The Policy Environment for an Institution of Higher Education

2

The Policy Environment for an Institution of

Higher Education

Myriad Separate Policies Focused on Different Topics Enacted at Different Times By Different Policymaking Bodies For Different Reasons

Typically Consists of:

A Recipe for Contradiction and Confusion

3

Key Components

Planning and Priority Setting

Finance

Evaluation/Accountability

An Effective Policy Environment Is One in Which the Key Components Are Aligned—Mutually Reinforcing.

4

The Management Cycle in a Public Institution

State

Planning

Institution

State

Institution

Resource Allocation

State

Assessment

Institution

5

State Policy Objectives

High Rates of High School Completion of Students Who Have Taken an Academically Rigorous Curriculum

High Levels of College Participation of Both Recent High School Graduates and Adult Learners

High Rates of College Degree Completion

High Levels of Degree Production in Selected Fields

An Economy That Employs a High Proportion of College Graduates

The Flow of FundsEconomy

State and Local Government

FederalGovernment

DonorsFoundationsCorporations

Tax Revenues

Appropriations/GrantsStudent Aid

Tuition

Scholarships &Waivers

Student Aid (Restricted)

Gifts

Income

••••

K-12CorrectionsHealth CareOther Govt.

Higher Education

Students

Research and Other Grants (Restricted)

Community Colleges

WestOahuManoa Hilo

UH System

6

Tax Revenues


Tuition

Scholarships &

Waivers

Student Aid(Restricted)

Economy


FederalGovernment

Income

Students UH System

Community Colleges

WestOahuManoa Hilo

The Flow of Funds

7

8

Criteria for Effective Policy

Reinforce State Priorities

Maintain Necessary Institutional Capacity

Contributions Required Are Affordable—State and Students

Viewed as Being Fair

Transparent

9

Criteria from Perspective of Different

Stakeholders

Maintenance of Institutional Capacity Promotes Achievement of Priority Outcomes Affordable

Affordability Value

Adequacy Equity Stability

State

Students

Institutions

10

The Two Purposes of State Funding Policy

Build Core Capacity—General Purpose Funding

Promote Capacity Utilization Around State Priorities—Special Purpose Funding

12

State Workforce and Economy

Characteristics of Characteristics of Characteristics of

Retirement Ages Retirement Ages

Characteristics ofIn-Migrants

Characteristics ofthe Workforce

Characteristics ofOut-Migrants

Entrants into theWorkforce

Economic Conditions

Net Gain/Loss

Retirement AgesNet Gain/Loss

Who’s Entering the State’s Workforce?

The State Workforce and

Economy

Who’s Leaving the State

Workforce?

17

Projected Change in Hawaii’s Population by Age, 2000-

20

115,146

42,605

71,809

99,03891,283

0

30,000

60,000

90,000

120,000

0-17 18-24 25-44 45-64 65+

Source: U.S. Census Bureau Population Projections

21

81.9%

99.5%

90.5% 91.4%

75.6%

94.5%

102.4%

114.3%113.1%

124.4%

60%

80%

100%

120%

140%

1960 1970 1980 1990 2000

Source: U.S. Census Bureau

Actual

PCPI Adjusted125%

Per Capita Personal Income as a Percent of U.S. Average—Hawaii,

1960-2000

26

Educational Attainment and Rank Among States—

Hawaii, 2000 (Percent)

Source: U.S. Census Bureau

Age 18-24 withHigh School Diploma

Age 25-64 withHigh School Diploma

Age 25-64 withAssociate Degree

Age 25-64 withBachelor’s Degree or Higher

Age 25-64 withGraduate or Prof. Degree

1st

13th

3rd

14th

20th

01020304050

85.8

8.9

28.7

9.5

89.6

2929

30

UH Community Colleges’UH Community Colleges’

Entering Student Placement Entering Student Placement Fall 2003Fall 2003

53

33

36

35

11

32

0

20

40

60

80

100

Math English

Per

cen

t

Adult Basic Developmental Baccalaureate

34

Percent of Adult Population Participating in the

Workforce

Source: Tom Mortenson, Postsecondary Opportunity

71.1

63.460.4

54.3

0

25

50

75

Minnesota

New Hampshire

ColoradoNebraskaVerm

ontW

isconsinUtahIowaSouth DakotaAlaskaM

arylandKansasIndianaW

yoming

ConnecticutM

assachusettsNorth DakotaIdahoW

ashingtonDelawareIllinoisO

regonG

eorgiaM

aineM

issouriM

ontanaNevadaO

hioM

ichiganVirginiaNorth CarolinaNew JerseyRhode IslandUnited StatesTennesseeTexasSouth CarolinaCaliforniaPennsylvaniaO

