Profiles and Trends in West Virginia Higher Education: The Public Discourse Presented to the Advisor

1
Profiles and Trends in West Virginia Higher
Education The Public DiscoursePresented to
the Advisory Council of Faculty July 30, 2007
2
The 2007-12 Master Plan Background

• The purpose of the Master Plan is to identify
  state priories for incorporation into the public
  agenda. The public agenda will be built upon
  civic, corporate and community partnerships and
  articulates opportunities to establish a
  workforce that is able to compete in the
  knowledge economy.
• This effort focuses on addressing the policy
  challenges facing West Virginia such as leaks in
  the pipeline, the exportation of teachers and
  engineers, blurring institutional missions,
  increased student debts, and changing job market
  needs.
• The current policy undertaking (synchronized
  master planning, funding formula/peer renewal,
  and accountability) will provide the basis for
  the public agenda creation.

3
The 2007-12 Master Plan Zones of Emphasis

• Economic growth How does the system of higher
  education in West Virginia contribute to the
  states economic vitality? Can we prepare more
  West Virginians for successful work and create
  more work opportunities for our citizens?
• Access How can we make post-secondary education
  accessible for all West Virginians? How can we
  give students the skills and information they
  need to succeed in college and other
  post-secondary education programs? How can we
  provide a range of educational opportunities for
  citizens located across the state and at various
  stages of their adult and working lives?

4
The 2007-12 Master Plan Zones of Emphasis

• Cost and Affordability In an era of tight
  budgets and skyrocketing costs, how can we ensure
  that higher education is affordable for West
  Virginians?
• Learning and Accountability How can we ensure
  that West Virginians are getting a high quality
  education that will prepare them for successful
  working lives with the minimum cost? How can our
  institutions maximize limited resources?
• Innovation How can we devise innovative
  programs, partnerships, research initiatives,
  curricula, and pedagogy to best achieve goals
  related to access, quality, target fields, cost
  efficiency, and economic development? How can we
  put entrepreneurship, research, and partnerships
  at the service of our overarching goals?

5
The 2007-12 Master Plan Background Data and
Planning Assumptions

• Stable Enrollment Growth
• Importance of Retention and Persistence
• Shifting Sands of Resources and Revenues
• Need to Focus on Mission Differentiation
• Changing Workforce Demographics
• Population and Economic Challenges
• Governance Tensions

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Headcount Enrollment by Institution
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Total Headcount Enrollment
Total headcount enrollment 86,088 Headcount
increased 1.6 over fall 2005, 9.9 over fall
2001, and 15.0 over fall 1996.
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Total FTE Enrollment
Total FTE enrollment 71,143 FTE enrollment
increased 1.9 over fall 2005, 13.1 over fall
2001, and 17.4 over fall 1997.
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First-time Freshman Enrollment
Total FTF headcount 14,456 FTF headcount
increased 3.2 over fall 2005, 8.7 over fall
2001, and 10.8 over fall 1997.
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Enrollment of Recent High School Graduates

• In 2004-05, 17,819 students graduated from a
  public/private high school in West Virginia
• If participation rates were to increase to the
  average of the best performing SREB states, WV
  would expect to see an increase of 1,960 first
  time freshmen entering higher education.
• Contextually, this is approximate to the
  entering in-state freshmen class at West Virginia
  University (2,093 in F05).

SREB Factbook 2007
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High School Graduate Projections 2000 - 2014
According to SREB, the number of graduates
produced by public and private high schools in WV
will decrease by 2,836 students from 2000 to
2014. Assuming factors remain constant, this
will yield _at_ 1,500 fewer freshman, which is
comparable to the combined in-state freshman
classes at Marshall University and Shepherd
University.
Source SREB Factbook 2005-06
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Cracks in the Pipeline
Source National Center for Higher Education
Management Systems (2004)
13
Undergraduate Headcount Age 25 or Older
Adult learners comprise _at_ 45 of the two-year and
17 of the four-year undergraduate enrollment.
Enrollment has increased 12.9 over fall 2001,
and 13.5 over fall 1996
14
Undergraduate Headcount Age 25 or Older
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A Focus on Non-Traditional Students

