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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

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

North Carolina Community College System H. Martin Lancaster, President 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

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

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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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

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

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

North Carolina Community College System H. Martin Lancaster, President 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

North Carolina Community College System H. Martin Lancaster, President 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.

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