OREGON PUBLIC UNIVERSITIESANDREW ROGERS, DIRECTOR, UNIVERSITY BUDGET & FINANCE

XXU WOUOregon TechOSU OSUWOUOregon TechOregon Tech OSU

April 11, 2017Presented to: Joint Ways and Means, Education Subcommittee

2

PRESENTATION SCHEDULE

Day 1-2, March 27-28•Introduction to Higher Education Structure and Students,

Progress toward State Goals, Quick Funding History

Day 3-4, March 29-30•Affordability: Key Factors, State Financial Aid Programs + Intro

to Student Pathways

Day 5, April 3•Student Pathways and Transitions: Precollege, Inter-college,

Private Postsecondary, Workforce

Day 6, April 4 •Public Testimony

Days 7-8, April 5-6•State Support for Community Colleges

•Community College presentations

Day 9, April 10 •Public Testimony

Days 10-11,

April 11-12

•State Support for Public Universities

•University presentations

Day 12, April 13 •Capital Construction, Other Missions of Universities

Day 13, April 17 •Public Testimony

Day 14, April 18 •OHSU Budget and Public Testimony

Day 15, April 19•An Integrated postsecondary agency, HECC Operations,

Conclusion

Start dates for presentation topics are tentative

3

UNIVERSITIES

RELATED KEY PERFORMANCE METRICS

The full 2016 Key Performance Metrics report for the HECC is available at

https://www.oregon.gov/highered/research/Pages/performance.aspx

KPM 15: First year retention rates, Oregon public universities

KPM 16: Six-year graduation rates, Oregon public universities

KPM 17: Number of bachelor's degrees awarded each academic year

KPM 18: Number of advanced degrees and graduate certificates awarded

KPM 19: Bachelor's degrees awarded to community college transfers

KPM 20: Graduation rate for non-traditional students

KPM 21: Earnings of public university bachelor's degree completers

KPM 22: Percentage of resident enrolled students who are incurring unaffordable costs, CCs and universities

KPM 23: Percentage of resident enrolled students who are incurring unaffordable costs adjusted with institutional aid, CCs and universities

KPM 24: University graduate debt

KPM 25: Student loan default rates (CC, universities, and all higher ed)

KPM 26: Average cost of attendance, public universities

KPM 27: Average statewide tuition and fees minus grant aid and net assessed tuition and fees per resident, undergraduate FTE (colleges and universities)

Data will be presented with HECC

Agency Operations, Appendix

4

OVERVIEW

Funding History and Request

• Student Success and Completion Model

• Affordability and Institutional Costs

• University Enrollment

• University Completions

What does the Investment do?

PUBLIC UNIVERSITY SUPPORT FUND (PUSF) FUNDING REQUEST

WOU

HISTORY OF PUBLIC UNIVERSITY INVESTMENT

Sources: HECC Office of University Coordination.

- Legislative funding change during the 2013-15 biennium separated State Programs from the Public University Support Fund.

- 2013-15 State Programs includes ETIC appropriation after transition to OEIB 6

$708.3$760.7

$798.6

$672.4

$772.7

$984.8

$1,062.7$1,102.0

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19 GRB 2017-19 CSL

State Funding for Universities (in Millions)

Debt Service Public University Support Fund (or Equivalent)

State Programs Statewide Public Service Programs

Sports Lottery

PUBLIC UNIVERSITY STATE FUNDING AND ENROLLMENT OVER TIME

NOTE: Statewide Public Services and Capital Outlays excluded.

Source: HECC analysis of state appropriation and student-level data. 7

$706.4 $706.4

$732.7

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

$1,000.0

STATE APPROPRIATIONS (IN MILLIONS) AND RESIDENT ENROLLMENT

Debt Service University Support Enrollment (FTE)

STATE APPROPRIATIONS TO UNIVERSITIES PER STUDENT (FTE) ADJUSTED FOR INFLATION

Notes:• Includes Debt Service• University data includes PUSF and State Programs• Enrollment for 2017, 2018, 2019 assumed at 2016 levels• Inflation adjustment based on Portland CPI-U• Excludes non-resident university enrollment

8

$9,315

$7,853

$6,396

$6,727

$7,172

$6,473

$5,013

$5,779 $7,084 $7,446 (GRB)

$7,724 (CSL)

1999-01 2001-03 2003-05 2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19

Source: HECC analysis of state appropriation and student-level data.

OREGON UNIVERSITIES PRODUCE HIGH DEGREE OUTPUT WITH THEIR FUNDING

Source: HECC Office of University Coordination.

