Discussion Items for

Task Force Meeting

Chicago, Illinois

August 12, 2008

National Center for Higher Education Management SystemsNational Center for Higher Education Management Systems3035 Center Green Drive, Suite 150 Boulder, Colorado 80301-2251

22

Topics to be Covered

► Observations About Policy Environment for Implementation

► Moving from Goals to Implementation Plan■ Principles■ Policy Tools■ Cross-Cutting Issues

► Charge to Work Groups

33

Observations About Policy Environment for

Implementation

44

Policy Environment

► Strong History of Institution-Oriented Policy-Making

► Splintered Nature of Decision Authority■ State Level■ Local/Region

► Absence of Mechanisms for Regional Solutions ► Culture of “Pilots” But Little Evaluation and

Scaling Up

55

Policy Environment (Continued)

► Uneven Engagement (Time and Geography) of Business and Civic Leaders in Higher Education Issues

► Many Unfunded Mandates (e.g., Mandated Scholarships)

► Lack of Information Infra-Structure■ Higher Education■ P-20

66

Moving from Goals to an Implementation Plan

77

The Management Cycle

State

Planning

Institution

State

Institution

Implementation

State

Accountability

Institution

88

Basic Principles for Developing Implementation Strategies

► Use Goals as the Starting Point—Align Policies with Goals

► Use All the Policy Tools

► Be Consistent—Across Goals and Across Tools

► Focus on Students as Well as Institutions

► Fit Policy to Regional, as Well as Statewide, Needs

99

The Policy Tools

► Clear Direction—a “Public Agenda”

► Funding/Resource Allocation

► Accountability

► Regulation

► Policy Leadership/Allocation of Decision Authority

Underlying Them All Is Capacity to Provide Information

1010

ALIGNMENT

ALIG

NM

EN

T

1. Increase Education Attainment

2. Ensure College Affordability

3. Increase Production of

High‑Quality Credentials

4. Integrate Educational, Research, and Innovation Assets

GOALSPOLICY TOOLS

Planning andLeadership Finance Regulation Accountability Governance

1111

Cross-Cutting Issues

► P-20 Alignment of Standards, Curriculum, Assessments and Professional Development for:

■ Postsecondary Education

■ Work in a Living Wage Job

► Funding Policy

■ Institutional

■ Students

► Regional Strategies

► Policy Leadership

Funding/Resource Allocation—Key Concepts

1313

The Flow of Funds

Economy Tax Policy

Appropriations/GrantsStudent Aid

Tuition

Scholarships &Waivers

Research and Other Grants (Restricted)Student Aid (Restricted)

Gifts

Income

Available State and Local

Govt. Funds

FederalGovernment

DonorsFoundationsCorporations

••••

K-12CorrectionsHealth CareOther Govt.

Higher Education

Students Institutions

1414

The Flow of Funds

Economy Tax Policy

Appropriations/GrantsStudent Aid

Tuition

Scholarships &Waivers

Student Aid (Restricted)

Income

Available State and Local

Govt. Funds

FederalGovernment

Higher Education

Students Institutions

1515

Criteria from Perspective of Different Stakeholders

► Maintains Institutional Capacity► Promotes Achievement of Priority Outcomes► Affordable

► Affordability► Value► Access to Key Assets (e.g., Faculty and Technology)

► Adequacy► Equity► Stability

State

Students

Institutions

1616

Criteria for Effective Higher Education Finance Policy

► Create and Maintain Necessary Institutional Capacity

► Reinforce Utilization of Capacity to Achieve State Goals

► Contributions Required Are Affordable—to Both State and Students

► Viewed as Being Fair

► Transparent

1717

Basic Questions at State Level

► How Much to Allocate

► To Which Recipients—Students or Institutions

► Using Which Mechanisms

1818

Finance Policy—The Options

Institution Focused

Student Focused

Core Capacity

Capacity Utilization/Public Agenda

Tuition and Aid PolicyFocused on

Attainment ofSpecified Outcomes

Base-Plus

Formulas

Investment Funds

Performance

Funding

Tuition and Aid Policy

Focused on

Revenue Generation

1919

A Key Distinction

► Investment Funds

■ Capacity Building

■ A Priori

► Incentive Funds

■ Capacity Utilization

■ Post Facto

2020

Student Financial Aid

► Align Student Aid, Tuition and Appropriations

► Implement a Shared Responsibility Model for Student Aid with:

■ Student Making Initial Commitment

■ State Making Last Dollar Commitment

► Link Student Financial Aid to Incentives for Students Beginning at 7th and 8th Grades

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Remember—All Funding Mechanisms

Provide Incentives for Behavior

Central Question:

Are the Behaviors Elicited

the Ones You Want?

2222

Regional Partnerships

► Focus on Regions as the “Community of Solution” for Getting More Students Through Education Pipeline

► Partnership:

■ Regional Community/Economic Development

■ Higher Education

■ P-12

► Use of State Funding to Provide Incentives for Regional Strategies

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Policy Leadership

► Key Point: Must Have a Means to Keep Agenda on Track

■ Legislative Ownership of Long-Term Agenda

■ Linking Budget and Appropriations to Goals

■ Holding Institutions/Systems Accountable

■ Sustaining Agenda Over Changes in Political Leadership and Economic Conditions

2424

Policy Leadership (Continued)

► Creating Mechanism for Developing Regional Solutions

► Using Public/Private Partnerships to Facilitate Change

2525

Charge to Work Groups

2626

Charge to Work Groups

► Adhere to Basic Principles:

