STRATEGIC PRIORITIES FOR HIGHER EDUCATION IN OREGON

Day 1

PRESENTED TO: WAYS AND MEANS, EDUCATION COMMITTEE

BEN CANNON, EXECUTIVE DIRECTOR, HIGHER EDUCATION COORDINATING COMMISSION

2

Oregon’s Goals for Student Success WHAT PROGRESS HAVE WE MADE?

Day 1

3

By 2025, 40% of adult Oregonians will hold a bachelor’s or advanced degree, 40% will have an associate’s degree or a meaningful postsecondary certificate, and all adult Oregonians will hold a high school diploma.

OREGON’S 40-40-20 GOAL

4

40-40-20: “ALL ADULTS”? THE “PIPELINE”?

As a pipeline goal, applying to the expected high school class of 2025 (and beyond).

As a goal for the adult population, applying to working-age adults in 2025 (and beyond).

The latter goal should be continually refined based on actual labor market needs and valuable

certificates, and may not be 40-40.

5

MEASURING OREGON AGAINST 40-40-20

35%

20%

18%

24%

6

40-40-20 TRENDS: PERCENTAGE OF ADULTS WITH ASSOCIATE’S DEGREE OR HIGHER

35.0%

36.0%

37.0%

38.0%

39.0%

40.0%

41.0%

2006 2007 2008 2009 2010 2011 2012 2013

OregonUS

Source: American Community Survey data. Does not include people for whom a post-secondary certificate or apprenticeship is their highest form of educational attainment. .

7

We endorse a broad understanding what

“counts” for the middle 40, including:

• two year associates’ degrees,

• one-year certificates, • registered

apprenticeships, and • Career pathways

certificates • Other credentials

should include • industry-based

nationally-recognized certificates and

• state licensure for various fields.

40-40-20: THE MIDDLE 40

8

AMERICA AS 100 COLLEGE STUDENTS

See: Gates Foundation, http://postsecondary.gatesfoundation.org/student-stories/america-as-100-college-students/

9

Key Priorities in 2015-17 Postsecondary Education Budget AFFORDABILITY AND STUDENT SUCCESS OUTCOMES

Day 1

10

Funding Affordability: potential new investments in

OOG, free community college, Pay it Forward, tuition policy Alignment: e.g. accelerated learning, dual credit,

placement policies Outcomes-based funding Consumer protection: especially for-profit

institutions Workforce training

MAJOR 2015 STATE ISSUES THIS SESSION

11

BUDGET PRIORITIES: THE 40-40-20 VISION

Advance Oregon toward 40-40-20: • Achieve results for Oregon students and the State, advancing

Oregon's economy, prosperity, and the 40-40-20 attainment goal through strategic investments and policy alignment.

• Align strategic investments and policies with the state’s 40-40-20 goals • Invest in key pathways and transition points from secondary education to

career, connecting more Oregonians with postsecondary futures and workforce opportunities

• Ensure a streamlined integrated agency to meet the coordination needs of 40-40-20.

12

BUDGET PRIORITIES: AFFORDABILITY

Affordability • Ensure that Oregonians from all backgrounds have the opportunity

to access, afford, and complete postsecondary education through targeted investments to make college affordable.

• Expand and strategically redesign the Oregon Opportunity Grant. • Reinvest in public universities and community colleges including

continuation of tuition offset investment approved in 2013, building resources and capacity for campuses to focus on improving student outcomes and keeping tuition manageable.

• Continue and expand successful pre-college outreach programs.

13

BUDGET PRIORITIES: OUTCOMES

Student Success Outcomes: • Reinvest in public colleges and universities with an intentional focus on

improving student outcomes for those who are not crossing the finish line today.

• Reinvest to build capacity at community colleges and public universities to intentionally focus on student success.

• Increase per-student funding for students of Oregon community colleges and public universities, including continuation of the 2013 tuition off-set investment.

• Shift to an outcomes-based funding model for the community colleges and universities.

