higher education as an investment 3 private returns higher education provides considerable value to:...
Post on 29-Jan-2016
217 Views
Preview:
TRANSCRIPT
HIGHER EDUCATION AS AN INVESTMENT
3
Private Returns• Higher education provides considerable value to:
– the economies where educated individuals work/live
– society in general– individual earnings are strongly related to
educational attainment– average annual earnings of individuals with a
bachelor’s degree are more than 75% higher than earnings of a high school graduate
– earning differential is increasing over time
Source: Productivity and Prosperity Project, Arizona State University, W.P. Carey School Business. 2005.
The Value of Higher Education: Individual and Societal Benefits. 3
Societal Returns• Greater educational attainment results in
enhanced worker productivity, which translates into higher output and incomes
• Regions with higher proportions of college graduates include lower crime rates, greater and more informed civic participation, and improved performance across a host of socioeconomic measures
Source: Productivity and Prosperity Project, Arizona State University, W.P. Carey School Business. 2005. The Value of Higher Education: Individual and Societal Benefits.
4
Mean Annual Earnings by Age and Educational Attainment in the U.S.
Age Group
Educational Attainment
H.S. Graduate and GED
Some College
Associate’s
Bachelor’s
Master’s
Professional
Doctoral
25-34$25,922 $29,719 $32,453 $44,067 $48,034 $75,454 $63,370
35-44$31,303 $37,923 $40,353 $58,551 $70,288 $123,190 $98,133
45-54$33,545 $40,254 $42,944 $66,686 $81,659 $136,657
$117,965
55-64$30,224 $39,215 $40,811 $56,243 $73,498 $135,713 $92,502
65+$20,981 $26,251 $27,373 $39,749 $51,636 $75,360 $71,282
Source: U.S. Department of Commerce, Census Bureau, Income in 2005 by Educational Attainment: 2006
5
Mean Annual Earnings by Age and Educational Attainment in
ArizonaEDUCATIONALATTAINMENT
AGE GROUP
25-29 30-34 35-39 40-44 45-49 50-54 55-59
Postgraduate $56,331
$69,010
$75,577
$71,611
$72,251
$73,088
University Graduate
$38,509
$46,714
$56,968
$60,790
$57,499
$55,693
$59,320
Some College $28,813
$32,678
$38,359
$40,276
$40,222
$41,931
$41,919
High School Graduate
$26,599
$27,904
$31,417
$32,587
$33,672
$34,401
$34,678
Some High School
$23,313
$24,898
$25,610
$26,387
$29,218
$27,289
$27,017
Source: U.S. Department of Commerce, Census Bureau, 2000 Census Public Use Micro Data Sample
6
The Array of Higher Education Benefits
Source: Institute for Higher Education Policy. 1998. Reaping the Benefits, Defining the Public and Private Value of Going to College. Washington, D.C.: Institute for Higher Education Policy
PUBLIC PRIVATE
Increased Tax Revenue Higher-Salaries and Benefits
Greater Productivity Employment
ECONOMIC Increased Consumption Higher Savings Levels
Increased Workforce Flexibility Improved Working Conditions
Decreased Reliance on Government Financial Support
Personal/Professional Mobility
Reduced Crime Rate Improved Health/Life Expectancy
Increased Charitable Giving/Community Service
Improved Quality of Life for Offspring
SOCIAL Increase Quality of Life Better Consumer Decision Making
Social Cohesion Increased Personal Status
Improved Ability to Adapt to and Use Technology