22.5

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

De

gre

es/

10

0 F

TE

S/F

TE

Education & General Revenues vs. Degree Output

(Inflation Adjusted)

PUSF $/FTE Non-PUSF E&G $/FTE including tuition Degrees/100 FTE

9

STUDENT SUCCESS AND COMPLETION MODEL (SSCM) DRIVES INCENTIVES

XXUOSUOregon Tech

Reward public universities for

resident student success

Incentivize progress to degree

Incentivize degree outcomes

Incentivize underrepresented

population completions

Incentivize in-demand degrees

Support valuable public service activity and

regional context

Differential mission support

Regional university support

Research support

Provide transitional and

institutional stability

Data averaging

Phased-in focus on completion

Stop Loss/Stop Gain

INTRODUCTION TO THE SSCM, GROUNDING PRINCIPLES

11

FUNDING FOR COMPLETIONS

Degrees at all levels are funded: Bachelor’s through PhD’s as well as graduate certificates

Cost adjustments are made to reflect program duration, program type, and for transfer students

• Low income, underrepresented minority, rural, and veteran students

Additional weighting is provided for students who complete from traditionally underserved student populations, including:

• STEM, Healthcare and Bilingual Education

Additional weighting is provided for students who complete in areas of critical need for the state, including:

12

PUSF ALLOCATED OUTSIDE OF THE SSCM

SB 860 and SB 5701 provided funding to universities outside of the SSCM that is now part of the PUSF CSL.

• SB 860 provided for a pilot program on mentoring students from low-income or first generation college-attending backgrounds.

• WOU and OSU received the grants and this work for 18 months of the current biennium and this work will continue through the upcoming biennium.

• SB 5701 provided funds for compensation contracts cost increases at PSU, EOU, OIT, SOU and WOU.

13

14

SSCM – INCREASING VALUE OF EACH DEGREE

Source: HECC Office of University Coordination.

$114

$7,963

$79

$45

$30

$40

$50

$60

$70

$80

$90

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2014-15 (Pre-

SSCM)

2015-16 2016-17 2017-18 (GRB) 2018-19 (GRB)

Pe

r C

red

it H

ou

r A

lloc

atio

n

Pe

r D

eg

ree

Allo

ca

tio

n

Transitioning to Stronger Completion Incentive

Avg. Degree Completion Avg. Student Credit Hour

Per Credit Hour Allocation

Per Degree Allocation

15

SSCM – INCREASING VALUE OF EACH DEGREE

$526

$2,564

$2,144

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2014-15 (Pre-SSCM) 2015-16 2016-17 2017-18 (GRB) 2018-19 (GRB)

Ave

rag

e D

eg

ree

Co

mp

letio

n In

ce

ntive

by C

ate

go

ry

Transitioning to Stronger Completion Incentive

Avg. Underrepresented Support Avg. In-Demand Degree Support

Source: HECC Office of University Coordination.

18%

33%

49%

Mission

Differentiation

Activity-based

Completions

16

INCREASING FOCUS ON COMPLETIONS

Source: HECC Office of University Coordination.

2014-15

2015-16

2016-17 2018-19 (GRB)

18%

66%

16%

20%

48%

32%

18%

33%

49%

2017-18 (GRB)

14%84%

1% $114

$7,775

$7,963

$2,354

$4,980

THIS BIENNIUM PRESENTS A UNIQUE OPPORTUNITY TO LEVERAGE INCENTIVES

Source: HECC Office of University Coordination.

$9,931

$10,078

$10,225

$10,372

$10,536

1.50%3.01%

4.51%6.02%

7.68%

4.2%

8.4%

12.6%

16.9%

21.5%

$10 $20 $30 $40 $50

Increase from GRB (millions)

FY18: An Opportunity to Leverage Degree Completion

Incentive

Comparison against GRB ($665M)

Projected Degree Incentive ($) Change in PUSF % Change in Degree Incentive (%)

17

AFFORDABILITY AND INSTITUTIONAL COSTS

WOU

UNIVERSITY: SHIFT OF COSTS FROM STATE TO STUDENT

Source: OUS Institutional Research.

9% 8% 7% 7% 8% 8% 8% 8% 8%

49% 46% 45%51%

58% 58% 59%66%

73%

43% 46% 47%41%

34% 35% 33%26%

19%

1997 1999 2001 2003 2005 2007 2009 2011 2013

Public University Percentage of Total Revenue by Source

State

Appropriations

Tuition and Fees

Other

19

20

PUBLIC UNIVERSITY TUITION AND FEEINCREASES OVER TIME

$5,801

$9,115

$6,718

$9,115

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Average Annual Resident University Tuition and Fees unadjusted for inflation

Average Annual Resident University Tuition and Fees adjusted for inflation

Approximate annual increase of

5.15%.

