Presentation to the Oklahoma Council on Student Affairs

Economic Importance of Higher Education in Oklahoma

November 10, 2011

1

Higher Education Impacts the Oklahoma Economy

•The Oklahoma State Regents for Higher

Education (OSRHE) contracted with Regional

Economic Models, Inc. (REMI) to analyze the

economic contribution of higher education on

Oklahoma. The results of this analysis

demonstrate the state’s economic dependenceupon higher education and, more specifically, its

graduates.

Higher Education Impacts the Oklahoma Economy

• Higher Education’s large contribution over time results in small investments in the present yielding large returns in the future. For example, in the first analysis year, $1.099 billion of state higher education funding results in $6.76 billion of economic activity. In other words, one dollar from the state enables $5.15 of additional economic activity that is directly attributable to the activities linked to the institutions of higher education. Furthermore, that initial investment of one dollar yields $27.07 over the analysis period as the effects of graduate earnings and productivity make their mark on the economy.

160 0 20 40 60 80 100 120 14005%10%15%

PROFESSIONAL

DEGREE

DOCTORATE

DEGREE

MASTER’S DEGREE

BACHELOR’S DEGREE

ASSOCIATE

DEGREE

SOME COLLEGE

NO DEGREE

HIGH SCHOOL

GRADUATE

LESS THAN HIGH

SCHOOL

ANNUAL

SALARIES IN 2009

UNEMPLOYMENT

RATE IN 2010

$146,659

$116,305

$87,913

$68,812

$49,835

$47,484

$39,937

$30,958

2.4

1.9

4.0

5.4

7.0

9.2

10.3

Source: Bureau of the Census; Bureau of Labor Statistics

14.9 4

- -

The Impact of Education on Individuals: Lifetime Earnings

Education Level

Estimated

Lifetime

Earnings

Difference

Compared to

High School Graduate

Associate degree

Some college, no degree

High school graduate

High school dropout

Less than 9th grade

1,801,373

1,725,822

1,455,253

1,150,698

$976,350

346,120

270,569

0

-304,555

-$478,903

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

Professional degree

Doctorate

Master's degree

5,254,193

3,982,577

2,963,076

3,798,940

2,527,324

1,507,823

U.S. Department of Commerce Economics and Statistics Administration U.S. CENSUS BUREAU

6

5

Engineering - $42,021

Health Professions - $36,384

Engineering Technologies - $34,191

Computer Sciences - $33,054

Education - $32,629

Personal/Culinary Services - $29,640

Business Management/Marketing - $27,219

Architecture - $25,241

Protective Services - $24,599

Mechanics and Repairers - $24,596

Liberal Arts - $24,221

Physical Sciences - $23,658

Mathematics - $21,756

2010 Average Salaries by Field of Study after 1 Year

6

Source: 2011 Employment Outcomes

Report and the Oklahoma

Employment and Security

Commission

Employment Outcomes After One Year

Percent of Oklahoma Residents Who Graduate with a

Bachelor’s Degree Remain In the State and

are Employed In the State One Year After Graduation

89%

Remain in the

State

Source: 2011 Employment Outcomes Report 2008-09 7

8

9

College Graduates Are More Likely to

Have Health Insurance

College Graduates Are More Likely to Volunteer

11

College Graduates Are Least Likely to Receive Public Assistance

12

College Graduates Are More Likely to Prepare Their Children for School

13

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

2007-08 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

1,717 2,004

2,982

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

2011-12

20,27521,000

15

100%

90%

80%

97% of Parents and

92% of all adults have 70%

a positive opinion of

Oklahoma’s Promise. 60%

50%

40%

30%

20%

97% 92%

1% 4%

16

10%

0% Targeted Parents Today All Adults Today

25%

20%

15%

10%

5%

0%

Tuition 2

5.6

%

23

.7%

15

.8%

15

.5%

14

.5%

30% Research Institutions

Percentage Change in Resident Undergraduate

Tuition and Required Fees

2008-09 to 2009-10

9.0

%

6.4

%

5.3

%

4.8

%

4.6

%

4.1

%

Ark

an

sa

s

0.9

%

Ma

ryla

nd

0

.5%

0.4

%

Mis

so

uri

0.3

%O

hio

Ok

lah

om

a 0

.0%

0.0

%

Mis

sis

sip

pi

Ge

org

ia

Ari

zo

na

Flo

rid

a

Ore

go

n

Haw

aii

Co

lora

do

Na

tio

na

l A

ve

rag

e

Kan

sa

s

Te

xa

s

Iow

a

Neb

ras

ka

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

30%

25%

20%

15%

10%

5%

0%

Tuition G

eo

rgia

28

.7%

Cali

forn

ia2

6.2

%

Ari

zo

na

21

.3%

Wa

sh

ing

ton

14

.2%

13

.9%

F

lori

da

Co

lora

do

13

.1%

Na

tio

na

l A

ve

rag

e6

.7%

Te

xa

s6

.6%

Kan

sa

s

5%

6

.

