November 18, 2014

Prepared for the Ohio Board of Regents

2014 Program for Board Members and Trustees

Overview…I. Big Issues facing higher education—

*AGB’s Top 10 Strategic Issues for Boards

II. All of this in the context of what’s happening at the Federal Level—a. College Ratings: ED Departmentb. Sexual Misconductc. HEA: Reauthorizationd. Recent Elections

III. And in the context of what’s happening in states—a. Access and affordability: expanding reach and appealb. Governance: structured to do what needs to get done?c. Attainment and workforce development: state plans

Big Issues Facing Higher Education

1. Business Model

2. Affordability

3. Educational Delivery & Technology

4. Educational Quality & Student Learning

5. Attainment, Retention & Completion

6. Market and Mission

Big Issues Facing Higher Education

6. Academic Workforce

7. Globalization

8. Institutional & Governance Risk

9. Public Policy Issues

10.External Influences*AGB’s Top 10 Strategic Issues for Boards

At the federal level…

House and Senate returned on 11/12 to finish out the 113th Congress and get ready for the 114th, which begins in January 2015.

• Republications now lead both Senate and House

• Will refocus higher education agenda

• Sen. L. Alexander (R-TN) is expected to chair Senate HELP;Rep. B. Scott (D-VA) is expected as ranking House member

At the federal level…(continued)

Senate HELP Committee will lead attempt to reauthorize the Higher Education Act, which could be a vehicle for deregulation.

• HEA: Omnibus bill that authorizes all the major federal student aid programs, including TRIO, Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), and aid to Historically Black Colleges.

• Not a small undertaking: Congress will conclude without having finished reauthorization, punting the assignment to the next Congress.

At the federal level…(continued)

Reauthorization of the Higher Education Act (HEA)...

Areas where there was previous bipartisan support… may shed light on future areas of compromise:

• Year-round Pell Grants• Financial advising for students and an income-based

student loan repayment program• Updates to the FAFSA application processes• Promotion of competency-based learning• Improvements in teacher preparation programs

At the federal level…(continued)• Republication control=potential stalemate on the

Administration's College Ratings Plan. U.S. Department of Education is evaluating institutions on:

• Tuition costs and the availability of scholarships• Access, as measured by, for example, the percentage of

students who receive Pell Grants• Graduation rates• Students’ post-graduation earnings• Student debt levels• Institutions will be ranked in “peer groups,” not yet defined

At the federal level…(continued)

Republican Congress…

• Could impact student aid (Paul Ryan’s proposed budget for FY 2015 = $90 billion in cuts to Pell Grant Program)

• Might not impact federal research dollars… 3 Republicans expected to lead the Senate’s appropriations and science committees have records of supporting funding for research

• Will receive final report from the Task Force on Federal Regulation of Higher Education

At the federal level…(continued)

In the remaining weeks, Congress will aim to…

• Fund the government for the fiscal year that began October 1.

• Negotiations are underway between the House and Senate Appropriations Committees on a $1 trillion-plus FY 2015 spending bill (a temporary funding measure now in effect expires December 11.)

• Congressional staff might recommend wrapping annual spending bills into an omnibus measure.

At the federal level…(continued)

In the remaining weeks…

• Renewing expiring tax incentives, including:• deductions for qualified tuition and related expenses• research and development tax credit• IRA Charitable Rollover (in this case, already expired)

At the federal level…(continued)U.S. Department of Education: Just released final rules/revisions to the Clery Act (made by VAWA). Take effect in July 2015.

• Clery Act: expands info. institutions must collect about campus crime—domestic violence, dating violence, staking. • Gender identity and national origin now in definition of

hate crimes• Disciplinary hearings are prompt, fair, impartial• Protections for victim confidentiality• Requirements for prevention programs

• AGB Advisory Statement on Sexual Misconduct http://agb.org/sites/agb.org/files/u3/statement_2013_sexual_misconduct.pdf

At the federal level…(continued)

• Campus Safety and Accountability Act (CASA), introduced by Senator Claire McCaskill

• AGB Email Alert: Trustees' Responsibilities in Preventing Sexual Assaults on Campus

• AGB Advisory Statement on Sexual Misconduct http://agb.org/sites/agb.org/files/u3/statement_2013_sexual_misconduct.pdf

At the federal level…(continued)

U.S. Department of Education: Just released final rules in gainful employment. Take effect in July 2015.

Gainful employment: focus—graduates’ debt-to earning ratios…• effort to ensure that individuals who enroll in career training

programs will earn enough money to repay their student loans• Applies to: vocational programs, including most for-profit

institutions. Non-degree programs at traditional colleges and universities (such as certificate programs) must also comply with the rules.

• Final rule does not include a student loan default rate as a standard for evaluating institutions, which was in the draft.

At the federal level…(continued)

Other…

• The College Board: annual report on student aid and college costs• Student borrowing in on the decline, while costs continue

to rise

• Trends in College Pricing—while tuition and fees did increase in 2014, the rate of increase has slowed. Tuition increases:

• Public four year: 2.9% increase• Private nonprofit four year: 3.7% increase• Community colleges: 3.3% increase

Additional Resources at AGB.orgI. AGB Statements on Important Governance Topics:

1. Board Accountability 5. Educational Quality2. External Influences 6. Institutional

Governance3. Intercollegiate Athletics 7. Sexual Misconduct4. Conflict of Interest with Compelling Benefit

II. Knowledge Center http://agb.org/knowledge-center - Videos, Podcasts, Governance Briefs, Data Files,

Governance Database

III. “AGB U” http://agb.org/agbu

IV. AGB’s Report: National Commission on Governance