klahoma

New YorkArizonaHawaiiArkansasKentuckyNew M

exicoAlabam

aLouisianaM

ississippiFloridaW

est Virginia

35

Percent of Population Age 16 and Older

Participating in the Workforce, 2000

Hawaii = 60.4%

Source: U.S. Census Bureau, 2000 Census

69.2% to 74.3%64.1% to 69.2%58.1% to 64.1%50.0% to 58.1%1.2% to 50.0%

Not Determined

36

Number of Workers Entering and Leaving the

Workforce in Hawaii

173,794

205,079

106,597

160,488

0

50,000

100,000

150,000

200,000

250,000

2000-10 2010-20

Age 8-17 Age 55-64

Source: U.S. Census Bureau Population Projections

37

Occupations of Population Age 55-64 (Those Leaving the

Workforce by 2010) Relative to Entire Workforce, 2000

0.7

1.9

2.8

4.2

5.1

8.3

8.1

14.7

11.5

13.6

0.7

1.5

1.6

2.8

4.0

4.9

5.5

7.9

11.5

12.0

15.2

1.3

0 4 8 12 16

Life, Physical & Social Science

Community & Social Services

Healthcare Support

Computer, Math., Architecture & Engineering

Healthcare Practitioners & Technical

Construction & Extraction

Education, Training & Library

Management, Business & Financial Operation

Production, Installation, Maintenance & Repair

Sales & Related

Office & Administrative Support

Percent

Entire Workforce

Age 55-64

Source: U.S. Census Bureau, 2000 Census; 5%PUMS Files

38

Percent of Total Gross State Product by Industry and

Comparison to U.S.

1.6

0.1

6.5

3.8

9.3

3.9

11.1

23.4

19.9

20.3

1.2 0.1

4.3

2.7

9.3

3.7

11.2

23.0

22.9 21.5

1.4

1.4

4.7

14.0

8.1

6.7

9.2

20.5

22.0

12.0

0

5

10

15

20

25

Agriculture,Forestry &

Fishing

Mining Construction Manufacturing Transp. & PublicUtilities

WholesaleTrade

Retail Trade Finance,Insurance &Real Estate

Services Government

Hawaii 1990

Hawaii 2001

U.S. 2001

Source: Bureau of Economic Analysis

39

Percent of Employed Persons 16 and Older by

Industry, 2000

49.0

12.2

8.7 8.1 7.0 6.0

3.5

3.2 2.2 0.0

42.0

11.7

8.3

4.8

6.9

6.8

14.1

3.6 1.5 0.4

0

10

20

30

40

50

Services Retail T rans/Comm Public Admin F.I.R.E. Construction Manufacturing Wholesale Agriculture Mining

Hawaii U.S.


40

Percent of Employed Persons 16 and Older by

Occupation, 2000

28.1

20.9

12.9

8.9 8.6 7.1 6.2

3.1 1.6

1.4 1.1

26.7

14.9 13.5

14.6

9.4

6.2 5.7

3.2 2.1

2.4 1.4

0

5

10

15

20

25

30

Sales & Office Serv ice Management,Business,

Financial Op

Production,Transportation,

Material Mov ing

Construction,Ex traction,

Maintenance

All Other Education,Training, Library

HealthDiagnosing,

Treating

Engineering &Architecture

Computer &Mathematical

HealthTechnologists &

Technicians

Hawaii U.S.


44

Median Earnings by Degree Level

14,900

20,800

22,500

28,000

36,000

45,000

60,000

58,000

16,000

20,000

23,700

28,000

33,000

42,500

52,000

59,000

$0

$20,000

$40,000

$60,000

Less thanHigh School

High Schoolor Equivalent

Some College Associate Bachelor's Masters Professional Doctorate

U.S. Hawaii

Source: U.S. Census Bureau, 2000 Census; 5% PUMS Files

45

Development Report Card for the States, 2003

Source: Corporation for Enterprise Development

Hawaii

41 University Spin-Outs42 Change in New Companies42 Private Lending to Small Businesses42 Sewage Treatment Needs42 Job Growth Due to New Business43 Change in Average Annual Pay44 Venture Capital Investments45 SBIC Financing45 Income Distribution Change45 Electronic Public Services46 Private R&D47 Technology Industry Employment47 Industrial Diversity48 Crime Rate48 Air Quality48 Bridge Deficiency49 Homeownership Rate49 Patents Issued50 K-12 Educational Expenditures50 Energy Costs50 Employment Growth: Long Term50 Involuntary Part-Time Employment50 Average Teacher Salary50 Voting Rate

Weaknesses (Bottom 10 Rank)

Rank Measure

1 Per Capita Energy Consumption2 Toxic Release Inventory2 Vehicle Miles Traveled3 Health Professional Shortage Areas3 Conversion of Cropland to Other Uses3 Urban Mass Transit7 Manufacturing Investment7 Unemployment Rate7 High School Completion8 Deaths from Heart Disease9 Households with Computers9 Greenhouse Gas Emissions

Strengths (Top 10 Rank)

Rank Measure

Employment CEarnings and Job Quality DEquity DQuality of Life DResource Efficiency A

Competitiveness of Existing Bus. DEntrepreneurial Energy F

Human Resources CFinancial Resources FInfrastructure Resources DAmenity Resources CInnovation Assets C

Performance

Business Vitality

DevelopmentCapacity

D

F

F

46

HHAWAI`I: AWAI`I: EEMERGINGMERGING O OPPORTUNITIESPPORTUNITIES

47

The Education Pipeline

48

Key Transition Points in the Education Pipeline

Complete High School

Enter College

Finish College

Enter the Workplace

49

Student Pipeline

86

58

42

28

67

38

26

18

64

38

22

13

38.8

26.7 27.3

0

20

40

60

80

100

Graduate fromPublic High School

Enter College Enroll SophomoreYear

Graduate Within150%

25-44 withBachelor's Degree

Best Performing State U.S. Average Hawaii

Source: NCES, IPEDS 2000 Graduation Rates and Fall 2000 Enrollments. U.S. Census Bureau, 2000 Census. ACT Institutional Survey 2001. Mortenson High School Graduation Rates and College Going Rates.