■ Use Goals as the Starting Point—Align Policies with Goals

■ Use All the Policy Tools

■ Be Consistent—Across Goals and Across Tools

■ Focus on Students as Well as Institutions

■ Fit Policy to Regional, as Well as Statewide, Needs

2727

Charge

► Prepare Short List of More Detailed Action Steps Recommended as Priority Implementation Initiatives

► Indicate Actions Required of Each of Relevant Entities in Order for Public Agenda to be Successful (IBHE, ICCB, ISAC, ISBE and others)

► Modify List of Performance Measures and Benchmarks as Necessary

2828

Measuring Progress: Illinois Outcome/Performance

Measures

2929

1. Increase Educational Attainment to Match Best-Performing U.S. States and World Countries

► Proportion of Adults Age 25-34 with Associate Degree or Higher

► Proportion of Adults Age 25-34 with Baccalaureate Degree or Higher

Benchmarked Against:

■ Best-Performing OECD Countries

■ 5 Best-Performing U.S. States

■ Selected Competitor/Neighbor States

(continued)

3030

1. Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued)

a. Improve Success of Students—Eliminate Racial, Ethnic, Gender and Disability Achievement Gaps

► Proportion of Adults Age 25-34 by Race/Ethnic Group, Gender, and Disability Status Who Have:

> Completed High School> Attained Associate Degree or Higher> Attained Baccalaureate Degree or Higher

► Difference Between Whites and Each Ethnic Group for Each Attainment Level Above

Benchmarked Against:■ Illinois Trends Over Time■ Best-Performing States

(continued)

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1. Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued)

(continued)

b. Increase Number of Adults Reentering Education and Completing a Postsecondary Credential► Number of GEDs Awarded to Adults Age 21-44 as a

Proportion of Adults Age 21-44 with Less than a High School Diploma

► First-Time Freshmen Age 25-44 as a Proportion of Adults Age 25-44 with a High School Diploma but No College

► Degrees Awarded to Adults Age 25-44 as a Proportion of Population Age 25-44 with No College Degree

Benchmarked Against:■ Illinois Trends■ Best-Performing States

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1. Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued)

c. Reduce Geographic Disparities in Educational Attainment

► Difference Between Highest- and Lowest-Attaining Counties in Proportions of Individuals Who Have Attained:

> Associate Degree or Higher

> Baccalaureate Degree or Higher

► Also Differences Between Counties at 20th and 80th Percentiles

Benchmarked Against:■ Illinois Trends Over Time

■ Best-Performing States

3333

2. Ensure College Affordability for Students, Families and Taxpayers

► Percent of Family Income for:

■ Median Family

■ Low-Quintile Family

Required to Pay Net Cost of Attendance (Cost Less Grant Aid) at:

■ Public 4-Year

■ Private 4-Year

■ Public 2-Year

► Average Amount of Debt Per Student(continued)

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2. Ensure College Affordability for Students, Families and Taxpayers (continued)

► Percent of Low-Quintile Family Income Required to Pay Tuition and Required Fees at 2-Year Public Institutions

► State Tax Effort Compared to State Tax Capacity

► State and Local Appropriations Plus Tuition and Fee Revenue per FTE Student—State Share of This Total Revenue per FTE Student

Benchmarked Against:■ Illinois Trends■ Best-Performing States

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3. Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy

a. Improve Student Learning and Skill Levels to Compete Effectively in the Global Marketplace

► Proportion of Adults Age 25-34 Assessed as Proficient in Each of the Areas of the NAAL—Data Acquired Through a State Oversample on the Exam (Scores of College Graduates Versus Non-College Graduates)

Benchmarked Against:■ Illinois Trends■ U.S. Average■ Other States for Which State Data Are Available

(continued)

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3. Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued)

b. Increase Production of Quality Certificates, Associate and Baccalaureate Degrees

► Produced Each Year by All Institutions in State

Benchmarked Against Illinois Trends

► Certificates and Associate Degrees Granted as a Proportion of FTE Enrollments at 2-Year Institutions

► Baccalaureate Degrees Awarded as a Proportion of FTE Undergraduate Enrollments at 4-Year Institutions (Public and Private Not-for-Profit)

Benchmarked Against:■ Illinois Trends Over Time■ Best-Performing States

(continued)

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3. Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued)

c. Improve Transitions Between Associate and Baccalaureate Degree Levels

► Number of Students Who Achieve Transfer-Ready Status► Proportion of Students Who Achieve Transfer-Ready Status

Who Do Transfer and Complete a Degree

► Proportion of Students Who Achieve 12 SCH Who Transfer► Proportion of SCH Earned by Transfers That Are Not

Accepted as Credit for a Major► Proportion of Students with 2.0 GPA or Better—Transfers

Versus Native Students

Benchmarked Against Illinois Trends

(continued)

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3. Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued)

d. Increase Production of Postsecondary Degrees in Fields Critical to Illinois Economy—e.g., Nursing, Allied Health, and Information Technology

► Absolute Number of Associate, Baccalaureate and Master’s Degrees Produced Each Year in Specified Fields

– Nursing – Allied Health – IT – Others?

Benchmarked Against Illinois Trends

► Associate, Baccalaureate, Master’s and Doctoral Degrees Produced in STEM Fields as a Proportion of All Degrees Granted at Those Levels

Benchmarked Against Best-Performing States

(continued)

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4. Better Integrate Illinois’ Educational, Research, and Innovation Assets to Meet Economic Needs of the State and Its Regions

► Proportion of Jobs Considered to Be “Living Wage” Jobs

► Spin-Off Companies Created Per Billion Dollars of Academic Research

► ???