1. Discussion Items for Task Force Meeting Chicago, Illinois August 12, 2008 National Center for Higher Education Management Systems 3035 Center Green Drive, Suite 150 Boulder, Colorado 80301-2251

2. 22 Topics to be Covered ► Observations About Policy Environment for Implementation ► Moving from Goals to Implementation Plan ■Principles ■Policy Tools ■Cross-Cutting Issues ► Charge to Work Groups

3. 33 Observations About Policy Environment for Implementation

4. 44 Policy Environment ► Strong History of Institution-Oriented Policy- Making ► Splintered Nature of Decision Authority ■State Level ■Local/Region ► Absence of Mechanisms for Regional Solutions ► Culture of “Pilots” But Little Evaluation and Scaling Up

5. 55 Policy Environment (Continued) ► Uneven Engagement (Time and Geography) of Business and Civic Leaders in Higher Education Issues ► Many Unfunded Mandates (e.g., Mandated Scholarships) ► Lack of Information Infra-Structure ■Higher Education ■P-20

6. 66 Moving from Goals to an Implementation Plan

7. 77 The Management Cycle State Planning Institution State Institution Implementation State Accountability Institution

8. 88 Basic Principles for Developing Implementation Strategies ► Use Goals as the Starting Point—Align Policies with Goals ► Use All the Policy Tools ► Be Consistent—Across Goals and Across Tools ► Focus on Students as Well as Institutions ► Fit Policy to Regional, as Well as Statewide, Needs

9. 99 The Policy Tools ► Clear Direction—a “Public Agenda” ► Funding/Resource Allocation ► Accountability ► Regulation ► Policy Leadership/Allocation of Decision Authority Underlying Them All Is Capacity to Provide Information

10. 10 ALIGNMENT 1.Increase Education Attainment 2.Ensure College Affordability 3.Increase Production of High ‑ Quality Credentials 4.Integrate Educational, Research, and Innovation Assets GOALS POLICY TOOLS Planning and Leadership FinanceRegulationAccountabilityGovernance

11. 11 Cross-Cutting Issues ► P-20 Alignment of Standards, Curriculum, Assessments and Professional Development for: ■Postsecondary Education ■Work in a Living Wage Job ► Funding Policy ■Institutional ■Students ► Regional Strategies ► Policy Leadership

12. Funding/Resource Allocation—Key Concepts

13. 13 The Flow of Funds Economy Tax Policy Appropriations/GrantsStudent Aid Tuition Scholarships & Waivers Research and Other Grants (Restricted)Student Aid (Restricted) Gifts Income Available State and Local Govt. Funds Federal Government Donors Foundations Corporations K-12 Corrections Health Care Other Govt. Higher Education StudentsInstitutions

14. 14 The Flow of Funds Economy Tax Policy Appropriations/GrantsStudent Aid Tuition Scholarships & Waivers Student Aid (Restricted) Income Available State and Local Govt. Funds Federal Government Higher Education StudentsInstitutions

15. 15 Criteria from Perspective of Different Stakeholders ► Maintains Institutional Capacity ► Promotes Achievement of Priority Outcomes ► Affordable ► Affordability ► Value ► Access to Key Assets (e.g., Faculty and Technology) ► Adequacy ► Equity ► Stability State Students Institutions

16. 16 Criteria for Effective Higher Education Finance Policy ► Create and Maintain Necessary Institutional Capacity ► Reinforce Utilization of Capacity to Achieve State Goals ► Contributions Required Are Affordable—to Both State and Students ► Viewed as Being Fair ► Transparent

17. 17 Basic Questions at State Level ► How Much to Allocate ► To Which Recipients—Students or Institutions ► Using Which Mechanisms

18. 18 Finance Policy—The Options Institution Focused Student Focused Core Capacity Capacity Utilization/ Public Agenda Tuition and Aid Policy Focused on Attainment of Specified Outcomes Base-Plus Formulas Investment Funds Performance Funding Tuition and Aid Policy Focused on Revenue Generation

19. 19 A Key Distinction ► Investment Funds ■Capacity Building ■A Priori ► Incentive Funds ■Capacity Utilization ■Post Facto

20. 20 Student Financial Aid ► Align Student Aid, Tuition and Appropriations ► Implement a Shared Responsibility Model for Student Aid with: ■Student Making Initial Commitment ■State Making Last Dollar Commitment ► Link Student Financial Aid to Incentives for Students Beginning at 7th and 8th Grades

21. 21 Remember—All Funding Mechanisms Provide Incentives for Behavior Central Question: Are the Behaviors Elicited the Ones You Want?

22. 22 Regional Partnerships ► Focus on Regions as the “Community of Solution” for Getting More Students Through Education Pipeline ► Partnership: ■Regional Community/Economic Development ■Higher Education ■P-12 ► Use of State Funding to Provide Incentives for Regional Strategies

23. 23 Policy Leadership ► Key Point: Must Have a Means to Keep Agenda on Track ■Legislative Ownership of Long-Term Agenda ■Linking Budget and Appropriations to Goals ■Holding Institutions/Systems Accountable ■Sustaining Agenda Over Changes in Political Leadership and Economic Conditions

24. 24 Policy Leadership (Continued) ► Creating Mechanism for Developing Regional Solutions ► Using Public/Private Partnerships to Facilitate Change

