Lack of Funding Limits Community College Ability to Meet National Need

/PRNewswire/ -- Community colleges have for decades received the short end of the funding stick--both at state and national levels. Now a new policy brief from the American Association of Community Colleges (AACC) points to the consequences of that funding disparity--both for student access and for the nation's economic progress.

Doing More With Less: The Inequitable Funding of Community Colleges paints a bleak and worsening scenario for the institutions that currently educate almost half of all U.S. undergraduates and the highest percentages of first-generation and minority students. During the current economic recession, community college enrollments have surged an average 17% over the last two years, as students and families sought a lower-cost college option. But heightened student demand--coupled with persistent state budget cuts--is now impacting core college activities, the brief asserts, as course reductions, enrollment caps and other cost-saving measures result in denied access for thousands of students.

Ironically, the unremitting belt-tightening on community college campuses comes at a time when both the Obama administration and leading foundations have identified these low-cost, highly accessible institutions as a key solution to increasing the numbers of college-educated Americans over the next decade to ensure U.S. global competitiveness.

Following are key findings from the study.

For the full brief, see http://www.aacc.nche.edu/Publications/Briefs/Pages/rb09082010.aspx.

-- Community colleges received just 27% of total federal, state, and
local revenues for public degree-granting institutions from 2007 to
2008, while serving 43% of all U.S. undergraduates.
-- State investment in public higher education has consistently declined,
from 7% in 1989 to 5.4% in 1993 to 4.5% in 2008. (Community colleges
receive close to 60% of operating funds from state and local sources.)
-- Of the $36.4 billion invested directly in higher education by the
federal government, community colleges received significantly less
than did other higher ed sectors for grant programs such as Academic
Competitiveness, SMART and TEACH grants and Federal Work-Study.
-- While community colleges committed a higher percentage of dollars to
instruction (44.5%) than did other sectors of higher education, they
have been unable to allocate adequate amounts to other activities with
demonstrated impact on student success, such as counseling, especially
in advising students how to navigate the complex financial aid
process. Of Pell-eligible students, only 58% at community colleges
applied for financial aid compared to 77% at 4-year public
institutions and 84% at private 4-year institutions.
-- Reduced capacity has especially affected the numbers of students
admitted to high-demand programs such as health care, for which
community colleges prepare more than half of new
professionals--despite a projected need for workers to fill 2.7
million jobs over the next 8 years.



The American Association of Community Colleges is a national organization representing the nation's close to 1,200 community, junior and technical colleges and their more than 12 million students. Community colleges are the largest and fastest growing sector of U.S. higher education.


This policy brief was supported in part by Lumina Foundation for Education. The views expressed in this publication are those of the author and do not necessarily represent those of Lumina Foundation for Education, its officers, or employees. Lumina Foundation for Education works to ensure that 60% of Americans have high-quality degrees or credentials by 2025. 

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Economy Threatens Impressive Expansion of State Pre-K Programs

/PRNewswire / -- The annual survey of state-funded preschool programs shows impressive expansion in enrollment and spending. However, the recession may reverse the trend, curtailing early education opportunities for children in lower- and middle-income families.

The National Institute for Early Education Research (NIEER) released The State of Preschool 2008 at a news conference today. Key findings:

-- Enrollment increased by more than 108,000 children. More than 1.1
million children attended state-funded preschool education, 973,178 at
age 4 alone.
-- Thirty-three of 38 states with state-funded programs increased
enrollment.
-- Based on NIEER's Quality Standards Checklist, nine states improved the
quality of their preschool programs. Only one fell back.

-- State pre-K funding rose to almost $4.6 billion; from all reported
sources to $5.2 billion, an increase of nearly $1 billion (23 percent)
from 2007.


Whether or not a child receives high-quality preschool education depends on where his or her family lives. Twelve states provided no state-funded preschool in 2008. The report found a decline in the number of states providing sufficient funding to meet NIEER's quality benchmarks.

Based at Rutgers University, NIEER has produced an annual report on state preschool programs since 2002.

Due to declining state revenues, the immediate future of state-funded preschool is uncertain. Generally, expenditures on pre-K are discretionary and easier to cut than expenditures for K-12 education and other programs.

NIEER Director Steve Barnett said states are considering cutting enrollment, reducing program standards, and postponing expansion plans even with the availability of new federal stimulus funds.

Of 38 states with state-funded preschool, cuts are likely in at least nine.

"A federal initiative is needed to support early learning and development," said Barnett. "We propose that the federal government commit to doubling growth in state pre-K while raising quality standards so that by 2020 all 4-year-olds in America will have access to a good education."