Approximate annual increase of

3.45% after inflation adjustment.

Source: HECC analysis of university and HECC data.

Notes: Tuition and fees based on 15 credits. Inflation adjustment based on Portland CPI-U, 2015 dollars with the

exception of 2016-17 which retains its current value.

21

AVERAGE STUDENT BUDGETS, OREGON PUBLIC UNIVERSITIES, 2016-17

Tuition and Fees

Books and Supplies

Room and Board

Personal Expenses

+Transportation TOTAL

$9,115 $1,280 $11,077 $2,895 $24,367

These are average estimates. Actual student budgets vary widely depending on

student circumstances, from availability of housing options to the variety of

books/supplies costs for different programs of study.

Source: Public tuition and fees: HECC Research & Data. All other figures: HECC-OSAC, 2016 Standard Student

Budgets for Oregon Public Postsecondary Institutions:

http://www.oregonstudentaid.gov/osac-doc/Student_Budgets.pdf

22

CURRENT TUITION AND MANDATORY FEES FOR RESIDENT UNDERGRADUATES

$8,004$8,589

$9,103

$7,960

$10,366

$9,123$8,337 $8,523

$10,762

$8,700

$9,870

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Resident Tuition and Mandatory Enrollment Fees for the

2016-17 Academic Year (Full Time)

*=Entering Cohort Rate

Source: HECC Office of University Coordination

COLLEGE PAYS: OREGON STUDENTS EXCEED THE NATIONAL AVERAGE IN POST GRADUATE INCOME

Source: College Scorecard (US Department of Education).

$37,200

$52,000

$46,000$42,100

$36,800

$41,700$38,700

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

EOU OIT OSU PSU SOU UO WOU

Salary Ten Years After Entering for Federal Aid

Recipients (National Average=$33,500)

National Average

23

INSTITUTIONAL REVENUES SLIGHTLY OUTPACE INFLATION

Source: HECC Office of University Coordination.

$12,634 $13,112 $13,090 $13,099

$13,744 $14,667

$15,545 $16,270

$17,536

$12,356 $12,649

$13,276 $13,464 $13,402 $14,088

$15,021 $15,736

$16,619

$5,901$6,209

$6,842$7,327

$7,898 $8,201 $8,421 $8,718$9,229

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Education & General Revenues compared to inflation, tuition

Actual CPI Adjusted (2006-07 base) Resident Undergraduate Tuition - Enrollment Weighted

24

6.8%5.7%

68.0%

19.4%

0.1%

TRUs 2013-14

UNIVERSITY COSTS BY CATEGORY HAVE REMAINED CONSISTENT OVER TIME

Source: OUS and institution annual financial reports. Compiled by HECC Office of University Coordination. 25

4.8%5.4%

65.7%

23.6%

0.5%

Oregon’s 7 Public Universities

(former OUS) 2006-07

Scholarships &

Fellowships

Depreciation

Compensation &

Benefits

Services & Supplies

Other Expenses

5.0%5.4%

68.3%

20.8%

0.5%

OSU, PSU, UO 2013-14

26

CHANGE IN EXPENDITURES (BIENNIALIZED)

9.5%

5.1%

9.7%

7.4%6.7% 6.8%

9.5%

16.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2011-2013 2013-2015

Oregon (Public Post Secondary Institutions)

Far West Region (AK, CA, HI, NV, OR, WA) (Public Post

Secondary Institutions)USA (Public Post Secondary Institutions)

Oregon State Agency General Fund Total

Sources:

Postsecondary: IPEDS

Oregon Fiscal Data based on data from the Legislative Fiscal Office (LFO):

2009-11 Actuals (Budget Highlights 2013-15 LAB, based on 2013 Special Session and 2014 Session, Pages B1-B22):

https://www.oregonlegislature.gov/lfo/Documents/2013-15BudgetHighlightsUpdate.pdf

2011-13 Actuals (2015-17 Budget Highlights Update, Pages B1-B19, far left column):

https://www.oregonlegislature.gov/lfo/Documents/2015-17%20Budget%20Highlights%20Update.pdf

2013-15 Legislatively Approved (2015-17 Budget Highlights Update, Pages B1-B19, 2013-15 Legislatively Approved column (Middle

column)): https://www.oregonlegislature.gov/lfo/Documents/2015-17%20Budget%20Highlights%20Update.pdf