Of 100 9th Graders, How Many…

50

Hawaii High School Graduate Projections to 2018 by

Race/Ethnicity

0

3,000

6,000

9,000

12,000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

American Indian/Alaskan Native (33 to 48)Black (177 to 126)Hispanic (441 to 413)

White (1,917 to 1,125)Asian/Pacific Islander (7,534 to 7,516)

Source: WICHE High School Graduate Projections

53

College Going Rates—First-Time Freshmen Directly Out of

High School as a Percent of Recent High School Graduates, 2000

Source: Tom Mortenson, Postsecondary Opportunity

0

25

50

7569.4

59.8

56.7

38.1

North DakotaM

assachusettsKansasSouth CarolinaRhode IslandNorth CarolinaIowaSouth DakotaM

innesotaNew YorkNew JerseyM

ississippiConnecticutTennesseePennsylvaniaG

eorgiaIndianaDelawareHawaiiIllinoisNebraskaLouisianaNew Ham

pshireNew M

exicoKentuckyM

ichiganAlabam

aFloridaW

isconsinUnited StatesO

hioM

arylandM

ontanaM

aineM

issouriVirginiaArkansasColoradoTexasW

est VirginiaW

yoming

Oregon

ArizonaO

klahoma

CaliforniaVerm

ontIdahoW

ashingtonAlaskaNevadaUtah

54

Percent of First-Time Freshmen Who Attend College Within Their

Reported State of Residence, Fall 2002

Source: NCES, IPEDS Fall 2002 Residency and Migration File

0

25

50

75

100

Mississippi

UtahCaliforniaNorth CarolinaTexasLouisianaArizonaM

ichiganAlabam

aFloridaO

klahoma

South CarolinaIowaKentuckyIndianaArkansasKansasG

eorgiaO

hioPennsylvaniaW

isconsinUnited StatesM

issouriNebraskaW

est VirginiaColoradoTennesseeNew YorkM

innesotaO

regonNevadaIllinoisNew M

exicoW

ashingtonVirginiaIdahoSouth DakotaM

ontanaDelawareM

assachusettsNorth DakotaW

yoming

HawaiiM

arylandRhode IslandM

aineNew JerseyConnecticutAlaskaNew Ham

pshireVerm

ont

94.0

69.6

84.7

46.8

55

Net Imports of First-Time Freshmen


-136

-65

-39

-553

-49

-105

-48

-344

-26

-600 -500 -400 -300 -200 -100 0

Proprietary

Private Non-Profit Other

Private Non-Profit 2-Year

Private Non-Profit 4-Year

Private Non-Profit Research

Public Other

Public 2-Year

Public 4-Year

Public Research

57

Part-Time Undergraduate Enrollment as a Percent of

Population Age 25-44, 2000

Source: NCES-IPEDS, U.S. Census Bureau

0

3

6

9

12

10.8

6.2

3.8

3.3

ArizonaCaliforniaUtahNew M

exicoKansasAlaskaW

yoming

NevadaIllinoisO

regonM

ichiganNebraskaColoradoFloridaM

issouriW

ashingtonRhode IslandW

isconsinUnited StatesM

arylandTexasM

innesotaVirginiaIowaO

klahoma

DelawareM

aineNorth CarolinaHawaiiM

assachusettsAlabam

aConnecticutIdahoO

hioSouth DakotaVerm

ontIndianaSouth CarolinaNew Ham

pshireNew JerseyTennesseeArkansasNew YorkKentuckyG

eorgiaLouisianaM

ississippiNorth DakotaW

est VirginiaPennsylvaniaM

ontana

58

Associate Degrees Awarded per 100 High School Graduates

Three Years Earlier, 2002

Source: NCES-IPEDS Completions Survey, WICHE

0

15

30

4541.5

21.1

11.5

FloridaRhode IslandW

ashingtonW

yoming

ArizonaNew YorkUtahIdahoCaliforniaIowaM

ississippiHawaiiKansasM

assachusettsNorth CarolinaVerm

ontUnited StatesNew Ham

pshireO

regonNorth DakotaNew M

exicoColoradoIllinoisO

klahoma

South CarolinaM

issouriNebraskaM

innesotaM

ichiganIndianaPennsylvaniaNevadaSouth DakotaAlabam

aW

isconsinKentuckyVirginiaNew JerseyO

hioTexasArkansasTennesseeW

est VirginiaDelawareM

arylandM

aineAlaskaM

ontanaConnecticutG

eorgiaLouisiana

23.5

59

Number of Associate Degrees and Certificates in Health Sciences Awarded (2003) Per 100 High School Graduates Three Years Earlier, 2000