To do this, the federal government should match state spending with up to $2,500 for each enrolled child in state pre-K programs meeting basic quality standards. The federal government also should facilitate increased integration of child care, Head Start, and state pre-K.

Research shows that high-quality pre-K can help improve the educational success of all children, decrease dropout rates and crime and delinquency, and improve economic productivity and health.

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Georgia Tech Grads Still in Demand During Recession

The demand for Georgia Tech students remains strong despite a tough economy.

Among the disciplines that employers are most interested in are chemical engineering, industrial and systems engineering, mechanical engineering, electrical engineering and computer science.

“Employers continue to look to Georgia Tech because of the quality of our students and reputation of the Institute,” said Ralph Mobley, director of Career Services. “During economically tough times, our students set themselves apart by the academic rigor here at Tech and the ability for many of them to obtain real-world experience before they graduate through our co-op and internship programs.”

More than 470 companies are expected to visit campus during this academic year, and every career fair planned for this semester has been full in terms of potential employers, according to Mobley.

“Although the number of companies visiting campus is down 24 percent, many students are receiving offers, but just may not receive as many as they have in the past,” said Mobley. “We’re also seeing a slight increase in the number of internships our students are getting.”

Mobley suggests that the number of internships may be up because companies are more optimistic for the long term and want to make sure they keep their talent pipelines full.

Chemical engineering, civil engineering, computer science, electrical engineering, industrial engineering and management graduates all meet or exceed the national average for salaries according to the National Association of Colleges and Employers data for fall of 2008.

Despite the demand for specific majors, Georgia Tech students are not immune to facing challenges as they search for jobs in the current economic climate. Some major companies have cancelled interviews or withdrawn job offers, according to Mobley. “Those who have been successful in finding positions began their search well in advance of their graduation date,” he noted.

Although MBA student Heather Platt of Atlanta won’t graduate until May, she accepted a position with Delta Airlines last November. “I interviewed with Delta when they were on campus last fall,” she noted. “I will be working in the sourcing department where I’ll be reviewing options for suppliers, analyzing prices and negotiating contracts.”

Another MBA student, Mike Green of Atlanta, will be working for the East Coast Division of Lafarge Building Materials headquartered in Alpharetta. “Before beginning my MBA, I worked as a homebuilder,” he said. “I interned with the company last summer and two days before my internship ended, Lafarge offered me a position. I accepted.”

The total number of interviews has dipped slightly this year (by 5 percent), but remains high with more than 8,000 interviews taking place on campus.

“We need to keep in mind that interviews don’t necessarily equal job offers. Companies are becoming more selective,” said Mobley. “It is a tribute to our students because companies are seeking them out.”

Georgia Tech continues to see significant interest in its students from companies in the defense, petroleum, information technology, government and consulting industries.

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Recession Proof: The Need for Nurses Continues to Rise at Record Rate

With announcements of rising unemployment and an ongoing economic recession, Georgia Southern University Nursing graduates are finding that they are not only in high demand, but those employers are fiercely competing for their services upon graduation. Among the highest ranked Nursing program in the state of Georgia, Georgia Southern University is seeing not only increased interest in its graduates, but also a rise in applicants to its highly competitive program.

“It is really amazing to see the interest from not only employers, but also the increase in the number of applicants to our program,” said Jean Bartels, Ph.D., professor and chair of the School of Nursing at Georgia Southern University. “Employers continue to aggressively recruit our students, considered to be the best in the state, both at the undergraduate and graduate level.”

Some students within the School of Nursing at Georgia Southern are not only receiving one or two job offers, but receiving them before they even graduate. In fact, more than two thirds of the December 2008 graduating class received two to three job offers from health care agencies both in and out of state. For area health care agencies, Georgia Southern graduates were the most heavily recruited Nursing graduates of any regional University. In fact, one large metropolitan hospital hired only Georgia Southern graduates this December.

A recent news story by the Associated Press noted that some employers are becoming very creative going as far as offering red carpet treatment and gas cards just to entice job seekers to attend job fair. “Nearly every recruiter that comes to Georgia Southern’s campus is trying to find a way to stand out versus the competition. In such a competitive market, recruiters are definitely searching for unique ways to attract graduates.”

Demand on the Rise

According to the U.S. Bureau of Labor Statistics, nearly 233,000 additional new jobs will open for registered nurses each year through 2016. That is on top of about 2.5 million current positions. When you take into consideration that only about 200,000 candidates passed the required RN licensing exam in 2008, the need for new nurses becomes even more alarming.

