Date: 02/29/2012
Final
Presentation from the National Center for Higher Education Management Systems (NCHEMS) - Colorado State University - and University of Colorado
COMMITTEE ON JOINT EDUCATION
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07:39 AM -- Presentation from the National Center for Higher Education Management Systems (NCHEMS), Colorado State University, and University of Colorado
Senator Bacon, Chair, called the meeting to order and welcomed the presenters to the table.
Dennis Jones, President, National Center for Higher Education Management Systems (NCHEMS), provided a handout to the committee (Attachment A). Mr. Jones discussed higher education productivity and provided a definition of productivity, stating that productivity is equal to the output produced divided by the resources used. Mr. Jones explained that increasing productivity means increasing outputs at the same level of resource use, and/or maintaining the level of output while using a reduced level of resources, without reducing access to or quality of, higher education. He clarified that increasing productivity is not finding a new revenue source or shifting costs to students, nor is productivity increased by becoming more selective and reducing access in the process. He added that the objective is to increase the number of degrees conferred, not just to create a higher graduation rate. Mr. Jones stated that he believes that Colorado has done about as much as it can do to increase productivity with the level of resources it is at currently, without restricting access or reducing quality. He stated that Colorado may continue to increase productivity, but that additional resources will be needed in order to do that.
Mr. Jones walked the committee through the charts contained in his handout (Attachment A), that compare the revenue per full time equivalent (FTE) student for public research institutions, public Bachelor's and Master's degree-granting institutions, and public two-year degree-granting institutions, across the nation. He also explained the charts showing national data on the number of degrees awarded for each institution type. Next, he directed the committee to the final three charts in the packet, which depict the productivity of each state based on the number of degrees granted per FTE student, and the total funding per FTE student, for each institution type.
07:47 AM
Representative Massey commented on the Colorado paradox and legislation that is being considered this session that would provide reverse transfer degrees to students who have earned enough credits to obtain an Associate's degree, but not enough credits for a Bachelor's degree. Mr. Jones responded.
Mr. Jones continued his presentation, turning to a model that has been created by NCHEMS that provides alternative outcomes based on the policy implemented. He stated that, if Colorado does not change anything to its current structure, population change alone will result in 40,000 more degrees being awarded, by the year 2025. However, he stated, in order to meet workforce demands, it is projected that Colorado will need to increase degree production by an additional 220,000 by 2025. Mr. Jones discussed the savings and increased tax revenue that will result from a greater resource contribution from the state to higher education. Mr. Jones discussed Colorado's tax capacity and tax effort, stating that Colorado has a lot of tax capacity that it is not using right now, thus Colorado has a low tax effort. In other words, Colorado does not tax its citizens to the level that it could based on per capita income.
07:59 AM
Senator Heath asked, referring to the last chart in the packet (Attachment A), what Colorado would need to spend to get the 220,000 additional degrees awarded by 2025. Mr. Jones responded, referring to the chart, that if Colorado wants to be where Illinois is on the chart, for instance, it will need to spend about $5,000 more per FTE student at the research universities in our state. He added that Colorado needs 63 percent of the population to hold college degrees by 2025 to meet projected workforce demands.
08:06 AM
Mr. Jones responded to questions from the committee.
08:12 AM
Dr. Tony Frank, President, Colorado State University (CSU), came to the table to present information on CSU and research universities. President Frank provided statistics about CSU and discussed the economic impact of research universities in Colorado. He stated that over 200,000 alumni of CSU and the University of Colorado (CU) reside in the state. He discussed the degree output at CSU. He discussed the average indebtedness of students who attend CSU, saying that it averages $20,000. He stated that he most often is asked the question of why the university cannot control costs better while tuition is increasing. He stated that the cost to educate a student has not gone up in the last two decades, but that the difference today is that 71 percent of the cost is now carried by the student and their parents. He stated that CSU has developed some tremendous efficiencies and takes a student-centric stance. He discussed the accessibility of CSU, commenting that if you look at a low-income student, CSU and CU are the two least expensive four-year institutions, when considering the net cost after aid. He added that to the state, the least expensive option to produce a degree is through the research universities. President Frank addressed the issue of accountability. He stated that CSU thrives because it is committed to continuous improvement. He stated that what risks Colorado's research universities is the decrease in state funding and a lack of regulation of tuition increases. He added that quality will go down and the state's return on investment will be jeopardized.
