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PRESENTATION TO THE ILLINOIS BOARD OF HIGHER EDUCATION APRIL 1, 2008. The High Cost of Efficiency. Or Appropriate Investment in the State’s Intellectual Infrastructure . Many claim that Higher Education should be . ECONOMICALLY EFFICIENT. IT’S THE ECONOMY.

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PRESENTATION TO THE

ILLINOIS BOARD OF HIGHER EDUCATION

APRIL 1, 2008


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The High Cost of Efficiency

Or

Appropriate Investment in the State’s Intellectual Infrastructure


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Many claim thatHigher Education should be

ECONOMICALLY

EFFICIENT


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IT’S THE ECONOMY

It is universally acknowledged that a community without quality educational institutions is a model for economic and social decay.


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Utopia

The simulation game Utopia anticipates that without a competent education system the technical infrastructure of a community

– subways, sewer systems, telephones, etc. –

will fail on a daily basis.


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Percentage of Individuals Ages 25 and Older Living in Households in Poverty, by Education Level, 2005Source-The College Board


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Percentage of Individuals Ages 25 and Older Living in Households That Participated in Public Assistance Programs, by Education Level, 2005Source- The College Board’

Medicaid


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Percentage of Individuals Ages 25 and Older Living in Households That Participated in Public Assistance Programs, by Education Level, 2005Source- The College Board

School Lunch


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Percentage of Individuals Ages 25 and Older Living in Households That Participated in Public Assistance Programs, by Education Level, 2005Source- The College Board

Food Stamps


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Earning and Taxes Paid by Education level Households That Participated in Public Assistance Programs, by Education Level, 2005


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Per Capita Social Benefits Households That Participated in Public Assistance Programs, by Education Level, 2005of Higher Education

  • Democratization $ 1,662

  • Human Rights $ 3,059

  • Political Stability $ 6,429

  • Life Expectancy (Net) $ 1,082

  • Lower Crime Rates $ 5,347

  • Lower Health Costs $ 6,813

  • Other $ 510

  • Total Annual Value$24,902


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Percentage of U.S. Citizens Ages 25 and Older Households That Participated in Public Assistance Programs, by Education Level, 2005 Who Voted, by Age and Education Level, 2004Source-College Board


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Higher Education is less and less affordable because students are being asked to pay not only for the cost of instruction but also for:

New buildings

Building maintenance

Increased support costs


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Student Debt students are being asked to pay not only for the cost of instruction but also for:

Public Universities-State appropriations vs. Tuition and Fees FY 01-08


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Student Debt students are being asked to pay not only for the cost of instruction but also for:

Community Colleges-State appropriations vs. Tuition and Fees FY 01-08


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Weighted Average students are being asked to pay not only for the cost of instruction but also for:Tuition & Fees-Public Universities-


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Weighted Average students are being asked to pay not only for the cost of instruction but also for:Tuition & Fees-Independents-


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Weighted Average Tuition & Fees students are being asked to pay not only for the cost of instruction but also for:-Community Colleges-


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Intellectual Infrastructure students are being asked to pay not only for the cost of instruction but also for:


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World Education students are being asked to pay not only for the cost of instruction but also for:Percentage change in Higher education enrollment, 1990 to 2004

Source: National Center for Education Statistics, U.S. Department of Education


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Enrollments by Family Income students are being asked to pay not only for the cost of instruction but also for:

Percent Change in Enrolled Dependent Freshman Aid Applicants from FY2002 to FY2007

Source: ISU


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McMahon students are being asked to pay not only for the cost of instruction but also for:

State investment is not only appropriate but necessary

State investment in higher education returns at rates far in excess of 10% (Long term return is 35%)


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Recommendations students are being asked to pay not only for the cost of instruction but also for:


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Georgia’s Hope Scholarship students are being asked to pay not only for the cost of instruction but also for:

  • All tuition and fees for the state’s top students

  • Powerful financial incentive to keep students in state


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South Carolina Teacher students are being asked to pay not only for the cost of instruction but also for:

Loan Program

  • Low-paying socially valuable professions

  • Teach in an area of critical need – loan is cancelled


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NEW YORK STATE PLAN students are being asked to pay not only for the cost of instruction but also for:

  • Higher education endowment

  • Need-based scholarships

  • Financial resources grow as tuitions grow


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ILLINOIS students are being asked to pay not only for the cost of instruction but also for: cannot afford chronic underinvestment in higher education.


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