According to Bartels, Georgia ranks 42 nationally in the supply of RNs creating an RN vacancy rate of as high as 15 percent, well above the national average. By 2012, Georgia alone will have an estimated shortfall of more than 20,000 nurses. “Even with a best-case scenario, assuming all nursing graduates pass the licensure exam, remain in Georgia, and work full time, it is estimated that with current capacity and practices, the state will only be able to produce a maximum of 12,000 of the needed 20,000 RNs by 2012.”

“The need for well educated nurses is not only tied to the increased demand for healthcare, but can also be attributed to increasing numbers of retiring nurses,” said Bartels. “Nurses are retiring at a faster rate than Universities can train and supply new nurses not to mention addressing additional need on top of that.”

Becoming More Competitive

Bartels is also seeing another trend – the desire of current nurses to earn additional higher degrees in their field. Georgia Southern University offers several programs that have grown rapidly in the past year. These include the RN-BSN program where a currently registered nurse may earn a bachelor’s degree through a completely online program. In addition, the University also offers a Master of Science and Nursing and this past year introduced a Doctor of Nursing Program (DNP). The RN-BSN and DNP are offered completely online while the Master of Science in Nursing is taught through a combination of online and classroom instruction.

All three programs have been designed for nurses working long hours or varying shifts. “There is an obvious interest in achieving additional nursing education and we designed the programs so that nurses could not only pursue their degree, but do so while they continued to work,” said Bartels.

One need that Bartels continues to reinforce is the need for additional nursing faculty. “I am trying to search for a faculty member right now to fill a position and there are just not enough faculty members to go around.” To counter this trend, programs like Georgia Southern have launched doctorate level programs designed to prepare nurses not only for advanced nursing practice, but also to return to the classroom to teach what they have learned. Georgia Southern’s Doctor of Nursing Practice program is one of only two of its kind in the state and now students have access to one of the nation’s top nursing programs at any location with an Internet connection.

With current economic conditions, demand for new nurses, the challenge to provide additional training for current nurses and the need for new faculty, Bartels says creativity is the key. “You’ve got to be creative, persistent and willing to step outside the box,” she says. “At Georgia Southern we are continually looking for new ways to not only address the existing shortage, but prepare for expected future demand.”

Prospective students may find out more about Georgia Southern’s nursing programs at: www.georgiasouthern.edu. The application deadline for the Doctor of Nursing Practice program is March 1, 2009. The RN-BSN program and the Master of Science in Nursing program accept applications throughout the year.

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Sallie Mae Reminds Families: Paying for College in a Recession is Possible and Starts with the FAFSA

(BUSINESS WIRE)--A full 25 percent of families did not complete the Free Application for Federal Student Aid (FAFSA) last year, making them ineligible for federal financial aid to help pay for college, according to a recent study by Sallie Mae and Gallup on “How America Pays for College.” Sallie Mae, the nation’s leading saving- and paying-for-college company, reminds students that they may file a FAFSA beginning Jan. 1 and urges them to complete the form to qualify for federal financial aid for college.

According to the U.S. Department of Education, an estimated 15 million students file FAFSAs annually. The federal government, state governments and higher education institutions each award financial aid and rely on a student’s FAFSA information when making award determinations. Federal aid includes need- and non-need-based grants, scholarships, work-study and low-cost student loans.

Submitting the FAFSA early and before state and higher education institution deadlines maximizes a student’s chances of receiving the gift aid they are entitled to. Gift aid, such as grants and scholarships, is financial aid that does not have to be repaid. Last year, approximately $163 billion in student aid was awarded, according to the College Board, with grants comprising approximately 40 percent of that total.

“Don’t think for a second that you can’t pay for college in these difficult economic times,” said Martha Holler, spokeswoman for Sallie Mae. “You can, and it all starts with the FAFSA. Investing an hour or two to complete your FAFSA will pay off over a lifetime.”

Sallie Mae’s award-winning CollegeAnswer.com Web site has free tools and information to simplify the application process and help families navigate the financial aid process. Resources include sample FAFSAs in both English and Spanish, a list of state financial aid deadlines and a three-minute FAFSA podcast which can be downloaded to an MP3 player or computer. CollegeAnswer.com also contains the largest free online scholarship database, containing more than 2.8 million scholarships worth over $16 billion. Visit www.CollegeAnswer.com/fafsa for more information.

Sallie Mae recommends students and their parents gather relevant documents and information, including Social Security Number or alien registration card, driver's license, latest federal income tax return, W-2 forms, bank statements and investment information, before going online to www.fafsa.ed.gov to complete the application. This will help them complete the FAFSA in as little as an hour or two.