UNIVERSITY ENROLLMENT

OSU

28

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

Hig

h s

ch

oo

l gra

du

ate

s

White, non-Hispanic

-

2,000

4,000

6,000

8,000

10,000

Hig

h s

ch

oo

l gra

du

ate

s American Indian/

Alaska Native

Asian American/

Pacific Islander

Black or African

American

Hispanic or

Latino/-a

OREGON YOUTH PIPELINE INCREASINGLY DIVERSEOREGON PUBLIC HIGH SCHOOL GRADUATES BY RACE/ETHNICITY, 2000-01 TO 2014-15 (ACTUAL), 2015-16 TO 2033-34 (PROJECTED)

Actual Projections

Notes: Projections derived from HECC analysis and include progression ratios from kindergarten through high school graduation, use the most recent four years of data, and include students entering or exiting the public school system (typically through migration). Sources: Centers for Disease Control data on Oregon birth rates by race-ethnicity, National Center for Education Statistics data on Oregon public elementary and secondary school enrollment and on private high school graduates, Oregon Department of Education (ODE) data on public high school graduates, and historic ODE data on home school graduates.

ENROLLMENT (HEADCOUNT) BY RESIDENCY

Source: HECC Office of Research and Data.

28,418

57,839

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Public University Enrollment, Fall Term Headcount by Fee

Status: Resident and Non-Resident

Non-Resident Resident

29

SERVING A MORE DIVERSE STUDENT BODY: ENROLLMENT BY RACE/ETHNICITY

NOTE: Federal reporting changes in 2010 resulted in some students moving from the unknown to the minority category.

Source: HECC Office of Research and Data 30

0%

20%

40%

60%

80%

100%

2016201520142013201220112010200920082007

White

Unknown

Two or More Races

Not U.S. Citizens

Native Hawaiian or

Pacific Islander

Hispanic

Black or African

American

American Indian or

Alaska Native

Asian American

RESIDENT FRESHMAN PARTICIPATION

2015-16 Public University Freshman Participation Rate as a

Percentage of Oregon Public High School Graduates,

2014-15

Source: HECC Office of Research and Data; Excludes home school completers and private high school graduates.

Less than 15%

15% – 19.9%

20% – 24.9%

25% or more

Participation Rate

15.0%Rural Counties -

Rural/Urban Participation Rate

Urban

Counties - 21.0%

31

OREGON INSTITUTIONS ARE DOING A BETTER JOB ENROLLING LOW INCOME STUDENTS

Source: HECC Office of Research and Data. 32

19,379 27,075

51,949

59,455

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Undergraduate Student Enrollment by Pell Status

Pell Recipients Non-Pell Recipients

33

MANY UNIVERSITY STUDENTS QUALIFY FOR FEDERAL FINANCIAL AID

Source: HECC Office of Research and Data.

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Pell Recipients in Oregon Universities

Pell Recipients Pell %

UNIVERSITY COMPLETIONS

OSU

2016 COMPLETIONS

23,375

Total Degrees/Certificates Earned

at

Oregon Public Universities

35

36

RISING DEGREE COMPLETION AT OREGON PUBLIC UNIVERSITIES

Source: HECC analysis of university student-level data.

12,66816,997

6,332 6,280

27,570

45,022

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

De

gre

es

Academic YearNumber of bachelor's degrees awarded

Number of advanced degrees & graduate certificates awarded

Total Degrees Awarded

Note: Total Degrees includes undergraduate certificates and associated degrees not

included in the other lines on this chart.

DEGREE PRODUCTION HAS INCREASED WITH ENROLLMENT

Source: HECC Office of University Coordination.

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

-

5,000

10,000

15,000

20,000

25,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Degrees Versus Enrollment

BA/BS Grad. Certificate Masters PhD Professional FTE Enrollment

37

59.6%63.0%

55.4%

62.1%

0%

10%

20%

30%

40%

50%

60%

70%

Pe

rce

nt

of

stu

de

nts

gra

du

ate

d w

ith

in 6

ye

ars

Year of Fall Freshmen Cohort

Oregon public university 6-year graduation rate

Resident Nonresident

Source: HECC analysis of student-level data.

EVEN AS ENROLLMENT HAS INCREASED, SO HAVE GRADUATION RATES

38

39

THE MAJORITY OF “ROBUST” TRANSFER STUDENTS COMLETE, BUT NOT AT RATES EQUIVALENT TO PEERS

82.4%

62.4%

0

20

40

60

80

100

Pe

rce

nt

wh

o g

rad

ua

ted

with

B.A

.

