Complete College Tennessee Act of 2010 An Update Association of - PowerPoint PPT Presentation

Complete College Tennessee Act of 2010 An Update Association of Government Accountants 2013 Southeast Region Professional Development Conference

STATE FISCAL CONDITION & IMPACT ON HIGHER EDUCATION 2

Revenues and Expenditures in Tennessee, 1978 Base $14,000 $221,000 $13,000 $204,000 $12,000 $187,000 $11,000 Revenues and Expenditures (millions) $170,000 $10,000 Personal Income (millions) $153,000 $9,000 $136,000 $8,000 $119,000 $7,000 $102,000 $6,000 $85,000 $5,000 $68,000 $4,000 $51,000 $3,000 $34,000 $2,000 $17,000 $1,000 $0 $0 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Tax Financed Expenditures Adjusted Revenues Personal Income 3

Total Revenue per FTE – Universities Inflation Adjusted - 2011 Dollars 16,000 804 14,000 2,844 917 2,536 2,999 3,860 3,559 3,350 12,000 3,917 - 10,000 5,104 5,175 4,970 - 4,696 4,864 8,000 - - 563 6,000 1,441 10,621 1,669 9,075 4,000 7,178 7,010 6,090 4,852 2,000 4,373 - 1986-87 1996-97 2006-07 2007-08 2008-09 2009-10 2010-11 State Appropriations ARRA/MOE Student Fees Less Grant Aid (TSAA, TELS, Pell) Grant Aid 4

Total Revenue per FTE - Community Colleges Inflation Adjusted – 2011 Dollars 10,000 9,000 974 2,355 8,000 806 2,148 2,652 1,001 - 7,000 3,577 1,366 3,958 6,000 1,728 1,746 - 1,573 - 5,000 - 298 704 4,000 526 7,573 617 745 3,000 5,734 5,196 5,029 4,486 2,000 3,372 3,031 1,000 - 1986-87 1996-97 2006-07 2007-08 2008-09 2009-10 2010-11 State Appropriations ARRA/MOE Student Fees Less Grant Aid (TSAA, TELS, Pell) Grant Aid 5

6 100% 120% 140% 160% 180% 200% 20% 40% 60% 80% 0% Connecticut 190% Alaska 178% New Jersey 161% New York 149% Pennsylvania 141% Vermont 131% Wyoming 127% State, Local, Tuition and Fee Revenues per FTE Student Minnesota 125% California 120% Maryland 119% Oklahoma 112% Delaware 112% Hawaii 112% Kentucky 111% Iowa 110% Washington 106% Nebraska 106% Maine 106% North Carolina 105% South Carolina 103% Indiana 102% Michigan 101% Massachusetts 101% West Virginia 101% United States 100% Texas 100% Alabama 98% Wisconsin 97% Percent of National Average Illinois 96% Arkansas 95% Public Research, 2009-10 Missouri 93% Kansas 93% Sources: NCES, IPEDS Completions and Enrollment Surveys Utah 92% Arizona 92% Georgia 92% New Mexico 91% Mississippi 89% Rhode Island 88% Virginia 86% Ohio 86% North Dakota 85% New Hampshire 84% Louisiana 84% Idaho 82% Tennessee 80% Oregon 79% Nevada 72% Florida 72% Montana 71% South Dakota 67% Colorado 62%

7 100% 120% 140% 160% 180% 20% 40% 60% 80% 0% Delaware 156% Alaska 152% Vermont 141% Connecticut 134% New Mexico 134% Hawaii 132% North Carolina 129% State, Local, Tuition and Fee Revenues per FTE Student Illinois 129% Iowa 126% New Jersey 125% Maine 123% Michigan 115% Montana 113% Alabama 112% Massachusetts 111% Missouri 111% Virginia 110% New York 109% Maryland 108% Public Bachelor’s and Masters, 2009 -10 Kentucky 106% California 105% Rhode Island 104% Texas 104% New Hampshire 103% North Dakota 103% Mississippi 101% South Carolina 100% Percent of National Average United States 100% Indiana 96% Idaho 95% Sources: NCES, IPEDS Completions and Enrollment Surveys Ohio 95% Kansas 94% Nebraska 93% Oregon 93% South Dakota 92% Wisconsin 91% Minnesota 91% Washington 89% Arkansas 85% Oklahoma 84% Pennsylvania 80% Tennessee 80% West Virginia 75% Florida 75% Georgia 75% Louisiana 75% Utah 70% Nevada 42% Colorado 41%

8 100% 200% 300% 400% 500% 600% 0% Alaska 525% Wisconsin 219% Wyoming 163% Oregon 160% Maryland 155% New Hampshire 153% Delaware 141% State, Local, Tuition and Fee Revenues per FTE Student Connecticut 135% North Dakota 132% Hawaii 128% Kansas 128% Arizona 121% Nebraska 121% New York 120% Idaho 120% Michigan 114% Rhode Island 113% New Mexico 112% Pennsylvania 108% Vermont 107% Minnesota 107% Massachusetts 104% Utah 104% Texas 103% Ohio 101% Washington 100% United States 100% Illinois 100% California 99% Percent of National Average South Dakota 97% New Jersey 94% Public Two-Year, 2009-10 Sources: NCES, IPEDS Completions and Enrollment Surveys Iowa 93% Arkansas 93% Montana 92% North Carolina 92% Oklahoma 91% Maine 91% Tennessee 88% Alabama 83% Virginia 82% Mississippi 80% South Carolina 78% Colorado 77% Missouri 76% West Virginia 73% Kentucky 71% Nevada 71% Georgia 70% Florida 70% Louisiana 65% Indiana 64%