More Hobbies, Leisure Activities
7
ARIZONA’S DEMOGRAPHIC GROWTH
Population GrowthYear
State of Arizona Maricopa County
PopulationPercent Increase
PopulationPercent Increase
2000 5,130,632 3,096,692
2001 5,295,929 3.1% 3,195,893 3.1%
2002 5,438,159 2.6% 3,293,441 3%
2003 5,577,784 2.5% 3,388,711 2.8%
2004 5,739,879 2.8% 3,498,587 3.1%
2005 5,939,292 3.4% 3,635,528 3.8%
2006 6,166,318 3.7% 3,768,123 3.5%
Source: United States Census Bureau9
Enrollment Projection Model Arizona’s State Universities
Projected Growth, 2000-2020Total
Students
% Increas
e
Scenario I: Substantial Change
167,149 56.8%
Scenario II: Most Likely
156,754 47.8%
Scenario III: Continuation of Current Trend
147,411 39.7%
Governor’s Task Force on Higher Education, 2000
Total Enrollment in Fall 2006 is 120,645
10
Projected Increases in ASU Enrollment
Institutional Analysis
11
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Fall 2007 = 64,394
Performance
First-Year Persistence Rates
First-Time, Full-Time Freshmen1985-2005 79%
67%
65%
67%
69%
71%
73%
75%
77%
79%
81%
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Fall Entering Cohorts
Source: ASU’s Institutional Analysis 13
Six-Year Graduation RatesFirst-Time, Full-Time Freshmen
1984-2000
56%
46%
40%
42%
44%
46%
48%
50%
52%
54%
56%
58%
60%
1984 1986 1988 1990 1992 1994 1996 1998 2000
Fall Entering CohortsSource: ASU’s Institutional Analysis 14
Five-Year Institutional Graduation Rates at Public and Private Four-Year Institutions
1986 - 2006
35
40
45
50
55
60
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Private
Total
Public
ASU
Source: ACT Institutional Data File
%
15
Investment
ASU Fund Source – 2003
$18.52%
$28.93%
$32.64%
$89.311%
$158.719%
$206.224%
$311.837%
State AppropriationsTuition & FeesGrants & ContractsAuxiliary EnterprisesPrivate GiftsTRIF (Prop. 301)Other
(in millions)
Total = $846 Million
17
ASU Fund Source – 2004
$22 2%
$47 5% $31
3%
$93 10%
$165 18%
$260 28%
$312 34%
State AppropriationsTuition & FeesGrants & ContractsAuxiliary EnterprisesPrivate GiftsTRIF (Prop. 301)Other
(in millions)
Total = $930 Million
18
ASU Fund Source – 2005
$22.6 2%
$42.2 5%
$52.3 5%
$99.7 9%
$189.4 18%
$302.129%
$335.932%
State AppropriationsTuition & FeesGrants & ContractsAuxiliary EnterprisesPrivate GiftsTRIF (Prop. 301)Other
(in millions)
Total = $1.044 Billion
19
ASU Fund Source – 2006
$368.6 31%
$349.4 30%
$211.4 18%
$68.3 6%
$106.7 9%
$45.6 4%
$22.1 2%
State AppropriationsTuition & FeesGrants & ContractsAuxiliary EnterprisesPrivate GiftsTRIF (Prop. 301)Other
(in millions)
Total = $1.172 Billion
20
ASU Fund Source – 2007 (unaudited)
$429.6 32%
$399.9 29%
$219.0 16%
$110.4 8%
$118.2 9%
$49.2 4%$31.6
2%
State AppropriationsTuition & FeesGrants & ContractsAuxiliary EnterprisesPrivate GiftsTRIF (Prop. 301)Other
(in millions)
Total = $1.358 Billion
21
ASU Fund Sources FY03-07(in millions)
0
100
200
300
400
500
2003 2004 2005 2006 2007
State Appropriations
Tuition and Fees
Grants & Contracts
Auxiliary Enterprises
Private Gifts
TRIF (Prop. 301)
Other
22
(unaudited)
General Fund as a Percentage of ASU’s Total Fund Sources
32%
37%34% 32% 31%
41%40%
47%
0
20
40
60
1979 1987 1995 2003 2004 2005 2006 2007
23
(unaudited)
Percentage of Total General Fund Invested in Arizona’s
Universities19%
7.0%
