1. Complete College and Other Challenges TACHE November 10, 2011 John G. Morgan, TBR 1

2. 2 Revenues and Expenditures in Tennessee, 1978 Base

3. Tennessee Higher Education Commission Higher Education Revenues 3

4. Tennessee Higher Education Commission Higher Education Revenues 4

5. Change in Total Funding FY 2008 to FY 2012 Universities Assumes fee increases of 8.8% at APSU, ETSU, and TSU; 9.8% at MTSU and TTU; and 11.0% at UOM

6. Change in Total Funding FY 2008 to FY 2012 Community Colleges Assumes a fee increase of 9.5%

7. Educational Attainment and Rank Among States Tennessee, 2006 (Percent) Source: U.S. Census Bureau, 2006 ACS 28 th 38 th 48 th 42 nd 40 th 7

8. Relationship Between Educational Attainment, Personal Income, and Economic Strength 8 AL AZ AR CA CO CT DE IL IN IA KY LA MD MA MS NJ NY ND OK OR SC SD UT VA WA MN NH TN TX WV WI WY $15,000 $20,000 $25,000 $30,000 15%20%25%30%35%40% Personal Income Per Capita, 2000 Percent of Adults Age 25-64 with a Bachelor’s Degree or Higher MT HI AK GA KS ME NE NV NC OH PA VT ID MI MO NM RI FL US Low Income, High Educational Attainment Low Income, Low Educational Attainment High Income, High Educational Attainment High Income, Low Educational Attainment State New Economy Index (2002) Top Tier Middle Tier Low Tier

9. 9 Fraction happy about life by years of completed schooling before and after conditioning on income 0.95 0.90 0.85 0.80 0–1113–1516+12 Years of schooling Fraction happy No income controlsConditional on income Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1.

10. 10 Job satisfaction and years of completed schooling before and after conditioning on income Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1. 0.88 0.86 0.84 0.80 0–1113–1516+12 Years of schooling Fraction of respondents Before conditioning on incomeAfter conditioning on income 0.82 Are you satisfied with your job?

11. 11 Self-assessed health status and years of completed schooling before and after conditioning on income Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1. 0.50 0.40 0.30 0.20 0–1113–1516+12 Years of schooling Fraction of respondents Before conditioning on incomeAfter conditioning on income Fraction reporting Very Good Health

12. 12 Do you believe people can be trusted? Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1. 0.60 0.50 0.30 0–1113–1516+12 Years of schooling Fraction of respondents Before conditioning on incomeAfter conditioning on income 0.40

13. 13 Likelihood of divorce or separation Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1. 0.15 0.10 0 0–1113–1516+12 Years of schooling Fraction of respondents Before conditioning on incomeAfter conditioning on income 0.05

14. 14 Time preferences for today or the future: Do you live for today? Source: Oreopoulos, P. & Salvanes, K.G., “Priceless: The Nonpecuniary Benefits of Schooling,” Journal of Economic Perspectives, Vol. 25, No.1. 0.55 0.50 0.45 0.30 0–1113–1516+12 Years of schooling Fraction of respondents Before conditioning on incomeAfter conditioning on income 0.35 0.40

15. 15March 2011 Matthew N. Murray, UT Center for Business & Economic Research Our human capital flow: the Tennessee student pipeline, 2008 Source: National Center for Higher Education Management Systems