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Investing in State Support for Higher Education

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INVESTING IN STATE SUPPORT FOR HIGHER EDUCATION POLICY BRIEF Spring 2008 Executive Summary build support for a vital driver of the competitive economy: campus-based research and innovation. Research contracts n January 2004 the Vermont Business Roundtable issued BOEHSBOUTBUDPMMFHFTBOEVOJWFSTJUJFTQVNQPWFSNJMMJPO its !rst report on the vital importance of higher education JOUPUIFTUBUFTFDPOPNZ BOEUIBUNPOFZSJQQMFTPVUBUUIF as a driver of Vermont’s 21st century economy. Since that SBUFPGQFSSFTFBSDIEPMMBSTQFOU&WFONPSFJNQPSUBOU time the need for support of this important economic university research creates the technological knowledge that Isector has only become more pronounced. The moment has will shape and drive the 21st century economy. come to call attention again to the fact that we have made no progress but are in fact falling further behind. r 7FSNPOUOPXDPNQFUFTJOBGBTUFWPMWJOHHMPCBMNBSLFUQMBDF and our most vital resource is knowledge and the ability to Vermont’s prospects for a strong and secure economic future BDRVJSFJU$PMMFHFHSBEVBUFTFBSOGBSNPSF DPTUTPDJFUZGBS hinge on government’s commitment to make signi!cantly MFTT BOEDPOUSJCVUFNVDINPSFUIBOUIPTFXJUIPOMZIJHI greater investment in our state support for higher education. Estimated Overall Economic Impacts of Higher Education in Vermont The reasons are clear: The following figures use a multiplier of 2.5, which assumes that for every dollar spent, another $1.50 is generated r 5IJTJTBIVHFTFDUPSPGUIF7FSNPOUFDPOPNZ and spent within the state. XIJDIIBTJODSFBTFEQFSDFOUTJODF BOE now contributes $2.9 billion annually in total 6OJWFSTJUZPG7FSNPOU 5PUBM&YQFOEJUVSFT estimated economic impacts within Vermont — YNVMUJQMJFS Y yet we still rank 49th in the nation in per-capita Estimated Overall Economic Impact $1,132,817,500 support for higher education. 7FSNPOU4UBUF$PMMFHFT 5PUBM&YQFOEJUVSFT YNVMUJQMJFS Y r 5IJSUZFJHIUPG7FSNPOUTGBTUFTUHSPXJOH Estimated Overall Economic Impact $352,894,980 occupations require signi!cant post-secondary FEVDBUJPO BOEQFSDFOUPGUIFFTUJNBUFE *OEFQFOEFOU*OTUJUVUJPOT 5PUBM&YQFOEJUVSFT OFXXPSLFSTUIBU7FSNPOUCVTJOFTTFT YNVMUJQMJFS Y Estimated Overall Economic Impact $1,443,296,965 require each year need signi!cant training beyond high school. Yet these opportunities depend on 1VCMJD1SJWBUF*OTUJUVUJPOT 5PUBM&YQFOEJUVSFT affordable access — and we have allowed higher- YNVMUJQMJFS Y education debt loads of the neediest Vermont Estimated Overall Economic Impact $2,929,009,445 GBNJMJFTUPSJTFQFSDFOUTJODF GSPN UPPWFS UIJTZFBS Source for Expenditures: FY 2006 IPEDS Finance Survey. Source for “multiplier”: Recently economists have provided multiplier effects r 8JUIUPEBZTFYQMPTJWFHSPXUIPGSFTFBSDI from 2.0 to 2.5 to 4.0. JOTUJUVUJPOTJO*OEJBBOE$IJOB 7FSNPOUNVTU school backgrounds. Yet low levels of state support