25. 25 Charge to Work Groups

26. 26 Charge to Work Groups ► Adhere to Basic Principles: ■Use Goals as the Starting Point—Align Policies with Goals ■Use All the Policy Tools ■Be Consistent—Across Goals and Across Tools ■Focus on Students as Well as Institutions ■Fit Policy to Regional, as Well as Statewide, Needs

27. 27 Charge ► Prepare Short List of More Detailed Action Steps Recommended as Priority Implementation Initiatives ► Indicate Actions Required of Each of Relevant Entities in Order for Public Agenda to be Successful (IBHE, ICCB, ISAC, ISBE and others) ► Modify List of Performance Measures and Benchmarks as Necessary

28. 28 Measuring Progress: Illinois Outcome/Performance Measures

29. 29 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries ► Proportion of Adults Age 25-34 with Associate Degree or Higher ► Proportion of Adults Age 25-34 with Baccalaureate Degree or Higher Benchmarked Against: ■Best-Performing OECD Countries ■5 Best-Performing U.S. States ■Selected Competitor/Neighbor States (continued)

30. 30 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) a.Improve Success of Students—Eliminate Racial, Ethnic, Gender and Disability Achievement Gaps ► Proportion of Adults Age 25-34 by Race/Ethnic Group, Gender, and Disability Status Who Have: >Completed High School >Attained Associate Degree or Higher >Attained Baccalaureate Degree or Higher ► Difference Between Whites and Each Ethnic Group for Each Attainment Level Above Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States (continued)

31. 31 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) (continued) b.Increase Number of Adults Reentering Education and Completing a Postsecondary Credential ► Number of GEDs Awarded to Adults Age 21-44 as a Proportion of Adults Age 21-44 with Less than a High School Diploma ► First-Time Freshmen Age 25-44 as a Proportion of Adults Age 25-44 with a High School Diploma but No College ► Degrees Awarded to Adults Age 25-44 as a Proportion of Population Age 25-44 with No College Degree Benchmarked Against: ■Illinois Trends ■Best-Performing States

32. 32 1.Increase Educational Attainment to Match Best-Performing U.S. States and World Countries (continued) c.Reduce Geographic Disparities in Educational Attainment ► Difference Between Highest- and Lowest-Attaining Counties in Proportions of Individuals Who Have Attained: >Associate Degree or Higher >Baccalaureate Degree or Higher ► Also Differences Between Counties at 20th and 80th Percentiles Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States

33. 33 2.Ensure College Affordability for Students, Families and Taxpayers ► Percent of Family Income for: ■Median Family ■Low-Quintile Family Required to Pay Net Cost of Attendance (Cost Less Grant Aid) at: ■Public 4-Year ■Private 4-Year ■Public 2-Year ► Average Amount of Debt Per Student (continued)

34. 34 2.Ensure College Affordability for Students, Families and Taxpayers (continued) ► Percent of Low-Quintile Family Income Required to Pay Tuition and Required Fees at 2-Year Public Institutions ► State Tax Effort Compared to State Tax Capacity ► State and Local Appropriations Plus Tuition and Fee Revenue per FTE Student—State Share of This Total Revenue per FTE Student Benchmarked Against: ■Illinois Trends ■Best-Performing States

35. 35 3.Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy a.Improve Student Learning and Skill Levels to Compete Effectively in the Global Marketplace ► Proportion of Adults Age 25-34 Assessed as Proficient in Each of the Areas of the NAAL—Data Acquired Through a State Oversample on the Exam (Scores of College Graduates Versus Non-College Graduates) Benchmarked Against: ■Illinois Trends ■U.S. Average ■Other States for Which State Data Are Available (continued)

36. 36 3.Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued) b.Increase Production of Quality Certificates, Associate and Baccalaureate Degrees ► Produced Each Year by All Institutions in State Benchmarked Against Illinois Trends ► Certificates and Associate Degrees Granted as a Proportion of FTE Enrollments at 2-Year Institutions ► Baccalaureate Degrees Awarded as a Proportion of FTE Undergraduate Enrollments at 4-Year Institutions (Public and Private Not-for-Profit) Benchmarked Against: ■Illinois Trends Over Time ■Best-Performing States (continued)

37. 37 3.Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued) c.Improve Transitions Between Associate and Baccalaureate Degree Levels ► Number of Students Who Achieve Transfer-Ready Status ► Proportion of Students Who Achieve Transfer-Ready Status Who Do Transfer and Complete a Degree ► Proportion of Students Who Achieve 12 SCH Who Transfer ► Proportion of SCH Earned by Transfers That Are Not Accepted as Credit for a Major ► Proportion of Students with 2.0 GPA or Better—Transfers Versus Native Students Benchmarked Against Illinois Trends (continued)

38. 38 3.Increase Production of Quality Postsecondary Credentials to Meet Demands of Economy (continued) d.Increase Production of Postsecondary Degrees in Fields Critical to Illinois Economy—e.g., Nursing, Allied Health, and Information Technology ► Absolute Number of Associate, Baccalaureate and Master’s Degrees Produced Each Year in Specified Fields – Nursing – Allied Health – IT – Others? Benchmarked Against Illinois Trends ► Associate, Baccalaureate, Master’s and Doctoral Degrees Produced in STEM Fields as a Proportion of All Degrees Granted at Those Levels Benchmarked Against Best-Performing States (continued)

39. 39 4.Better Integrate Illinois’ Educational, Research, and Innovation Assets to Meet Economic Needs of the State and Its Regions ► Proportion of Jobs Considered to Be “Living Wage” Jobs ► Spin-Off Companies Created Per Billion Dollars of Academic Research ► ???