Source: NCES-IPEDS Completions 2002-03; WICHE High School Graduates, 2000

17.4 16.5

12.6

12.6

12.4

10.4

10.3

10.0

9.9

9.8 9.3

9.3

9.3

9.3 9.1 8.8 8.3

8.2 8.0 7.7

7.6 7.3

7.3 7.1

7.1

7.0 6.8

6.7 6.3

6.2 6.0

5.9

5.9

5.8

5.8 5.6

5.5

5.5

4.5 4.3

4.3

4.2 3.9 3.7

3.7

3.6

3.6 3.3 3.1 2.6 2.1

0

3

6

9

12

15

18

ArizonaW

isconsinKansasColoradoFloridaNorth CarolinaLouisianaKentuckyIowaG

eorgiaSouth CarolinaIllinoisW

ashingtonM

ississippiM

innesotaVirginiaTennesseeAlabam

aArkansasSouth DakotaIndianaUtahUnited StatesIdahoM

issouriNew M

exicoW

est VirginiaW

yoming

Oregon

DelawareCaliforniaNew Ham

pshireNevadaM

ichiganNebraskaO

hioTexasM

aineM

assachusettsNew YorkPennsylvaniaNorth DakotaRhode IslandO

klahoma

Montana

Vermont

HawaiiM

arylandAlaskaConnecticutNew Jersey

60

Number of Associate Degrees and Certificates in Computer Science and Business Information Systems Awarded (2003) Per 100 High School Graduates Three Years Earlier, 2000

Source: NCES-IPEDS Completions 2002-03; WICHE High School Graduates 2000

6.4

5.1

4.6

4.6 4.5

3.9 3.8 3.7 3.5 3.4

3.4 3.3 3.1 3.0

3.0 2.9

2.9 2.8

2.8 2.7

2.7 2.6

2.6

2.6 2.5 2.4 2.3

2.3 2.2 2.1 2.0 1.9

1.9 1.8

1.8 1.7

1.7

1.7

1.7 1.6

1.6

1.6 1.5

1.5 1.4

1.4 1.2 1.1

1.1

1.1 0.9

0

1

2

3

4

5

6

7

Georgia

Washington

ArizonaNorth CarolinaFloridaM

issouriSouth DakotaVirginiaHawaiiColoradoIowaM

innesotaRhode IslandNebraskaSouth CarolinaIllinoisCaliforniaUnited StatesNew YorkNew Ham

pshirePennsylvaniaKentuckyIndianaW

isconsinAlabam

aM

arylandNevadaO

hioTexasArkansasTennesseeO

regonLouisianaUtahKansasM

assachusettsW

est VirginiaM

ississippiM

ontanaM

ichiganNorth DakotaNew M

exicoNew JerseyW

yoming

Oklahom

aDelawareIdahoConnecticutVerm

ontAlaskaM

aine

61

Number of Associate Degrees and Certificates in Engineering Technology Awarded (2003) Per 100 High School Graduates Three Years Earlier, 2000


4.8

3.7

3.3 3.2

3.2

3.0

3.0 2.9

2.7 2.6 2.5

2.5

2.5

2.5

2.5 2.3 2.2 2.1

2.1 2.0

2.0

2.0

2.0

2.0 1.9

1.9

1.9

1.9 1.8

1.8

1.8

1.6

1.6

1.6

1.6

1.6 1.5

1.5

1.5

1.3 1.2

1.2

1.2 1.1

1.1

1.1 1.0

1.0

1.0 0.9

0.5

0

1

2

3

4

5

HawaiiRhode IslandArizonaNorth DakotaDelawareIndianaVirginiaNebraskaM

issouriPennsylvaniaNorth CarolinaM

ichiganO

hioW

ashingtonO

regonNew M

exicoKentuckyFloridaAlaskaAlabam

aColoradoTexasW

est VirginiaLouisianaUnited StatesSouth CarolinaIowaSouth DakotaArkansasVerm

ontM

innesotaCaliforniaNew YorkW

isconsinTennesseeIllinoisM

assachusettsIdahoM

ississippiM

aineG

eorgiaUtahConnecticutNew Ham

pshireO

klahoma

Montana

Wyom

ingNevadaM

arylandKansasNew Jersey

62

Number of Associate Degrees and Certificates in Biological Sciences and Science Technology Awarded (2003) Per 100 High School Graduates Three Years Earlier, 2000


