Molly Corbett Broad, President February 20, 2009 The Federal Government and Higher Education: A Partnership for Economic Renewal American Association of Presidents of Independent Colleges and Universities 2009 Annual Conference

ñUnemployment up 4.1 million this year to 11.6 million. ò$12.6 trillion in wealth lost in 2008, consumption down by at least $600 billion. ñHousehold debt in delinquency or default approaching $1 trillion. òNew home sales down 63 percent since It’s the Economy… Sources: Bureau of Labor Statistics, Census Bureau, Moody’s Economy.com.

A Partnership for Economic Renewal Development of Human Capital Research and Modernization to Solve National & Global Problems

Source: American Council on Education, Minorities in Higher Education Human Capital: A Strategic Asset at Risk

A New Competitive Landscape India Population of 1.1 billion GDP rose by an average of 7% each year since 1997 China Population of 1.3 billion GDP grew 10x since 1978 Source: CIA World Factbook.

A New Competitive Landscape Source: OECD, Education at a Glance 2007.

Essential Human Capital Low- & Middle- income Students Veterans & Military Unemployed Workers

Helping Students and Families College Cost Reduction and Affordability Act Ensuring Continued Access to Student Aid Act New G.I. Bill Higher Education Opportunity Act The American Recovery and Reinvestment Act 8

Helping Students and Families Increase Pell Grants –$5,350 in 2009 –$5,500 in 2010 Increase Work-Study –$200 million 9

Helping Students and Families American Opportunity Tax Credit –Temporarily replaces Hope Tax Credit for two years –$2,500 credit for four years –Covers tuition & fees, books, and course materials –Partially refundable 10

Helping Students and Families State Fiscal Stabilization Fund: $53.6 billion $39.5 billion to education –(K-12 and public colleges) $8.8 billion to Governors $5 billion reserved for Incentive Grants 11

A Renewed Investment in Science “I have said over and over again, if you want to know the agenda for this new Congress, remember four words: science, science, science and science…We stand by this as the most important investment that we can make in health and education and energy independence, job creation and the defense of America.” Nancy Pelosi, Speaker, US House of Representatives

R&D Investment is Flat Source: National Science Foundation

Research Funding National Science Foundation (NSF) – $3 billion National Institutes of Health (NIH) –$10 billion Department of Energy –$2 billion NASA –$1 billion 15

Research Facilities Source: National Science Foundation.

What it Means Different approach Lots of money Short-term stimulus Change in financing Government grows bigger 17

A Partnership for Economic Renewal Development of Human Capital Research and Modernization to Solve National & Global Problems