• More than 173,000 West Virginians have some
  college but no degree
• More than 127,000 West Virginians have some high
  school but no degree
• A post-secondary institution can be found in 9 of
  the top 20 counties

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The Policy Focus on Affordability

• Public versus private nature of higher education
  what are the underlying policy principles
• Focus on affordability as evidenced through state
  performance in Measuring Up 2006 and other
  reports
• Tuition/fees, student debt, and the shifting
  sands of higher education finance
• Spellings Commission and federal calls for
  tuition protection
• The emergence of a perfect storm and the
  growing need to link policy mechanisms

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Total Tuition and Fees
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Median Tuition Fees
Source SREB Data Exchange 2007
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Shifting Sands The Increasing Dependency on
Tuition Revenues
Source SREB Factbook 2007
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Shifting Sands Changes in Higher Education
Finance
Source SREB Factbook 2007
21
Shifting Sands Changes in Higher Education
Finance
Source SREB Factbook 2007
22
Total Support per FTE (Public Four-Year)
Source SREB Factbook 2007
23
Changes in Average Salaries of Full-Time Faculty
at Public Four-Year Institutions

• In order to reach the average of peer SREB
  states, West Virginia would need to invest about
  10,750,000 in faculty salaries.

Source SREB Factbook 2005
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Average Salaries of Full-Time Faculty Public
Four-Year Institutions (2005-06)
Source SREB Data Exchange 2006
25
Cost of Attendance
26
Funding for Student Aid
Source NASSGAP 2005-06
West Virginias total grant aid awarded in
2005-06 was 71 million. The state ranks 23rd
nationally in expenditures for post-secondary
student financial aid.
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Shifting Sands The Increasing Dependency on
Student Loans
Source CollegeBoard 2006
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Educational Attainment - SREB States

• WV ranked 16th in the SREB in 2005 and 50th
  nationally.
• In order to reach the SREB average, we need to
  create/import 101,000 college graduates.

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Shifting Industrial Growth Trends(2002-2012)

• Positive job growth (BLS, 2004)
• Education and Health Services
• Professional Business Services
• Information Technology
• Leisure Hospitality
• Transportation Warehousing
• Construction (this is the only
  Goods-Producing industry sector to project
  growth)
• Negative job growth (BLS, 2004)
• Manufacturing Textile Mills Apparel
  Manufacturing Computer Electronic Product
  Manufacturing

Source Bureau of Labor Statistics, U.S.
Department of Labor, Projections on Future Job
Growth by Industry and Occupation, 2002-2012,
Released February 2004.
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Education and Training Needs (2002-2012)

• 9 of the 10 fastest growing occupations are in
  the Health or Information Technology Fields
• Associates degree or baccalaureate degree are
  necessary for 6 of the 10
• Of the 4 remaining, all require a very solid
  educational background and/or learning skill
  sets

West Virginia must examine the relationship
between these forecasts and the education and
training opportunities that are available to our
citizens and ensure that academic programming
meets state needs.
Source Bureau of Labor Statistics, U.S.
Department of Labor, Projections on Future Job
Growth by Industry and Occupation, 2002-2012,
Released February 2004.
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The 2007-12 Master Plan Regional Focus

• Policymakers need to evaluate their state canvas
  of educational, economic, and demographic
  conditions.
• West Virginia must use this analysis to frame the
  development of a broad-based plan centered on
  improving the quality of life for all citizens.
• The Master Plan details that the state system of
  higher education must focus on
• Diversifying and expanding states regional
  economies
• Increasing the competitiveness of the states
  workforce by expanding percent of population with
  degrees.