62.5

53.7

38.0

36.5 34.3

33.2

18.8

17.4

16.3 14.2

13.7

12.7

12.0 10.5 8.5 8.0

7.6

7.3

7.2 6.7

6.4

6.1

6.1

5.9

5.9

5.8

5.5

5.2

5.2 4.4

4.3 3.7

3.7

3.6 3.0

2.9

2.6

2.5

2.3

2.1

2.1

1.7

1.6

1.4 0.8

0.4

0.0

0.0

0.0

0.0

0.0

0

10

20

30

40

50

60

70

KansasW

yoming

West Virginia

TennesseeUtahTexasO

klahoma

LouisianaCaliforniaDelawareIdahoM

ississippiSouth CarolinaUnited StatesM

ichiganRhode IslandNew M

exicoO

hioPennsylvaniaNevadaM

assachusettsNew YorkColoradoNebraskaNew Ham

pshireIndianaNew JerseyM

issouriKentuckyIowaConnecticutVerm

ontM

arylandM

aineArizonaAlaskaW

ashingtonG

eorgiaW

isconsinM

innesotaO

regonM

ontanaAlabam

aFloridaNorth CarolinaIllinoisArkansasHawaiiNorth DakotaSouth DakotaVirginia

63

Bachelor’s Degrees Awarded per 100 High School Graduates

Six Years Earlier, 2002

Source: NCES-IPEDS Completions Survey, WICHE

0

25

50

75

100 98.5

50.8

39.4

22.3

Rhode IslandM

assachusettsVerm

ontDelawareColoradoArizonaUtahNew Ham

pshireNew YorkNorth CarolinaM

issouriIowaNorth DakotaPennsylvaniaFloridaKansasIndianaNebraskaW

ashingtonVirginiaM

ichiganUnited StatesO

regonW

isconsinM

ontanaAlabam

aM

arylandSouth CarolinaIllinoisSouth DakotaConnecticutO

klahoma

TennesseeLouisianaM

innesotaCaliforniaG

eorgiaM

ississippiO

hioTexasW

est VirginiaNevadaKentuckyM

aineHawaiiNew M

exicoArkansasNew JerseyIdahoW

yoming

Alaska

64

Number of Baccalaureate Degrees in Education Awarded (2003) Per 100 High School Graduates Six Years Earlier, 1997


8.1 8.0

7.6

7.1 7.0 6.8

6.8 6.7 6.6

6.6 6.3

6.3

6.3 6.1 6.0 5.9 5.7 5.6

5.6 5.5 5.4

5.4 5.3

5.3 5.2 5.1 5.0 4.9

4.9

4.9 4.8 4.6 4.5 4.3

4.3 4.1 3.9 3.6

3.0 2.9 2.8 2.7 2.5

2.5 2.2

2.2 2.1

1.2 1.1 0.9

0.2

0

1

2

3

4

5

6

7

8

9

DelawareNorth DakotaRhode IslandIndianaIowaAlabam

aNebraskaM

ississippiArizonaM

ontanaSouth DakotaUtahKansasNevadaO

klahoma

West Virginia

IdahoPennsylvaniaM

issouriM

innesotaNew M

exicoO

hioIllinoisNew YorkM

ichiganArkansasG

eorgiaLouisianaKentuckyFloridaM

aineW

isconsinSouth CarolinaNorth CarolinaW

yoming

United StatesNew Ham

pshireVerm

ontM

assachusettsTennesseeM

arylandW

ashingtonHawaiiNew JerseyAlaskaConnecticutO

regonVirginiaTexasCaliforniaColorado

65

Number of Baccalaureate Degrees in Health Sciences Awarded (2003) Per 100 High School Graduates Six Years Earlier, 1997


7.4

5.1

4.7 4.6

4.2 4.0 3.8

3.8

3.8 3.7 3.6

3.6 3.5 3.4

3.4 3.3 3.2

3.2

3.2

3.2 3.1

3.1 3.0

3.0

3.0 2.9 2.7

2.7

2.7 2.6

2.6

2.6 2.5

2.5

2.5

2.5 2.4

2.4

2.4

2.4 2.3

2.3

2.3 2.2 2.1

2.1 2.0 1.9 1.6 1.4 1.2

0

1

2

3

4

5

6

7

8

North DakotaNebraskaDelawareSouth DakotaLouisianaM

aineM

issouriW

est VirginiaArkansasAlabam

aKansasPennsylvaniaIndianaRhode IslandM

assachusettsNorth CarolinaNew YorkM

ississippiIdahoNew Ham

pshireFloridaM

ichiganW

isconsinUtahConnecticutVirginiaUnited StatesO

hioTennesseeG

eorgiaHawaiiIllinoisM

arylandIowaO

regonKentuckyNew M

exicoO

klahoma

ArizonaM

ontanaColoradoNevadaTexasM

innesotaW

ashingtonSouth CarolinaVerm

ontW

yoming

AlaskaCaliforniaNew Jersey

66

Number of Baccalaureate Degrees in Computer Science and Business Information Systems Awarded (2003) Per 100 High School Graduates Six Years Earlier, 1997


6.4

5.8

5.1

4.5

4.2 4.1 3.9

3.9 3.8

3.8 3.7 3.5

3.5

3.2

3.2 3.1 2.9 2.8

2.8

2.8 2.7

2.7 2.6

2.6

2.6 2.5

2.5

2.5 2.4

2.4

2.4

2.4 2.3

2.3

2.3 2.1

2.1

2.1 2.0 1.9

1.9 1.7 1.6 1.5 1.4

1.4

1.4 1.2 1.0

0.7

0.7

0

1

2

3

4

5

6

7

ArizonaRhode IslandM

issouriG

eorgiaM

arylandFloridaColoradoNebraskaUtahNew YorkHawaiiNorth DakotaM

assachusettsPennsylvaniaIllinoisNorth CarolinaUnited StatesKansasIowaNew Ham

pshireSouth DakotaTexasArkansasM

ichiganW

ashingtonM

innesotaAlabam

aVirginiaNew M

exicoCaliforniaNew JerseyNevadaO

hioW

isconsinIndianaO

klahoma

LouisianaO

regonM

ississippiConnecticutDelawareTennesseeSouth CarolinaIdahoKentuckyVerm

ontW

est VirginiaM

ontanaAlaskaM

aineW

yoming

67

Number of Baccalaureate Degrees in Engineering Awarded (2003) Per 100 High School Graduates Six Years Earlier, 1997