• Support bond capacity for university capital requests, and fund debt service on previously approved capital projects.

14

PROPOSE KEY PERFORMANCE MEASURES: OVERVIEW

Types of Measures

K-12 transition success measures including dual credit and K-12 students’ college enrollment

Community College success measures including number of GED’s, certificates, and degrees awarded; retention rates; rates of developmental education completion; and median earnings of graduates and students who leave

University success measures including number of bachelors and advance degrees awarded; retention rates; transfer-student completions; median earnings of graduates

Access and affordability measures including percentage of students incurring unaffordable costs; average debt amount of graduates; default rates; average cost of attendance; and tuition and fees

15

New Higher Education Governance Structure HECC’S ROLE IN STRATEGIC ALIGNMENT AND COORDINATION OF POSTSECONDARY EDUCATION

Day 1

16

A COMPREHENSIVE APPROACH TO POSTSECONDARY SUCCESS

The HECC provides a comprehensive view of education and training programs, including community colleges, public universities, private colleges, trade schools, financial aid and workforce training.

17

INSTITUTION TYPE NUMBER OF

INSTITUTIONS ENROLLMENT (FTE)*

PRIMARY HECC RESPONSIBILITIES

Oregon public universities 7 82,883 Funding allocations, state budget development, program approval, mission approval, coordination

Oregon Health and Sciences University

1 2,452 Coordination

Oregon community colleges 17 72,113 Funding allocations, state budget development, program approval, coordination

Oregon-based private, degree-granting schools

27 (state-regulated) 8,990 Degree authorization, coordination

22 (exempt) 35,498 Coordination

Oregon-based private career schools (non-degree granting)

198 4,040 Licensure, teacher registry, coordination

Non-Oregon degree-granting schools (distance education)

115 (state-regulated) NA Degree authorization, coordination

114 (exempt) NA Coordination

OREGON HIGHER EDUCATION INSTITUTIONS

*For the sake of consistency, enrollment data is drawn from the National Center for Educational Statistics IPEDS database. This represents a significant undercount, as it does not include: (a) students attending institutions that do not participate in federal financial aid programs; and (b) many students attending community colleges who are enrolled in non-credit and other courses.

Postsecondary Before 2013 (animated version)

Postsecondary Post 2013 (animated version)

HECC

EOU OIT SOU

SBHE

UO OSU PSU

WOU

OSAC CCWD

OUS

SBE OSAC

WOU EOU OIT SOU

Institution Board/Council

Achievement Compacts

OEIB

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

UO OSU PSU

Agency

HECC

OUS

Shared Services

OSAC CCWD

OUS OUS

7/1/15

Postsecondary Before 2013 (full diagram)

Postsecondary Post 2013 (full diagram)

HECC

EOU OIT SOU

SBHE

UO OSU PSU

WOU

OSAC CCWD

OUS

SBE OSAC

WOU EOU OIT SOU

Institution Board/Council

Achievement Compacts

OEIB

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

UO OSU PSU

Agency

HECC

OUS

Shared Services

OSAC CCWD

OUS OUS

7/1/15

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

20

New institutional governing boards created for public universities

Existing local governing boards maintained at community colleges

INCREASED LOCAL AUTONOMY

21

From five* state boards to two**

A single state agency with responsibility for all sectors of higher education, public and private

A clearly-defined focus on coordination, not governance

BETTER STATE COORDINATION

*OEIB, HECC, SBHE, SBE, OSAC **OEIB, HECC

22

We will foster and sustain the best, most rewarding pathways to opportunity and success for all Oregonians through an

accessible, affordable and coordinated network for educational achievement beyond a high school diploma .

From Pathways to Progress, HECC Strategic Plan, 2014

HECC VISION STATEMENT

23

ROLES OF THE HECC: COORDINATION AND CONNECTIONS

HECC connects and coordinates policy and funding recommendations across postsecondary education in Oregon.