for higher The Power of Investing in Higher Education education in Vermont have contributed to high and rising 'PSCPUIPVSQSFTFOUBOEPVSGVUVSFQSPTQFSJUZ state UVJUJPO OBSSPXCVEHFUNBSHJOTGPSQVCMJDDPMMFHFT TJHOJàDBOU investment in our human capital is the single most EFGFSSFENBJOUFOBODF BOEBMJNJUFEBCJMJUZUPQSPWJEF powerful strategy Vermont can adopt for our economy DPNQFUJUJWFGBDJMJUJFT TBMBSJFT BOEQSPHSBNT and our future. Signi!cantly boosting state support for higher education will build our state’s ability to compete and *O*SFMBOEBOE,FOUVDLZ XIJDIIBWFBMTPMPOHTUSVHHMFEXJUISVSBM move forward as a 21st century economy. Postponing these QPWFSUZBOEMJNJUFEPQQPSUVOJUZ WJTJPOBSZJOWFTUNFOUJOIJHIFS investments will push us in the opposite direction — toward education access and support have borne remarkable fruit. Ireland the rear in the rigorous competition for prosperity in the global JTOPXBXJEFMZSFOPXOFEiFDPOPNJDNJSBDMF uBOE,FOUVDLZJT marketplace. now fourth in the nation in site selection for business. Vermont can do much the same — and we must start now. 3JHIUOPX IJHIFSFEVDBUJPODPOUSJCVUFTFOPSNPVTMZUPPVS TUBUFTXFMMCFJOH5IFGVMMUJNFJOTUJUVUJPOTJOUIJTVOVTVBMMZ i"XFMMFEVDBUFEXPSLGPSDFNFBOTHPPEKPCT BOEHPPEKPCT iDMFBOuFDPOPNJDTFDUPSFNQMPZBMNPTU QFPQMF QBZJOH NFBOIJHIFSQBZ uOPUFT#JMM4USJU[MFS $&0PG4NVHHMFST/PUDI PWFSNJMMJPOJOBOOVBMXBHFTBOECFOFàUT3FTFBSDI 3FTPSU 7JDF$IBJSPGUIF3PVOEUBCMF BOEDPDIBJSPGUIFHSPVQ HSBOUTCSJOHJOPWFSNJMMJPOQFSZFBSBTUIFZIFMQEFWFMPQ that produced Having the Courage to Change: How We Can Avoid the UFDIOPMPHJFTBOETPMVUJPOTGPSPVSGVUVSF0WFSBMM UIFFTUJNBUFE Coming Workforce Crisis. “Higher pay means more revenue to the economic impacts of higher education in Vermont are a state ... and more revenue means being able to take care of our staggering $2.9 billion per year. (See chart 1.) TPDJBMOFFET JODMVEJOHIJHIFSFEVDBUJPO The impacts on individual Vermonters are just as clear. A person i:PVIBWFUPIBWFBHPPEEFHSFFPGWJTJPO CFDBVTFUIJTGSFRVFOUMZ XJUIBCBDIFMPSTEFHSFFXJMMFBSOQFSDFOUNPSF QSPKFDUFE involves investment in the front end that yields a return in four PWFSBMJGFUJNFBOEXJMMQBZUXJDFBTNVDIJOUBYFTDPNQBSFE PSàWFZFBST u4USJU[MFSBEETi0ODFXFHFUUIBUQSPDFTTTUBSUFE to someone with only a high-school diploma. A Vermonter with it becomes regular and cyclical. And it is good for the people of BNBTUFSTEFHSFFXJMMFBSOQFSDFOUNPSF$PMMFHFHSBEVBUFT 7FSNPOUu BSFGBSNPSFMJLFMZUIBOIJHITDIPPMHSBETUPWPUF WPMVOUFFS BOE Expected Lifetime Earnings Relative to High School Graduates by Education Level 3.0 2.87 2.5 2.37 1.93 2.0 1.61 1.5 1.19 1.28 1.00 1.0 Earnings Ratio 0.75 0.5 0.0 Not a High Some Associate’s Bachelor’s Master’s Doctorate Professional HS school college, degree degree degree degree graduate graduate no degree Source: Education Pays 2007: The Benefits of Higher Education for Individuals and Society. Sandy Baum and Jennifer Ma. The College Board: 2007. 