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Faculty Salaries Remain Flat

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AAUP released its annual academic salary information this week. The data show, once again, that faculty salaries have not kept up with inflation, that they have not increased significantly over many years, and that the pay gap between professors at public and private institutions continues to grow.

Although these data do not address the rapidly increasing costs of benefits (healthcare especially), they do make clear that the growing cost of tuition is not primarily driven by increasing faculty salaries, a popular argument. Don’t expect that explanation to fall out of favor, however, as previous years of data have seemed to make no impact on its prevalence.

Scholarship and Web 2.0: Opportunity, Challenge or Both?

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Political Science professor Charli Carpenter made an 8 minute video presentation at the International Studies Association (ISA) conference last week in San Diego that has since been making the Internet rounds. The provocative video ‘mash-up’ highlights the changes and challenges that social media and other web technologies have brought to traditional academic work and communication. While focused on International Relations, the points are widely applicable across disciplines.

Carpenter presents these massive changes, what she refers to as a broadening and flattening of knowledge, quite uncritically. However, she does emphasize that she is not ready to judge them good or bad for academia or for knowledge, but feels there are a number of testable questions about the impact of technology and social media on the intersection of academia and the ‘rest of the world’ that should be the focus of systematic analysis.

As higher education faces external challenges from a host of stakeholders about its value, real world application, and adaptation to the modern world, the topics addressed in this presentation are especially interesting. Does broad and flat come at the expense of focused and deep?

Change? Us?

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City University of New York dean Ann Kirschner (note she also sits on the Apollo Group’s Board of Directors) posted an article in The Chronicle of Higher Education yesterday about “change” in higher education. She characterized the “glacial pace” at which higher education institutions evolve despite funding crises, new technology, and mounting pressure from for-profit institutions and federal political agendas. This article correctly identifies many of the challenges facing public higher education and also, the need to meet old and new challenges with new ideas.

However, one thing missing from this piece is an analysis of what things about higher education today (and yesterday) are worth protecting, preserving and investing in more deeply. Further, we would like to challenge the claim that universities have not evolved during the last century. Students donning clickers, ID cards with electronic journal access, and nearly 24-hour email access to professors might agree. Kirschner’s article appropriately identifies many of the challenges that make change difficult at (sometimes) huge, complex, and varied institutions. However, we would add that each institution must examine its values and determine what is worth preserving (or even, expanding) and what is in need of reform, and then reform quickly. As many of the thoughtful comments on this article state, change for change’s sake, or the wholesale adoption of untested change is more than futile, it can be incredibly destructive.

Pace of College Enrollment Slows

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At the beginning of the economic downturn in late 2008, a higher than expected number of Americans turned to higher education, leading to a 7.1 percent increase in college enrollment for 2009. This phenomenon is typical of recessions as many need to refresh their qualifications and/or increase their skill sets when faced with a volatile job market. A new NCES report finds that while enrollment increased again in 2010, it went up by at a more modest rate, 2.8 percent. Some other interesting findings from the latest NCES data include:

  • For first-time freshmen, one-year retention rates were 72 percent for full-time students, but only 44 percent for part-time students.
  • Public four-years got 19 percent of their funding from tuition dollars, while private non-profits and for-profits relied on tuition for 33 percent and 91 percent of their revenues, respectively.
  • The average six-year graduation rate for full-time students across all four-year schools, public and private, was 58 percent in 2004.
  • In 2009-2010, 82 percent of first-time, full-time undergraduates received financial aid. Of those students receiving grant aid, the average net price (sticker price minus grant aid) of attending a public 4-year university was $10,200 (the net price was $16,700 at private non-profits and $23,800 at private for-profits).
  • Men made up a slightly higher proportion of enrollments in 2009 than they did in 2008, 42.8 percent versus 42.6 percent respectively.

The report and data are available in the IES brief. Find additional analysis in this Inside Higher Ed article.

No Material Change to UW Funding in New House Budget

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In a final effort to pass an omnibus operating budget before the end of the first special session of 2012, the House introduced what the Democratic Caucus deemed a compromise, amended budget Wednesday and passed the budget off the floor yesterday. This second engrossed House budget is nearly identical to the first engrossed House budget in its treatment of higher education institutions.