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Profile of West Virginias Eastern Panhandle
Public Use Microdata Area
Using Data from the 2005 American Community Survey
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Rate of Population Growth 64 and Under (2000 to
2005)
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Educational Attainment of 18 to 24 Year Olds
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Percent of 18 to 24 Year Olds with at Least a
High School Diploma in 2005
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Percent of 18 to 24 Year Olds with a High School
Diploma, but No College in 2005
37
Percent of 25 to 64 Year Olds with at Least a
High School Diploma in 2005
38
Percent of 25 to 64 Year Olds with a High School
Diploma, But No College in 2005
39
Percent of 25 to 64 Year Olds with an Associates
Degree or Higher in 2005
40
Percent of 25 to 64 Year Olds with a Bachelors
Degree or Higher in 2005
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Percent of 25 to 64 Year Olds with a Graduate or
Professional Degree in 2005
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Percent of Unemployment Rate in 2005
43
Percent of Population Under 65 At or Below the
Poverty Level in 2005
44
Per Capita Personal Income in 2005
45
Median Family Income in 2005
46
Percentage Employment by Occupation in 2005
Arts, Entertainment, Design, Sports, and Media
47
Percentage Employment by Industry in 2005
48
Median Earnings by Degree-Level in 2005
49
Increase in Earnings from a High School Diploma
to a College Degree in 2005
50
Net Migration of Residents by Degree-Level from
1995 to 2000
Less than High School
High School
Some College
Associate
Bachelors
Graduate/Professional
Total
51
Net In-Migration of Population Age 18-64 by
Occupation, 1995-2000
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Net In-Migration of Population Age 18-64 with a
College Degree (Associates and Above) by
Occupation, 1995-2000
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Profile of West Virginias Kanawha Valley Public
Use Microdata Area
Using Data from the 2005 American Community Survey
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Rate of Population Growth 64 and Under (2000 to
2005)
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Percentage Employment by Occupation in 2005
Arts, Entertainment, Design, Sports, and Media
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Percentage Employment by Industry in 2005
Kanawha Valley
West Virginia
U.S.
Agriculture, Forestry, Fishing, and Hunting
Mining
Utilities
Construction
Manufacturing
Wholesale Trade
Retail Trade
Transportation and Warehousing
Information
Finance, Insurance, Real Estate, Rental and
Leasing
Professional, Scientific, Management,
Administrative, Waste
Management Services
Educational
Health
Social Services
Arts, Entertainment, Recreation, Accommodation,
Food Services
Other Services
Public Administration
Military
0
2
4
6
8
10
12
14
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Median Earnings by Degree-Level in 2005
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Increase in Earnings from a High School Diploma
to a College Degree in 2005
59
Net Migration of Residents by Degree-Level from
1995 to 2000
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Net In-Migration of Population Age 18-64 by
Occupation, 1995-2000
61
Net In-Migration of Population Age 18-64 with a
College Degree (Associates and Above) by
Occupation, 1995-2000
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The HEPC Master Planning Process Updating the
Public Agenda

• The question at the time of the initial reform in
  West Virginia asked
• How can higher education serve the broad needs
  of the state, rather than how can the state serve
  higher education?
• The update of the states Public Agenda for
  higher education will provide a center of
  consensus for statewide and regional
  planning/policy initiatives.
• Such an agenda brings to the table the diverse
  abilities and resources of the states
  institutions and challenges us as policymakers to
  focus these resources for broad-based public
  policy purposes.

