Teresa Lubbers, Commissioner Indiana Council for Continuing Education March 19, 2010

1. Teresa Lubbers, Commissioner Indiana Council for Continuing Education March 19, 2010

2. About the Commission • The Commission for Higher Education works at the junction of K-12 and Workforce Development. • Takes a system-level approach to improving higher education in Indiana • 14-member board appointed by the Governor—charged with defining missions, strategic planning, academic and capital oversight

3. Increasing global competition • U.S. is 10th among industrialized nations in college completion rates, down from first. • US ranks 18th of 36 countries in secondary school completion. • Indiana ranks 32nd in the nation in the average personal income of its residents – this is a 35 year low against the national average. • Indiana ranks 41st in the nation in the proportion of adults with postsecondary credential (30%).

4. A state economy in transition • Indiana’s economy depends highly on manufacturing, an industry that is rapidly changing. • Since 2000, Indiana manufacturing jobs have declined by 35%. • 75% of the highest-growth, highest-pay jobs over the next decade will require post-secondary credentials

5. A state economy in transitionNearly 1M Hoosier Adults Need More Education No High School Diploma: 524,370 No College, Earning < Living Wage: 651,609 226,029 256,112 385,775 27,445 14,784 Total Target Population: 931,366 27% of Indiana’s Workforce 12,360 8,861 No College, Speak Little or No English: 63,450

6. The New Paradigm • New expectations • Everyone needs a postsecondary credential • Indiana needs at least 10,000 more bachelor’s degrees every year and at least 50% more associate’s degrees to be competitive • Colleges as economic engines • Fiscal realities • Higher education appropriations are decreasing portion of the state budget (from 17% ten years ago to 13% today). • Forecasts indicate state resources will be scarce for the foreseeable future. (aka “The “New Normal”) • Tuition rates increased 439% nationally over the last 25 years (National Center for Public Policy and Higher Education)

7. The New Paradigm • Changing demographics • Colleges need to educate new and different populations, including first-time college students, part-time students, adults and minorities—the “New Majority” • In the next decade, the Hispanic working-age population will rise 83%, by African Americans 23%, and white working age population will decline by 3%. • Greater efficiency, production • Colleges must be more efficient while maintaining quality • Lumina Productivity Grant

8. REACHING HIGHER Indiana must ensure: • Students are PREPARED to succeed in college • Students can AFFORD college. • Students COMPLETE college… and on-time These realities are the foundation of Reaching Higher, the Commission for Higher Education’s strategic plan for Indiana’s postsecondary education system.

9. PREPARATION The Challenge: • Too many students unprepared for college success • Annually, remediation costs U.S. colleges and universities $2B. • College admission requirements are increasing (Core 40, SAT/ACT, GPA, etc.)

10. PREPARATION The Response: • Defining what it means to be “college-ready” • Improving remedial education • Accelerated coursework (8-week courses); • Basic skills embedded into academic and workforce credentials • Re-assessment of skills after first-tier remedial coursework—often students have overcome deficiencies

11. AFFORDABILITY The Challenge: • College costs have increased by 200% this decade, and by 300% since 1990 • Tuition outpacing income growth at an unsustainable rate (over 6% increase annually this decade) • Half of Indiana’s students exit college with student loan debt

12. AFFORDABILITY The Response: • Finding the “right fit” • Setting tuition targets • Delivering college more affordably (2+2, Passport, referral, etc.) • Driving college efficiency and cost-savings efforts

13. COMPLETION The Challenge: • College completion rates are far too low • Students who don’t graduate are 10 times more likely to default on college loans

14. COMPLETION The Response: • Creating college-going (and completing) culture (Learn More Indiana)

15. Ivy Tech’s College for Working Adults Built for Working Adults: • Prior Learning Assessments—students can earn credit for military, work, or other training experiences • New Study shows that students earning PLA credits complete at twice the rate of non-PLA students, and save 10 months of time in earning a degree. • Defined coursework—courses are laid out prior to enrollment • Condensed timeframe—offers 8-week sessions (2 classes per session) that use traditional and technology-assisted learning • Set schedule—classes meet on the same days and times throughout the program • Cohort-Based—students track through the program together, building relationships and support systems

16. NEW MODELS Innovative new models for Higher Education • Western Governor’s University: Online, Competency-Based University • Midwest CREST: Repository for citizens to bank college credits earned from multiple institutions and document workplace training and formalized learning experiences. Institutions bid for the opportunity to see the student through to completion. • Indiana Wesleyan: Program-based, utilizes cohorts to build support systems for students. • Common Themes: • Pathways to Completion • Student-Focused Delivery • Recognition of the “New Majority”

17. COMPLETION The Response: • Performance-Based Budgetthat rewards colleges and universities for: • More Degrees • More On-Time Degrees • More Degrees to Low-Income Students • More Transfers • More Workforce Development (at the community colleges) • More Research (at the flagship research campuses) • Recent budget cuts to higher education were based on these indicators.

18. BUDGET CUTS Recently, $150M was cut from higher education budgets: • Tuition rates have been set—institutions will have to find savings through efficiencies and cutting costs • Encouraging back-office/administrative consolidation • Expanding joint purchasing agreements, particularly in areas of health insurance and energy • Sharing costs, particularly at co-located campuses (Richmond, Columbus) • Prioritizing and reallocating resources to high-demand academic programs critical to Indiana’s economy

19. www.che.in.gov