OKLAHOMA STATE REGENTSFOR HIGHER EDUCATION

Faculty Advisory CouncilJanuary 14, 2011

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

2

3

Nationally, more than one-quarter (27.9 percent) of adults 25 and older have a bachelor’s degree or more,

compared to Oklahoma at 22.7 percent.

4

State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher

No state with a low proportion of Bachelor’s

degrees has a high per capita income.

No state with a high proportion of Bachelor’s

degrees has a low per capita income.

States with high proportion of bachelors degrees

States with low proportion of bachelors degrees

Outlier state that has high income and low degree attainment

5

3,798,9405,254,193Professional degree

2,527,3243,982,577Doctorate

1,507,8232,963,076Master's degree

$1,111,921$2,567,174Bachelor's degree

346,1201,801,373Associate degree

270,5691,725,822Some college, no degree

01,455,253High school graduate

-304,5551,150,698High school dropout

-$478,903$976,350Less than 9th grade

DifferenceCompared toHigh School

Graduate

EstimatedLifetimeEarnings

Education Level

The Impact of Education on Individuals:Lifetime Earnings

U.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAU6

7

2011 Legislative Agenda

8

Endowed Chairs Program

2011 Legislative Agenda

• The endowed chairs program is one of the most successful public/private partnerships where private donations are matched dollar for dollar with public funds.

• Dollars are used to help fund faculty and research positions, new programs and lectureships.

• A bond issue was authorized in 2008 to fund $100 million of the current 364 million dollar backlog and in 2010 the legislature and Governor funded the debt service for this $100 million bond issue.

20 Institutions and Branch Campuses Have 712 Accounts Awaiting Funding

Endowed Chair BacklogEndowed Chair Backlog

9

Number ofInstitution AccountsCameron 15ECU 4NSU 3NWOSU 9Langston 1OSU 230OSU-OKM 4OSU-Tulsa 7OSUCHS 22OSU Vet 7OU 154

Number of Institution AccountsOUHSC 180OU Tulsa 44Rogers 1SEOSU 1SWOSU 5TCC 17UCO 3USAO 1WOSC 4

Total Accounts 712

10

2011 Legislative Agenda

• The State Regents, all 25 institutions, and all governing boards believe that there is no scenario where placing guns on campuses will do anything other than create a more dangerous environment for our students and faculty on campus.

• In past three legislative sessions, legislation has been introduced or

discussed that would allow certain students to carry concealed weapons onto college property we have successfully defeated the legislation to date.

• It will continue to be a priority of the system to ensure this legislation is not law.

Concealed Weapons Legislation

2011 Legislative Agenda

• OK Promise is one of the most successful college access scholarship programs in the country.  

• There has been legislation introduced in past legislative sessions to change the requirements of the program that would reduce the number of students eligible to participate.

• Changing the requirements of OK Promise would alter the intent of the program, which is to ultimately provide students more access to college which will result in more Oklahoma college graduates. 

• We oppose any legislation that would change the program’s focus on access. 

11

12

• Oklahoma Promise students average a 3.4 GPA compared to all high school seniors with a 3.0 GPA.

• Ok Promise students score higher on the ACT Test.

• On average 20 percent more Oklahoma’s Promise students enter college directly after the high school graduation when compared to all High School graduates.

• Ok Promise students have a higher persistence rates from freshmen to sophomore.

• Oklahoma’s Promise students complete college degrees at higher rates than non-Oklahoma’s Promise students.a. The six year degree completion rate is 50 percent for Oklahoma’s Promise

students compared to 40 percent for non-Oklahoma’s Promise Students.b. The nine-year degree completion rate is 61 percent for Oklahoma’s Promise students compared to 50 percent for non-Oklahoma’s Promise students

• Oklahoma’s Promise students are even more likely to remain in Oklahoma after graduation when compared to all Oklahoma college graduates.

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

2007-082000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

1,717 2,0042,982

5,889

9,155

12,101

Number of Oklahoma’s Promise Scholarship

Recipients

As of 10-20-10. Assumes 1% annual increases in OK Promise high school enrollment and 65% completion rate of high school requirements for scholarship

eligibility.

2008-09 2009-10

17,000

19,000

14,670

16,928

18,282

19,409

2010-11

20,900

Projected

2011-12

20,27521,000

13

2011 Legislative Agenda

• Due to the economic downturn and record enrollment increases, our institutions have been stretched to the financial limits and yet the state system has been able to protect our students with limited tuition increases.