Students need to submit a FAFSA every year they are in college to receive federal student aid. Students who are already attending college and who are renewal-eligible for 2009-2010 will be sent a Renewal Reminder notification from the U.S. Department of Education. The Renewal FAFSA form is pre-populated with information from the student’s previous FAFSA.

Students and families completing the FAFSA will find Sallie Mae’s new Education Investment Planner useful. The free Planner helps students and families understand the total cost of college and how to pay for it without going beyond their means. The Planner estimates the total cost of a college degree, builds a plan to pay for college, and estimates the salary a graduate would need to keep repayment of student loans manageable. Visit www.SallieMae.com/plan for more information.

Sallie Mae always advises families to use its 1-2-3 approach to paying for college: first, use free money by filling out the FAFSA to access need-based grants, research and apply for scholarships. Then, supplement with current income, college savings, and an interest-free monthly tuition payment plan. Second, explore federal loans. Available to both students and parents, they can offer low, fixed interest rates and flexible repayment options. Third, fill any gap with private education loans. They are convenient and designed to help students meet the total cost of college.

The recent passage of the Higher Education Opportunity Act will simplify the federal student aid application process in the future. Sallie Mae strongly supports efforts to make applying for college financial aid quicker and easier for families. The new legislative changes include:

* Reducing the number of questions on the FAFSA form over the next five years.
* Revising the FAFSA form so that it contains consumer friendly language.
* Creating a two-page FAFSA-EZ form for low-income families.
* Simplifying the FAFSA re-application process.
* Sharing data from federal tax forms between the Internal Revenue Service and the U.S. Department of Education to further simplify the FAFSA process upon consent from students and their families.

In addition, the U.S. Department of Education is planning a $300-million upgrade of www.fafsa.ed.gov, the Web site students visit to complete the FAFSA. The upgrade will take place over the next five years.

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University of Georgia Budget Update

University of Georgia Budget Update
President Michael F. Adams

I would like to begin my comments on the budget situation with words of praise for the people who have spent countless hours working to ensure the long-term financial stability of the University of Georgia. The credit for our careful management of the budget crisis to date goes to the many faculty and staff who have taken on extra responsibility in areas where there are unfilled positions. The credit also goes to the leadership team in the budget area: Arnett Mace; Tom Landrum; and Tim Burgess, with the help of the many dedicated staff in Finance and Administration; and of course the deans, vice presidents, directors, and department heads who face the greatest challenge of managing these budget reductions at the school, college, and departmental levels.

We are facing an economic crisis of a magnitude unprecedented since WWII. My belief has been that we must manage very conservatively during these times, doing all that we can to preserve faculty and staff jobs—which remains my top priority—so that we can continue to carry out our missions of teaching, research and service. To date, we have been able to avoid the worst of this economic recession because of the planning by our budget team that began about this time last year. But we do not yet know how much the fiscal year 2009 budget ultimately will be cut and what the funding levels will look like for 2010.

As you will recall, at their October meeting the Board of Regents directed that we reduce our FY 09 budget by 6%. This action led to a reduction to UGA's state-appropriated funds of over $29.7 million, with $24 million being reduced from our Resident Instruction budget and $5.7 million from our B Units, the experiment station and extension units that extend our research and outreach missions throughout the state.

Although the University System has not received specific budget instructions from the state regarding further budget reductions, the Board of Regents yesterday took prudent action to prepare for a likely budget reduction of 8%. Increasing the FY 2009 budget reduction to 8% would increase the reduction to UGA's state-appropriated funds from $29.7 million to about $39.7 million, with $32.1 million being reduced from our Resident Instruction budget and $7.6 million from our B Units.

Given the budget challenges facing all public colleges and universities in Georgia, the Board of Regents took the following three actions yesterday in a special called meeting.

First, the Regents voted to reduce the employer contribution rate for the PPO and HMO health insurance plans from 75% to 70%. This action increases the employee cost for these and the Indemnity health plans, if the employee does not opt to move to a lower-cost plan. Importantly, the open enrollment period has been reopened until December 15th to allow faculty, staff, and retirees to make different choices should they wish to do so, in light of the change in premiums.

Second, the Regents voted to waive BOR policy 704.021 on mandatory student fee. This is the policy that outlines the standard timetable and procedures by which mandatory fees are typically set by the Board of Regents, usually in April.

Third, they voted to institute a mandatory fee of $100 per semester at research universities and the largest comprehensive universities, $75 at the other comprehensive universities, and $50 at access institutions.

Each of these actions is part of a tiered approach that has been followed over several months by the System to address the changing budget situation. I would like to speak to these items in more detail.