As a reminder, an engrossed budget must be adopted by the opposite chamber before it is sent to the Governor. If the opposite chamber amends the budget, the budget is returned to the house of origin for concurrence or further amendments.

What remains to be seen is whether the Senate will hear the House budget before Tuesday (which marks the end of the first special session of 2012) and either amend it or pass it. This appears unlikely by most accounts.

For the UW, the second (newly) engrossed House budget and the most recent Senate “philosophical coalition” budget are mostly identical. Both budgets make no NEW service cuts to higher education. The House budget, like the Senate budget, contains a number of central agency service reductions for specific “state” services that would have some impact on the UW, and both budgets redirect existing state appropriations to the UW to fund specific initiatives in the College of Engineering ($3.8 million), WWAMI ($210,000) and RIDE ($190,000).

The primary difference between the two approaches is that the second engrossed House budget does not swap $5 million of state funds for $5 million of State Toxics Control funds in the College of the Environment’s budget.

Planning & Budgeting continues to develop drafts of the FY13 UW capital budget, operating budget, and tuition item for Regental consideration on May 3. If we do not have a firm state appropriation figure to include by that time, our ability to accurately project central educational operating resource budgets will compromised.

College Attainment Rising, But Not Enough

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 The Lumina Foundation set an ambitious goal to increase the percent of Americans with a two or four year degree from 37.9 percent to 60 percent by 2025. This goal has been picked up and echoed by many, including President Obama. In its latest status report, A Stronger Nation Through Higher Education, the foundation finds that degree attainment is increasing, but not quickly enough to reach the 2025 goal. The percentage of American working-age adults with college degrees has increased to 38.3 percent in 2010 from 37.9 percent in 2008.

The report emphasizes that faster degree attainment growth is necessary to ensure the US has enough qualified workers to meet the needs of the rapidly changing economy, which they estimate will require 60 percent of workers to have some form of higher education.  According to the report, attainment could be increased by increasing high school graduation rates and boosting degree attainment for minorities and adults with some college but no degree.

The report also includes a state-by-state breakdown of attainment rates. Seattle has the fifth-highest degree attainment rates of metropolitan areas in the US, with 48 percent of working-age adults holding college degrees. A higher-than-average percentage of Washington residents hold college degrees—42.5 percent versus 38.3 percent nationally in 2010. Twenty-five percent of Washington residents have some college credit but no degree, which the report claims could be a good avenue for increasing degree attainment. However, differences between population groups remain: Asian and White degree attainment is at 54.5 percent and 44.8 percent, respectively, but less than 30 percent of Black, Latino and Native American, working-age Washingtonians hold college degrees. While attainment in Washington State is growing, the report finds faster growth is needed to add 471,000 degrees by 2025.

News Flash! Report Confirms Dismal Reductions in State Support for WA Higher Ed

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The latest State Higher Education Executive Officer (SHEEO) State Higher Education Finance Report (SHEF) confirms that the Great Recession accelerated public four-year institutions’ reliance on tuition revenue as state funding declined. Released annually, this report is helpful because it summarizes state appropriations and net tuition revenue for the prior fiscal year well before the Integrated Postsecondary Education Data Set (IPEDS) is available.

The SHEF report provides net tuition revenue, state appropriations and calculates these revenue streams on a per student FTE basis, combining student FTE from all sectors into one state-wide denominator. According to the report, Washington has experienced some of the most significant higher education state funding reductions in the country, particularly over the last five years, at the same time as student enrollment is growing. Table 5 measures educational appropriations by state and shows that Washington’s educational appropriations per FTE decreased 21.2 percent in FY11. Across all states, Washington was one of twelve states that cut higher education funding per FTE over 20 percent, including Utah (20%), South Carolina (32%), and Michigan (24%).

When FY11 state appropriations are combined with net tuition revenue to calculate a total net loss of revenue per FTE, Washington again falls to the bottom quartile of the rankings. However, it is important to note that this calculation includes community colleges, which collect far lower amounts of tuition. Washington’s large community college population significantly lowers the total tuition revenue collected per student FTE and makes it difficult to accurately compare the result to states with a very different mix of types of students.

