OKLAHOMA STATE REGENTSFOR HIGHER EDUCATION

Interim StudyNovember 10, 2010

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

In The Global Economy of the In The Global Economy of the 2121stst Century, 90 Percent of the Century, 90 Percent of the

Fastest-Growing Jobs Will Fastest-Growing Jobs Will Require a Higher Education.Require a Higher Education.

3

4

Nationally, more than one-quarter (27.2 percent) of adults 25 and older have a bachelor’s degree or more,

compared to Oklahoma at 22.2 percent.

5

State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher

No state with a low proportion of Bachelor’s

degrees has a high per capita income.

No state with a high proportion of Bachelor’s

degrees has a low per capita income.

States with high proportion of bachelors degrees

States with low proportion of bachelors degrees

Outlier state that has high income and low degree attainment

6

3,798,9405,254,193Professional degree

2,527,3243,982,577Doctorate

1,507,8232,963,076Master's degree

$1,111,921$2,567,174Bachelor's degree

346,1201,801,373Associate degree

270,5691,725,822Some college, no degree

01,455,253High school graduate

-304,5551,150,698High school dropout

-$478,903$976,350Less than 9th grade

DifferenceCompared toHigh School

Graduate

EstimatedLifetimeEarnings

Education Level

The Impact of Education on Individuals:Lifetime Earnings

U.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAUU.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAU7

8

$$COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

All Oklahoma institutions of higher education have decreased their need for additional funds for mandatory

operating obligations by cost savings efforts.

A total cost savings of $112.3 million from 2009-12.

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• Energy Conservation • Energy Conversion• Changes in Salaries and Benefits• Changes and Elimination of Positions• Reduction in Supplies and IT Expenditures

9

$$COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

9

$0 m

$5 m

$10 m

$15 m

$20 m

$25 m

$30 m

$35 m

Faculty and Staff Positions

Supplies Salary and Benefits

Utilities

$112.3 Million Cumulative Savings

Over 4 years

$22.1 m

$32.5 m

$22.5 m $23 m

$3.8 m

$8.4 m

Travel, Periodicals and Other

IT Equipment

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• Oklahoma’s 25 College and Universities have an active and productive grantsmanship program which contributes to the institutions funding outside the appropriations process.

• In 2010, our institutions reported the receipt of $506.6 million in competitive grants for program development and research.

11$$

System EfficienciesTotal System Administrative Costs FY92-FY09

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY09

0%

2%

4%

6%

8%

10%

12%11.9%

11.1%

8.2% 8.3%8.1% 8.2%

8.1%7.8%

Syst

em

Adm

in C

ost

s as

a P

erc

ent

of

Tota

l B

udget

14%

9.3%

7.8%

11

FY10

7.9%

FY11

7.8%

Book Banks

• Many of our institution have recognized a financial need by their students for help with text books.

• Over the past several years, our institutions have initiated a variety of methods to address these needs.

• TCC Textbook Trust, which will pay up to $400 a semester for Tulsa Achieves students who do not have another scholarship or grant that pays for their books. The money will be distributed first-come, first-served to as many students as possible.

• The University of Oklahoma, Southeastern Oklahoma State University, the University of Central Oklahoma and Cameron University have developed a books on reserve program which allows student to reserve textbooks at the institutions libraries.

12

Joint Academic Programs

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• Reach Higher - Consortial bachelor's degree completion program via partnership of nine regional universities.  Just added associate degree options that involve consortia of community colleges/technical branches.

• UCO operates a center on Rose State campus that offers 2+2 joint degree arrangements for students.  Upper division portion of degrees offered by UCO on the RSU campus.

• SEOSU and EOSC partner in McCurtain County to offer courses and degrees in consortial arrangement.

• ECU delivers the Bachelor of Science in Nursing major through ITV to Southeastern Oklahoma State University.

• Statewide cooperative agreements between community colleges and Career Tech centers offer inverted 2+2 arrangements for earning college credits toward the AAS degree and having completion options available on the Career Tech site.

