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Oklahoma State Regents for Higher Education’s

2013 Legislative Forum

November 20, 2013

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2014 State Regents’ Legislative Agenda and Budget Request

• Complete College America• Prohibit Weapons on Campus• Oklahoma’s Promise

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

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Campus Security

• In past six legislative sessions, legislation has been introduced or discussed that would allow students to carry weapons onto college campus. We have successfully stopped the legislation to date.

• It will continue to be a top priority of our higher education system to ensure that this legislation does not become law.

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

2008-09 2009-10

17,000

19,000

14,669

16,929

18,298

19,426

2010-11

20,029

2011-12

20,08119,650

2012-13

19,300

2013-14

Number of Oklahoma’s Promise Scholarship

Recipients

Assumes 1% annual increases in OK Promise high school

enrollment and 65% completion rate of high school requirements

for scholarship eligibility.

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In The Global Economy of the 21st Century,

90 Percent of the Fastest-Growing Jobs Will Require a Higher

Education.

In The Global Economy of the 21st Century,

90 Percent of the Fastest-Growing Jobs Will Require a Higher

Education.

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6Source: United States Bureau of Labor Statistics

7Source: Bureau of the Census 2012

compared to Oklahoma

at 23.8 percent.

Nationally, more than one-quarter (29.1 percent) of adults 25 and older have

a bachelor’s degree or more.

State Per Capita Personal Income v. Share of Adult Population with

Bachelor's Degree or Higher

The Overwhelming Majority of States That Have a High

Percentage of Their Citizens with a College Degree Have a

Higher Per Capita Income.

California ColoradoConnecticut DelawareIllinois MarylandMassachusetts MinnesotaNew Hampshire New JerseyNew York Rhode IslandVermont VirginiaWashington Wyoming

8Source: United States Bureau of Economic Analysis

Learn More, Earn More2012 Median U.S. Earnings by Educational Attainment

(for workers age 25 and older)

Source: Bureau of Labor Statistics, Current Population Survey 2012

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$1,455,253High School Graduate

$1,725,822Some College

$1,801,373Associates

Degree

$2,567,174Bachelor’s

Degree

$2,963,076Master’s Degree

$3,982,577Doctorate

$5,254,193Professional

Lifetime Earnings!

Source: U.S. Department of Commerce Economics and Statistics Administration – U.S. Census Bureau

$1.1 M more in a Lifetime than HS Grad

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No High School

Diploma12.4% High

School Diploma

8.3%

Some College

7.7% Associates Degree6.2%

Bachelor’s Degree4.5%

Master’s Degree3.5%

Professional Degree2.1%

Doctoral Degree2.5%

Source: Bureau of Labor Statistics, Current Population Survey 2012

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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

Students Who Learn Here, Earn Here

Source: 2012 Employment Outcomes Report

87%Remain in the

State

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Link Academic Programs to the needs of Business

• Healthcare, Allied Health and Nursing• Engineering• Business• Aviation and Aerospace• Wind Turbine Technology• Health Information Management• Management Information Systems

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A total cumulative cost savings of $451.7 million from 2011-15. $451.7 m

$411 m

$74 m

• Changes in Salaries and Benefits

• Changes and Elimination of Positions• Energy Conservation and Conversion• Reduction in Supplies• IT Savings

Source: FY15 Institutional Budget Needs Survey

$0 m

$50 m

$100 m

$150 m

$200 m

$250 m

$300 m

$350 m

$400 m

$450 m

2011 2012 2013 2014 2015

$500 m

$112 m

$347 m

Higher Education Cost Savings

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FY14 Cost Savings

$43.6

15

Higher Education Cost Savings

$1 m

$15 m

$30 m

$45 m

$60 m

$75 m

Transfers and Other

Supplies Utilities

$2.1 m

$73.5 m

$49.3m

$70.9 m

$16.3 m

Travel, Periodicals and Other

Source: Oklahoma State Regents for Higher Education

Personnel and Benefits

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Information Technology

Cost Savings

2011 - 2015

$239.7 MillionFY14

$48.2 Million16

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

Source: Oklahoma State Regents for Higher Education

• In FY14, our institutions reported $620.3 million in competitive grants for program development and research.

