1	Affordability of Postsecondary Education in Colorado University of Denver Forum on the Future of Colorado Higher Education March 2, 2007 Denver, Colorado David Longanecker, Executive Director Western Interstate Commission for Higher Education (WICHE)
2	Affordability – 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
3	Is Colorado Higher Education affordable to its students & their parents What does affordable mean? On Price (Tuition) Olden days – inexpensive The 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)
4	How Coloradans fare 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 college 27% for public 4 year college/university 66% for private 4 year college/university
5	How Coloradans fare on affordability (continued) Measuring Up 2006 – additional important evidence Coloradans rely more heavily on loans: Average loan amount in Co -- $3,654 Average loan amount in top states -- $2,619 State need-based aid is wanting: Colorado/Federal Investment: 34% Top States/Federal Investment: 89%
6	How Coloradans fare on affordability – a focus on financial aid alone Through 2004-2005 (last year for comparative data -- source (NASSGAP): Need-based aid: $48.7 million (21^st nationally) 152% increase over ten years (19^th nationally) $274 per FTE 3^rd in the WICHE Region WICHE average: $386 National average: $446 Overall: Not an unusual story: 11 of 15 WICHE States have need-based initiatives At least two have surpassed Colorado since 04-05 (Oregon and Wyoming) CAVEAT: Financial aid is only part of the story
7	How Coloradans fare on affordability – a focus 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 terms Not bad in comparative terms Not bad in temporal terms
8	How Coloradans fare on affordability – a focus 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 average Four year institutions about average in West and below national average – and rate of growth in tuition below average But neither of these reflect actual advertised price (before COF discount)
9	How Colorado (the State) fares on affordability One the One Hand U.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)
10	How Colorado (the State) fares on affordability One the Other Hand – We’re in Colorado Higher Education is very affordable to the State
11	State & Local Public Higher Education Support per Full Time Student (NCHEMS/SHEEO)
12	State & Local Support for Public Higher Education Operating Expenses Per Capita (NCHEMS/SHEEO)
13	State & Local Support for Public Higher Education per $1,000 of Personal Income (NCHEMS/SHEEO)
14	How Colorado (the State) fares on affordability 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: 44^th) US tax revenue as % of Personal Income = 10.2% CO share from state versus local = 49.8% (rank: 48^th) What A Deal Higher Education is for Colorado
15	How Colorado’s Institutions of Higher Education fare on affordability State Appropriation per FTE student Community Colleges (2004) Colorado: $7,622 WICHE: $6,684 Rank: 9^th of 15 But . . . Baccalaureate/Masters Colorado: $9,742 WICHE: $12,865 Rank: 14^th of 15 Research/Doctoral Colorado: $19,772 WICHE: $32,736 Rank: 14^th of 15
16	Bottom Line on Affordability of Higher Education in Colorado Today To students and their families Affordable to middle and upper income Not affordable to low income To the state More than affordable – very affordable To institutions Not affordable – jeopardizing both access and quality
17	How about affordability of higher education in Colorado in the Future? Life during the “C” change. Homeostasis at best Enrolment demand to roughly match funding growth Nature of the growth from most educationally challenged populations.
18	The Growth in Demand
19	How about affordability of higher education in Colorado in the Future? Life after the “C” change. The Perfect storm Limited funding for growth, let alone catch up Rapid increase in demand. Nature of the growth from most educationally challenged populations.
20	The Growth in Demand
21	How about affordability of higher 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
22	How about affordability of higher education in Colorado in the Future? It’s our choice Change direction, or Enjoy slip sliding away.