Mix Selectivity Etc.

Approaches to Achieving Greater Productivity Building Cost Effective Systems Change the Academic Production Function Reduce Leaks in the Pipeline Reduce Demand Each Student Places on the System

Building Cost-Effective Systems More Appropriate Mix of Institutions Create New Types of Providers Effective Collaboration Among Institutions Support Year-Round Operations

Changing the Academic Production Function Create Programs of Cost-Effective Size (Elimination in Some Cases, Collaboration in Others) Reengineer Curricula Reengineer Course Delivery

Reducing Leaks in the Pipeline Preparation of Traditional and Non-Traditional Students Transfer and articulation Incentives for Degree Completion Curricula Alignment Financial Aid Incentives Early-Warning Systems Improve Consumer Information

Reducing Demands Each Student Places on the System Students Come to College More Prepared (Less Remediation) Accelerated Learning Minimize Rework Improve Rates of Course Completion Reduce Credit Hours to Degree Encourage Use of Assessment/ Test-Out Options Learning in the Workplace/Credit for Experience

If you had the data, how might you measure productivity differently? What measures and methods would you use?

Patrick J. Kelly Senior Associate patrick@nchems.org (303) 497-0307