Non-transfer students who persisted to third year

Transfer students

Notes: For this analysis, “transfer students” are defined as those who were admitted based on their college GPA,

which generally requires having earned at least 24-36 credits. Total rate is transfers from Oregon community colleges.

Institutional rates are for all transfer students.

Source: HECC analysis of student-level data.

GRADUATION RATE (6-YEAR) BY TRANSFER STATUS, 2015-16

University Students starting in cohort

Rate

EOU 278 51.8%

Oregon Tech

306 49.7%

OSU 1,198 62.4%

OSU Cascades

48 77.1%

PSU 2,275 60.9%

SOU 409 58.4%

UO 1,202 66.1%

WOU 442 63.6%

GRADUATION RATES BY RACE/ETHNICITY

11995-96 Fall First-Time Freshman Cohort completing by June 200122000-01 Fall First-Time Freshman Cohort completing by June 200632005-06 Fall First-Time Freshman Cohort completing by June 201142007-08 Fall First-Time Freshman Cohort completing by June 2013

Source: HECC Office of Research and Data

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

2003 Cohort 2005 Cohort 2007 Cohort 2009 Cohort

American Indian/Alaskan Native Asian or Pacific Islander

Black/African American Hispanic/Latino

White

40

RESIDENT DEGREES AWARDED AT OREGON PUBLIC UNIVERSITIES, BY PELL GRANT STATUS

Notes: Degree totals do not include certificates or Associate’s degrees. Collection of Pell data began in 2002-03. A student receiving

a Pell in any year before graduating is included in the Pell category. In 2008 Pell Grant eligibility was expanded significantly.

Source: HECC Office of Research and Data 41

4,855

6,520

5,8385,690

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Resident Degrees by Pell Status

Pell No Pell % Pell

42

GOVERNOR’S RECOMMENDED BUDGET (GRB):

STATE SUPPORT FOR PUBLIC UNIVERSITIES

Activity Description 2015-17 LAB 2017-19 CSL 2017-19 GRB

Preserve Public University Support Fund

Preserves critical investments made last biennium to public universities to supporteducational and operational expenses

$667.3M $693.1M GF $667.3M GF

Change from 2015-17

0% from LAB-3.75% from CSL*

Support DebtService on Previous University Capital Projects

Supports debt service on previously approved capital projects for the universities

$151.6M($119.7M GF, $31.9M LF

$193.6M

($161.7M GF,

$31.9M LF

$193.8M($161.9M GF,

$31.9M LF)

Change from 2015-17

+21.8% from LAB+0.1% from CSL

NOTE: This slide focuses primarily on General Fund (GF) and Lottery Fund (LF) dollars, not Other Funds. LAB: Legislatively Adopted

Budget, GRB: Governor’s Recommended Budget, CSL: Current Service Level

*The GRB includes approval of the policy decision to implement but does not fund a new Current Service Level valuation method for the Oregon public universities. This method (directed by SB 5701 in 2016) is based partially on the Community College Support Fund (CCSF) methodology.

Making a Future for Oregon Students through Equity and SupportWays and Means Subcommittee on Education April 12, 2017

Overview of Oregon’s Public Universities:

Student Population and Outcomes

44

The State of Oregon’s Public Universities in 2017 • Universities serve more than 30,000 students

today than 20 years ago.

• Campuses are increasingly diverse in student and faculty populations.

• Universities serve more low-income and first-generation students.

• Completion rates and support services are improving with investment.

45

Total FTE Enrollment - Campuses Are Growing

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Resident Nonresident

54,832

86,529

46Source: Higher Education Coordination Commission, 2017.

Source: Centers for Disease Control data on Oregon birth rates by race-ethnicity, National Center for Education Statistics data on Oregon public elementary and secondary school enrollment and on private high school graduates, Oregon Department of Education (ODE) data on public high school graduates, and historic ODE data on home school graduates.

Increasingly Diverse Student Pipeline

47

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

Hig

h s

ch

oo

l gra

du

ate

s

White, non-Hispanic

-

2,000

4,000

6,000

8,000

10,000H

igh

sc

ho

ol g

rad

ua

tes American Indian/

Alaska Native

Asian American/

Pacific Islander

Black or African

American

Hispanic or

Latino/-a

Actual Projections

34%

38%

42% 42%

51%52%

50%

0%

10%

20%

30%

40%

50%

60%

2000-01 2002-03 2005-06 2007-08 2010-11 2013-14 2015-16

% o

f Fr

ee

an

d R

ed

uce

d L

un

ch E

ligib

le

Academic Year

Oregon K-12 Low-Income Studentsas a percent of total K-12 enrollment

48Source: Oregon Department of Education, 2016-17 http://www.oregon.gov/ode/reports-and-data/students/Pages/Student-Enrollment-Reports.aspx.