It is clear that Washington’s public institutions (including the large community and technical college sector and all six public baccalaureates) have experienced significant state funding cuts in recent years and have not raised tuition as much as institutions in many other states. As a result, Washington’s total educational funding shift has been more dire than most when  compared to the national average, but the dubious distinction of having the deepest and worst state funding cuts to all of higher education in the last year, much less the last 25 years, belongs to Vermont and New Hampshire.

A New Senate “Coalition” Budget Proposal

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The first new budget proposal of special session was released today by the same bipartisan Senate coalition that quickly passed an engrossed supplemental budget two weeks ago. Last week, the House further revised the Senate engrossed budget before session ended without agreement on a compromise budget. Although complex and at times confusing, this year’s budget process appears to now be moving forward as today’s Senate budget release moves closer to the House engrossed budget.

The new Senate coalition budget proposal would make the following changes to the UW’s 2011-13 biennial budget:

  • Reduces state general funds for the College of the Environment and replaces these funds with State Toxics Control revenue ($5 million);
  • Requires that the UW devote a portion of its state funding base to convert existing student FTE to College of Engineering FTE ($3.8 million); and,
  • Provides new funds for a Center for Aerospace Technology Innovation ($1.5 million).

All told, the redirect of state funding for engineering enrollment funding  and College of the Environment fund swap would affect our FY13 budget base. Please review our Planning & Budgeting brief for more information about the new Senate proposal and how it compares to the current House engrossed budget.

Olympia Budget Update

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On Thursday morning (3/8), around 12:30 AM, yet another version of the budget (making changes to the Senate engrossed budget) was proposed by Representative Hunter (Chair, Ways & Means) on the last scheduled day of legislative session. This proposal was intended as a compromise between the Senate engrossed budget, written by Senate Republicans, and the budgets proposed by Senate and by House Democrats.

This new House budget amends the Senate engrossed budget, and does not contain new state funding cuts for the UW or the other higher education institutions. However, the budget does contain small central agency service reductions and two unfunded provisos that the UW would fund through its current appropriation. Similarly to previous iterations of the budget, these provisos specify that $3.8 million must be redirected to support engineering enrollments in FY13, and that $790,000 be directed to WWAMI/RIDE in FY12. While the Senate engrossed budget provided new funds for these provisos, the House budget does not; thus, it would require a shift of existing UW state funds and constitute a cut that University units would have to accommodate.

This budget was heard, amended, and passed off of the House floor last night but was not heard in the Senate afterward. A special session to continue the process was announced shortly after midnight, and Governor Gregoire called the Legislature back to session next Monday. We anticipate that negotiating a compromise budget between the multiple versions that have been introduced will be the Legislature’s primary focus next week.

At this stage, changes to the UW’s state funding for FY13 remain uncertain. The two current proposed approaches include a House “budget” that would require the UW to shift $5 million of its appropriation to fund the two provisos noted above, but contains no new overall funding cuts. Meanwhile, the Senate engrossed budget bill does include new funding for the engineering proviso ($3.8m), but makes other changes that result in a loss of $12 million in state funding.  When special session starts next week, entirely new versions of the budget may emerge. Stay tuned.

Majority of Americans Think College Is Beneficial, Though Disagreements Over its Primary Purpose Remain

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According to the latest survey by the Pew Center for the People and the Press, conducted in late February, the majority of all Americans think higher education contributes positively to the country, while those identifying themselves as conservative were more likely to doubt its benefits. While 67 percent of Democrats believe college affects the country positively, only 51 percent of Republicans and 46 percent of conservative Republicans agree. For those who self-identify as agreeing with the Tea Party, only 38 percent think colleges have a positive effect and 47 percent think they have a negative effect.

That said, both Democrats and Republicans who have experienced higher education think it was a worthwhile personal investment (81 percent and 85 percent, respectively). Furthermore, parents of all political backgrounds fully expect their children to go to college: 99 percent of Republican parents, 96 percent of parents who are Democrats and 93 percent of Independents hope their children will receive higher education.

Finally, the primary purpose of college is debated across the political spectrum. While liberal Democrats tend to say college should focus most on enhancing the student personally and intellectually (47 percent), 52 percent of conservative Republicans think college should focus primarily on teaching skills and knowledge needed in the work world. In general, 47 percent of survey respondents thought skills were the most important, while 39 percent believed personal growth was the crucial component of a college education.

To read more about the survey, please follow the link to the report on the Pew Research Center website.