• Funding allocations (public colleges and universities) • Program/degree approval (public colleges and universities, some privates) • Mission approval (public universities) • Student/consumer protection (some privates) • Data and reporting (all) • Strategies for coordination (all) • Need-based financial aid and scholarship programs (students)

Responsibilities touch community colleges, public universities, state financial aid, and the private higher education sector

Collaborates to advance P-16 education with OEIB, ODE, campuses, policymakers, and educational partners

Leadership, support, and connections to workforce development

24

Uniquely positioned to

consider broad aspects of

postsecondary education in

Oregon

Permits the state to strategically focus on: • Investing resources to maximize student

success • Improving student achievement • Increasing postsecondary affordability • Key pathways to and within

postsecondary institutions • Connecting job-seekers with employment

opportunities

VALUE OF THE HECC: STRATEGIC FOCUS

25

Serving an Increasingly Diverse State and Student Body HECC EQUITY LENS, STUDENT DEMOGRAPHICS

Day 1

26

In 2014, the HECC adopted the Oregon Education Investment Board Equity Lens as a cornerstone to the state’s approach to policy and budgeting.

“…Equity requires the intentional examination of systemic policies and practices that, even if they have the appearance of fairness, may in effect serve to marginalize some and perpetuate disparities. Data are clear that Oregon demographics are changing to provide rich diversity in race, ethnicity, and language. Working toward equity requires an understanding of historical contexts and the active investment in changing social structures and changing practice over time to ensure that all communities can reach the goal and the vision of 40/40/20.” -Excerpt, OEIB Case for Equity:

HECC/OEIB EQUITY LENS

27

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000Actual Projections

American Indian/Alaska Native Asian/Pacific Islander Black, non-Hispanic Hispanic White, non-Hispanic

Source: Western Interstate Commission on Higher Education (WICHE)

OREGON PUBLIC HIGH SCHOOL GRADUATES BY RACE/ETHNICITY, 1996-97 TO 2008-09 (ACTUAL), 2009-10 TO 2027-28 (PROJECTED)

2014-15

28

PREPARING ALL FOR 40-40-20: OREGON STUDENTS INCREASINGLY DIVERSE

Leveling of high school graduate

numbers

• Oregon’s high school graduating classes are not growing rapidly in total numbers, but are growing increasingly diverse.

Increased Diversity

• The fastest growing youth populations are among Oregonians who currently have low high school completion and college-going rates.

Hispanic/Latino growth

• From 2008 to 2025, Hispanic/Latino Oregon high school graduates are expected to nearly triple from 12% to 33% of all graduates.*

New approaches for

40-40-20

• The educational system will need to better serve first-generation students, low-income students, rural students, students of all ages, and students of color.

*Source: WICHE, Knocking at the College Door

29

MEASURING OREGON AGAINST 40-40-20

10% 32%

20%

42%

40%

40%

17%

13% 40% 31% 14%

0%

20%

40%

60%

80%

100%

Goal (2025) Oregon working-age adults (2013)

Selectedracial/ethnicsubgroups*

Bachelor's or advanceddegreeAssociate's degree orcertificate (estimate)High school completion

Less than high school

*African-American, Hispanic, Native American

30

POSTSECONDARY EDUCATION NEEDED FOR HIGH-PRIORITY, HIGH-WAGE/HIGH-DEMAND OCCUPATIONS IN OREGON

OED Prority Rank Occupation Total openings 2012-2017 Competitive education

level 16 General and Operations Managers 3,470 Bachelor's 11 Accountants and Auditors 2,662 Bachelor's 5 Carpenters 2,303 Post-secondary training

16 Physicians and Surgeons 1,794 Advanced 4 Industrial Machinery Mechanics 1,118 Post-secondary training

16 Computer Systems Analysts 973 Bachelor's 16 Cost Estimators 879 Bachelor's 16 Welders, Cutters, Solderers, and Brazers 802 Post-secondary training 16 Computer Occupations, All Other 800 Bachelor's 10 Machinists 751 Post-secondary training 5 Sales Managers 715 Bachelor's

