Transcript Molly Corbett Broads AAPICU Phoenix Final 2 20 09

The Federal Government and Higher Education:
A Partnership for Economic Renewal
American Association of Presidents of
Independent Colleges and Universities
2009 Annual Conference
Molly Corbett Broad, President
February 20, 2009
It’s the Economy…
 Unemployment up 4.1 million this year to 11.6
million.
 $12.6 trillion in wealth lost in 2008, consumption
down by at least $600 billion.
 Household debt in delinquency or default
approaching $1 trillion.
 New home sales down 63 percent since 2005.
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
Human Capital: A Strategic Asset at Risk
80
60
40
Percentage of Adults with at Least an Associate Degree
66
Younger Adults Aged 25 to 29
Adults Aged 30 or Older
35 34
41
54
37
24 24
20
16 18
18
21
0
Total
Whites
African
Americans
Hispanics
Source: American Council on Education, Minorities in Higher Education 2008.
Asian
Americans
American
Indians
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
Percentage of Young Adults with a Postsecondary Credential
60
Baccalaureate & Above
Sub-baccalaureate
50
40
28
30
30
20
26
Source: OECD, Education at a Glance 2007.
Finland
France
Spain
Denmark
Norway
Ireland
Belgium
Korea
Japan
Canada
0
Australia
9
United States
10
Essential Human Capital
Low- & Middleincome 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
1
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
1
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
R&D as a Percentage of U.S. GDP: 1990 to 2007
3
2.5
2
1.5
1
0.5
0
1990
1992
1994
1996 1998
Federal
Source: National Science Foundation
2000 2002
Nonfederal
2004
2006
Underinvestment in Key Fields
Federal Non-Defense Research Spending by Field
Natural
resources &
environment
($2.0), 4%
All other
($5.8), 10%
Energy ($2.0),
4%
Gen'l science
& basic
research
($7.9), 14%
Space
research &
technology,
($9.2), 16%
Source: National Science Foundation. FY08 spending in billions.
Health
($29.6), 52%
Research Funding
• National Science Foundation (NSF)
– $3 billion
• National Institutes of Health (NIH)
– $10 billion
• Department of Energy
– $2 billion
• NASA
– $1 billion
1
Research Facilities
Federal Support for Academic R&D Facilities
$750
$500
$250
Source: National Science Foundation.
2008
2006
2004
2002
2000
1998
1996
1994
1992
$0
1990
Constant 08 $ (millions)
$1,000
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