10-*$:#3*&'r2r413*/( join in civic and community activities. A person who has not gone "DDPSEJOHUPUIF7FSNPOU$PNNJTTJPOPO)JHIFS&EVDBUJPO to college is 12 times more likely to spend time in prison than 'VOEJOH $)&' iIJHIFSFEVDBUJPOEFCUMPBETPGUIFOFFEJFTU TPNFPOFXIPIBT%FTQJUFUIFTFDPNQFMMJOHGBDUT UIFOVNCFS 7FSNPOUGBNJMJFTJODSFBTFEUPNPSFUIBO JO': u of ninth graders deciding to not pursue college has increased 121 VQ JOKVTUPOFZFBS percent since 1997. "EET$)&' i1BTUMFWFMTPGGVOEJOHGPSIJHIFSFEVDBUJPOIBWF Vermont’s economy has changed and we now face competition SFTVMUFEJOIJHIUVJUJPOBOEGFFTBNPOHPVSQVCMJDJOTUJUVUJPOT POBXPSMEXJEFTDBMF8FOPXSFMZDIJFáZ OPUPOSBXNBUFSJBMT OBSSPXCVEHFUNBSHJOT TJHOJàDBOUEFGFSSFENBJOUFOBODFBOE PSOBUVSBMSFTPVSDFT CVUPOLOPXMFEHFBOEJOOPWBUJPO BOEUIF dif!culty in providing the types of academic services and equipment opportunity to acquire and use these vital assets. According UIBUXPVMENBLFVTNPSFDPNQFUJUJWFXJUIPUIFSTUBUFTu UPUIF3PVOEUBCMFTSFQPSU Having the Courage to Change: How We Can Avoid the Coming Workforce Crisis,PG7FSNPOUT 8FNVTUOPUJHOPSFUIFVSHFOUOFFEUPJODSFBTFTJHOJàDBOUMZ GBTUFTUHSPXJOHPDDVQBUJPOTJODMVEJOHTJYPGUIFGBTUFTU PVSTUBUFTTVQQPSUGPSIJHIFSFEVDBUJPO1VUTJNQMZ PVSGVUVSF growing jobs — require signi!cant post-secondary education. economic success depends on this. "MPOHXJUIFEVDBUJOHOFBSMZ 7FSNPOUFSTFWFSZZFBS PVS DPMMFHFTBOEVOJWFSTJUJFTBUUSBDUPWFS UBMFOUFEPVUPGTUBUF Campus Research and Innovation students annually — and many of those young people will stay Drives the Competitive Economy here and contribute. Research contracts and grants at Vermont colleges and VOJWFSTJUJFTQVNQPWFSNJMMJPOJOUPUIFTUBUFTFDPOPNZ But we face serious challenges. Vermont still ranks 47th in the NPTUMZGSPNPVUPGTUBUFHPWFSONFOU GPVOEBUJPO BOEDPSQPSBUF OBUJPOJOTUBUFTVQQPSUGPSIJHIFSFEVDBUJPO NFBTVSFEQFS TPVSDFT8IBUTNPSF SFTFBSDIEPMMBSTIBWFBOVOVTVBMMZMBSHF JOQFSTPOBMJODPNF1FSDBQJUB XFSBOLUI KVTUBTXF FTUJNBUFEFDPOPNJDNVMUJQMJFSFGGFDUBTNVDIBTEPMMBST did in 2004. in the community for every research dollar spent. Education and Traning vs. Pay Median weekly earnings in 2006 vs. 2006 unemployment rate by education level $1600 7% Median Weekly Earnings 2005 $1,441 $1,474 $1400 6% $1200 $1,140 Unemployment Rate 2006 5% $1000 $862 4% $800 $721 $674 $595 3% $600 $419 2% $400 1% $200 $0 0% Not a High Some Associate’s Bachelor’s Master’s Doctorate Professional HS school college, degree degree degree degree graduate graduate no degree Source: U.S. Department of Labor, Bureau of Labor Statistics 413*/(r3r10-*$:#3*&' &WFONPSFJNQPSUBOUMZ VOJWFSTJUZSFTFBSDIDSFBUFTUIF Shining Examples and “Economic Miracles” technological knowledge that will shape and drive the 21st Investing boldly in higher education can have economic impacts DFOUVSZFDPOPNZ/BUJPOBMMZ UIFVOJWFSTJUZCBTFEEJTDPWFSZ UIBUBSFBMNPTUBTUPOJTIJOH*OUIFT BTHaving the Courage PGSFDPNCJOBOU%/"HBWFCJSUIUPUIFCJPUFDIJOEVTUSZ to ChangeEFTDSJCFT UIFFDPOPNZPG*SFMBOEMPOHPOFPG Research at UVM and other land-grant colleges has developed &VSPQFTXFBLFTUXBTTBHHJOHCBEMZXJUIVOFNQMPZNFOU