Complete College Tennessee Act of 2010 WHY WAS IT NECESSARY? 9

Our human capital flow: the Tennessee student pipeline, 2008 86.0 71.1 69.5 59.6 44.0 43.8 41.7 30.2 29.8 28.9 20.5 19.3 10 Source: National Center for Higher Education Management Systems. March 2011 Matthew N. Murray, UT Center for Business & Economic Research

Community Survey Source: U.S. Census Bureau, 2011 American 11 10 20 30 40 50 60 0 Percent of 25-64 Year Olds with College Degrees Massachusetts 50.8 Colorado 47 Minnesota 46.6 Connecticut 46.4 Vermont 46.2 New Hampshire 45.8 Maryland 45.4 New Jersey 45.1 Virginia 45 – Associate and Higher, 2011 North Dakota 44.7 New York 44.6 Washington 43.3 Rhode Island 43.2 Illinois 41.7 Hawaii 41.6 Nebraska 41.5 Iowa 41.1 Kansas 40.7 Utah 40.3 Maine 40 Wisconsin 39.6 South Dakota 39.4 Montana 39.2 Oregon 39 California 38.9 Nation 38.7 Pennsylvania 38.6 North Carolina 38.2 Delaware 37.6 Florida 37 Michigan 36.8 Idaho 36.5 Georgia 36.4 Missouri 36.4 Wyoming 36.2 Arizona 35.8 Ohio 35.5 Texas 34.5 Alaska 34.4 South Carolina 34.2 New Mexico 33.9 Indiana 33.8 Oklahoma 33 Tennessee 32.1 Alabama 31.9 Kentucky 30.8 Mississippi 30.3 Nevada 30 Arkansas 28.2 Louisiana 27.9 West Virginia 27.8

U.S. States % OECD Country Korea (65.0) 60 56 Japan, Canada Comparing Massachusetts 54 North Dakota 52 Tennessee with Minnesota  New York 50 Nations and New Jersey 48 Ireland New Hampshire Norway Connecticut  Iowa 46 New Zealand, United Kingdom Other States in Virginia  Illinois  Maryland  South Dakota Pennsylvania  Nebraska  Colorado  Vermont 44 Australia, Luxembourg, Israel, Belgium Rhode Island  Kansas France Montana  Wisconsin 42 UNITED STATES, Sweden the Percentage  Washington Netherlands, Switzerland Missouri  Hawaii 40 Wyoming  Maine  Delaware  Utah Finland, Spain, Chile of Young Adult Ohio  California  Oregon 38 Estonia, Denmark Michigan  North Carolina Poland Indiana  Florida  South Carolina 36 Iceland Degree Georgia Alaska  Kentucky  Tennessee 34 Arizona  Mississippi  Texas Attainment Alabama  Idaho 32 Louisiana Slovenia, Greece Oklahoma  Arkansas  West Virginia 30 (Ages 25-34) Nevada 28 New Mexico 26 Germany, Hungary Portugal 24 Slovak Rep Czech Rep 22 Mexico Austria, Italy 20 Source: 2012 OECD Education at a Glance; 2010 American Community Survey Turkey (17.4) 12

Educational Attainment of Working Aged Adults, Ages 25-64 – Tennessee, U.S., and Most Educated State, 2011 Tennessee United States Massachusetts 35 33.2 30 27.0 24.8 25 23.5 22.1 22.0 19.3 20 17.6 17 16.6 15 12.5 12.3 10.8 10 8.7 8.6 8.7 8.3 6.9 5 0 Less than High High School Some College, No Associates Degree Bachelor's Degree Graduate, School Degree Professional Degree 13 Source: US Census Bureau, ACS

The Relationship Between Educational Attainment, Personal Income, and the State New Economy Index (2010) 55 High College Attainment, Low Personal Income High College Attainment, High Personal Income MA Percent of Adults 25 to 64 with College Degrees (2009) 48 CT CO MN NY NH NJ MD VT ND VA HI RI WA IL NE 41 IA KS OR UT ME SD DE CA MT WI US NC PA FL GA MI AK SC WY AZ OH MO 34 ID NM IN TX OK TN AL NV KY MS State New Economy Index 2010 LA AR 27 WV Top Tier Middle Tier Bottom Tier Low College Attainment, Low Personal Income Low College Attainment, High Personal Income 20 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 Source: U.S. Census Bureau, 2010 American Community Personal Income per Capita (2010) Survey; Bureau of Economic Analysis; Kauffman Foundation 14

Fraction happy about life by years of completed schooling before and after conditioning on income 0.95 0.90 Fraction happy 0.85 0.80 0 – 11 13 – 15 12 16+ Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Years of schooling Benefits of Schooling,” Journal of No income controls Conditional on income Economic Perspectives, Vol . 25, No.1. 15

Job satisfaction and years of completed schooling before and after conditioning on income 0.88 0.86 Fraction of respondents Are you satisfied 0.84 with your job? 0.82 Source: Oreopoulos, P. & 0.80 Salvanes, K.G., “Priceless: 0 – 11 13 – 15 12 16+ The Nonpecuniary Benefits of Schooling,” Journal of Years of schooling Economic Perspectives, Vol . 25, No.1. Before conditioning on income After conditioning on income 16