Breaking with Tradition: Measuring the Economic Impact

of Higher Education

Presentation to the Budgeting for Results Commission

Meegan Dugan BassettOctober 4, 2012

Our MissionIncrease the economic status of women and remove barriers to economic equity through: Promoting fairer workplaces, and Opening doors to high quality higher education and higher paid careers

Since 1973 . . . Women Employed has mobilized people & organizations to expand educational and employment opportunities for America’s working women.

Why higher education matters

Higher education is the best way out of poverty for most families.

By 2025,63% of Illinois jobs will require some higher education.

More Education Means More Money

More Education Means Less Unemployment

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Illinois Unemployment Rate in 2011

Illinois Unem-ployment Rate in 2011

Illinois’ 60x25 GoalTo remain globally competitive, the U.S. and each state should ensure that at least 60% of adults ages 25 to 64 have an associate or bachelor's degree by 2025.

In Illinois, the current rate is 41.3%.

The CLASP/NCHEMS ROI Tool

This web-based tool provides college graduation and state revenue projections based on several adjustable variables.

http://www.clasp.org/resources_and_publications/flash/CPES%20ROI%20Tool/Illinois.swf

Impact on State Revenue

Under current postsecondary investment patterns, Illinois’ revenue is projected to decrease over time.

Source: http://www.clasp.org/postsecondary/publication?id=1452&list=publications_states

Impact on State Revenue

Increasing our completion rate substantially means more state revenue.

By meeting the performance of the top three states, Illinois can bring in new annual revenues far above our higher ed costs.

Impact on State Revenuehttp://www.clasp.org/resources_and_publications/flash/CPES%20ROI%20Tool/Illinois.swf

We Can’t Do it With High School Students Alone

Tapping into this additional revenue requires a major paradigm shift

Our Current Workforce Is Essential to Meeting Our Goal

Simply increasing the percentage of adults 20-39 enrolled in college from 1.22% to 3.2% gets us closer to our goal

Maximizing the Economic Impact of Higher EducationLow-income adults are our lowest income

students- higher education has a major impact on their incomes and future state revenue

Educating our current low-wage workforce provides 2 kinds of state revenue- additional tax dollars and savings in corrections, TANF, food stamps, and healthcare costs.

The Challenge: How Do You Measure Impact and Assign Resources Efficiently and Justly

Potential pitfall- removing resources from the students who need it most.

Measure value- not just in terms of best prepared students, but incomes of low-income adults

If we aren’t graduating more low-income workers with economically valuable credentials, we aren’t getting the most value out of higher education.

Principle 1: Measure Deeper Economic ValueTo truly measure the impact of higher education on Illinois’ economy, we have to track how many low-income workers are earning economically valuable credentials.

Measure higher education progress and completion by age, income, full-time/part-time, and race.

Track progress and completion in economically valuable credentials and re-evaluate the need for credentials that are not.

Invest in a robust longitudinal data system!

Principle 2: Use Leading IndicatorsCompletion rates are essential, but are lagging indicators. Use research-based leading indicators to address problems quickly.Use research-based momentum points to

identify which programs are moving students towards completion.

Use pipeline studies to identify areas where we are losing students and how could make our system more effective. Examples: WI, WA, Gates’ Completion by Design

Invest in a robust longitudinal data system!

Principle 2: Use Leading Indicators--

Momentum PointsProven indicators that students are more likely to

succeed.

Momentum points are partially integrated into Illinois’ performance funding (ie. credit hours earned 1st year)

Additional momentum points to include:◦ Percent who show proficiency gains in adult education or

developmental education.◦ Percent who pass one or more developmental education

course(s) in their first year.◦ Percent who complete first level math or composition course

in their first year.◦ Percent who enroll in certificate or degree program of study

in first year.Invest in a robust longitudinal data system!

Principle 2: Use Leading Indicators--

Pipeline StudiesAssesses student progress and completion in higher ed

and areas that need immediate improvements.

Uses momentum points such as gatekeeper course completion and credits earned to identify where students are dropping out.

Includes students from all areas, including ESL, Adult Education, and Remedial/Developmental Education.

Identifies progress and completion by low-income status, full-time/part-time study, age, program of study, and race.

Could also be used to develop IL specific momentum points.

Invest in a robust longitudinal data system!

Principle 3: Invest in Student Success

Invest in students who need it most- student supports and curricular innovations

Invest in expanding pilots that have been shown to work.E.g. Adult Education Bridge Programs and Effective Redesigns of Remedial Education

Investing the least funding in the hardest to serve students is not an effective strategy!

Contact:Meegan Dugan BassettSenior Policy Associate Women Employedp: 312.782.3902 x249e:mbassett@womenemployed.org

For more resources, visit our website

www.womenemployed.org