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SHOW ME THE MONEY!!! June 2010 Dr. Jenny House, Ph. D. President, Red. Rock SHOW ME THE MONEY!!! June 2010 Dr. Jenny House, Ph. D. President, Red. Rock Reports

Agenda n Funding trends for education n K-12 trends n Community College and 4 Agenda n Funding trends for education n K-12 trends n Community College and 4 Year College trends n. Q & A Red. Rock Reports Confidential

ARRA NCLB FY 11 Budget ESEA Reauthorization Other Government Agencies Private Foundations State Changes ARRA NCLB FY 11 Budget ESEA Reauthorization Other Government Agencies Private Foundations State Changes Red. Rock Reports Confidential

FY 11 Budget n Graduation Promise Grants q Strengthen high schools q $1. 2 FY 11 Budget n Graduation Promise Grants q Strengthen high schools q $1. 2 B over 5 years n Special Ed q $1, 750 per student vs ARRA $3, 395 q 17% vs. promised 40% federal share n Higher Ed q Increase of $68. 6 B over 10 years for Pell grants Red. Rock Reports Confidential

Federal Education Funding Red. Rock Reports Confidential Federal Education Funding Red. Rock Reports Confidential

Without Reauthorization Program 2010 Request Increase Race to the Top 0 $1. 35 B Without Reauthorization Program 2010 Request Increase Race to the Top 0 $1. 35 B I 3 0 $500 M SIG $545. 6 M $900 M $354. 4 M TIF $400 M $800 M $400 M Tchr Recruit 0 $50 M School Ldr $29. 2 M $79. 2 M $50 M Charter S $256 M $310 M $54 M Promise Neighborhoods $10 M $200 M Red. Rock Reports Confidential

Who gets more? n School Turnaround Grants (now SIG) $354 M (+65%) n Assessing Who gets more? n School Turnaround Grants (now SIG) $354 M (+65%) n Assessing Achievement (Grants for State Assessments and Grants for Enhanced Assessment Instruments) $39. 2 M (+9. 6%) n Promise Neighborhoods $200 M (+2, 000%) n Magnet School Assistance $10 M (+10%) n ELL State Grants $50 M (+6. 7%) Red. Rock Reports Confidential

Critical Issues n Virtually all of increases in ESEA are for competitive grants q Critical Issues n Virtually all of increases in ESEA are for competitive grants q No stable budget predictions q Districts will not be awarded funds q Favors good grant writing q Freeze in Title I – hard to close achievement gaps q States facing funding cliffs Red. Rock Reports Confidential

Perkins Act n Current - $1, 160. 91 M n Proposed - $1, 264 Perkins Act n Current - $1, 160. 91 M n Proposed - $1, 264 M n Proposed changes: q Consolidation of Tech Preps with Basic State Grants q Basically freezing funding level q Jobs? Red. Rock Reports Confidential

ESEA Reauthorization n Effective Teachers and Leaders n Teacher and Leader Innovation Fund n ESEA Reauthorization n Effective Teachers and Leaders n Teacher and Leader Innovation Fund n Teacher and Leader Pathways n Effective Teaching and Learning: Literacy n Effective Teaching and Learning: STEM n Effective Teaching and Learning for a Well -Rounded Education Red. Rock Reports Confidential

More… n College Pathways and Accelerated Learning n Successful, Safe and Healthy Students n More… n College Pathways and Accelerated Learning n Successful, Safe and Healthy Students n Expanding Educational Options Red. Rock Reports Confidential

National Priority: Policymakers have identified state and community colleges as central to economic recovery National Priority: Policymakers have identified state and community colleges as central to economic recovery Obama’s “American Graduation Initiative” n n Goal: Postsecondary education for every American. Goal: 5 million more Americans will earn college degrees and certificates. Goal: World’s highest proportion of college graduates by 2020. $2. 5 billion in challenge grants over 4 years(originally $12 billion over 10 years). Degrees & Technical Certificates Strengthen Employment Opportunities n n n Eight years after graduating from high school, 43% of technical certificate holders earn a median annual salary higher than those with an Associate’s Degree; 27% earned more than those with a Bachelor’s Degree. 1 Those with a college degree are one-half as likely to be unemployed compared to those with a high school diploma. 2 More than half of future jobs will require more than a high school degree but less than a four-year degree. 3 Colleges Step Up to the Challenge n “Democracy’s Colleges Call to Action”: AACC and five other national higher education organizations have pledged to increase student completion rates by 50%. Red. Rock Reports Confidential

Reform Must Address Traditional Barriers “It's time to reform our community colleges so that Reform Must Address Traditional Barriers “It's time to reform our community colleges so that they provide Americans of all ages a chance to learn the skills and knowledge necessary to compete for the jobs of the future. ” - President Barack Obama Addressing barriers to credential attainment: n n n Increase graduation rates - Nearly half of students who enter community college intending to earn a degree or transfer to a four-year college fail to reach their goal within six years. Maintain affordability. Foster communities of students, professors and counselors, and tailor colleges to promote the success of working adults. Improve states' efforts to track student progress, completion, and success in the workplace. Modernize Community College facilities to keep up with rising enrollments and train students in technical fields. Red. Rock Reports Confidential