• In 2009, all of our 25 institutions froze tuition. • Last year we had very limited tuition increases statewide.• Our two research institutions, OU and OSU continue to be 11th and

12th in the in the Big 12 in regards to tuition and fees. • We support leaving the tuition setting authority with the Oklahoma State

Regents.

Tuition Setting Authority

14

0%

5%

10%

15%

20%

25%

30%

Mis

sis

sip

pi

Ok

lah

om

a

0.4

%

Ge

org

ia

Ari

zon

a

Flo

rid

a

Ore

go

n

Ha

wa

ii

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nal

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as

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bra

ska

25.

6%

23.

7%

15.

8%

15.

5%

14.

5%

9.0

%

6.4

%

5.3

%

4.8

%

4.1

%

Oh

io

Mis

sou

ri

Mar

ylan

d

Ark

an

sas

Iow

a4

.6%

0.9

%

0.5

%

0.3

%

0.0

%

0.0

%

Research InstitutionsPercentage Change in Resident Undergraduate

Tuition and Required Fees2008-09 to 2009-10

Affordability

Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 15

0%

5%

10%

15%

20%

25%

30%

Flo

rid

a

Mis

sis

sip

pi

Oh

io

0.0

%

Regional UniversitiesPercentage Change in Resident Undergraduate

Tuition and Required Fees2008-09 to 2009-10

AffordabilityG

eo

rgia

Ca

lifo

rnia

Ari

zon

a

Wa

shin

gto

n

Co

lora

do

Na

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Av

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Ka

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as

Te

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Ne

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ska

28.

7%

26.

2%

21.

3%

14.

2%

13.

9%

6.7

%

6. 5

%

4.1

%

6.6

%

4.4

%

Ok

lah

om

a

Mis

sou

ri

Mo

nta

na

Ark

an

sas

2.3

%

1.6

%

1.0

%

0.0

%

0.0

%

13.

1%

Iow

a

Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 16

0%

5%

10%

15%

20%

25%

30%Community Colleges

Percentage Change in Resident Undergraduate Tuition and Required Fees

2008-09 to 2009-10

AffordabilityG

eo

rgia

Ca

lifo

rnia

Ari

zon

a

Wa

shin

gto

n

Flo

rid

a

Co

lora

do

Na

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nal

Av

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Ka

ns

as

Te

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bra

ska

30.

6%

30.

3%

30%

23.

2%

18.

4%

6.2

%

5.7

%

2.0

%

7.1

%

4.3

%

Mis

sis

sip

pi

Ok

lah

om

a

Ne

w Y

ork

Mis

sou

ri

Wis

con

sin

No

rth

Dak

ota

0.8

%

0.0

%

0.0

%

-0.3

%

-0.4

%

8.8

%

Iow

a5

.3%

0.6

%

0.3

%

0.8

%

Ala

ba

ma

Lo

uis

ian

a

Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 17

18

Higher Education’s Efficiencies and Reforms

19

$$COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

All Oklahoma institutions of higher education have decreased their need for additional funds for mandatory

operating obligations by cost savings efforts.

A total cost savings of $112.3 million from 2009-12.

• Energy Conservation • Energy Conversion• Changes in Salaries and Benefits• Changes and Elimination of Positions• Reduction in Supplies and IT Expenditures

Source: Oklahoma State Regents for Higher Education

19

20

$$COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

$0 m

$5 m

$10 m

$15 m

$20 m

$25 m

$30 m

$35 m

Faculty and Staff Positions

Supplies Salary and Benefits

Utilities

$112.3 Million Cumulative Savings

Over 4 years

$22.1 m

$32.5 m

$22.5 m $23 m

$3.8 m

$8.4 m

Travel, Periodicals and Other

IT Equipment

Source: Oklahoma State Regents for Higher Education20

21$$

System EfficienciesTotal System Administrative Costs FY92-FY09

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY09

0%

2%

4%

6%

8%

10%

12%11.9%

11.1%

8.2% 8.3%8.1% 8.2%

8.1%7.8%

Syst

em

Adm

in C

ost

s as

a P

erc

ent

of

Tota

l B

udget

14%

9.3%

7.8%

FY10

7.9%

FY11

7.8%

Source: Oklahoma State Regents for Higher Education 21

22$$

System EfficienciesAdministrative Costs reduced 1/3 over 19 years

Source: Oklahoma State Regents for Higher Education

FY 1992 FY 2011

88.1%All Other Costs

11.9%Administrative Costs

92.2%All Other Costs

7.8%Administrative Costs

22

• Oklahoma’s 25 College and Universities have an active and productive grantsmanship program which contributes to the institutions funding outside the appropriations process.