Financial Aid No Longer Covers Tuition & Fees

Institutional aid that helps fill the gap for

some students

49Source: Higher Education Coordination Commission, 2017.

Institutional Commitment to Closing the Gap Between Financial Aid and Cost of Attendance

50

Western Tuition Promise

Pathway Oregon

Bridge to Success Completer Grants and Finish Line Scholarships

Four Years Free Jackson & Josephine County Pledge

Food Insecurity & Use of Self-Sufficiency Programs Among Oregon College Students

• 60% of WOU students were food insecure during the school year.

• 11,929 students participated in Supplemental Nutrition Assistance Program (SNAP).

Sources: Prevalence and correlates of food insecurity among students attending a midsize rural university in Oregon. Patton-Lopez, Megan M.; Lopez-Cevallos, Daniel F.; Cancel-Tirado, Doris I.; Vazquez, Letici. Journal of College & Character. VOLUME 15, No. 4, November 2014; Oregon Department of Human Services Data Sheet: www.Oregon.gov/DHS/ASSISTANCE/Pages/data.aspx, 2017. 51

• Food insecurity during college years affects cognitive, academic, and psychosocial development.

• 133 Oregon families use student hours in Employment Related Day Care (ERDC).

High Degree Output Compared to State Funding

$3,539 $3,983 $2,860 $3,277 $2,746 $2,194 $2,220 $2,217 $2,295 $2,818

$10,769 $10,647 $12,306 $11,676 $11,802 $12,725 $13,313 $13,857 $14,323 $14,718

26.639

26.258

24.787 24.522

24.263

25.413

25.934 26.212

26.686 26.871

22.5

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Education & General Revenues vs. Degree Output (Inflation Adjusted)

PUSF $/FTE Non-PUSF E&G $/FTE including tuition Degrees/100 FTE

Source: HECC Office of University Coordination52

Tuition

Borrowing, Access, and RiskStudents most at risk of default

• Have debt, no degree (dropped out before graduating).

• Have high debt/low earnings.

68% of public university students borrow

• Average indebtedness about $28,000 for OPU students (lower than avg. car loan in U.S of $28,667.

• Students most at risk have debt exceeding their starting salaries.

Students most at risk of over-borrowing

• Are low income with little to no family help or family borrowing experience.

• Depleted certain types of aid (e.g., Pell grants) before arriving at university.

53Source: LendEDU report: Student Loan Debt by School and State, 2016 Statistics

• Oregon Families are Paying More and Getting Less• Universities have been forced to cut academic advisors and student services• Opportunities for career connections have been lost – internships• Increased reliance on non-tenured faculty• Capital investments have been deferred

• Oregon’s Economy and Workforce is at a Disadvantage • Competitive disadvantage for Oregon businesses • Average household income has stagnated• Oregon is less equipped to deal with changing workforce needs • The talent import problem

The Cost of Disinvestment at Universities

54

The Value of a Degree:

The Rising Cost of Not Going to College

55

• In 2015, individuals with a bachelor’s degree working full-time earned $24,600 per year (67%) more than those without one.

• The unemployment rate for individuals age 25 and older with at least a bachelor’s degree has consistently been about half of the unemployment rate for high school graduates.

• College education is associated with healthier lifestyles, reducing health care costs, better civic involvement, and higher rates of home ownership.

• Public research universities are major engines of entrepreneurship and economic growth, ensuring states meet workforce needs.

The Value of a College Degree

56Sources: The College Board, “Education Pays 2016: The Benefits of Higher Education for Individuals and Society; “College degree completion and home ownership.” Diverse Issues in Higher Education, April 4, 2017; Association of Public & Land-Grant Universities, Public University Values, 2016.

College Pays: Oregon students exceed the national average in post-graduate income

$37,200

$52,000$46,000

$42,100$36,800

$41,700$38,700

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

EOU OIT OSU PSU SOU UO WOU

Salary Ten Years After Entering for Federal Aid Recipients (National Average=$33,500)

National Average57

Source: Higher Education Coordinating Commission, 2017.

It’s More Than Economics…

58Source: Association of Public & Land-Grant Universities, Public University Values, 2016.

