The Costs of Change (Re)Educating North Carolinas Workforce 2006-2007 Consensus Expansion Budget...

The Costs of Change The Costs of Change (Re)(Re)Educating Educating North Carolina’s North Carolina’s WorkforceWorkforce

2006-2007 Consensus 2006-2007 Consensus Expansion Budget Expansion Budget RequestRequest

The North Carolina The North Carolina Community College SystemCommunity College System

H. Martin Lancaster, H. Martin Lancaster, PresidentPresident

North Carolina Community College System

H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce

58 58 community colleges community colleges serving all 100 countiesserving all 100 counties

Almost 800,000 studentsAlmost 800,000 students North Carolina’s most important North Carolina’s most important

resource for resource for economic transformationeconomic transformation

North Carolina North Carolina Community College Community College SystemSystem



Demographic Demographic Changes:Changes:MigrationMigration

Since 2000, NC’s population growth Since 2000, NC’s population growth sixth-highest in USAsixth-highest in USA

71 percent of growth IN-MIGRATION71 percent of growth IN-MIGRATION from other states, other COUNTRIESfrom other states, other COUNTRIES

Since 1995, NC ranks in Since 1995, NC ranks in top three states top three states nationally in rate of increase of foreign-born nationally in rate of increase of foreign-born peoplepeople (largely from Mexico, other Latin America, (largely from Mexico, other Latin America, Asia)Asia)

Escalating pressure on Escalating pressure on ESLESL, literacy, other , literacy, other enrollment; growing demand for enrollment; growing demand for student servicesstudent services, , financial aid financial aid



Demographic Demographic Changes:Changes:AgeAge

Baby boomers reaching 60Baby boomers reaching 60 Retirees moving inRetirees moving in New demands on health care system, New demands on health care system,

need for health care employeesneed for health care employees Growing demand for lifelong learning Growing demand for lifelong learning

for leisure, second careerfor leisure, second career



Population shifting into Piedmont Corridor, Population shifting into Piedmont Corridor, away from northeast, Coastal Plainaway from northeast, Coastal Plain

Younger people clustered in metros, near military Younger people clustered in metros, near military basesbases

Older people clustered near beaches, Older people clustered near beaches, in some mountain areasin some mountain areas

Mismatch between supply and demand of teachers, Mismatch between supply and demand of teachers, health care, other critical workershealth care, other critical workers

Regional ChangesRegional Changes



Foreign trade agreements, shift to knowledge-Foreign trade agreements, shift to knowledge-based industries, corporate mergers, fluctuations based industries, corporate mergers, fluctuations in technology market in technology market cause drastic and cause drastic and continuing change, continuing change, eliminating low-skilled jobseliminating low-skilled jobs

1970: Manufacturing workforce was 1970: Manufacturing workforce was 30 percent30 percent of state’s total of state’s total

Today: 17 percentToday: 17 percent Last year, manufacturing declined Last year, manufacturing declined

12.2 percent12.2 percent Rural areas lose most; since 1997, 74 percent of Rural areas lose most; since 1997, 74 percent of

job growth in Mecklenburg and Wake Countiesjob growth in Mecklenburg and Wake Counties

Economic Changes:Economic Changes:Shocks to Shocks to ManufacturingManufacturing



Economic Changes:Economic Changes:Where New Jobs AreWhere New Jobs Are

Recent job gainsRecent job gains– Professional and Business Services Professional and Business Services 15.5%15.5%– Education/Health Services Education/Health Services 13.5%13.5%– Construction Construction 7.9%7.9%– Leisure/Hospitality Leisure/Hospitality 7.6%7.6%

Fastest growing future jobs through 2012Fastest growing future jobs through 2012– Registered nurses,Registered nurses, home health aides, nursing home health aides, nursing

aides/orderliesaides/orderlies– Food prep, serviceFood prep, service– Truck driversTruck drivers– Retail sales, cashiers, customer serviceRetail sales, cashiers, customer service



Technology ChangesTechnology Changes

Technology at home:Technology at home: connectivity, e-commerce connectivity, e-commerce

Technology in class:Technology in class: distance learning, computers distance learning, computers

Technology on the job:Technology on the job: switch to high-tech industries, bio-tech switch to high-tech industries, bio-tech

Stronger basic education, higher Stronger basic education, higher technology skills essentialtechnology skills essential



Pay for faculty, staff, college presidentsPay for faculty, staff, college presidents Biotechnology, Customized Industry Biotechnology, Customized Industry

Training, Small Business Centers, other Training, Small Business Centers, other economic development programseconomic development programs

Enrollment reserveEnrollment reserve NCCCS/UNC PartnershipsNCCCS/UNC Partnerships

Where are the Where are the gaps?gaps?