17%
6.1%
14%
5.6%
13%
5.2%
10%
4.4%
11%
4.7%
0
5
10
15
20
25
Percent ofGeneral Fund
Invested
FY79 FY87FY95 FY03 FY07FY08
Invested in AZUniversities
Invested in ASU
Source: Joint Legislative Budget Committee – General Fund Operating Spending, Fiscal Years 1979-2008
24
Public Pac-10 Tuition Comparison
25
ASU U of A
Cal UCLA Oregon
OSU Washington
WSU
2000 2,259 2,259 4,047 3,678 3,810 3,561 3,639 3,530
2001 2,344 2,344 4,047 3,683 3,819 3,654 3,761 3,658
2002 2,486 2,486 4,091 4,230 4,071 3,987 3,984 3,898
2003 2,585 2,585 3,829 3,702 4,824 4,371 4,636 4,520
2004 3,593 3,593 5,250 5,298 5,079 4,944 4,968 4,836
2005 4,064 4,064 5,956 6,028 5,670 5,319 5,286 5,154
2006 4,404 4,487 6,512 6,504 5,805 5,442 5,610 5,506
2007 4,686 4,754 6,654 7,142 5,970 5,643 5,985 5,887
2008 4,969 5,037 7,164 7,710 6,174 5,910 6,385 6,290
44,63747,086
49,98052,265
53,873
59,06860,541
30,98132,460 33,089 33,807 34,018 34,237 34,023 34,268
17,107 17,057 17,189 16,389 16,794 16,628 17,489 18,281
56,900
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ASU
UA Main
NAU
FTE Student Enrollment
Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students.
26
2,449
5,343
7,628
15,904
1,4792,108
3,287
(50) 82(718)
(313) (479)
382
9,236
14,431
12,263
2,826
3,037 3,256 3,042
1,174
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ASU
UA Main
NAU
Cumulative Change in FTE Student Enrollment
Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students.
27
$8,723
$7,969 $7,956
$10,080
$6,546
$8,800
$8,111
$6,779
$7,268
$7,154
$6,334
$6,039$5,966
$6,239
$8,117
$9,039
$8,353
$7,800
$7,357
$7,773
$6,772$6,761
$6,565$6,615
$5,500
$6,500
$7,500
$8,500
$9,500
$10,500
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ASU
UA Main
NAU
General Fund per FTE Student
Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. General Fund amounts listed include reductions for mid-year cuts made in FY02 & FY03, otherwise initial GF appropriations, not including TRIF. FY07 amounts shown net of one-time appropriations. FY08 GF amounts shown net of Phoenix Biomedical campus one-time funding. Funding for the Research Infrastructure Lease-Purchase Payments is included. FY06, FY07 & FY08 UA Main General Fund amounts net of AZ Cooperative Extension ($10,184,100 for FY06, $12,069,300 for FY07, and $11,728,500 for FY08 as per JLBC Appropriations Report.)
28
($489)
($934)
($923)
$1,357
$156 $145
$843
($1,229)($1,301)
($114)
($1,029)
($606)
($767)
$316
($370)
($754)
$742
$1,158
$2,184
($51) ($159)
-$1,500
-$1,000
-$500
$0
$500
$1,000
$1,500
$2,000
$2,500
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ASU
UA Main
NAU
Cumulative Change in General Fund per FTE Student
29
Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. General Fund amounts listed include reductions for mid-year cuts made in FY02 & FY03, otherwise initial GF appropriations, not including TRIF. FY07 amounts shown net of one-time appropriations. FY08 GF amounts shown net of Phoenix Biomedical campus one-time funding. Funding for the Research Infrastructure Lease-Purchase Payments is included. FY06, FY07 & FY08 UA Main General Fund amounts net of AZ Cooperative Extension ($10,184,100 for FY06, $12,069,300 for FY07, and $11,728,500 for FY08 as per JLBC Appropriations Report.)
top related