16 Pharmacists 704 Advanced 3 Medical and Health Services Managers 661 Advanced 5 Industrial Engineers 656 Advanced

16 Operating Engineers and Other Construction Equipment Operators 642 Post-secondary training

5 Computer Hardware Engineers 621 Advanced 5 Marketing Managers 604 Bachelor's

11 Construction Managers 600 Bachelor's 1 Physical Therapists 591 Advanced

16 Firefighters 585 Associate's 16 Librarians 317 Advanced

2 Medical and Clinical Laboratory Technologists 297 Bachelor's

11 Veterinarians 272 Advanced 11 Urban and Regional Planners 268 Advanced

11 Medical and Clinical Laboratory Technicians 265 Associate's

“By 2020, two thirds of all jobs will require postsecondary education.” (national figure) - Lumina Foundation, http://www.luminafoundation.org/facts-and-figures

31

A growing number of companies recognize the need for a globally-minded diverse workforce to remain intelligent in the marketplace.

OREGON’S WORKFORCE NEED A SKILLED, DIVERSE WORKFORCE

“In January, Intel announced the creation of our new Diversity in Technology initiative to support, enhance and encourage more diversity at Intel and in the technology industry as a whole. In order to design products and services for consumers, our company make-up must more closely mirror the face of America.”

• Jill Eiland, Public Affairs Director, Intel

32

IF NOT NOW, WHEN?

If the ladder of educational opportunity rises high at the doors of some youth and scarcely rises at the doors of others, while at the same time formal education is made a prerequisite to occupational and social advance, then education may become the means, not of eliminating race and class distinctions, but of deepening and solidifying them. -President Truman, in releasing a repot of the President’s Commission on Higher Education, 1947

"We are true to our creed when a little girl born into the bleakest poverty knows that she has the same chance to succeed as anybody else."— President Obama, 2nd inaugural address

Equity in education is vital because equality of opportunity is a core American value. Young people in this country—regardless of wealth, home language, zip code, gender, sexual orientation, race or disability—must have the chance to learn and achieve. Education must provide a path to a thriving middle class for all who are willing to work hard. Our national identity and our economic strength depend on it. –http://www.ed.gov/equity

33

Why Postsecondary Education Matters, Return on Investment

Day 1

34

MEAN WAGES BY EDUCATIONAL ATTAINMENT FOR WORKING AGE (25-64) OREGON ADULTS

$14,190

$21,319

$24,911

$31,673

$44,687

$64,690

$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

No HS diploma

HS diploma or GED

Some college, no degree

Associate's

Bachelor's

Advanced degree

Source: 2013 American Community Survey, U.S. Census.

35

Source: Oregon Employment Department, Research Division

UNEMPLOYMENT RATES BY EDUCATIONAL ATTAINMENT LEVEL, OREGON, 2014

7.8%

6.8%

6.3%

5.6%

4.0%

Less than a high school diploma

High school diploma

Some college or associate's degree

Total Population

Bachelor's degree or higher

36

OREGONIAN EARNINGS AND TAXES PAID 2009-2011 STUDY

Source: Oregon University System analysis of various data sources

$13,448 $18,919 $20,809

$27,656

$41,491

$49,097

$79,184 $75,811

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

No HSD HSD Some College Associate's degree Bachelor's degree Master's degree Professional degree Doctoral degree

Ann

ual E

arni

ngs

Annual Earnings and Taxes Paid by Educational Attainment (2009-2011)

After Tax Income State & Local Taxes Federal Taxes

37

RETURNS TO OREGON

$108,726

$128,261

$131,450

$150,615

$187,113

$196,438

$78,105

$147,323

$251,427

$284,183

$620,332

$588,939

HS diploma

Associate's degree

Bachelor's degree

Master's degree

Professional degree

Doctoral degree

Direct State and Federal Investments per Degree and Estimated Returns

Returns to Oregon

Direct state and federalinvestment per degree

Source: Oregon University System analysis of various data sources

38

RETURN ON INVESTMENT: BUILDING STUDENT, FAMILY, COMMUNITY, STATE, AND WORLD FUTURES

INVESTING TO IMPROVE RESULTS FOR OREGON STUDENTS

March 17, 2015

FUNDING HISTORY IN HIGHER EDUCATION, AND OPPORTUNITIES

40

Components of HECC Budget OPPORTUNITY GRANT COMMUNITY COLLEGE SUPPORT FUND PUBLIC UNIVERSITY SUPPORT FUND DEBT SERVICE TUITION OFF-SET