• In 2010, our institutions reported the receipt of $506.6 million in competitive grants for program development and research.

Source: Oklahoma State Regents for Higher Education

23

Performance Funding

• Performance Funding is designed to financially support the State Regents’ Brain Gain initiative, adding a component to the traditional funding formula and rewarding institutions for performance in graduation rates and retention rates.

• Performance funding has been a key component in driving Oklahoma’s increase in degrees conferred.

• Oklahoma’s Performance Funding initiative is nationally recognized.

• Performance Funding reached over $2.1 million in FY11.

24

1225

• Consortial bachelor's degree completion program via partnership of nine regional universities. 

• Just added associate degree options that involve consortia of community colleges/technical branches.

26

Higher Education’s

2012 Budget RequestEconomic Recovery and

Growth

27

FY’11 Appropriation

FY’11 Appropriation

State Appropriations $943,666,030

ARRA Funds $59,794,986

Total FY’11 Appropriation $1,003,461,016

28

FY’12 Appropriations Request

FY’12 Appropriation Request1. Economic Recovery and Growth

a. Replacement of FY’11 Stimulus Funds $59,794,986

b. Replacement of FY’11 Debt Service Reductionto be used for Institutional Operations $16,500,000

c. Total Funding Need for Operating Obligations $30,938,170

d. Endowed Chair Bond Issue Debt Service $5,600,000

e. Section 13 Offset $618,150

2. Removal of Financial Barriers

a. Concurrent Enrollment $1,500,000

b. Academic Scholars $600,000

3. Office of Accountability $48,014

Total New FY’12 State Funds $115,599,320% Difference from Total FY’11 Appropriation 5.56%

FY’12 Total with Oklahoma’s Promise Allocation ($63.2m) $1,122,465,350

29

Concurrent EnrollmentCONCURRENT ENROLLMENT CREDIT HOURS

2004-05 2005-06 2006-07

10,000

20,000

30,000

40,000

50,000

2007-08 2008-09 2009-10

29,156

39,758

45,690

48,74150,068

56,43860,000

Source: Oklahoma State Regents for Higher Education 29

30

Academic Scholars

• Academic Scholars receive a scholarship to help cover the cost of room, board, tuition, books and incidental fees for up to eight semesters.

• University of Oklahoma is ranked number one in the nation for National Merit Scholars.

• 2,313 students received a National Merit Scholarship from 1998-2008.

• For the 1,672 participants entering into the program between 2001-2003, 78 percent (1,306) received at least a baccalaureate.

31

FY’12 Appropriations Request

Total New FY’12 State Funds $115,599,320

% Difference from Total FY’11 Appropriation 5.56%

322000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Degrees Conferred by Oklahoma Degrees Conferred by Oklahoma Public Colleges and UniversitiesPublic Colleges and Universities

Nu

mb

er o

f A

sso

ciat

e an

d B

ach

elo

r’s

Deg

rees

Co

nfe

rred

2006-07

23,701

Source: 2010 Degrees Conferred Report/UDS Database

18,998

19,488

20,458

21,636

22,786

23,298

23,845

2007-08

24,211

2008-09

27.4%

In 2008-09, State System institutions awarded a total of

24,211 associate and bachelor’s degrees – the most awarded in a

single year in state history

This is 27.4 percent more degrees awarded than in 2000-2001.

327

170,000

Fall 2008

177,385

187,676

160,000

150000

140,000

130,000

120,000Fall 2009

Source: 2009 Fall Preliminary Enrollment Report

References Public Institutions

Enrollment

180,000

190,000

Record Fall Enrollment• Overall Headcount

Increased by 10,291 in Fall 2009

• First Time Freshman increased by 12.3 percent

33

170,000

Spring 2009

166,784

178,053

160,000

150000

140,000

130,000

120,000Spring 2010

Source: 2010 Spring Preliminary Enrollment Report

References Public Institutions

Enrollment

180,000

190,000

Record Spring Enrollment

• Overall Headcount Increased by 11,269 in Spring 2010

• First Time Freshman increased by 31.7 percent

34

Fall 2010 Preliminary Enrollment

Overall Enrollment

Increase of 3.3% over Fall 2009

Source: 2010 Fall Preliminary Enrollment Report

References Public Institutions

35

OKLAHOMA STATE REGENTSFOR HIGHER EDUCATION

Faculty Advisory CouncilJanuary 14, 2011