Creating Pennsylvania’s Future Higher Education & Economic Development: The Disconnect in Pennsylvania Ken Gray, Professor Workforce Education and Development Penn State.

Higher Education and Economic Development Higher education as a (subsidized) economic cluster similar to tourism. Higher education as a (subsidized) source of technology transfer. Higher education as a workforce development provider.

Pennsylvania State Higher Education Investment Operating Expenses 2,012,046,000 Student Aid 402,147,000 Institutional Assistance Grants (05-06) 40,186,000 $2.45 Billion Source: Chronicle of Higher Ed. 8/25/05, LII: State Budget

State Demographics Ten year change in high school graduates Montana -17% Maine -16% Wyoming-15% PA-11% Ohio-4% Nevada+57% CO+27% Source: Chronicle of Higher Ed. 8/25/05, LII:1

State Demographics Aging Population: PA OH NY NC %13.3%13% %38.4%37.5%35.9% Source: Chronicle of Higher Ed. 8/25/05, LII:1

Percent Change in Real GSP (Gross State Product), Source: U.S. Bureau of Economic Analysis

The High Skill/High Wage Workforce

Percent of Occupations Requiring Different Levels of Education

Employment of University Graduates Supply Demand Employed University Grads 1, 244, ,400 58% Only 12% of all work requires just a four-year college degree.

The High Skills/High Wage Workplace Semi-conductor Manufacturing Ratio: 1 to 2 to 7

A region that does not have a growing percentage of its non-professional workforce trained beyond high school level will have increasing difficulty in supporting the competitiveness of high- value business. Building a World-Class Technical Workforce, 1996

Among high-tech industries - those with a high proportion of scientist, engineers, and Technicians, are projected to grow rapidly: Source: Hecker, Monthly Labor Review (July 2005), p. 57.

National Technicians Job Growth and Replacements Computer Support Technicians. –97% growth rate. 512,000 job openings. –230,000 more new jobs for computer technicians than computer engineers. Healthcare Support Technicians. –32% growth rate. –121,000 job openings. Construction Trades –Job growth 13% = 862,000 –Total replacements = 2, 086,000 Monthly Labor Review. Nov 2001.

The Disconnect in PA

Number of Higher Education Institution in Pennsylvania: National Ranking Source: Chronicle of Higher Ed. 8/25/05, LII:1

Ratio of BA to AS Degrees by State by Level of Economic Growth Source: The Chronicle of Higher Education, U.S. Bureau of Economic Analysis a Percent change in real GSP ( ), b Bachelor’s : Associate to 1

Fall Undergraduate Enrollments in Occupational Specific Associate Degree Programs by Institutional Category (1987, 1995, 2004) Source: College and Universities: Fall Enrollment 2004, PDE.

Associate Degree Awarded in Pennsylvania Source: College and Universities: Fall Enrollment 2004

Nationally, only 18% of those who enroll community college transfer program graduate with a four year degree. Source Adelman, C. (June, 1999) "Answers in the Tool Box: Academic Intensity, Attendance Patterns, and Bachelor's Degree Attainment. [pp ]

Consequences PA lacks a developed & coordinated system for the preparation of technician level workers. PA has a good record of start-ups & a poor record of growing business thereafter. PA is at a strategic disadvantage in attracting industries that need technician level workers. PA is a net exporter of four-year college graduates. PA lags other states in economic growth.

Supply-side Recommendations Analyze Return on State Investment comparing present policy with redirecting dollars to create technical education system. Redirect Institutional Aide Grants (40 Million). Fund academic programs not institutions. Promote technical institutes cooperatively with community colleges and other providers.

Demand-side Recommendations Encourage employers to be specific regarding workforce needs. Provide students aide forgiveness incentives for those enrolling in pre-baccalaureate technical education. Mandate articulation of community college credits with four year degree granting state and state related institutions.