IJHIZJFME EJTFBTFSFTJTUBOUDSPQTUPNBLF"NFSJDBOBHSJDVMUVSF FNJHSBUJPOPGDPMMFHFHSBEVBUFT BOEGBTUSJTJOHOBUJPOBMEFCU#VU the world’s most productive; and university-based military JOBTJOHMFHFOFSBUJPO *SFMBOEIBTCFDPNFUIFXPSMESFOPXOFE SFTFBSDIJOUPFMFDUSPOJDTIBTHJWFOVTDPNQVUFSTDJFODF TBUFMMJUF i$FMUJD5JHFS uIPNFUPUPQQIBSNBDFVUJDBM NFEJDBMTVQQMZ DPNNVOJDBUJPOT SPCPUJDT NJOJBUVSJ[BUJPO BOEUIF*OUFSOFU BOETPGUXBSFDPNQBOJFT BOEUPFOPSNPVTHSPXUIJOEJSFDU GPSFJHOJOWFTUNFOUBOEUIFTJ[FPGJUTFNQMPZFEXPSLGPSDF5IF 5PEBZJO7FSNPOU /PSXJDI6OJWFSTJUZSFTFBSDIFSTBSFFOIBODJOH PGUFODJUFELFZUPUIJTiFDPOPNJDNJSBDMFuXBTUIBU BTQBSUPG cyber security; Middlebury College faculty and students are BDPPSEJOBUFEBQQSPBDIUPXPSLGPSDFEFWFMPQNFOU JO probing the impacts of climate change; UVM scientists are on the Ireland made a college education virtually
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  • Pub Type Edrs Price Descriptors

    Pub Type Edrs Price Descriptors

    DOCUMENT RESUME ED 292 912 UD 026 081 TITLE Reauthorization of the Education Consolidation and Improvement Act. Hearings before the Subcommittee on Education, Arts and Humanities of the Committee on Labor and Human Resources, United States Senate, and the Subcommittee on Elementary, Secondary, and Vocational Education: House of Representatives, One Hundredth Congress, First Session (Saint Johnsbury, Vermont, February 10, 1987; Waterbury, Vermont, February 13, 1987). INSTITUTION Congress of the U.S., Washington, D.C. House Committee on Education and Labor. REPORT NO Senate-Hrg-100-153 PUB DATE 10 Feb 87 NOTE 190p.; Some pages contain small, light type. AVAILABLE FROM Superintendent of Documents, Congressional Sales Office, U.S. Government Printing Office, Washington, DC 20402. PUB TYPE Legal /Legislative /Regulatory Materials (090) EDRS PRICE MF01/PC08 Plus Postage. DESCRIPTORS Compensatory Education; *Educationally Disadvantaged; Educational Needs; Elementary Secondary Education; *Federal Aid; *High Risk Students; *Program Budgeting; Program Development; *Program Effectiveness; Success IDENTIFIERS *Education Consolidation Improvement Act Chapter 1; *Education Consolidation Improvement Act Chapter 2; Vermont ABSTRACT Hearings before the House Subcommittee on Education, Arts, and Humanities were held in February, 1987 to reauthorize the Education Consolidation and Improvement Act. The purpose was to report on the contribution made in education by Chapter 1 and Chapter 2 programs and to refine and explain the goals for reauthorization. Teachers, coordinators, administrators, students, and parents testified on the following aspects of these programs in Vermont: (1) services to preschool children; (2) negative effects on the programs if funding is cut; (3) parent and community involvement; (4) professional development and training; (5) instructional materials, methods, and approaches; (6) effects on student achievement; and (7) special concerns of rural districts.