Day 2

41

2015

-17

GR

B

2013

-15

All figures are General and Lottery Fund, in millions 1Public University funding includes technical adjustment reducing GRB by $4.7 million. 2HECC GRB also includes new investments in Youth Employment ($15m), Worker training ($6m), and a Community Innovation Fund ($25m).

WHAT IS THE STATE INVESTMENT?

Debt Service 216.7

Debt Service 140.8

Financial Aid

142.0

Financial Aid 113.8

Comm Colleges 500.0

Comm Colleges 466.9

Public Universities1 589.0

Public Universities 528.5

OH

SU

72.6

OH

SU

75.6

Stat

e Pr

ogra

ms/

SW

PS

139.

5

Stat

e Pr

ogra

ms/

SW

PS

126.

7

Oth

er2

28.7

Oth

er

21.5

42

AFFORDABILITY PRIORITIES: AN INTEGRATED APPROACH

Expansion and strategic redesign of the Oregon Opportunity Grant, by targeting more state financial aid grants to thousands of Oregon’s highest-need students who are on track to succeed academically but struggling with college costs.

Balance targeted grant aid with increased institutional funding, by empowering community colleges and public universities to intentionally focus on student success and keep tuition levels manageable.

Help prospective students and families to plan for postsecondary success, and how to pay for it, through continuation and expansion of successful pre-college outreach.

43

Expands the OOG by 25.6%, redesigning the program to ensure that highest need students receive the necessary financial support to both consider entry and then successfully complete. Increasing the state’s investment to $143.3M will: Expand the program to serve approximately 16,000

additional Oregon students facing affordability challenges. Target the grant to serve students with the highest financial

need who are on track academically. Improve predictability by creating an extended rolling

application period.

More detailed presentation on affordability on Day 3

OREGON OPPORTUNITY GRANT EXPANSION POP 131, REDESIGN HOUSE BILL 2407

44

Goal: increase the number of Oregon students completing the certificate and degree programs they’ve invested in, particularly students who are not crossing the finish line today.

• Support Oregon’s students, with an increase in per-student funding at Oregon community colleges and public universities.

• Reinvest to build capacity at community colleges and public universities to intentionally focus on student success and keep tuition levels manageable.

• Shift to an outcomes-based funding model for the community colleges and universities, supporting campus innovation to improve completion rates and reduce time to degree for Oregon students.

STUDENT SUCCESS OUTCOMES: PRIORITIES

45

A Quick Funding History

Day 2

46

COMMUNITY COLLEGE FUNDING HAS NOT KEPT PACE WITH INFLATION, ENROLLMENT

STATE APPROPRIATIONS FOR COMMUNITY COLLEGES (non-adjusted)

-

50,000

100,000

150,000

200,000

250,000

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

CCSFDebt ServiceEnrollment (FTE)

STATE APPROPRIATIONS FOR COMMUNITY COLLEGES (CPI-adjusted)

-

50,000

100,000

150,000

200,000

250,000

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

CCSFDebt ServiceEnrollment (FTE)

STATE APPROPRIATIONS AND FTE ENROLLMENT (CPI-adjusted)

-

50,000

100,000

150,000

200,000

250,000

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

CCSFDebt ServiceEnrollment (FTE)

Data Source: CCWD

47

PUBLIC UNIVERSITY FUNDING HAS NOT KEPT PACE WITH INFLATION, ENROLLMENT

STATE APPROPRIATION TO PUBLIC UNIVERSITIES (non-adjusted)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000