4.6 4.5

4.0

3.8 3.7

3.4 3.3 3.2 3.1

3.1

2.9

2.9

2.9

2.7

2.7 2.6

2.6

2.6 2.5

2.5

2.5 2.4

2.4

2.4 2.3

2.3 2.2

2.2

2.2 2.1 2.0

2.0

2.0

2.0

2.0

2.0

1.8

1.6

1.6

1.6

1.6 1.5 1.4

1.4

1.4

1.4

1.4

1.4

1.1

0.7

0.7

0

1

2

3

4

5

North DakotaColoradoM

ichiganM

assachusettsM

ontanaPennsylvaniaIndianaSouth DakotaUtahIowaAlabam

aArizonaDelawareNorth CarolinaW

isconsinRhode IslandNew YorkM

arylandVirginiaLouisianaFloridaW

yoming

United StatesNew M

exicoKansasO

hioCaliforniaG

eorgiaTennesseeO

regonO

klahoma

West Virginia

Missouri

Washington

TexasIdahoIllinoisNew JerseyVerm

ontSouth CarolinaM

aineConnecticutM

innesotaNew Ham

pshireNevadaArkansasNebraskaM

ississippiKentuckyHawaiiAlaska

72

Migration

73

607

-5,778

-11,761

-1,787

-1,962

603

-20,078

-25,000 -20,000 -15,000 -10,000 -5,000 0 5,000

806

1,151

-2,132

-819

2,108

1,187

2,301

-3,000 -2,000 -1,000 0 1,000 2,000 3,000

Hawaii Net Migration by Degree Level and Age Group

Source: U.S. Census Bureau, 2000 Census; 5% Public Use Microdata Sample (PUMS) Files

