Final
Higher Education and the Future of Colo.'s Economy
ECONOMIC DEVELOPMENT
Votes:
Action Taken:
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09:33 AM
Representative Borodkin, chair, called the meeting to order. Committee members present were Senator Bacon, Representative Lindstrom, and Representative Massey. Senators Evans and Tapia arrived later. Advisory board members present were Ms. Carolyn Siegel, Ms. Marguerite Salazar, Ms, Carla Perez, and Mr. Tony Robinson. Legislative Council Staff present were Mr. Josh Harwood and Mr. Jason Schrock. Ms. Nicole Hoffman, Office of Legislative Legal Services, was also present. Representative Borodkin discussed the importance of education to economic and workforce development. A summary of the advisory board's discussions and recommendations from its August 25th meeting was distributed to the committee (Attachment A).
09:36 AM -- Higher Education and the Future of Colorado's Economy, Dr. Tom Clark, University of Colorado at Denver and Health Sciences Center
Dr. Tom Clark, University of Colorado at Denver and Health Sciences Center, began his presentation on higher education and the future of Colorado's economy. A copy of his presentation, including data on higher education and the Colorado economy is provided as Attachment B. He discussed some characteristics of Colorado. Half of Colorado's population is employed, two percent of the population is in college, and less than a half of a percent of the population are undertaking graduate studies. He explained that higher education plays only a partial role in the economy and that any investments in higher education should be strategic. He discussed the importance of a strong economic "base" for Colorado. An economic base involves companies that produce products and services that are sold outside of the state which bring in new money. The stronger the state's economic base, the greater opportunity there is for all Coloradans, including people with less education. He believed that good economic development policies involve two things: the generation of new wealth and the management of wealth to ensure that it is distributed reasonably and fairly so that it provides a foundation for further economic growth. He stated that policy makers have a limited capacity to move the economy in certain directions.
Dr. Clark stated that the Colorado economy is relatively strong. However, some industries are cyclical, while some are undergoing long term changes, which the state has little control over. He stated that higher education is an important factor in the economy and that Colorado has invested well in its institutions. The main reasons for state investments in higher education are to produce an educated workforce and to produce ideas that become consumer services and products.
09:47 AM
Dr. Clark discussed his study in the early 1990s that looked at the relationship between higher education and the economy. The study found that there were relatively small short-term beneficial impacts of investing in higher education. Colorado higher education consists mostly of public institutions, compared to other states with more private institutions. He explained that funding for higher education should be coordinated with the needs of the economy. The state needs to do a better jobs of ensuring that skilled workers who are educated in the state become employed in the state, and that the products and ideas developed in the state are not all exported to other areas. There is a large number of people from outside the state working in high skill jobs in Colorado. However, the state's capacity to attract outside skilled workers is likely declining. Skilled workers from other countries are increasingly finding more work options outside the United States. He thought that Colorado may decline economically unless it does a better job of educating its citizens.
Dr. Clark continued by explaining that the state does not do an adequate job overall of linking the demand for workers and the supply of workers provided by the state's education system. Ms. Carla Perez, advisory board member, stated that there is not a well-coordinated effort between the education field and the transportation industry regarding the industry's workforce needs. Dr. Clark stated that the state needs to think about what the economy should look like in order to help reduce some of the uncertainty regarding what skills are needed. In order to understand where the Colorado economy may be headed and where to invest resources, he has looked at sectors that have done well in the past, as well as current trends regarding which sectors are doing well and have the most economic impact. He stated that it is unclear which entity should help coordinate workforce supply and demand, but that the state should try to nudge its workforce and economy in certain directions depending upon industry trends.
10:12 AM
Ms. Marguerite Salazar, advisory board member, discussed the need for more workers in the medical field, especially in rural areas, and that the education system needs to provide more openings for health professional students. Dr. Clark indicated that more financial resources could help educate more students.
Senator Bacon asked if there are ways to incent younger students to pursue certain fields. Dr. Clark thought that part of the answer is that the state needs to do a better job of providing strategic financial aid for students in critical fields rather than need-based aid. Employers could also involve more students in the workplace while they study. The state also needs to help ensure that there are sufficient employers to hire the workers that are trained in Colorado. He explained that current policies are not sufficient and that the state needs a more strategic approach to provide a strong economic base for Colorado.
Senator Bacon discussed the benefits of the community college workforce training program and wondered if the program could be expanded to other higher education institutions. He thought that other countries provide incentives to students who are studying in certain sectors. The state should not just trust that individuals will pursue employment that benefits the economy. He mentioned that the Northern Colorado Economic Development Council has conducted some research on the issue of the coordination between business and education that could be used as a starting point to develop a program for the state.
Representative Massey discussed his concerns regarding the possibility of too much centralization to achieve coordination between workforce supply and demand.
Representative Borodkin discussed the need to continue the economic development committee in some form so that it could continue its study and discussions. Dr. Clark concluded by stating that the state should judge higher education by what comes out, not what the state puts in.