University SupportDebt ServiceEnrollment (FTE)

STATE APPROPRIATION TO PUBLIC UNIVERSITIES (CPI-adjusted)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000

University SupportDebt ServiceEnrollment (FTE)

STATE APPROPRIATION AND RESIDENT ENROLLMENT (CPI-adjusted)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000

University SupportDebt ServiceEnrollment (FTE)

Statewide Public Services and Capital Outlays excluded Data Source: OUS IR 2013 Fact Book, enrollment projections

48

STATE APPROPRIATION PER STUDENT Non-inflation adjusted state appropriations, including Education and General Funds and Debt Service

$6,273

$5,480

$4,653

$5,143

$5,900

$5,417

$4,416

$5,289

$2,243

$1,972

$2,347 $2,456

$2,624

$1,871

$1,796

$2,379

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

Public University Funding Per FTE StudentCommunity College Funding Per FTE Student

49

EDUCATIONAL APPROPRIATIONS PER FTE STATE DIFFERENCES FROM U.S. AVERAGE, FISCAL 2013

Source: Western Interstate Commission on Higher Education (WICHE)

Oregon

50

UNIVERSITY: SHIFT OF COSTS FROM STATE TO STUDENT

9% 8% 7% 7% 8% 8% 8% 8% 8%

49% 46% 45% 51% 58% 58% 59% 66% 73%

43% 46% 47% 41% 34% 35% 33% 26% 19%

1997 1999 2001 2003 2005 2007 2009 2011 2013

Public University Percentage of Total Revenue by Source

StateAppropriations

Tuition andFees

Other

51

COMMUNITY COLLEGE: SHIFT OF COSTS FROM STATE TO STUDENTS

50% 50% 44% 40% 37%

31% 23% 22% 24% 22% 22% 22% 22% 22% 23% 23% 23% 24% 22% 23% 22% 24% 21% 24%

20% 21%

22% 22%

24%

23%

23% 22% 23%

23% 24% 25% 26% 30% 32% 32% 32% 32% 31%

36% 39% 45%

44% 47%

30% 29% 34% 37% 39%

46% 53% 55% 52% 55% 54% 53% 53%

48% 45% 45% 45% 44% 46% 41% 39%

31% 35% 29%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12

Pro

porti

on o

f per

stu

dent

Academic Year

Community College Revenue Sources (Tuition and Fees, Local Property Taxes, State General Fund)

State General Fund Tuition/Fees Property Taxes

52

TUITION AS A PERCENT OF TOTAL PUBLIC HIGHER EDUCATION REVENUE, FISCAL 2013

Oregon

53

PER STUDENT STATE FUNDED GRANT AID

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

NH

WY AL

AZ

UT HI

ID SD KS

MT

CT

NE

MS RI MI

IA OH

MA

CO OR

ME

MO

ND

MD

AK WI

DE

VT

VA

OK FL TX MN

USA IL NV

NM IN PA NC

CA

KY

NY

WV LA AR NJ

WA

GA

TN SC

Stat

e Fu

nded

Gra

nt A

id

State Funded Grant Aid Per Resident Undergraduate Student (2012-13)

Data Source: College Board, 2014 Affordability Report

54

NEED-BASED GRANT DOLLARS DISBURSED VS APPLICANTS AND RECIPIENTS

55

Shift to Outcome-Based Funding Model

Day 2

56

To reach 40-40-20, Oregon needs to

increase the number of Oregon students

successfully completing the

certificate, degree, and credential programs in

which they have invested.

Shifts the basis for state funding

distribution from enrollment – seats in a

class– to access and successful program

completion, joining 35 states that have moved to include outcomes as part of their funding

system.

Provides resources and incentives to foster

campus-level innovations to increase

student success — especially among the

least represented student populations such as low-income,

rural and underserved minorities.