Two Decades of Decreased State Funding: Cuts, Tuition, and Debt

59

Higher Education’s Cost Shifting Problem

60

State Funding for

Public Universities

Tuition Rates for Oregon Families

As state funding falls… …Tuition rates rise

Cost Shifting from the State to the Student

61

9% 8% 7% 7% 8% 8% 8% 9% 9% 9%

47%43% 47%

56% 57% 56%64%

72% 72% 69%

44%49% 46%

37% 35% 36%28%

19% 19% 22%

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

State Appropriations

Tuition & Fees

Other

Source: OUS Institutional Research

62

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2001-03Actual

2003-05Actual

2005-07Actual

2007-09Actual

2009-11Actual

2011-13Actual

2013-15LAB

2015-17LAB

2017-19GRB

State Funding: Public UniversitiesCompared to All Other Programs

(General Fund + Lottery Funds, in millions)

All Other Education Human Services Public Safety

All Other State Agencies Public Universities

41.5% Increase for Public Universities - $311.9 Million

Source: 2001-03 Actual (Per LFO 2005-07 Update, May 2006); 2003-05 Actual, (Per LFO 2007-09 Update, March 2008); 2005-07 Actual (Per LFO 2009-11 Update, March 2010); 2007-09 Actual (Per LFO 2011-13 Update, March 2012); 2009-11 Actual (Per LFO 2013-15 Update, April 2014); 2011-13 Actual, 2013 Legislatively Approved, 2015 Legislatively Approved, (Per LFO 2015-17 Update, March 2016); 2017-19 GRB, (2017-19 GRB)

Education & General State Appropriations per Student FTE

$5,335

$6,109

$5,599

$5,160

$4,557

$3,792 $4,049

$4,448 $4,801 $4,894

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

63Source: Higher Education Coordinating Commission, 2017.

Source: 2015 State Higher Education Finance - State Higher Education Executive Officers (SHEEO)

2015-17 Reinvestment Has Improved Oregon’s Standing in Funding Per Student

Oregon 2014-15

Oregon 2015-16

(Preview)

64

Cost Efficiencies & Investments in Student Success

• Investments in administrative positions are critical for student success, completion, safety, and compliance:• Title IX Coordinators/Investigators

• Pre-College Coordinators

• Disability Services

• Career Services

• Testing Centers

• Retention Centers

• Financial Aid Counselors

• Academic Support Teams

• Emergency Management and Campus Security

65

Quality

Efficiency

Cost

A public university degree will be less affordable and students will be at higher risk of:

- Graduating with debt they can’t afford to pay back;

- Stopping out with debt prior to graduating; or

- Not even starting college.

66

Result of the Governor’s Recommended Budget

Turning the Tide:

2015-17 Investment and Outcomes

67

2015-17 Investment Led to Student Success

$665 million2015-17 Public University Support Fund

Financial Aid and Affordability Programs

Enhanced Academic Advising

CompletionEarly

Intervention

Student Enrichment for Veterans

Sexual Assault and Violence Prevention

68

69

Benefits of Investments

• Reduced the planned tuition and fees increase from 4.2% to 3.1% for in-state undergraduates during the 2015-16 academic year. A $90/per student savings.

• Hiring additional academic advisors. Ratio of students to advisors at PSU was 650:1, new ratio with additional advisors is 360:1. Standard maximum is usually 300:1.

• PSU has hired a Sexual/Relationship Violence Prevention Coordinator who works with campus partners such as the Women's Resource Center, Campus Public Safety Office, and Title IX Coordinator to ensure best practices for a safe and hostile-free campus climate.

• Expanded the “Pirates to Raiders” program, which strives to ensure every Hispanic student in the Phoenix-Talent school district has the ability to access a college education through SOU. The program improves the college admissions process for Hispanic families; increases the number of Hispanic students who earn a bachelor’s degree and/or advanced degrees; and encourages bi-lingual teaching careers.

• Launched the Jackson/Josephine Pledge (Fall 2016) to help high school students in the two-county area navigate the transition from high school to SOU through dual-credit opportunities, early advising, reduced tuition, and wrap-around student support services.

70

Benefits of Investments

• Increased fee remissions by $1M, targeted toward specific Oregonian populations, including Western Promise students (fixed-rate tuition), first-generation students, rural students, and veterans.

• Increased capacity, including hiring additional staff, for WOU’s successful Student Enrichment Program (SEP) funded in part by the federal TRIO program.