• OSU and NOC partner with the NOC-Stillwater "Gateway" program.  Partner together to create resources and access points for students to complete developmental, general education, and transfer into upper division majors.

25%

50%

75%

100%

1988 1990 2008

Percentage of the higher education budget paid with state appropriations:

2009

Source: OSRHE, Educational and General Budgets Summary & Analysis, June 2010

75.3%

69.3%

49.5% 44.8% 44.7%41%

2010 201114

The two primary reasons are:

– Health Care Cost Increases– Corrections

Why?

15

0%

5%

10%

15%

20%

25%

30%

Mis

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20.

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23.

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.6%

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%

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%

0.0

%

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%

Research InstitutionsPercentage Change in Resident Undergraduate

Tuition and Required Fees2008-09 to 2009-10

Affordability

16

0%

5%

10%

15%

20%

25%

30%

Flo

rid

a

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0.0

%

Regional UniversitiesPercentage Change in Resident Undergraduate

Tuition and Required Fees2008-09 to 2009-10

AffordabilityG

eo

rgia

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lifo

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a

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28.

7%

26.

2%

21.

3%

14.

2%

13.

9%

6.7

%

6. 5

%

4.1

%

6.6

%

4.4

%

Ok

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2.3

%

1.6

%

1.0

%

0.0

%

0.0

%

13.

1%

Iow

a17

0%

5%

10%

15%

20%

25%

30%Community Colleges

Percentage Change in Resident Undergraduate Tuition and Required Fees

2008-09 to 2009-10

AffordabilityG

eo

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Ca

lifo

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Ari

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30.

6%

30.

3%

30%

23.

2%

18.

4%

6.2

%

5.7

%

2.0

%

7.1

%

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%

Mis

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ork

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%

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%

8.8

%

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%

Ala

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18

State Appropriations41.0%

Local Appropriations2.0%

Tuitions & Student Fees

41.6%

Federal ARRA Stimulus Funds

2.9%

Grants & Gifts4.9%

Other7.6%

FY11 Budgeted Income by Source

19

FY11 Budgeted Expenses by Function

Academic Support11.7%

Instituional Support7.8%

Facilities Maintenance12.3%

Student Services6.0%

Scholarships7.8%

Public Service4.2%

Instruction/Research50.2%

20

212000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Degrees Conferred by Oklahoma Degrees Conferred by Oklahoma Public Colleges and UniversitiesPublic Colleges and Universities

Nu

mb

er o

f A

sso

ciat

e an

d B

ach

elo

r’s

Deg

rees

Co

nfe

rred

2006-07

23,701

Source: 2010 Degrees Conferred Report/UDS Database

18,998

19,488

20,458

21,636

22,786

23,298

23,845

2007-08

24,211

2008-09

27.4%

In 2008-09, State System institutions awarded a total of

24,211 associate and bachelor’s degrees – the most awarded in a

single year in state history

This is 27.4 percent more degrees awarded than in 2000-2001.

217

170,000

Fall 2008

177,385

187,676

160,000

150000

140,000

130,000

120,000Fall 2009

Source: 2009 Fall Preliminary Enrollment Report

References Public Institutions

Enrollment

180,000

190,000

Record Fall Enrollment• Overall Headcount

Increased by 10,291 in Fall 2009

• First Time Freshman increased by 12.3 percent

22

170,000

Spring 2009

166,784

178,053

160,000

150000

140,000

130,000

120,000Spring 2010

Source: 2010 Spring Preliminary Enrollment Report

References Public Institutions

Enrollment

180,000

190,000

Record Spring Enrollment

• Overall Headcount Increased by 11,269 in Spring 2010

• First Time Freshman increased by 31.7 percent

23

Fall 2010 Preliminary Enrollment

Overall Enrollment

Increase of 3.3% over Fall 2009

24

OKLAHOMA STATE REGENTSFOR HIGHER EDUCATION

Interim StudyNovember 10, 2010