Oklahoma State Regents for Higher Education FY10 Budget Request

1
OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION
Northeastern State University April 10, 2009
2
Public Agenda Goals
Increase access and improve the quality of public
higher education for all Oklahomans
Increase the number of college graduates
Better prepare students to meet the challenge of
a global economy
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2006 Spellings Commission Report

• Access
• Affordability
• Accountability

4
Performance Indicators

• Enrollment
• Degrees Conferred
• Employment Outcomes
• Economic Impact

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Enrollment
Oklahoma is now ranked in the Top 10 nationally
in thepercentage of students enrolled in public
higher education.
Source Student Data Report
Enrollment in Oklahoma Public Colleges and
Universities Six Year Trend
250,000
240,000
238,245
235,730
234,873
228,249
230000
220,768
220,000
213,972
210,000
200,000
2000- 01
2001- 02
2002- 03
2003- 04
2004- 05
2005- 06
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State Per Capita Personal Income v. Share of
Adult Population with Bachelor's Degree or Higher
No state with a low proportion of Bachelors
degrees has a high per capita income.
States with high proportion of bachelors degrees
States with low proportion of bachelors degrees
Outlier state that has high income and low degree
attainment
No state with a high proportion of Bachelors
degrees has a low per capita income.
Nationally, more than one-quarter (27.2 percent)
of adults 25 and older have a bachelors degree
or more, compared to Oklahoma at 22.2 percent.
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Degrees Conferred by Oklahoma Public Colleges
and Universities
Source Brain Gain Report
In 2006-07, State System institutions awarded a
total of 23,962 associate and bachelors degrees
the most awarded in a single year in state
history
23,962
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Number of Associate and Bachelors Degrees
Conferred
This is 26 percent more degrees awarded than in
2000-2001.
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
8
Pipeline to Degree Completion of Full Time
Students at Research and Regional Universities
Source SREB State Data Exchange Report
December 2008
FloridaOklahomaMarylandArkansasGeorgiaLouisia
naTexasTennesseeVirginiaAlabamaKentuckySouth
CarolinaWest VirginiaNorth CarolinaDelaware
59
58
50
49
47
46
46
46
46
43
41
41
40
27
9
9
Pipeline to Degree Completion of Full Time
Students at Two-Year Institutions
Source SREB State Data Exchange Report
December 2008
VirginiaTexasDelawareOklahomaNorth
CarolinaSouth CarolinaGeorgiaFloridaArkansasM
arylandTennesseeWest VirginiaKentuckyAlabamaL
ouisiana
84
83
81
81
76
76
73
71
70
68
68
68
66
63
62
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Employment Outcomes
What percentage of Oklahoma residents and
non-Oklahoma residents who graduate from public
colleges and universities remain in Oklahoma?
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Employment Outcomes After One Year
All System Graduates
Source 2008 Employment Outcomes Report
100
90
80
Percent of Graduates Employed In State After One
Year
70
60
50
40
2002-03
2005-06
12
Employment Outcomes After Five Years
All System Graduates
Source 2008 Employment Outcomes Report
90
80
70
Percent of Graduates Employed In State After Five
Years
60
50
40
30
1998-99
2001-02
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Economic Impact

• For every state appropriated dollar spent on
  higher education in Oklahoma an additional 5.15
  is pumped into the Oklahoma economy.
• In 2008 Oklahomas system of higher education
  will produce over 3.2 billion in growth in the
  states gross domestic product
• In 2008 higher educations capital and
  construction spending are expected to add 23,750
  jobs to the Oklahoma economy
• By the end of the next decade, Oklahomas gross
  state product (GSP) will increase by 26.292
  billion through higher educations continued
  contribution to the economy

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The Economic Impact ofNortheastern State
University

• Increased consumer spending statewide by 55
  million.
• Impacted the Oklahomas economy by over 151
  million. (Gross Regional Product)
• Created 3,250 new jobs for the State of Oklahoma
  in 2008.

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Challenges AheadHigher Educations Percent of
Total State Appropriations
21
18.6
18
16.1
15.8
15.6
15.4
15
14.9
15
9
6
3
1985
1990
1995
2000
2005
2009
1980
16
Percentage of the higher education budget paid
with state appropriations
100
75.3
75
69.3
49.5
50
25
1988
1990
2008
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Why?

• The two primary reasons are
• Health Care Cost Increases
• Corrections

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The Oklahoma State System of Higher
EducationHigher Educations Tuition Freeze Plan
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The Oklahoma State System of Higher
EducationPutting Families FirstHigher
Educations Tuition Freeze Plan

• 80.4 million through statewide funding formula

• Ability to freeze tuition and mandatory fees at
  current level for the 2009-10 academic year.
• Focuses on operational fixed costs and other
  institutional priorities required to provide a
  quality higher education.

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American Recovery and Reinvestment Act (ARRA)
Where is OklahomasStimulus Money Going?Total
2.6 billion
Workforce
30.7 m
31.5 m
Public Safety
Environmental
63.3 m
78.2 m
Low Income Housing
107.2 m
Energy
316.8 m
Education
Transportation
542.9 m
Budget Stabilization
578.9 m
Health and Human Services
905.2 m
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American Recovery and Reinvestment Act (ARRA)

• State Fiscal Stabilization Fund
• 472.8 million in education block grants
  (Higher Education 155 m)
• 105.2 million in flexible block grants.
• Categorical Grants
• 100 million in Pell and work study grants.
• Competitive Grants
• Competitive grants include Workforce
  investment, worker training, health
  professional training, NIH grants, NSF grants,
  NASA Grants, energy grants,
• alternative energy grants and Green building
  grants.

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System EfficienciesAdministrative Cost Budget
Caps FY09
4 Year Institutionsbelow 3500 FTE
2 Year Institutionsbelow 3500 FTE
16
2 Year Institutionsabove 3500 FTE
4 Year Institutionsabove 3500 FTE
14
12
ResearchInstitutions
10
8
6
4
2
Cap/Actual
Cap/Actual
Cap/Actual
Cap/Actual
Cap/Actual
23
System EfficienciesTotal System Administrative
Costs FY92-FY09
14
11.9
12
11.1
10
9.3
8.3
8.2
8.2
8.1
8.1
7.9
8
7.8
System Admin Costs as a Percent of Total Budget
6
4
2
0
FY92
FY94
FY96
FY98
FY00
FY04
FY06
FY08
FY09
FY02
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Efficiencies Percent of E-Learning Instruction
at Four-Year Institutions
Source SREB State Data Exchange Report
December 2008
15.3
12.6
8.4
7.4
6
5.9
5.8
Maryland
5.3North Carolina
5.2Mississippi
West Virginia
Kentucky
Arkansas
Alabama
4.8Texas
4.5Delaware
Oklahoma
3.1Georgia
2.9Louisiana
25
Efficiencies Percent of E-Learning Instruction
at Two-Year Institutions
Source SREB State Data Exchange Report
December 2008
16.8
16.2
14.7
Kentucky
North Carolina
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FY 2010 Cost Savings Analysis

• Oklahoma institutions of higher education have
  implemented and developed cost savings
  initiatives that will have a total annual savings
  of 46.2 million once fully implemented.
• Cost saving initiatives focus primarily on the
  following programs
• Alternative Energy Sources Wind Energy at OU
  and CNG at OSU
• Energy Saving Programs through performance
  contracts
• FTE reduction through attrition
• Flexible work schedules in summer months (four
  day work week)
• Reduction in gasoline consumption with
  institutional vehicles
• Increase in use of distance learning
• Technology via OneNet

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OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION