Affordability of Affordability of Postsecondary Postsecondary Education in ColoradoEducation in Colorado
University of DenverForum on the Future
of Colorado Higher Education
March 2, 2007Denver, Colorado
David Longanecker,Executive Director
Western Interstate Commission for Higher
Education (WICHE)
Affordability Affordability –– Affordable for Whom?Affordable for Whom?
Affordable to students & their parents
Affordable to the State of Colorado
Affordable to the Institutions in Colorado
You don’t have affordability if higher education isn’t affordable to all three of these stakeholders
Is Colorado Higher Education affordable Is Colorado Higher Education affordable to its students & their parentsto its students & their parents
What does affordable mean?On Price (Tuition)
Olden days – inexpensiveThe egalitarian era - choice
“self pay” – moderately expensive“state subsidized” – inexpensive (ala the olden days)“state subsidized” – cheap
On Student Assistance -- A shift in philosophy, as well.
From removing barriers and hindrances to attendance (need-based aid)To reducing the burden of attendance (merit aid, tax-credits, and loan subsidies)
How How ColoradansColoradans fare on affordabilityfare on affordability
Measuring Up 2006 gave Colorado on “F”But 42 other states also received an F???Yet, important evidence presented
Share of income required ( 2006) to pay average net cost is relatively high in Colorado & increasing.
23% for community college27% for public 4 year college/university66% for private 4 year college/university
How How ColoradansColoradans fare on affordability fare on affordability (continued)(continued)
Measuring Up 2006 – additional important evidence
Coloradans rely more heavily on loans:Average loan amount in Co -- $3,654Average loan amount in top states -- $2,619
State need-based aid is wanting:Colorado/Federal Investment: 34%Top States/Federal Investment: 89%
How How ColoradansColoradans fare on affordability fare on affordability –– a a focus on financial aid alonefocus on financial aid alone
Through 2004-2005 (last year for comparative data --source (NASSGAP):
Need-based aid:$48.7 million (21st nationally)152% increase over ten years (19th nationally)$274 per FTE
3rd in the WICHE RegionWICHE average: $386National average: $446
Overall:Not an unusual story:
11 of 15 WICHE States have need-based initiativesAt least two have surpassed Colorado since 04-05 (Oregon and Wyoming)
CAVEAT: Financial aid is only part of the story
How How ColoradansColoradans fare on affordability fare on affordability –– a a focus on tuitionfocus on tuition
Not bad when comparing ratio of tuition and fees to median household income
Comm Col B&M Col Doctoral Univ
Colorado 3.4% 5.7% 7.3%(ten yrs ago) 3.3% 5.2% 6.7%
WICHE 4.2% 7.2% 8.6%(ten yrs ago) 3.1% 5.3% 6.4%
Not bad in absolute termsNot bad in comparative termsNot bad in temporal terms
How How ColoradansColoradans fare on affordability fare on affordability –– a a focus on tuitionfocus on tuition
A mixed bag when comparing actual amounts (06-07)
Comm Col Public Four Year
Colorado $2377 $4404(ten yr inc) 85% 76%
WICHE $2237 $4351(ten yr inc) 85% 80%
U.S. $2272 $5836(ten yr inc) 55% 96%
Community Colleges about averageFour year institutions about average in West and below national average – and rate of
growth in tuition below averageBut neither of these reflect actual advertised price (before COF discount)
How Colorado (the State) fares on How Colorado (the State) fares on affordabilityaffordability
One the One HandU.S. spends as much as anyone else on higher education
First in total spending as share of GDP – 2.6%(Nearest others are Korea, Chile, and Israel)Eighth in public spending as share of GDP – 1.2%(Trailing Denmark, Finland, Sweden, Norway, Belgium, Israel, and Greece)Third in private spending as share of GDP – 1.4%(Trailing Korea and Chile)
How Colorado (the State) fares on How Colorado (the State) fares on affordabilityaffordability
One the Other Hand – We’re in Colorado
Higher Education is very affordable to the State
State & Local Public Higher Education Support per Full State & Local Public Higher Education Support per Full Time Student (NCHEMS/SHEEO)Time Student (NCHEMS/SHEEO)
State & Local Support for Public Higher Education State & Local Support for Public Higher Education Operating Expenses Per Capita (NCHEMS/SHEEO)Operating Expenses Per Capita (NCHEMS/SHEEO)
State & Local Support for Public Higher Education per $1,000 of State & Local Support for Public Higher Education per $1,000 of Personal Income (NCHEMS/SHEEO)Personal Income (NCHEMS/SHEEO)
How Colorado (the State) fares on How Colorado (the State) fares on affordabilityaffordability
One the Other Hand – We’re in Colorado
Higher Education is very affordable to the State
Tax Effort (NCSL)CO tax revenue as % of Personal Income = 9.2% (rank: 44th)US tax revenue as % of Personal Income = 10.2%CO share from state versus local = 49.8% (rank: 48th)
What A Deal Higher Education is for Colorado
How Colorado’s Institutions of Higher How Colorado’s Institutions of Higher Education fare on affordabilityEducation fare on affordability
State Appropriation per FTE studentCommunity Colleges (2004)
Colorado: $7,622WICHE: $6,684Rank: 9th of 15But . . .
Baccalaureate/MastersColorado: $9,742WICHE: $12,865Rank: 14th of 15
Research/DoctoralColorado: $19,772WICHE: $32,736Rank: 14th of 15
Bottom Line on Affordability of Higher Bottom Line on Affordability of Higher Education in Colorado TodayEducation in Colorado Today
To students and their familiesAffordable to middle and upper incomeNot affordable to low income
To the stateMore than affordable – very affordable
To institutionsNot affordable – jeopardizing both access and quality
How about affordability of higher How about affordability of higher education in Colorado in the Future?education in Colorado in the Future?
Life during the “C” change.
Homeostasis at bestEnrolment demand to roughly match funding growthNature of the growth from most educationally challenged populations.
The Growth in DemandThe Growth in Demand
How about affordability of higher How about affordability of higher education in Colorado in the Future?education in Colorado in the Future?
Life after the “C” change.
The Perfect stormLimited funding for growth, let alone catch upRapid increase in demand.Nature of the growth from most educationally challenged populations.
The Growth in DemandThe Growth in Demand
How about affordability of higher How about affordability of higher education in Colorado in the Future?education in Colorado in the Future?
Consequence
Access and quality at risk, unless:
One is sacrificed for the other
Resources are made available to sustain quality and accommodate growth.
The alternative – self satisfaction to non-competitiveness
How about affordability of higher How about affordability of higher education in Colorado in the Future?education in Colorado in the Future?
It’s our choice
Change direction, or
Enjoy slip sliding away.