Representative Massey asked a question about deferred maintenance issues. President Frank responded, saying that CSU has spend about $5 million per year, over the last several years, on deferred maintenance. Senator Bacon commented on the funding available for capital construction projects. President Frank responded, describing the ways that CSU has involved its student body in locating funding for certain projects.
Representative Todd asked President Frank to comment on House Bill 12-1252 which, if passed, would require Colorado's public institutions of higher education to disclose certain expenditure information. President Frank responded that he is not afraid of accountability, but that he is confused by parts of the bill because it asks for information to be disclosed that is already available on CSU's website. He described the data that is available on CSU's website. He added that he is confused about why legislation would be passed that will add another cost to institutions, for information that is already available.
Representative Beezley commented that the more something is subsidized, the more expensive it becomes because there is no longer the need to rationalize those expenditures and purchase decisions in the marketplace.
08:31 AM
Dr. Russell Moore, Associate Vice Chancellor for Research, University of Colorado, discussed accountability, saying all of the information requested by the proposed legislation is available on CU's website. He stated that the nation's economy is dependent on the work of research universities. He stated that the direct impact of the research university is large, noting that the annual economic imprint of the CU system is over $5 billion a year. He described the entrepreneurial and economic accomplishments that have come out of CU. He concluded, saying that research universities are essential.
Dr. Bill Farland, Senior Vice President of Research, Colorado State University, stated that research universities are hubs for innovation and that innovation is a key part of what they do. He stated that the research performed at these universities addresses some of the great global issues that are before us currently including healthcare, clean and sustainable energy, advances in agriculture, and other issues. He stated that, when compared to the five years prior to 2007, CSU's inventions have increased by 132 percent, and that patent applications, patents, and start-up companies have also increased in large numbers.
Senator Heath asked how is best to share the story of the research university with the public. Dr. Moore responded.
08:44 AM
Dr. Noah Finkelstein, Associate Professor of Physics Education Research, and Dr. Valerie Otero, Associate Professor of Science Education, University of Colorado, came to the table to present information on CU's Colorado Learning Assistant Model. They provided a handout to the members of the committee (Attachment B). Dr. Finkelstein began by describing CU's role in the state and in the nation in the area of Science, Technology, Engineering, and Mathematics (STEM) education. He stated that the United States is behind in STEM education and that the nation will be one million STEM majors short by the year 2018. He stated that the university system is important; it is where the teachers who will teach STEM education learn to teach. He added that this issue is receiving national attention and that President Obama has been advised of the need for more and better undergraduate education in the STEM subject areas.
Dr. Otero continued the presentation by discussing the Colorado Learning Assistant Program. She said that the learning assistants involved in the program make up the pool from which they recruit and prepare new K-12 STEM teachers. She stated that the program has been able to demonstrate that the learning assistants are better teachers for having participated in the program. She said that the program has been adopted by institutions nationwide and that her peers are looking to Colorado for guidance in this arena. She stated that, at $52 per impacted student, the program is a low-cost way that CU is making education better.
Dr. Finkelstein commented that the program is a flagship program and that CU is the place to come if you want to be the next generation's STEM teacher.
Representative Massey stated that it has been found that STEM education is most effective when started in middle school or earlier. He asked how the program reaches out to students who are currently in the K-12 education system, and especially those in rural areas of our state. Dr. Finkelstein responded.
Senator Johnston asked clarifying questions about the program. Dr. Otero responded.
Representative Todd commented that she is a firm believer that if we start a culture of learning in the STEM subject areas early on in students' education, then they will be engaged in those subjects moving forward.
09:03 AM
Senator Bacon thanked the presenters for their time and information and the committee adjourned.