22- to 29-Year-Olds 30- to 64-Year-Olds

Less than High School

High School

Some College

Associate

Bachelor’s

Graduate/Professional

Total

75

Occupations with High Net Imports and Exports, 1995-2000


All 22- to 29-Year-Olds

Construction Trades Workers

Material Moving Workers

Other Production Occupations

Financial Clerks

Supervisors, Sales Workers

Law Enforcement Workers

Material Recording, Scheduling, Dispatching, & Distributing Workers

Financial Specialists

Computer Specialists

Retail Sales Workers

Air Transportation Workers

Health Diagnosing & Treating Practitioners

Vehicle & Mobile Equipment Mechanics, Installers, & Repairers

Operations Specialties Managers

Other Military Occupations

Electrical & Electronic Equipment Mechanics, Installers, & Repairers

First-Line Enlisted Military Supervisor/Managers

Military Officer Special & Tactical Operations Leaders/Managers

Cooks & Food Preparation Workers

Military Enlisted Tactical Operations & Air/Weapons Specialists & Crew

-998

-584

-568

-549

-404

-385

-349

-343

-274

263

354

367

371

388

445

473

599

803

1,494

-439

-1,000 -500 0 500 1,000 1,500

76



22- to 29-Year-Olds with College Degrees

-230

-170

-136

-131

-107

-102

-96

-96

-89

123

135

139

152

170

213

250

338

379

469

-124

-300 -200 -100 0 100 200 300 400 500




Sales Representatives, Services


Financial Clerks

Secretaries & Administrative Assistants

Media & Communication Equipment Workers

Business Operations Specialists

Other Office & Administrative Support Workers

Lawyers, Judges, & Related Workers


Information & Record Clerks

Postsecondary Teachers

Other Management Occupations

Food & Beverage Serving Workers

Air Transportation Workers



Military Officer Special & Tactical Operations Leaders/Managers

77


All 30- to 64-Year-Olds


-1,721

-1,402

-1,280

-978

-818

-765

-757

-722

-713

117

152

153

164

248

254

283

290

443

677

-843

-2,000 -1,500 -1,000 -500 0 500 1,000


Information & Record Clerks





Other Installation, Maintenance, & Repair Occupations


Secretaries & Administrative Assistants

Supervisors, Office & Administrative Support Workers

Fishing & Hunting Workers

Grounds Maintenance Workers


Other Protective Service Workers

Social Scientists & Related Workers

Other Food Preparation & Serving Related Workers

Textile, Apparel, & Furnishings Workers

Cooks & Food Preparation Workers

Building Cleaning & Pest Control Workers

Agricultural Workers

78


30- to 64-Year-Olds with College Degrees


-953

-552

-521

-477

-367

-349

-332

-280

-230

100

103

104

121

134

136

183

197

217

268

-429

-1,000 -800 -600 -400 -200 0 200 400






Supervisors, Office & Administrative Support Workers


Financial Clerks

Military Enlisted Tactical Ops. & Air/Weapons Specialists & Crew

Other Management Occupations

Supervisors of Installation, Maintenance, & Repair Workers

Other Education, Training, & Library Occupations

Supervisors, Food Preparation & Serving Workers


Building Cleaning & Pest Control Workers


Agricultural Workers

Other Military Occupations

Social Scientists & Related Workers

Other Protective Service Workers

79

Finance Policy—The Options

Core Capacity

CapacityUtilization/

Public Agenda

Institution StudentFocused Focused

Tuition and Aid Policy Focused on

Revenue Generation

Tuition and Aid Policy Focused on Attainment of Specified Outcomes

Base-Plus Formulas Investment

Funds

Performance Funding Need-Based

Merit-Based

Tax Revenues


Tuition

Scholarships &

Waivers

Student Aid(Restricted)

Economy


FederalGovernment

Income

Students UH System

Community Colleges

WestOahuManoa Hilo

The Flow of Funds

80

81

Basic Questions at State Level

How Much to Allocate

To Which Recipients—Students or Institutions

Using Which Mechanisms

82

State and Local Surplus or Shortfall as a Percent of

Baseline Revenues in Year 2010

Source: Rockefeller Institute of Government 2002

1 23456789

1011121314151617

Vermont 3.1North Dakota 2.2Maine 1.3New Jersey 0.6Delaware 0.2Wisconsin 0.0Kansas -0.3Montana -0.4Maryland -0.5New Hampshire -0.6Arizona -0.7Massachusetts -0.8Utah -0.8Oklahoma -1.3Oregon -1.3Nebraska -1.4Ohio -1.4

Rank State Percent181920212223242526272829

30313233

South Dakota -1.7Michigan -1.7Rhode Island -1.9Minnesota -1.9Colorado -2.3Alaska -2.4California -2.5Connecticut -2.9West Virginia -2.9Pennsylvania -2.9Virginia -3.0Georgia -3.2United States -3.4Kentucky -3.4Arkansas -3.5Hawaii -3.6New Mexico -3.6

Rank State Percent3435363738394041424344454647484950

Iowa -3.7New York -3.8Illinois -4.2Missouri -4.7Washington -4.9Idaho -5.0Indiana -5.2North Carolina -5.6Texas -5.7Florida -5.7South Carolina -6.3Wyoming -7.8Mississippi -8.6Louisiana -8.8Alabama -9.2Nevada -9.2Tennessee -9.7

Rank State Percent

83

Percentage Change in Spending to Maintain

Current Services

H.E.

8-Year Spending Growth Rate

1 23456789

101112131415161718

192021222324

NevadaNew JerseyVirginiaConnecticutMassachusettsIllinoisArizonaPennsylvaniaDelawareColoradoMarylandRhode IslandMichiganCaliforniaNorth CarolinaFloridaNew YorkAlaskaUnited StatesOhioNew HampshireMissouriTennesseeIndianaWisconsin

Rank State

Annual Avg. Advantage for

Higher Ed. All Programs1.91.30.60.40.30.30.30.1

-0.1-0.2-0.2-0.2-0.3-0.3-0.3-0.6-0.6-0.7-0.7-0.7-0.7-0.7-0.9-1.0-1.1

67.539.547.440.039.939.259.937.542.650.342.638.937.552.255.357.544.141.847.440.246.843.651.945.838.9

93.654.154.344.643.642.563.138.341.948.540.837.034.248.551.351.037.434.740.032.739.135.641.535.327.9

H.E.

8-Year Spending Growth Rate

2526272829303132333435363738394041424344454647484950

GeorgiaKentuckyTexasIowaMinnesotaSouth CarolinaWashingtonKansasOklahomaArkansasHawaiiWest VirginiaOregonNebraskaMontanaAlabamaMaineUtahIdahoMississippiVermontLouisianaNorth DakotaSouth DakotaNew MexicoWyoming

Rank State

Annual Avg. Advantage for

Higher Ed. All Programs-1.0-1.1-1.2-1.5-1.5-1.4-1.5-1.7-1.7-1.7-1.9-2.0-1.9-2.1-2.2-2.0-2.2-2.1-2.2-2.2-2.9-2.7-3.3-3.2-3.0-4.5

59.247.956.141.742.159.451.039.340.546.943.943.752.540.836.849.642.551.254.952.937.846.733.738.153.444.1

47.335.542.726.627.043.834.522.623.528.523.922.731.419.515.127.820.128.731.028.910.218.8

3.37.2

21.91.6

Source: Rockefeller Institute of Government 2002

84

Tax Capacity vs. Tax Effort—Indexed to U.S. Average,

1980-2002 (Hawaii)

80

100

120

140

160

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

Source: Kent Halstead and State Higher Education Executive Officers

U.S. Average

Tax Capacity

Tax Effort

85

Higher Education Appropriations as a Percent of Tax

Revenues—Indexed to U.S. Average, 1980-2002 (Hawaii)

60

80

100

120

140

160

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02


U.S. Average

86

State Appropriations per Student vs. Family Share of

Funding—Indexed to U.S. Average, 1980-2002 (Hawaii)