Funding ProgressFunding Progress



1999-2007 Enrollment Increase in 1999-2007 Enrollment Increase in NC Community College SystemNC Community College SystemFull-Time Equivalent Students (FTE)Full-Time Equivalent Students (FTE)Actual and ProjectedActual and Projected

144,283 150,844 153,985169,924

180,563 188,610 191,103 193,677

0

50,000

100,000

150,000

200,000

250,000

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07



Access and Access and AffordabilityAffordability

Enrollment Growth Reserve $5,988,402Enrollment Growth Reserve $5,988,402 Regular Term Enrollment Growth $9,181,047Regular Term Enrollment Growth $9,181,047 Multiple College Locations $ 601,171Multiple College Locations $ 601,171



$992

$1,216$1,264

$749

$880

$1,096$1,136

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

99-00 00-01 01-02 02-03 03-04 04-05 05-06

Access and AffordabilityAccess and AffordabilityAnnual In-State Tuition Annual In-State Tuition 68.7%68.7% Increase Since 99-00 Increase Since 99-00



100

110

120

130

140

150

160

170

180

190

00-01 01-02 02-03 03-04 04-05 05-06

Millions

BudgetedCollected

Access and AffordabilityAccess and AffordabilityBudgeted Tuition vs. ReceiptsBudgeted Tuition vs. Receipts

Higher Rates + More Waivers = Higher Rates + More Waivers = Growing Growing GapGap



Tuition Receipt Adjustment Tuition Receipt Adjustment $13,500,000$13,500,000 Financial Aid $ Financial Aid $ 1,781,6041,781,604

Access and Access and AffordabilityAffordability



Faculty and Professional Staff $28,722,094Faculty and Professional Staff $28,722,094– Current full-time faculty now Current full-time faculty now $12,000 below$12,000 below national average, national average, 4646thth in in

nation, nation, 1515thth out of 16 in SREB out of 16 in SREB

Presidents’ Salary Schedule $ 522,196Presidents’ Salary Schedule $ 522,196 The System Office $ 1,388,552The System Office $ 1,388,552

Costs of Costs of CompensationCompensation



Costs of Costs of CompensationCompensation

Bonus Leave Days Bonus Leave Days $2,449,967$2,449,967 Restoring College Restoring College $2,394,665 $2,394,665

Benefit ReductionsBenefit Reductions



Who goes to community colleges?Who goes to community colleges? 29% have incomes below $20,00029% have incomes below $20,000 41% are first-generation college students41% are first-generation college students 33% are parents33% are parents 54% work full-time in addition to taking classes54% work full-time in addition to taking classes 47% of African-Americans, 56% of Hispanics, and 47% of 47% of African-Americans, 56% of Hispanics, and 47% of

Native Americans who attend college go to community Native Americans who attend college go to community collegecollege

9% have a disability9% have a disability

Community college students need Community college students need guidance, counselors, financial aidguidance, counselors, financial aid

Student Services Student Services and Supportand Support



Financial Aid Staffing $7,018,476Financial Aid Staffing $7,018,476 Students with Disabilities $3,000,000Students with Disabilities $3,000,000 Student Services Staffing $6,766,860Student Services Staffing $6,766,860

Student Services and Student Services and SupportSupport



Economic and Economic and Workforce Workforce DevelopmentDevelopment

Allied Health Program Funding $28,943,969Allied Health Program Funding $28,943,969 Biotechnology $ 4,240,261Biotechnology $ 4,240,261 Regional Customized Regional Customized

Training Specialists $ 153,470Training Specialists $ 153,470



0

50,000

100,000

150,000

200,000

250,000

98-99 99-00 00-01 01-02 02-03 03-04 04-05

Curriculum Con Ed

Technology Technology EnhancementsEnhancementsDistance Learning RegistrationsDistance Learning Registrations



Technology Technology EnhancementsEnhancements

Distance Learning $11,820,560Distance Learning $11,820,560 Equipment Funding$17,000,000Equipment Funding$17,000,000



Non-Recurring Non-Recurring ItemsItems

Bonus Leave DaysBonus Leave Days $24,294,135 $24,294,135 EquipmentEquipment $31,319,732 $31,319,732 Distance Learning $ 2,283,180 Distance Learning $ 2,283,180

InfrastructureInfrastructure Advance Planning for $29,000,000Advance Planning for $29,000,000

New FacilitiesNew Facilities New Program Start-Up $10,000,000New Program Start-Up $10,000,000

GED Office & GED Office & Equipment Replacement $ 485,509Equipment Replacement $ 485,509

System System OfficeOffice



AccountabilityAccountabilityGetting the Job DoneGetting the Job Done

General Assembly requires performance measures General Assembly requires performance measures focused on student success and employer satisfaction, focused on student success and employer satisfaction, offers financial incentive for superior performance.offers financial incentive for superior performance.

First year, five of 58 comprehensive community First year, five of 58 comprehensive community colleges earned "superior" rankings. Next year saw 26, colleges earned "superior" rankings. Next year saw 26, then 31, then 36. then 31, then 36.

Most recent year, Most recent year, 37 earned “superior”37 earned “superior” rankings. rankings. Budget Budget diddid allow performance funding in 2005, with allow performance funding in 2005, with

“superior” colleges sharing $6.8 million for equipment, “superior” colleges sharing $6.8 million for equipment, programs and bonuses.programs and bonuses.

Dramatic and continuing progress shows community Dramatic and continuing progress shows community college students get jobs, please employers, pass exams, college students get jobs, please employers, pass exams, use state’s investment well.use state’s investment well.

The Costs of The Costs of Change Change (Re)(Re)Educating Educating North Carolina’s North Carolina’s WorkforceWorkforce

2006-2007 Consensus 2006-2007 Consensus Expansion Budget Expansion Budget RequestRequest

The North Carolina The North Carolina Community College SystemCommunity College System

H. Martin Lancaster, H. Martin Lancaster, PresidentPresident

The Costs of Change (Re)Educating North Carolinas Workforce 2006-2007 Consensus Expansion Budget...

Documents

Transcript of The Costs of Change (Re)Educating North Carolinas Workforce 2006-2007 Consensus Expansion Budget...