National Center for Higher Education Management Systems nchems.org • higheredinfo.org You Are Not Alone Pursuing Goals in the Face of Budget Cuts University of Alaska Leadership Summit Anchorage, Alaska November 29, 2016
NationalCenterforHigherEducationManagementSystems
nchems.org• higheredinfo.org
YouAreNotAlonePursuingGoalsintheFaceofBudgetCuts
University ofAlaskaLeadershipSummitAnchorage,Alaska
November29,2016
Alaska’sOverarchingGoal:
65%ofAlaska’sworkingagepopulationwillhaveapostsecondaryeducationcredential– adegreeorcertificate
ofvalue– by2025.
StateswithStatedPostsecondaryAttainmentGoals
Source:LuminaFoundation/StrategyLabs.
=StatedAttainmentGoals
AttainmentGoalDescriptionsState Goal TargetAges GoalDate Notes
Alaska 65% 25-64 2025Arizona 60% 25-64 2030Arkansas 60% 25-64 2030 Arkansashasagoalofincreasingthenumberofpostsecondary
credentialsby40percentover2013-14academicyearlevels.Colorado 66% 25-34 2025 Reduceattainmentgapsamongunderservedpopulations.
Connecticut 40%Bacc;30%Assoc. 25-64 2025 Goalis40%withaBaccalaureateand30%withanAssociate’sDegree.
Georgia 60% 25-34 2020Hawaii 55% 25-64 2025 UHincreaseby6-9%everyyear.Idaho 60% 25-34 2020Illinois 60% 25-64 2025Indiana 60% 25-64 2025Iowa 70% 25-64 2025 Goalis"educationortrainingbeyondhighschool"
Kansas 60% 25-64 2025Kentucky 58% 25-64 2025Louisiana 42% 25-64 2025 Goalof7.2%annualgrowthrate.Maryland 55% 25-64 2025Massachusetts 60% 25-34 2020Minnesota 70% 25-44 2025Missouri 60% 25-64 2020Montana 60% 25-64 2020Nevada 60% 25-64 2020NewHampshire 65% 25-64 2025
Oregon 40-40-20 25-64 2025 40%withaBaccalaureate, 40%withanAssociateDegreeorCertificate,and20%withaHighSchoolDiploma.
RhodeIsland 60% 25-64 2025SouthCarolina 29%w/Bachelor'sor
Higher25-64 2030
Tennessee 55% 25-64 2025Texas 60% 25-34 2030Utah 66% 25-64 2020Virginia 60.50% 25-64 2030 Top10%BenchmarksWashington 70% 25-44 2023
StateRevenueShortfallsHaveBecomeIncreasinglyCommonOverthePastDecade
• Stateshavenotadaptedtothe“newnormal”• Taxstructureshaven’tkeptpacewithchangesinunderlying
economies• Taxcollectionsfallingshortofbudgetedfigures– evenwhen
budgetestimatesareconservative
Statesbehavingasifthey’reinarecession,eventhoughnationisinaprolongedperiodof(albeit
modest)economicimprovement.
StateTaxRevenueEstimates
April-June2015vs.2016,PercentChange
-32%to-5.0%
-4.9%to-0.1%
0%to4.9%
5%to13.8%
NoData
Source:USAToday,October27,2016,FrankPompa,JimSergent.
Dataisestimated forNewMexico,RhodeIsland,Connecticut,andNewJersey
• Moststrategiesfordealingwithbudgetcutsreallyaren’tstrategies.They’restepsofleastinstitutionalinconveniences.– Cutsareanaberration–waitayearortwoandwecanresume
businessasusual– Cutsseldommadeincontextofthelongview
Level1Response
• RaiseRevenue.Thistypicallymeanstakingstepstoincreasetuitionrevenue– Raiserates– Differentialtuitionforhighcostprograms– Enrollmoreoutofstatestudents
StudentShareofEducationCostsColorado
StudentShareofEducationCostsAlaska
Level2Response
• Maketheeasycuts– thosethatdon’tinvolvepeople.– Don’tfillemptypositions– Reduceexpenditureson
• Travel• Supplies• Maintenance• Equipment
– Thereisnothingaboutsuchapproachesthatreferences/protectspursuitofgoals
– Theyarelargelyexercisesinpostponement,notreduction
Level3Response
• Maketheharder,buteasilydefendedcuts.– Cutprogramsthatareleastproductive– SubstitutePTemployeesforFTemployees– Outsourcefunctionsthataren’tcentraltoinstitutionalmission– Eliminateservicesatremotesites
Theseareretrenchmentstrategiesthatlikelyresultinservingfewerstudents– inconsistentwithgoalattainment
Level4Response
• Redesigncourses.– Typicallylarge,lower-divisioncourses– ReengineercoursesinawaysimilartothatadvocatedbytheNational
CenterforAcademicTransformation(NCAT)– Evidenceindicatesthisapproachyields
• Improvedlearningoutcomes• Atreducedcosts(≈ 40%less)
Animportanttactic,butworksbestaspartofalarger,deliberateprocess.
Level5Response
• Redesignprogramsandtheirdelivery.– Redogeneraleducation
• Substantiallyreducethenumber ofcourseseligible forgeneraleducationcredit– Takecuesfromchoicesstudents aremaking
– Standardizemajors– removeoptionsthatresultinsmallclasses– Consideralternativedeliverymodes
• Online• Competency-based
Butdon’tforgettokeepfocusongoalattainment.
Level6Response
• Redesignthesystem– Startwiththepropositionthatneedsofstudentsandemployersinall
partsofthestatemustbemet– Determinethearrayofassetsneededtomeettheseneeds– Differentiatetheeducationalcapacityoneachcampus– Usetechnologytodeliverthiscapacityto
• Studentsonothercampuses• Remotesites
– Ensure“hightouch”servicesareavailableateachsite– Standardizeprocesses– Centralizebackofficeoperations