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Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior Scholar, The Pell Institute for the Study of Opportunity in Higher Education Higher Education Policy Analyst, Postsecondary Education OPPORTUNITY

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Page 1: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Intro

Opportunity for Higher Educationin a Perfect Storm

Tri-State Consortium of Opportunity ProgramsNewark, New Jersey

April 8, 2013

Tom MortensonSenior Scholar,

The Pell Institute for the Study of Opportunity in Higher EducationHigher Education Policy Analyst,

Postsecondary Education OPPORTUNITY

Page 2: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 3: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

Realities:

• Stages of economic development:• Primary: agriculture, natural resources

• Secondary: manufacturing

• Tertiary: human capital

• Dynamic demography• Shrinking white/growing minority populations

• Growing shares of poor children in K-12 and higher education

• Aging population, living longer

• Globalization

Page 4: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

Federal policy choices:

• Progressive policy era: 1862 to 1980• 1862: Morrill Land Grant Act

• 1895: Second Morrill Land Grant Act

• 1944: Servicemen’s Readjustment Act

• 1957: National Defense Education Act

• 1965: Higher Education Act

• 1972: Pell Grant program

• 1978: Middle Income Student Assistance Act

• Regressive policy era: 1980 to present• 1981, 1982, 1994: Pell Grant maximum award reduced

• 1987: Federal aid moves away from need-based grants

• Aging population, living longer

Page 5: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

State policy choices:

• Progressive policy era: to 1980• Universal K-12 education

• State teachers’ colleges

• Junior colleges

• Need-based grant aid

• Increased funding efforts for higher education

• Regressive policy era: 1980 to present• Cutbacks in state appropriations efforts

• Colleges and universities raise tuition charges to students

• Growth in merit based scholarship programs

Page 6: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

Institutional policy choices:

• Progressive policy era: to 1980• Universal K-12 education

• State teachers’ colleges

• Junior colleges

• Need-based grant aid

• Increased funding efforts for higher education

• Regressive policy era: 1980 to present• Enrollment management

• Prestige race (U.S. News)

• Revenue replacement: full pay versus institutional aid, non- residents versus state residents

• Research versus instruction in public 4-year institutions

Page 7: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 8: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

K-12 School Lunch Program

Page 9: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Upper Family Income Limits for 1st, 2nd, & 3rd Quartiles

Page 10: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Low Income Student Shares of Total

Page 11: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 12: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 13: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 14: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 15: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 16: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 17: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 18: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 19: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 20: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 21: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

National Avg Resident Undergrad Tuition & Fees in Public Inst

Page 22: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Need-Based Grant Share of State Student Financial Aid

Page 23: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 24: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Need-Based Share of Federal Student Financial Aid

Page 25: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Purchasing Power of Pell Grant

Page 26: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 27: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Core Revenue by Source for Public 4-Year

Page 28: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Changes in Core Revenue by Source for Public 4-Year

Page 29: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

State/Local Appropriations Share of Core Revenue at Public 4-Year

Institutions

Page 30: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Tuition & fee Share of Core Revenue at Public 4-Year Insts

Page 31: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Core Expenditure Shares by Function for Public 4-Year Insts

Page 32: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Changes in Core Expenditure Shares by Function for Public 4-

Year Insts

Page 33: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Instruction Share of Core Expenditures in Public 4-Year Insts

Page 34: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Tuition Share of Instruction + Student Services in Public 4-Year

Insts

Page 35: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Public 4-Year Shares of Undergrads with & without Pell

Grants

Page 36: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 37: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Pell Grants Enrolled in Public & Private in Clgs & Univ

Page 38: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Pell Grant Shares in 4-Year & 2-Year

Page 39: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

High School Grad Rates by Family Income Quartiles

Page 40: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 41: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

College continuation Rates by Income Quartiles

Page 42: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Change in College Continuation Rates

Page 43: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Bachelor’s Degree Completion by Age 24

Page 44: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Change in Completion Rate

Page 45: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 46: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 47: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Distribution of Bachelor’s Degrees Awarded by Age 24

Page 48: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Tertiary Type-A Degree Attain 25-34 yr olds OECD 2003

Page 49: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Tertiary Type-A Degree Attain 25-34 OECD 2009

Page 50: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Change in Tertiary Type-A Degree Attain 25-34 OECD 2000-2009

Page 51: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

Projected Tertiary Type-A Degree attain OECD 2020

Page 52: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

The Perfect Storm

• Reality versus Policy

• Demographics

• Labor Markets

• State Policy Choices

• Federal Policy Choices

• Institutional Policy Choices

• Consequences for (some) students

• Is this class warfare?

Page 53: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 54: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 55: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 56: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 57: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 58: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 59: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior
Page 60: Intro Opportunity for Higher Education in a Perfect Storm Tri-State Consortium of Opportunity Programs Newark, New Jersey April 8, 2013 Tom Mortenson Senior

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