Background for Public Hearings October 18, 2004 John Austin, Cherry Commission Policy Director John...
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Background for Public HearingsBackground for Public HearingsOctober 18, 2004
John Austin, Cherry Commission Policy Director
John Burkhardt, Senior Policy AdvisorU-M Center for the Study of Higher and Post-Secondary Education (CSHPE) &
Research Fellows
Dr. James Jacobs, Senior Policy AdvisorCenter for Community College Research (CCRI), Columbia University
Vice-President, Macomb Community College
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The Cherry Commission’s Challenge
Michigan’s economic future depends on enhanced levels of education
New knowledge and innovation are the key to a growing standard of living
Michigan must educate its young people and citizens to highest level in the worldKeep them hereAttract the top talent in the world to Michigan
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The Case for College: Postsecondary Education for All
Economic payoffs from higher education:Better educated people/families do betterCreate jobsMake Michigan competitive One point increase in percentage of people college
educated increases economic growth over ten years by one-half point
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Unemployment Rate in 2002 Median Earnings in 2001
$56,589
$46,969
$36,399
$34,340
$29,187
$22,350Source: U.S. Dept. of Labor
Master’s degree
Bachelor’s degree
Associate’s degree
Some college, no degree
High school graduate
Some high school, no diploma
$75,182
$82,421
Doctoral degree
Professional degree1.6%
1.6%
2.8%
3.1%
4.0%
4.8%
5.3%
8.5%
Earnings of College Graduates
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The Case for College: Postsecondary Education for All
In Michigan we know this story all too well: “Brawn work” is being replaced by “brain work” States with high levels of educated citizenry and high
levels of knowledge workers have high levels of income and income growth
Michigan is one of 16 states with lower than average income growth over the past 30 years
A one point increase in percentage of college educated adults lifts recipients’ wages 1.5% and all others’ wages by 1.1%
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The Case for College: Postsecondary Education for All
Michigan has a long history of providing basic, public education for all citizens
That basic education now needs to include postsecondary degrees and credentials that ensure success in today’s economy
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Michigan’s Current Position
22 percent of Michigan adults have attained bachelor’s or advanced degrees
4 percent below the national average 10 percent below the states that are leading the nation Ranking Michigan 34th nationally
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Michigan’s Current Position
Relative to other states, Michigan’s population is aging
Slowly growing labor force Current significant “brain drain” of young college
graduates ages 25–34
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The Commission’s Charge
Deal with these challenges Get more Michigan young people “to and through
college” Assist more adults in the labor market to move up to
improve their skills and complete better degrees and credentials
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Commission Organization
Four work groups to develop recommendations—with your input—in key areas for improvement:Preparation: Increasing the solid preparation for higher
education, life, and work Participation: Increasing participation in higher education
opportunitiesCompletion: Ensuring completion of degrees and
credentials of valueEconomic Benefits: Maximizing the benefits higher
education brings to Michigan’s economy
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Commission Work to Date
Analysis of Michigan’s unique assets and its particular challenges in reaching the goals identified by the governor and lieutenant governor
Examining the power and applicability of key strategies being pursued here and around the country
Beginning to identify areas of potential focus for recommendations
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Preparation: Michigan’s Challenge
Only 73 percent of Michigan ninth graders graduate from high school four years later
Only 32 percent of Michigan high school students graduate with college-ready transcriptsBelow the national average of 36 percent Behind lead states (49 percent) Only 15 percent of our Hispanic youth and 18 percent of
our African American youth are college ready
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Preparation: Michigan’s Challenge
One in three entering college freshmen take at least one remedial course, and in urban community colleges three in every four students do so
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Participation: Michigan’s Challenge
In Michigan, citizens are participating in college at significantly lower rates than in other states
Michigan has a participation gap in the number of students aged 18–24 and students aged 25 and older compared to benchmark states
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Postsecondary Participation in Michigan
Education Commission of the States estimated Michigan must enroll 222,000 more postsecondary students by 2015 to match the higher education participation rates of benchmark states
Only 42 percent of high school freshmen in Michigan enroll in college four years later
9.7 percent of adults aged 18–64 are enrolled in college, putting Michigan just above the national average, but below vanguard states
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Completion: Michigan’s Challenge
Half of the students who enter a Michigan college will not complete a college degree
Completion rates range from a high of 84 percent to a low of 27 percent
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Completion: Michigan’s Challenge
Only 49 percent of first-year community college students return the second year in Michigan—below national median of 52 percent, and behind lead states with rates above 60 percent
Average completion of community college after three years is 16 percent, 10 percent below the national average—putting Michigan 33rd in the country
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Completion: Michigan’s Challenge
Disparities in completion are evident, based on race and income More than 37 percent of Hispanics and 26 percent of
African Americans over the age of 25 have less than a high school diploma, compared to 14 percent of the white population
Completion rates for minorities at Michigan higher education institutions are as much as 20 percent lower than for whites
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Economic Benefits: Michigan’s Challenge
Higher education is the “jet fuel” of our economy Better educated people (as well as higher education
institutions) provide direct and indirect benefits to the state’s economy: producing graduates in key sectors and disciplines that fuel economic
growth creating new technologies and research, incubating new ideas and
industries fostering dynamic communities with rich creative and cultural aspects
that are magnets for knowledge workers from around the globe
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Economic Benefits: Michigan’s Challenge
Michigan ranked in the first quartile nationally for awarding advanced degrees in science and engineering
But Michigan lags behind Massachusetts and other states in the share of the state workforce with science and engineering degrees
Michigan is a producer of some of the best talent in the science and engineering fields but does not keep that talent here or attract others
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Economic Benefits: Michigan’s Challenge
Of Michigan residents between the ages of 22 and 29 with a college degree or higher, 43.5 percent leave the state
Michigan also ranks 45th nationally in terms of attracting graduates from other states into the state
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Economic Benefits: Michigan’s Challenge
We’ve got the brains and are doing the research:Michigan is a national leader in R&D expenditures (4th in
nation)Percent of science and engineering degrees granted (7th)Patents issued (9th)
We don’t commercialize and start new businesses. Michigan lags in:Fast-growing companies (32nd) and IPOs (34th)Venture capital invested (35th)Business incubators (38th)
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Meeting the Challenges
Looking for your input on key issues/ideas for improving the education levels of all Michigan citizens
Recommendations for the most powerful levers to enhance participation, success, and economic payoffs from our higher education system