41 states have cuts assistance to public colleges and universities © 2010, Center on 41 states have cuts assistance to public colleges and universities © 2010, Center on Budget and Policy Priorities Red. Rock Reports Confidential

Public Institutions Approach ‘The Cliff’ n $54 billion in Fiscal Stabilization Funds to states Public Institutions Approach ‘The Cliff’ n $54 billion in Fiscal Stabilization Funds to states have helped colleges cover the gaps. n American Association of State Colleges and Universities says states will spend 86% by the close of FY 2010 (June 30, 2010 for most states) n Congress now considering “Keep Our Educators Working Act, ” earmarking $23 billion to replace money states have cut or will cut from 2010 and 2011 budgets for elementary/secondary schools and public colleges and universities. Red. Rock Reports Confidential

Federal Funds Available “Increased funding as a result of the federal stimulus package and Federal Funds Available “Increased funding as a result of the federal stimulus package and the Obama administration’s recognition of education providers as critical drivers of social mobility and economic development place state colleges in a good position. ” - Daniel Hurley, Director of State Relations and Policy Analysis, AASCU Stimulus funding programs: n Departments of Agriculture, Commerce, Defense, Education, Energy, Health & Human Services, Housing & Urban Development, and Labor. n EPA, NASA, and NSF. Red. Rock Reports Confidential

Recent legislation poses significant opportunities for institutions to leverage additional resources n Student Aid Recent legislation poses significant opportunities for institutions to leverage additional resources n Student Aid and Fiscal Responsibility Act (SAFRA) q Elements of President Obama’s “American Graduation Initiative, ” which invests in two-year programs. The legislation calls for $3 billion over five years to be invested in the College Access and Completion Initiative Program aimed at innovations in college student retention and completion. n American Recovery and Reinvestment Act of 2009 (ARRA) q Included $100 million for the Teacher Quality Enhancement Program. n Workforce Investment Act (WIA) q Nearly $4 billion in 2010 funds for employment and training services n Fund for the Improvement of Postsecondary Education (FIPSE) q Through annual federal appropriations process, institutions can explore avenues for creative projects. Red. Rock Reports Confidential

Finding Opportunities: Dovetailing with National Policy Priorities Public higher education institutions are eligible for Finding Opportunities: Dovetailing with National Policy Priorities Public higher education institutions are eligible for stimulus and other federal funding in specific policy areas targeted by the Obama Administration as key to economic recovery: n Healthcare Reform n Energy Efficiency, Independence & Green Jobs n Postsecondary Success n Workforce Preparation/Retraining n Global Competitiveness Red. Rock Reports Confidential

Examples… The following slides highlight federal funding initiatives involving awards and/or eligibility for community Examples… The following slides highlight federal funding initiatives involving awards and/or eligibility for community and public colleges in targeted areas of national policy. Red. Rock Reports Confidential

Examples: Healthcare n Health and Human Services q $144 Million in Recovery Act Funds Examples: Healthcare n Health and Human Services q $144 Million in Recovery Act Funds to institutions of higher education and research for ‘Widespread Adoption of Health Information Technology, ’ including Electronic Medical Records. q $250 Million Investment to strengthen primary health care workforce. n Department of Labor q More than $225 million for community colleges and state agencies to prepare workers for healthcare and other high growth fields. q $5 million for nursing at the Community College of Baltimore County. q $14. 7 million in grants to the AACC and nonprofits for healthcare training and virtual service-delivery models. q Grants available to community colleges and other training institutions for career pathway programs that prepare workers for the health care sector. n USDA q $34. 9 million in funding for Distance Learning and Telemedicine Projects, including community and state schools in a dozen states. Red. Rock Reports Confidential

Examples: Energy & Green Jobs n US Department of Energy q Funding was available Examples: Energy & Green Jobs n US Department of Energy q Funding was available in every state for Public School Districts, Public Colleges and Universities, and State Agencies toward energy efficiency and renewable energy projects. q Smart Grid Technology: grants to prepare students for careers in a modernized energy sector. q $40 billion of $787 billion in stimulus funds nationally was targeted to clean energy and energy efficiency. q $29 million for Weatherization training. q $76 Million for Advanced Energy-Efficient Building Technologies and Commercial Building Training Programs. n US Department of Labor: Competition Grants q q $100 million for Energy Training Partnership Grants. $150 million Pathways Out of Poverty. $190 million in State Energy Sector Partnership and Training Grants. Training for Sustainable Energy Technicians. Red. Rock Reports Confidential