4.4

%

Neb

ras

ka

Regional Universities

Percentage Change in Resident Undergraduate

Tuition and Required Fees

2008-09 to 2009-10

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

4.1

%

Iow

a

Ark

an

sa

s

2.3

%

1.6

%O

hio

1.0

%M

on

tan

a

0.0

%M

iss

ou

ri

Mis

sis

sip

pi

0.0

%

0.0

%

Ok

lah

om

a

18

30%

25%

20%

15%

10%

5%

0%

Tuition 3

0.6

%

30

.3%

30

%

18

.4%

8.8

%

7.1

%

6.2

%

5.7

%

5.3

%

4.3

%

2.0

%

0.8

%

0.8

%

0.6

%

0.3

%

0.0

%

0.0

%

Mis

so

uri

Lo

uis

ian

a

Community Colleges

Percentage Change in Resident Undergraduate

Tuition and Required Fees

2008-09 to 2009-10

23

.2%

Ge

org

ia

Cali

forn

ia

Ari

zo

na

Wa

sh

ing

ton

Flo

rid

a

Co

lora

do

Na

tio

na

l A

ve

rag

e

Te

xa

s

Iow

a

Neb

ras

ka

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

Ka

ns

as

Ok

lah

om

a

No

rth

Da

ko

ta

New

Yo

rk

Wis

co

ns

in

Ala

ba

ma

Mis

sis

sip

pi

-0.3

%

-0.4

%

19

20

Tuition

5% 5.8%

Tuition Increase in 2009 – 2011

0%

2009 2010 2011

Percentage of the higher education budget paid with state appropriations:

Source: OSRHE, Educational and General Budgets Summary & Analysis, June 2010

100%

75.3% 75%

69.3%

49.5%50% 44.8% 44.7% 41%

25%

1988 1990 2008 2009 2010 2011

22

Budget Cuts

Total Appropriations for Operations

FY09-10 FY10-11 FY11-12

-1.05% -5.80%

-6.28%

23

K-12 and Higher Education

Collaborations

• EPAS – Explore, Plan and ACT • GEAR UP – Gaining Early Awareness and Readiness for

Undergraduate Programs • Teacher Education – K20 Center at OU and UCO Urban Education

Initiative • Achieving Classroom Excellence (ACE) • Common Core Curriculum for K-12 • Partnership for Assessment of Readiness for College and Careers

(PARCC) – Assessments for the Common Core Standards • P-20 Data Coordination Council • Teacher Connection • Summer Academies • Cooperative Alliance with CareerTech • Concurrent Enrollment with High Schools

• Undergraduate Research • EPSCoR • Science and Math Summer Academies • National Merit Scholars/Academic

Scholars • Endowed Chairs • Oklahoma’s Promise • College Preparation Initiatives (EPAS and

ACE)

Higher Education STEM Initiatives

• All Campuses are required to report detailed information

about their programs to the U.S. Department of Education

CollegeNavigator.org site which includes a link to the

National Occupational Outlook Handbook with job prospect

and salary information.

• The OSRHE student portal, and OKcollegestart.org sites

include career search information with links to student loan

payment calculators.

• College and University Placement offices provide career

information.

25

Response to Market Needs

• The State Regents Program review for new and existing programs evaluate employer and student demand for the program.

• Low producing and low demand programs are deleted on average 34 programs per year since 2004-05 totaling over 241 programs deleted.

26

Link Academic Programs to the needs of Business

• Healthcare, Allied Health and Nursing

• Engineering • Aviation • Wind Turbine Technologies

27

Academic Scholars

38%

All

Sch

ola

rs

Okl

aho

ma

47%

No

n R

esi

de

nt

36%

All

Sch

ola

rs

Okl

aho

ma

16

%

42%

No

n R

esi

de

nt

45%

!cademic Scholar’s Program Graduates Employed in Oklahoma

73%

65%

Okl

aho

man

52%51%

All

Sch

ola

rs

All

Sch

ola

rs

Okl

aho

ma

Okl

aho

ma

26

%

No

n R

esi

den

t

30

%

59%

No

n R

esi

den

t

All

Sch

ola

rs

39

%

No

n R

esi

de

nt

2002-03 2003-04 2004-05 2005-06 2006-07 28

18

%

State Appropriations

29

OSRHE FTE

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

FTE FTE FTE FTE FTE FTE

302 305 299 297 285 279

Oklahoma State Regents for Higher Education Core Operations Budget

$1

0,5

13

,105

$1

0,6

03

,821

$1

0,7

17

,661

$1

0,8

07

,788

$1

0,7

57

,734

$10,0

33,7

94

FY07 FY08

FY09 FY10 FY11

FY12

-4.6% Decrease

Questions?

Tony Hutchison

30