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Policy Opportunities and Challenges During the
Planning Cycle

• Unstable era of state appropriations for higher
  education
• Increasing fixed costs will further erode all
  operating budgets
• Increasing tuition and mandatory fees the
  balancing wheel
• Undereducated adult population with inherent
  access challenges
• Projected access demands declining high school
  graduates
• Projected access demands baby boom echo impacts
  in border states
• Increased student debt burdens
• Need to improve institutional retention and
  graduation rates

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Policy Opportunities and Challenges During the
Planning Cycle

• Need for mission differentiation in order to
  accentuate programmatic quality and institutional
  excellence
• Tuition discounting, differential tuition, and
  other options
• Possibility to align tuition, fees, and financial
  aid
• Significantly expand need-based financial aid
• Targeted research investments to meet state needs
• Long-standing capital and maintenance issues
  indicate the need to enact a broad-based bond
  initiative for higher education.
• Faculty and Staff Funding Shortfalls
• Zero-step decision and impacts on governance

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Policy Responsibilities - Access and Financial Aid

• Oversight and management of all state-level
  financial aid programs
• Total of twelve HEPC-based programs
• WV Higher Education Grant Program (33,000,000)
• PROMISE Scholarship Program (40,800,000)
• Higher Education Adult Part-Time Student (HEAPS)
  Grant Program (5,002,000)
• Outreach services associated with these programs
• Institutional financial aid administration
  contact and support
• Research policy landscape and impacts of state
  aid programs on college access and affordability

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Overview of the Higher Education Grant Program

• 2007-08 award year additional funding of
  8,000,000
• 16,104 awards have been made for the 2007-08
  academic year
• A total of 11,050 awards were paid in 2006-07
• Additional funds will enhance access and
  affordability for financially needy WV families
• Award structure Students, regardless of EFC,
  receive a constant award valued at 75 of tuition
  and fees. Students must complete application
  process by March 1st to gain eligibility.

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Higher Education Grant Recipients in 2006-07
Higher Education Grant Recipients in 2007-08
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Higher Education Grant Recipients in 2006-07
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Elimination of the Common Application

• The common application is utilized to collect
  information related to the academic requirements
  of many financial aid programs in West Virginia.
  Commission policy presently requires that
  students who are less than five years removed
  from high school demonstrate sufficient academic
  promise to receive the Higher Education Grant.
• Given that the Grant is a need-based award,
  applicants meeting institutional admissions
  requirements should be considered academically
  capable and eligible for initial state need-based
  grant assistance, thereby negating the need for
  students to complete the common application.
• For the 2007-08 award cycle, 3,353 Pell eligible
  students (EFC below 4000) will be denied access
  to the Grant because they failed to complete the
  common application. Of these, more than
  two-thirds (2,080) are non-traditional students.

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Elimination of the Common Application
Not Pell Grant Eligible
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Transition to a System of Scaled Awards

• The Higher Education Grant Program currently
  provides students with financial aid packages
  relative to institutional tuition and fee levels
  rather than total cost of attendance as
  demonstrated through the EFC.
• A student going to WVU receives the same award
  regardless of whether their EFC is 0 or 6,000.
  The federal Pell grant program, by contrast,
  provides students with scaled awards based on
  their respective levels of need. Under the Pell
  provisions, a student with an EFC of 0 would
  receive 4,050, while a student with an EFC of
  3,850 would receive 400.
• Implement a scaled award system linked to the
  federal Pell grant program. Students with
  maximum Pell awards would receive a Grant valued
  at ninety percent of the Pell award (3800). The
  minimum Grant award under this proposal of 1000
  would be provided to students with EFCs up to
  6000.

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Transition to a System of Scaled Awards
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Extension of the Application Deadline

• Limited numbers of non-traditional students
  participate in the Grant Program.
• 10,742 FAFSA records received to date after the
  published March 1, 2007 application deadline.
  8,878 of those students have expected family
  contributions below the eligible student cap of
  6,000. 75 percent (6,656) are independent
  students. Of the total number of late filers
  below the expected family contribution cap of
  6,000, 8,022 or 90 percent are Pell eligible
  students. Of the Pell eligible students, 76
  percent are independent students.
• Establish a supplemental award for late filers up
  to a maximum of 1,000 for Pell eligible students
  without sufficient grant or scholarship resources
  to pay for full-time tuition and mandatory fee
  charges or the equivalent plus an allowance for
  books and supplies purchases.
• Eligibility would be determined by subtracting
  the Federal Pell Grant eligibility along with
  other grants and scholarships the student might
  have from the sum of annual tuition and mandatory
  fee charges or the equivalent plus an 800 books
  and supplies purchase allowance.