Examples: Postsecondary School Success n Health Care and Education Reconciliation Act of 2010 provides Examples: Postsecondary School Success n Health Care and Education Reconciliation Act of 2010 provides $2. 6 billion in mandatory funding for Historically Black Colleges and Universities, and other minority-serving institutions. n USDA Higher Education Challenge Grants n Department of Education: Office of Postsecondary Education q Student Support Services Program: more than $268 million to increase college retention and graduation rates. q Higher Education Center for Alcohol, Drug Abuse and Violence Prevention Grants n President's FY 2010 budget includes five-year, $2. 5 billion fund to improve college success and completion, particularly for students from disadvantaged states. n Data & Reporting q Student Aid and Fiscal Responsibility Act (provides funding to expand state data systems to track students’ performance. Red. Rock Reports Confidential

Examples: Workforce n n Trade Adjustment Assistance for Communities: Community College and Career Training Examples: Workforce n n Trade Adjustment Assistance for Communities: Community College and Career Training Grant Program received $500 million in mandatory annual funding for FY 2011 - FY 2014 (2010 Reconciliation Act). Revisions to this bill would clarify that only public and nonprofit educational institutions are eligible for this program. US Department of Labor q Youth. Build and Prisoner Re‐Entry q $1. 4 million in Trade Adjustment Assistance Technical Assistance and Outreach Partnership Grants to three organizations to provide services in 10 states, with public & community colleges among the service providers. q $125 million in grants for Community-Based Job Training Grants q With HHS, nearly $1 Billion Recovery Act Investment in Advancing Use of Health IT, Training Workers for Health Jobs of the Future, including training at community colleges Health Care and Education Reconciliation Act of 2010 includes $2 billion over four years for community colleges to help unemployed Americans. “Jobs. Now: 12 in 6”: community colleges in North Carolina receive d$13. 4 million in federal stimulus funds to train students in less than six months for 12 job areas. Red. Rock Reports Confidential

Examples: Global Competitiveness n Department of Commerce q National Institutes of Standards and Technology Examples: Global Competitiveness n Department of Commerce q National Institutes of Standards and Technology (NIST) grants for construction/expansion of scientific research facilities. q With USDA, colleges targeted for federal investments in broadband & community infrastructure. q Gainesville, FL Region receives $1. 67 million for Allied Health and Biotechnology Jobs. q University Center Economic Development Program funds make universities resources available to economic development communities. n “America Competes Act” provides $40 billion for STEM (Science, Technology, Engineering, and Math) education Red. Rock Reports Confidential

Private Funding Trends: College Access and Completion n Bill & Melinda Gates Foundation: Postsecondary Private Funding Trends: College Access and Completion n Bill & Melinda Gates Foundation: Postsecondary Success Initiative Up to $100 million to replace weak remedial college programs, identify and mitigate barriers to completion. n Carnegie Foundation: Urban and Higher Education In 2010, nearly $7 million in projects for systemic change K - 16, with particular emphasis on secondary and higher education, and success for historically underserved populations and immigrants. n Lumina Foundation Grants aimed at increasing higher education attainment rate in the US to 60 percent by 2025 – an increase of 23 million graduates. Red. Rock Reports Confidential

Private Funding Trend: Research & Best Practices “Institutions have begun experimenting with innovations such Private Funding Trend: Research & Best Practices “Institutions have begun experimenting with innovations such as online teaching, redefining the role of professors, rethinking the connection between academic programs and labor market readiness, and creating entirely new colleges. Still, there has been little research on efforts to innovate or increase productivity within higher education” – American Enterprise Institute for Public Policy Research n Jobs for the Future (sample projects) q Achieving the Dream: helping community college students earn valued credentials. q Time to Completion: Builds on experiments by states, systems, and institutions to improve timely postsecondary degree completion. n Completing College America q Increase number of Americans with a college degree or credential, and closes attainment gaps through policy change. q Support from Bill & Melinda Gates Foundation, Carnegie Corporation of New York, Ford Foundation, Lumina Foundation for Education, W. K. Kellogg Foundation n MDRC: Opening Doors q Study factors affecting college enrollment and completion and produce a policy brief in 2010. Red. Rock Reports Confidential

Summary n A concerted effort is underway by public and private funders to improve Summary n A concerted effort is underway by public and private funders to improve student access and graduation rates in community and state colleges. n Federal stabilization funds intended to make up for state budge cuts will soon be spent down. n Recovery Act and federal programs intended to build infrastructure and worker capacities are funding state and community colleges as centers of training and innovation. n Initiatives to access and leverage funding should align with: q q q Healthcare Energy efficiency Postsecondary success Workforce preparation Global Competitiveness n The time to act is now. Red. Rock Reports Confidential

Resources: n Considerations for State Colleges and Universities in a Post-Recession America http: //www. Resources: n Considerations for State Colleges and Universities in a Post-Recession America http: //www. aascu. org/media/publications/09 hurleywhpaper. pdf n AASCU, President Barack Obama and America’s Public Colleges and Universities http: //www. congressweb. com/aascu/obama_higher_ed. htm n www. cef. org Red. Rock Reports Confidential

For more information contact: Jenny House, Ph. D. Red. Rock Reports Jhouse@redrockreports. com 650 For more information contact: Jenny House, Ph. D. Red. Rock Reports [email protected] com 650 -561 -9223