OUTCOMES-BASED FUNDING FOR OREGON’S COMMUNITY COLLEGES AND PUBLIC UNIVERSITIES

57

With outcomes-based funding, individual institutions will be rewarded for developing and extending programs that support students all the way through, including the: 74% of students who begin but do not complete a 1-2 year certificate

program within 2 years at community colleges. 83% of students not completing 2-year Associate’s degrees within 3

years at community colleges. 40% of students not completing Bachelor’s degrees within 6 years at

Oregon public universit ies.

PERCENT WHO DO START BUT DO NOT COMPLETE: OREGON'S OPPORTUNITY

Bachelor’s degree completion rates: OUS Institutional Research, 6-year graduation rate of students entering in 2007 (graduating 2013), Oregon public universities. 4. Certificate and Associate’s completion rates: Complete College America, data provided in 2013.

58

Incentivizes campus-level innovation to increase student success all the way through from access to completion.

Intentional focus on student and state needs:

• Provides incentives for institutions to support the highest-need and underrepresented students to meet 40-40-20, and

• Rewards institutions for student success in high demand fields. The greatest economic returns come to those who not just start but complete. The average annual earnings for Oregon students based on completion level tell a compelling story: • No HS diploma: $14,190 • HS diploma or GED: $21,319 • Some college, no degree: $24,911 • Associate’s: $31,673 • Bachelor’s: $44,687 • Advanced degree: $64,690

BENEFITS: OUTCOMES-BASED FUNDING

59

Building a funding plan to achieve 40-40-20

Day 2

60

CONTEXT: ACADEMIC ACHIEVEMENT

Source: ECONW Analysis of NSC, OUS and CCWD data

61

High School Remedial

Uni

vers

ity

Dual

Cre

dit

BA/B

S

Com

mun

ity C

olle

ge

Dual

Cre

dit

AA

Dual

Cre

dit

Cert

Oregon Sophomores of 2004Educational Attainment as of 2013 (OR Public Institutions)

Course LevelLower Div Lower Div Upper Div Upper Div

Associate's Degrees and Certificates1,938 Students

HS Diploma8,205

Students

GED43 Students

Stranded Investment10,678 Students (with HSD)

2,065 Students (without HSD)12,743 Students total

Bachelor'sDegree

5,625Students

No Completions7,399 Students

FLOW MODEL – PUBLIC INSTITUTIONS

Source: ECONW and HECC analysis of NSC, OUS, and CCWD data

62

40-40-20: ATTAINMENT OF OREGON HS SOPHOMORES IN 2004, SEVEN YEARS AFTER HIGH SCHOOL

Attainment Public Private/Out of State Total

BA 5,625 13.5% 3,482 8.3% 9,107

AA | Cert 1,938 4.7% 285 0.7% 2,223

Stranded Investment 12,743 30.6% 1,911 4.6% 14,654

HSD | GED 8,248 19.8% N/A -- 8,248

No Completion 7,399 17.8% N/A -- 7,399

Total 35,953 -- 5,678 -- 41,631

Source: ECONW and HECC analysis of NSC, OUS, and CCWD data

63

OUTCOMES

Source: ECONW and HECC analysis of NSC, OUS, and CCWD data

64

Enrollment Pattern

% of Students

No Attainment

HS Attainment

2 Year Attainment

4 Year Attainment

a) H 46.8% 42.9% 57.1% - -

b) H4 21.5% 3.3% 30.7% 0.3% 65.8%

c) H2 17.8% 19.8% 66.0% 14.1% 0.1%

d) H24 7.1% 3.4% 27.3% 15.2% 54.1%

e) H42 2.2% 4.9% 64.0% 18.0% 13.1%

f) H424 2.0% 1.3% 32.1% 10.8% 55.9%

g) H242 0.9% 6.3% 57.6% 16.4% 19.8%

h) H2424 0.9% 3.3% 26.0% 15.5% 55.1%

TYPICAL STUDENT ENROLLMENT PATTERNS

*Omits breaks in enrollment, includes students at all institutions

H = High School enrollment 2 = Community College enrollment 4 = University enrollment

Source: ECONW and HECC analysis of NSC, OUS, and CCWD data