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Extension of the Application Deadline
Not Pell Grant Eligible
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Merit Aid Landscape

• There are currently 14 states with merit aid
  programs
• 8 of these states are members of the SREB
• Qualification involves a combination of different
  academic criteria including state curricula
  tests, ACT/SAT scores, and high school grade
  point averages
• Renewal criteria vary from maintaining
  satisfactory academic status to a 3.0 grade point
  average.

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Merit Aid Programs
77
Merit Aid Programs
Sources WV HEPC existing data adapted from
Heller (2004) and State program website
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Programmatic Evolution
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Policy Responsibilities Institutional Support

• During the 2007 legislative session, pronounced
  investments were made by the state to
  institutional base budgets to support salary
  increases and offset inflationary costs.
• More than 5 million was invested system-side for
  across-the-board base budget enhancements
• An additional 6.6 million was afforded to
  support faculty and staff salary enhancements.
• Building upon this positive momentum, staff
  proposes budget enhancements to offset
  inflationary costs (indexed against HEPI) and
  support enrollment growth for FY 2009.

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Policy Responsibilities Institutional Support

• Historically, HEPI increases have outpaced
  increases in the CPI. There are three potential
  reasons for this trend, all of which are related
  to the salary and benefit costs that drive HEPI,
  but not the CPI
• HEPI prices are heavily influenced by salaries,
  which historically increased at a faster rate
  than consumer prices
• Post-secondary education employs a larger
  percentage of educated employees than do most
  enterprises, and such employees have seen their
  wages increase at a faster rate than less
  educated employees inside and outside of higher
  education
• Employer benefit costs have outpaced both wage
  increases and consumer price increases.

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Policy Responsibilities Institutional Support

• HEPC will request additional funding for
  operating, and such funds will be distributed
  based upon inflationary costs as evidenced
  through the HEPI. Preliminary projected costs
  10.5 million for FY 2009.
• As part of the implementation aspects of the
  Commissions pending Master Plan, staff has
  initiated the process of developing revised
  finance policy/funding mechanisms that
  incorporate the selection of new peers and
  development of an enrollment-based funding
  formula. Projected costs associated with
  growth/equity calculations are unavailable at
  this time as the development of the formula
  remains ongoing.

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Policy Responsibilities Research

• Consistent with policy direction established by
  the Commission for FY 2008, staff proposes
  continued investments in the research capacities
  of the states two research universities. During
  the 2007 legislative session, 10 million in
  targeted funds were made available to support
  efforts at West Virginia University and Marshall
  University.
• The Commission urges that continued investments
  be made to support the Vision 2015 plan, which
  calls for an overall 20 percent increase in
  science, technology, engineering and math (STEM)
  faculty positions.

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Policy Responsibilities Research

• Kentuckys Bucks for Brains initiative has
  resulted in more than 350 million in strategic
  investments to the states Research Challenge
  Trust Fund.
• Between 1997-2006, the market value of the
  endowments at Kentuckys research universities
  grew from 454 million to 1.466 billion.
• Federal RD investments at the research
  universities increased from 76 to 210 million
  annually.
• Total research expenditures grew from 161
  million in 1998 to 324 million in 2006.
• Corporate RD investments increased from 105 to
  310 million.
• Since inception of Bucks for Brains, research
  efforts at the University of Kentucky have
  generated 44 startup companies that employ 870
  Kentuckians at an average salary of 61,000.

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Policy Responsibilities System and Institution
Specific Issues

• Capital finance and the need for diversified
  funding streams
• Title III concerns at Bluefield State College and
  West Virginia State University
• Tuition waivers and discounts
• Salary schedule concerns at WSOM and Northern CTC
• Balancing governance pressures via program and
  fee approval
• Others?

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