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FY12FY10

History of State Appropriations

FY11

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FY09

$1,050.9 billion

FY13 FY14

$988.5 million

System Overview

FY08

$1,001 billion

$1,039 billion

$943.7 million

$955 million$945 million

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FY80 FY90 FY00 FY10 FY13

5%

15%

10%

20%

15.6%15.3%

Higher Education’s Percent of Oklahoma Total State Appropriations

18.6%

FY14

15.8%

14.8% 14.6%

1988 2007 2012 2013

20%

40%

100%

80%

60%

0%

State Appropriations as a percent of Total Higher Education Budget

50.8%39.9%

39.5%

202014

38.7%

74.2%

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Record Enrollment

177,385

186,067

Academic Year 2008

Academic Year 2013

Tuition and Mandatory Fees

5%5.8%

2010 2011

Tuition and Mandatory Fee Increases in 2009 – 2013

0%

2009

5.2%

2012

22

4.7%

2013

California 72%

5 – year Change in Public Four Year College Tuition

and Fees

Washington 64%

Arizona 78%

Source: College Board: Average Published Tuition and Fees by State 2004-05 through 2012-13

Florida 67%

Georgia 63%

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Nationally, Oklahoma is Ranked:

• 8th in Higher Education Efficiency

• 7th in College Affordability

• 19th in STEM Job Growth

Source: “Enterprising States” – A Project of the US Chamber of Commerce and the National Chamber Foundation

ENTERPRISING STATES

“According to the report, Oklahoma places 8th in Nation on the list of States with the lowest student debt.”

The Project on Student Success – Institute for College Access and Success

Student Debt Report

Oklahoma is 21% below the national average in student debt.

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“Over the Last Two Decades, the United States has declined in Degree Completion From 1st in the

World to 16th in the World”Organization for Economic Cooperation

and Development

Korea Canada Japan Russia Ireland Norway New Zealand

United Kingdom

Australia DenmarkLuxembourg France Israel Belgium Sweden USA

COMPLETE COLLEGE

A M E R I C A

Transform Remediation

Strengthen Pathways to College Degrees

and Certificates

COMPLETE COLLEGE

AMERICAThe Oklahoma Plan

RewardPerformance

Increase Adult Degree

Completion

Focus On College

Readiness

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COMPLETE COLLEGE

AMERICA

30,500Goal 1,700

50,900

2011 2012 2023

2,945

FY’14 Appropriation $988,549,007

FY’15 Appropriation Request1. Performance and Degree Completion Goals

a. Performance and Degree Completion Funding Formula $55,100,000i. Fixed Cost Increases - $30,100,000ii. College Completion Plans - $25,000,000

b. Online Education and Degree Completion Technology $2,500,000c. Campus Deferred Maintenance $3,700,000

2. Intervention to Enhance Degree Completion and Student Success

d. Student Services – Competitive Grants for Academic Advisement, Career Counseling, Financial Education and Veterans Services $10,000,000e. Concurrent Enrollment $3,000,000f. OTAG/OTEG $1,500,000g. Adult Degree Completion Community Scholarship Match $250,000h. STEM Summer Academies $250,000

Total Additional Funds $76,300,000

Total FY’15 State Appropriation $1,064,849,007

$ Difference from State FY’14 Appropriation $76,300,000% Difference from State FY’14 Appropriation 7.7%

COMPLETE COLLEGE AMERICA

THE OKLAHOMA PLAN

CollegeReadiness

Pathways toDegrees

Reward Performance

TransformRemediation

Increase AdultDegrees

2015 Budget Request

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GOODNEWS

Oklahoma Public Higher Education: Economic and Social Impacts

H I G H E R E D U C A T I O N R E P O R T

RESEARCH FOUNDATION

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Battelle Findings on the Economic Impact of Oklahoma Higher

Education

H I G H E R E D U C A T I O N R E P O R T

• Public higher education has an impact of $9.22 billion on the state’s economy annually and supports more than 85,000 Oklahoma jobs;

• The estimated return on investment for public higher education is $4.72 for every $1.00 of state funding;

• Public universities have a strong and flourishing presence in advanced research, conducting $360 million in annual research and growing their research volume at a pace that exceeds the national growth rate.

• For every $1 in state funding, public universities attract an additional $2.24 in federal funding.

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FallinForBusiness.com

Perceptions of Oklahoma’s Business Climate

“The Quality of our two/four year college and university system”

#1 Business Climate Strength in the State

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FallinForBusiness.com

Highest Ranked Business Climate Factors

87% 76%76% 74% 74%

Quality of 2/4 yearCollege/University

system

Access to supplies

required to conduct business

Career-TechSystem

Preparationfor the

workplace

Affordable housing options

for employees

Recreationalopportunities

Perceptions of Oklahoma’s Business Climate

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Oklahoma State Regents for Higher Education’s

2013 Legislative Forum

November 20, 2013