First, the health care action. As UGA faculty and staff will receive the merit salary increases approved for January 1, 2009, these raises will help mitigate the health insurance cost increases that System employees are being asked to bear. At UGA, we have made concerted attempts to address salary concerns in specific targeted areas over the past months and years. As of January 1, 2009, we will have been able to move the minimum salary to $21,000 after steady steps in that direction over several years. Along with raising the minimum salary, we also allocated funds to mitigate staff salary compression issues that are associated with raising the minimum hiring rate. Likewise, we have allocated over $1.8 million additional funds in this fiscal year alone to help bring faculty salaries more in line with our competitors, with $1.3 million of this funding being targeted at the associate professor level. This is the fourth year that we have allocated funds to supplement the merit salary increase pool. In addition to these targeted salary increase allocations, we also provided funds to add an additional ½% to the 2.5% merit pool provided by the state to ensure that all faculty and staff are receiving a minimum ½% salary increase to help mitigate the impact of the growing cost and inflationary pressures that are confronting all of us.

Such efforts would not have been possible without a shared commitment to these efforts among the senior leadership team, and the belief that such actions were important to the future of the institution. It is not easy to watch progress in salaries diluted by the very real pressures of this economic recession, but the Chancellor and the Board of Regents have been clear in indicating that at this stage of budget reductions, all employees have a role to play in helping address the budget crisis.

While other state agencies and other universities outside of Georgia are taking steps to furlough employees, furloughs are not being considered for University System employees at this time. We are also not yet taking steps towards hard layoffs across the University for full-time positions. However, the pain of the current level of cuts has already had a direct effect on positions. Vacancies are not being filled, and some part-time contracts have not been renewed that would otherwise have been renewed in better times. This is real pain, and real function being lost at this institution.

In total, the budget reductions are forcing UGA to defer filling 167 faculty positions, 183 staff positions, 47 graduate assistant positions, and 52 student worker positions across the institution. These vacancies translate to class sections that are not offered, student course needs that go unmet, and programs that are canceled.

Second, the issue of the Special Spring Semester ‘09 fee. The action taken by the board places a mandatory fee of $100 at the research universities, $75 at the comprehensive universities, and $50 at the access institutions for Spring 2009 in order to sustain academic quality. The Board will, in the normal course of business, set fees for the next fiscal year in April. The Board of Regents will make decisions about tuition and fees for fiscal year 2010 at that time.

Just as employees are being asked to help significantly in these challenging budget times, students are being asked to step up and help to ensure that the academic quality of this institution remains strong. We will continue to do everything possible to achieve greater efficiency in our operations so that we retain as much flexibility as possible in meeting our academic mission.

I have said before that I believe UGA’s tuition is too low; one has only to look at tuition at the other states in the Southern region to see this underscored. The $4,395 in tuition that UGA is assessing to in-state undergraduates (Fall 2008 and Spring 2009 semesters) is $1,033 below the median of $5,428 and $1,412 below the average of $5,807 for tuition being assessed by UGA's peers in the Southern region. The national discrepancies are even larger. As recently as last week, the governor of Florida, one state whose tuition has historically been lower than ours, announced his support for tuition increases of up to 15% to help struggling public colleges and universities.

In taking this action to implement a mandatory fee midyear, the Chancellor and the Regents have acknowledged that maintenance of academic programs depends upon such funds. Georgia’s students receive an excellent education at UGA, and as much as I regret increases, I do believe that they are justified to ensure that we can continue to provide appropriate academic offerings to our students that are of the quality that our students demand and deserve and that the state expects from its flagship institution.

Please understand that this is December 4th, and there is still a possibility that the budget reduction will go higher than 8%. This is a fluid, ever-changing situation, and we do not yet know how Georgia will fare in the coming months. I also want to be forthright in saying that we do not yet know the prospects for a pay raise in 2010, but I believe it to be slim. We will continue to work closely with the System officials and with our legislative leadership in our planning as we move through these challenging times.

Like almost every higher education institution in the nation, we are facing the challenges of a national economic downturn. Our neighboring states have these same issues. For my part, I remain grateful that UGA is located in Athens, with its strong sense of community and its good quality of life, for I think in difficult economic times such factors become increasingly important.

While we do not know the economic course of the next several months, we will continue to keep the campus informed of additional actions that impact our budget. I remain confident that the day-to-day work that we do to serve students as well as the citizens of Georgia is the best means to provide a bright future for this state. This institution has faced many difficult times in its 223-year history and has survived, each time to grow to a stronger and more expansive level of service. I am confident we will do so again and that there will be improvement in the next 12-18 months. I am truly grateful to all of our faculty, staff, and students for their shared sense of commitment to the University and its academic programs.

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