0

50

100

150

200

250

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02


U.S. Average

State Appropriations per Student

Family Share of Funding

87

Alignment of Policies

Appropriations to Institutions

Tuition and Fees

State Student Financial Aid

Institutional Student Financial Aid

Regarding:

88

Funding to Institutions—Core Capacity

Base-Plus

Formulas

Investment Funds

90

Additional Revenues Required to Reach Peer Group

Medians (Unadjusted for Cost of Living, In Thousands)

Source: NCHEMS, NCES, IPEDS 2002-03 Finance Data Sets Fiscal Years 1998, and 2001

UH Manoa $46,530 $66,865

UH Hilo 1,248 2,303

UH West Oahu 310 2,219

Kauai CC 0 0

Hawaii CC 2,383 3,289

Maui CC 92 3

Honolulu CC 634 3,195

Kapiolani CC 2 503

Windward CC 1,300 1,500

Leeward CC 0 2,509

Total $52,499 $82,386

1998 2001

91

Funding to Students—Core Capacity—Revenue

Generation

Base Institutional Tuition

Mandatory Fees

Out-of-State Tuition

Differential Tuition

Scholarships and Fellowships

92

Tuition and Fees Per FTE Student, 2002-03

Source: NCHEMS, NCES, IPEDS 2002-03 Finance Data Set

$5,708

$6,225

$3,999

$4,346

$3,123

$3,489

$3,148

$3,993

$3,369

$9,930$3,780

$2,231$909

$2,217$1,295

$1,695$276

$1,542$362

$2,040$244

$1,826$826

$2,369$536

$1,422$207

$1,773$309

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000

UH Manoa

UH Hilo

UH West Oahu

Kauai CC

Hawaii CC

Maui CC

Honolulu CC

Kapiolani CC

Windward CC

Leeward CC

93

Tuition and Fee Revenues Per FTE Student as a

Percent of Peer Group Medians, 2002-03


47.3

65.9

88.5

97.8

107.3

118.3

137.1

141.3

141.9

74.2

0 25 50 75 100 125 150

UH West Oahu

Windward CC

UH Manoa

UH Hilo

Hawaii CC

Honolulu CC

Kapiolani CC

Kauai CC

Maui CC

Leeward CC

94

Tuition & Fees as a Percent of State & Local

Appropriations and Tuition & Fees, 2002-03


55.2

67.9

49.9

51.3

75.2

46.4

53.5

60.7

43.2

18.8

20.18.7

24.48.7

100.013.74.0

16.05.1

24.46.3

22.110.8

30.18.2

20.94.0

26.96.9

0 10 20 30 40 50 60 70 80 90 100

UH Manoa

UH Hilo

UH West Oahu

Kauai CC

Hawaii CC

Maui CC

Honolulu CC

Kapiolani CC

Windward CC

Leeward CC

95

96

Tuition and Fees as a Percent of Low Quintile

Median Family Income, 2002-03

Source: NCES, IPEDS 2002-03 Institutional Characteristics FileU.S. Dept. of Commerce, Bureau of the Census, March Current Population Surveys 2001-03

42.1

41.8

37.8

28.9

38.2

49.6

35.1

47.3

42.5

42.5

25.822.2

18.314.8

15.810.4

8.17.6

8.34.0

8.12.4

8.22.2

8.42.8

8.12.8

8.12.3

0 10 20 30 40 50

UH Manoa

UH Hilo

UH West Oahu

Kauai CC

Hawaii CC

Maui CC

Honolulu CC

Kapiolani CC

Windward CC

Leeward CC

97

Tuition and Fees as a Proportion of Low Quintile Median

Family Income, 2002-03 (Campus minus peer group median)


-4.5

-4.9

-7.4

-7.6

-8.2

-8.3

-8.4

-8.7

-9.1

-6.0

-10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0

Honolulu CC

Kauai CC

Maui CC

Windward CC

Hawaii CC

Leeward CC

UH West Oahu

UH Hilo

UH Manoa

Kapiolani CC

98

Funding Institutions—Capacity Utilization

Performance Funding

99

Funding Students—Capacity Utilization

Need-Based Aid

Merit-Based Aid

100

Relationships Between “Need-Based” and

“Merit-Based” Aid

Merit-BasedMerit-BasedNeed-BasedNeed-Based

101

Conclusions

Clear Understanding of Priorities

Creation/Maintenance of Necessary Capacity

Alignment of Policies Concerning: Institutional Support Tuition and Fees State Student Financial Aid Institutional Student Financial Aid

Cost-Effective Policy Requires:

102

Achieving Alignment

No Simple Answers

Shared Information About Key Factors Is Crucial

Adequacy of Institutional Funding

Affordability to Students

Availability of State Funding

(continued)

103

Achieving Alignment (cont.)

Common Interpretation Is Similarly Crucial

Institutional Funding Is Adequate/Inadequate

Cost of Attendance Is Affordable/Unaffordable

State Resources Will Be Available/Unavailable

Develop an Overall Strategy that Fits the Circumstances

Develop “Compacts” Between State and Institutions

The Policy Environment for an Institution of Higher Education

Documents

census bureauage

percent of population

projected population

state workforce

projected change

high school diplomaage

personal income

hawaiis population