1. The Costs of Change (Re)Educating North Carolinas Workforce 2006-2007 Consensus Expansion Budget Request The North Carolina Community College System H. Martin Lancaster, President

2. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n 58 community colleges serving all 100 counties n Almost 800,000 students n North Carolinas most important resource for economic transformation North Carolina Community College System

3. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Demographic Changes: Migration n Since 2000, NCs population growth sixth-highest in USA n 71 percent of growth IN-MIGRATION from other states, other COUNTRIES n Since 1995, NC ranks in top three states nationally in rate of increase of foreign-born people (largely from Mexico, other Latin America, Asia) n Escalating pressure on ESL, literacy, other enrollment; growing demand for student services, financial aid

4. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Demographic Changes: Age n Baby boomers reaching 60 n Retirees moving in n New demands on health care system, need for health care employees n Growing demand for lifelong learning for leisure, second career

5. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Population shifting into Piedmont Corridor, away from northeast, Coastal Plain n Younger people clustered in metros, near military bases n Older people clustered near beaches, in some mountain areas n Mismatch between supply and demand of teachers, health care, other critical workers Regional Changes

6. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Foreign trade agreements, shift to knowledge-based industries, corporate mergers, fluctuations in technology market cause drastic and continuing change, eliminating low-skilled jobs n 1970: Manufacturing workforce was 30 percent of states total n Today: 17 percent n Last year, manufacturing declined 12.2 percent n Rural areas lose most; since 1997, 74 percent of job growth in Mecklenburg and Wake Counties Economic Changes: Shocks to Manufacturing

7. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Economic Changes: Where New Jobs Are n Recent job gains –Professional and Business Services 15.5% –Education/Health Services 13.5% –Construction 7.9% –Leisure/Hospitality 7.6% n Fastest growing future jobs through 2012 –Registered nurses, home health aides, nursing aides/orderlies –Food prep, service –Truck drivers –Retail sales, cashiers, customer service

8. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Technology Changes n Technology at home: connectivity, e-commerce n Technology in class: distance learning, computers n Technology on the job: switch to high-tech industries, bio-tech n Stronger basic education, higher technology skills essential

9. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Pay for faculty, staff, college presidents n Biotechnology, Customized Industry Training, Small Business Centers, other economic development programs n Enrollment reserve n NCCCS/UNC Partnerships Where are the gaps? Where are the gaps? Funding Progress

10. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce 1999-2007 Enrollment Increase in NC Community College System Full-Time Equivalent Students (FTE) Actual and Projected

11. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Access and Affordability n Enrollment Growth Reserve $5,988,402 n Regular Term Enrollment Growth $9,181,047 n Multiple College Locations $ 601,171

12. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Access and Affordability Annual In-State Tuition 68.7% Increase Since 99-00

13. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Access and Affordability Budgeted Tuition vs. Receipts Higher Rates + More Waivers = Growing Gap

14. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Tuition Receipt Adjustment $13,500,000 n Financial Aid $ 1,781,604 Access and Affordability

15. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Faculty and Professional Staff $28,722,094 –Current full-time faculty now $12,000 below national average, 46 th in nation, 15 th out of 16 in SREB n Presidents Salary Schedule $ 522,196 n The System Office $ 1,388,552 Costs of Compensation

16. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Costs of Compensation n Bonus Leave Days $2,449,967 n Restoring College $2,394,665 Benefit Reductions

17. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Who goes to community colleges? n 29% have incomes below $20,000 n 41% are first-generation college students n 33% are parents n 54% work full-time in addition to taking classes n 47% of African-Americans, 56% of Hispanics, and 47% of Native Americans who attend college go to community college n 9% have a disability n Community college students need guidance, counselors, financial aid Student Services and Support

18. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce n Financial Aid Staffing $7,018,476 n Students with Disabilities $3,000,000 n Student Services Staffing $6,766,860 Student Services and Support

19. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Economic and Workforce Development n Allied Health Program Funding $28,943,969 n Biotechnology $ 4,240,261 n Regional Customized Training Specialists $ 153,470

20. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Technology Enhancements Distance Learning Registrations

21. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Technology Enhancements n Distance Learning $11,820,560 n Equipment Funding$17,000,000

22. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Non-Recurring Items n Bonus Leave Days $24,294,135 n Equipment $31,319,732 n Distance Learning $ 2,283,180 Infrastructure n Advance Planning for $29,000,000 New Facilities n New Program Start-Up $10,000,000 n GED Office & Equipment Replacement $ 485,509 System Office

23. North Carolina Community College System H. Martin Lancaster, President www.nccommunitycolleges.edu Fifty-eight Institutions Educating and Training a World-Class Workforce Accountability Getting the Job Done n General Assembly requires performance measures focused on student success and employer satisfaction, offers financial incentive for superior performance. n First year, five of 58 comprehensive community colleges earned "superior" rankings. Next year saw 26, then 31, then 36. n Most recent year, 37 earned superior rankings. n Budget did allow performance funding in 2005, with superior colleges sharing $6.8 million for equipment, programs and bonuses. n Dramatic and continuing progress shows community college students get jobs, please employers, pass exams, use states investment well.

24. The Costs of Change (Re)Educating North Carolinas Workforce 2006-2007 Consensus Expansion Budget Request The North Carolina Community College System H. Martin Lancaster, President