HIGHER EDUCATION CIVIC ACADEMY

CHANGING THE CONVERSATION . . .

Statewide Issues ConferenceSaturday, February 15, 2014

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A broad-based public conversation about the community’s priority for higher education as . . .

an investment of public funds for a nationally competitive Louisiana,

a gateway to the middle class, and

the key to a diverse, robust and shared prosperity

FOCUS

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Northern and Central Louisiana Interfaith and member institutions

Grambling State University Faculty Senate

Louisiana Delta Community Council Faculty Council

Louisiana Tech University Senate

University of Louisiana at Monroe Faculty and Staff Senates

SUMMIT COALITION

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HIGHEREDUCATION

STORIES

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HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT

Pre-World War II, a college degree was an elitist degree, available to mostly upper-class

G.I. Bill spurred the number of lower-to-middle class people earning a college degree

Post-World War II most prosperous in history, due in part to the earning power of people with college degrees

Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

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1973: 28% of U.S. workforce had a post-high school education

2007: 59% of U.S. workforce had post-high school education

Lifetime earnings for those with a college degree is $1 Million HIGHER than those with a high school education.

HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT

Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

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Projected by 2018-2020: two-thirds of jobs will require a post-high school degree

85% of bachelor degree holders VOTED in the 2000 presidential election.

Conclusion? Higher education provides a catalyst to a prosperous economy, and civic participation for people to truly attain the American Dream.

HISTORICAL TRENDS IN EDUCATIONAL ATTAINMENT

Source: Harvard University study “PATHWAYS TO PROSPERITY: Meeting the challenge of preparing young Americans for the 21st century” Feb. 2011”

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Higher Education is a public investment in the people of Louisiana, not a fixed cost of government.

Affordable access for ALL families to the opportunity to send their children to college.

Public Funding must balance equity and performance measures to optimize the leveraging of public resources in K-12 education.

CORE VALUES OF SHARED PROSPERITY

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HIGHER EDUCATION PROVIDESSOCIAL AND ECONOMIC VALUE

Lack of education cost governments money:

Higher Incarceration rates: 87% of prisoners have a high school diploma or less

Increased Health costs: 93% of people with a high school diploma or less participate in a publically funded health program, i.e., Medicaid

Disproportional Mortality rates: 3.5X higher for high school dropouts than those with some college education

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INVESTMENT IN HIGHER EDUCATIONIS AN INVESTMENT IN LOUISIANA

The state gets $8 returned in the form of economic development for every $1 put into higher education

State cuts to higher education funding 2008-2013 resulted in $1 Billion in real dollars lost in Louisiana’s economy.

Result? Using the 8:1 multiplier, $8 Billion in economic activity was lost in Louisiana’s economy.

Source: University of Louisiana System Economic Impact Study, 2008

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DECLINE OF LOUISIANA TAX REVENUE 2007-08 THROUGH 2011-2012

Source: FY 2008-12 La. State Budget

12Source: FY 2008-09 Louisiana State Budget

STATE EXPENDITURES BY AREA: FY 2008-09

13Source: FY 2011-12 Louisiana State Budget

STATE EXPENDITURES BY AREA: FY 2011-12

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UNIVERSITY JOB LOSSES 2008 - 2014

FY 08-09

FY 11-12

FY 12-13

FY 13-14 Job Losses

%

Grambling 700 541 562 507 -193 -28%

Tech 1,190 1,077 1,042 987 -203 -17%

UL–Monroe 1,160 982 924 898 -262 -23%

TOTAL UL SYSTEM 10,477 8,934 8,626 8,393 -2,084 -20%

Source: University of Louisiana System - Board of Regents Presentation

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THE TAKE AWAY:

Overall Higher Ed revenues have declined:• due to economic conditions,• due to non-revenue neutral tax reductions,• due to unfunded mandates such as retirement,

health insurance, etc.,• and no increases to offset changes in the cost

of living.

Higher Ed has a declining piece of the revenue pie in the face of declining overall state revenue- a double hit!!!Source: University of Louisiana System - Board of Regents Presentation

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FORMULA FOR SUSTAINED GROWTH

Long-term investment in Higher Ed

+ Jobs------------------------------------------------------------------------------------------= Sustainable growth in Louisiana's Economy

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JOBS, JOBS, JOBSA PROJECTION THROUGH 2020

Source: Louisiana Department of Labor

 JOBS BY SECTOR (require Post-Secondary Degree)

RMLA 7 SHREVEPO

RT

RMLA 8 MONRO

ETOTAL

1 Nursing 5,250 2,950 8,2002 Teaching (pre-K, Elementary, Secondary) 4,300 2,140 6,4403 Business 1,630 1,030 2,660

4Health Care (excludes nurses/dentists/doctors/surgeons) 1,810 1,020 2,830

5 Information Technology/Computing 840 520 1,3606 Social Services 1,020 490 1,510

7Medical Professionals (dentists/doctors/surgeons) 810 440 1,250

8 Financial 380 340 7209 Engineering 920 330 1,25010 Accounting 500 310 81011 Pharmacy 260 190 45012 Legal Services 150 150 30013 Governmental 70 120 19014 Production/Operations 180 110 29015 Sales 220 60 28016 Construction Management 80 40 12017 Architectural 50 20 70

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FORMULA FOR SUSTAINED GROWTH

Workforce and Innovation for a Stronger Economy (W.I.S.E) Plan is a good start to provide stabilization of higher education funding

Investment in Louisiana’s intellectual capital and human capital

Access for ALL families to have the chance to send their children to college