• Increased capacity, including hiring additional staff, for WOU’s innovative early academic risk intervention program in academic advising and providing support for on-line access for student assistance in courses supported through Moodle, Western’s on-line, open source learning platform.

• Hired additional staff as a joint Academic Affairs/Student Affairs initiative to advise veterans on academic and financial opportunities and programs.

71

Benefits of Investments

Benefits of Investments• Awarded Graduation Completion Grants: Providing grants to more than 100 juniors or

seniors who had exhausted state and federal financial aid.

• Added academic advisors dedicated to serving Pell-eligible students, targeting advising for low-income, first-generation, and minority students.

• Established the tenure track faculty initiative to increase tenured track faculty with an emphasis on STEM fields. A portion of these new faculty are funded by state investment.

• Improved services key to retention and completion, hiring additional retention specialists who use new analytics to identify academically or financially at-risk students and create a web of support services.

72

• 98% of Oregon Tech graduates employed or in graduate school 6 months after graduation (an 8% increase from the previous year).

• Increased degree completion through “completer” scholarships of $1,200 each for 150 successful students who are close to graduation but at risk of dropping out due to financial hardship.

• Increased success for 120 first-generation and low-income students through targeted, comprehensive advising, and expanded peer consulting and mentoring (a 75% increase).

• Utilized a personalized student texting program that eliminates social and logistical barriers to accessing necessary academic supports.

73

Benefits of Investments

• Grew enrollment of Oregon residents by over 350 students.

• Resident undergraduate tuition increase of 2% for 2016-17, the lowest increase in ten years.

• Increased spending for institutional financial aid by over 10% and grew scholarship funds from private donations.

• Invested in additional advisors and revamped courses with high failure or withdrawal rates.

• Began building analytics needed to maximize student degree completion through progress monitoring and proactive advising, tracking academic productivity, and identifying efficiencies.

• Expanded support services for victims of sexual violence and developed education and prevention programs for all students about sexual violence and the impact of alcohol and drug use on student success.

74

Benefits of Investments

• Provided access and success to rural and underserved students: Providing student support to multicultural and bilingual student recruitment, financial aid and career services for progress towards degree completion and success after college.

• Created models of affordability by increasing student financial aid and housing remissions to enable qualified, low-income students the opportunity of a university education.

• Built pathways for completion with Eastern Promise by leveraging the success of EOU’s program for accelerated learning in high school, and with community colleges by expanding transfer partnerships.

75

Benefits of Investments

2017-19 University Budget Request

76

A Look Back: 2015-17 By the NumbersState Appropriations for

Public University Operations

& Student Support(in millions)

Public

University

Support Fund

State

Programs1

Total

Education and

General

2007-09 Legislatively Adopted $692.3

2013-15 Legislatively Approved $522.0 $40.6 $562.6

2015-17 Legislatively Approved $667.3 $39.1 $706.4

2017-19 Governor's Budget $667.3 $39.1 $706.4

2017-19 Public Universities Request $765.0 $41.3 $806.31 State Programs include distinct institutes and centers across public universities, including engineering technology

sustaining funds; Statewide Public Services at OSU (Ag Experiment Station, Extension Service, Forest Research Lab) are

excluded.

+ $100M

77

78

Biennial Increase$235M

7.9%

$1,580.5 $1,688.0

$314.7 $345.3

$282.0

$341.4 $181.6

$194.3

$625.7

$650.5

$-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

2015-17$2,985M

2017-19$3,220M

Educational & General Costs

Biennial Increase

$235M7.9%

6.8%

9.7%

21.1%

7.0%

4.0% Supplies & Services/Student Aid( + $24.8 M)

OPE Other( + $12.7 M)

OPE Retirement( + $59.4 M)

OPE Health( + $30.5 M)

Salary & Pay( + $107.5 M)

Biennial % Increases by Cost Driver

Source: Data aggregated from the seven universities

79

$-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

Costs Who Pays Costs Who Pays

2015-17 2017-19Proposed

State

Students/University

Supplies & Services/Student Aid

OPE Other

OPE Retirement

OPE Health

Salary & Pay

State Support:

$665M > $765M22% Share > 24% Share

Educational & General Costs: Who Pays?

Source: Data aggregated from the seven universities

Public University Support Fund: The +$100M Climb

2015-17: $665M

+ $27.8M (DAS Current Service Level calculation)

+ $7.4M (HECC CSL Policy Option Package)

+$18.6M to cover states’ full share of costs

+$46.2M additional state support to protect students from bearing more of the full costs

+$765 million

80

$100 Million for Oregon Students

81

Thank You! Questions?

82