molly corbett broad, president february 20, 2009 the federal government and higher education: a...
TRANSCRIPT
February 20, 2009
Molly Corbett Broad, President
The Federal Government and Higher Education: A Partnership for Economic Renewal
American Association of Presidents ofIndependent Colleges and Universities
2009 Annual Conference
Unemployment up 4.1 million this year to 11.6 million.
$12.6 trillion in wealth lost in 2008, consumption down by at least $600 billion.
Household debt in delinquency or default approaching $1 trillion.
New home sales down 63 percent since 2005.
It’s the Economy…
Sources: Bureau of Labor Statistics, Census Bureau, Moody’s Economy.com.
A Partnership for Economic RenewalA Partnership for Economic Renewal
• Development of
Human Capital
• Research and Modernization to
Solve National & Global Problems
Percentage of Adults with at Least an Associate Degree
3541
16
66
18
34 37
18
54
2124 24
0
20
40
60
80
Total Whites AfricanAmericans
Hispanics AsianAmericans
AmericanIndians
Younger Adults Aged 25 to 29Adults Aged 30 or Older
Source: American Council on Education, Minorities in Higher Education 2008.
Human Capital: A Strategic Asset at RiskHuman Capital: A Strategic Asset at Risk
A New Competitive LandscapeA New Competitive Landscape
India
•Population of 1.1 billion
•GDP rose by an average of 7% each year since 1997
China
•Population of 1.3 billion
•GDP grew 10x since 1978
Source: CIA World Factbook.
A New Competitive LandscapeA New Competitive LandscapePercentage of Young Adults with a Postsecondary Credential
26
9
28
30
0
10
20
30
40
50
60Ca
nada
Japa
n
Kore
a
Belg
ium
Irela
nd
Norw
ay
Denm
ark
Spai
n
Fran
ce
Unite
d St
ates
Aust
ralia
Finl
and
Baccalaureate & AboveSub-baccalaureate
Source: OECD, Education at a Glance 2007.
Essential Human CapitalEssential Human Capital
Low- & Middle-income Students
Veterans & Military Unemployed Workers
Helping Students and Families
Helping Students and Families
• College Cost Reduction and Affordability Act
• Ensuring Continued Access to Student Aid Act
• New G.I. Bill
• Higher Education Opportunity Act
• The American Recovery and Reinvestment Act
8
Helping Students and Families
Helping Students and Families
• Increase Pell Grants– $5,350 in 2009– $5,500 in 2010
• Increase Work-Study– $200 million
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Helping Students and Families
Helping Students and Families
• American Opportunity Tax Credit
– Temporarily replaces Hope Tax Credit for two years
– $2,500 credit for four years
– Covers tuition & fees, books, and course materials
– Partially refundable
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Helping Students and FamiliesHelping Students and Families
State Fiscal Stabilization Fund:$53.6 billion
• $39.5 billion to education – (K-12 and public colleges)
• $8.8 billion to Governors
• $5 billion reserved for Incentive Grants
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A Renewed Investment in ScienceA Renewed Investment in Science
“I have said over and over again, if you want to know the agenda for this new Congress, remember four words: science, science, science and science…We stand by this as the most important investment that we can make in health and education and energy independence, job creation and the defense of America.”
Nancy Pelosi, Speaker, US House of Representatives
R&D Investment is FlatR&D Investment is Flat
R&D as a Percentage of U.S. GDP: 1990 to 2007
0
0.5
1
1.5
2
2.5
3
1990 1992 1994 1996 1998 2000 2002 2004 2006
Federal Nonfederal
Source: National Science Foundation
Underinvestment in Key FieldsUnderinvestment in Key FieldsFederal Non-Defense Research Spending by Field
Health ($29.6), 52%
Space research & technology, ($9.2), 16%
Natural resources & environment ($2.0), 4%
Energy ($2.0), 4%
All other ($5.8), 10%
Gen'l science & basic research
($7.9), 14%
Source: National Science Foundation. FY08 spending in billions.
Research FundingResearch Funding
• National Science Foundation (NSF)– $3 billion
• National Institutes of Health (NIH)– $10 billion
• Department of Energy– $2 billion
• NASA– $1 billion
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Research FacilitiesResearch Facilities
Federal Support for Academic R&D Facilities
$0
$250
$500
$750
$1,000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Co
nst
ant
08 $
(m
illi
on
s)
Source: National Science Foundation.
What it MeansWhat it Means
• Different approach
• Lots of money
• Short-term stimulus
• Change in financing
• Government grows bigger
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A Partnership for Economic RenewalA Partnership for Economic Renewal
• Development of
Human Capital
• Research and Modernization to
Solve National & Global Problems