States Looking at Higher Ed to Foster Economic Growth

One of the most critical elements needed for a tech-based economy is a strong higher education system that supplies a source of research ideas, new technologies and a skilled workforce. Studies have shown that individuals with college degrees earn more money, obtain better jobs, pay more taxes, and are more apt to perform volunteer work. Given higher education's important role, several states have been re-examining how higher education can play a larger role in their economy. SSTI highlights some of those efforts below.

Colorado

Colorado enacted a higher education initiative earlier this month, becoming the first state to offer college vouchers. Gov. Bill Owens signed Senate Bill 189 into law, which provides individual vouchers of $2,400 per year for Colorado students to attend public colleges and universities beginning in the fall of 2005. The bill also offers up to $1,200 for low-income students to attend one of three non-public institutions in the state.

Recent reports from the Associated Press, however, indicate that budget restraints may force the amount to be cut to from $2,400 to $1,600 per year unless the state comes up with another plan. State lawmakers have said voters must either ease fiscal restraints in the state constitution or agree to use settlement funds from the tobacco industry in order to avoid the cuts.

SB 189 is available through the Colorado State Legislature at: http://www.leg.state.co.us/Clics2004a/csl.nsf/BillFoldersSenate?openFrameset

Maine

Recognizing the need to improve access to a college education, Gov. John Baldacci recently charged the Maine Compact for Higher Education, a joint venture of the Maine Development Foundation and the Maine Community Foundation, with creating a plan to retain more college graduates. Only 37 percent of Maine's working adults hold college degrees, and only about half of the state's high school graduates seek higher education.

The Compact released the College for ME Action Plan last month in response to the governor's request. Five action strategies are detailed in the plan, with the goal of creating 40,000 new college graduates over the next 15 years and raising the graduation rate from 55 percent to 70 percent by the end of the decade. The plan stresses partnering between existing businesses, government, education leaders and community organizations in order to accomplish the goal.

The total program cost is approximately $44 million, $34 million of which would go directly to a scholarship program that provides full tuition to eligible students in order to eliminate student loans and funding gaps. No state funding has been committed to the plan, although the governor plans to include a down payment in his next budget proposal.

The College for ME Action Plan is available at: http://www.collegeforme.com/

Montana

A working group comprised of staff within various state agencies and organizations have presented Montana's Board of Regents with a detailed blueprint to help spur economic growth via the state's universities.

The blueprint, Shared Leadership for a Stronger Montana Economy, outlines six goals and 24 initiatives. Proposed actions are accompanied by an explanation for their need, background to current problems, proposed solutions, estimated cost, and probable return for the state on its investment. Increasing technology transfer and improving worker training and access to two -and four-year institutions are included among the plan's recommendations.

The Associated Press reports the Regents and the Postsecondary Education Policy and Budget committee have endorsed the plan, although final approval will have to be given in the fall after soliciting support from lawmakers, businesses and labor leaders.

Shared Leadership for a Stronger Montana Economy is available at: http://www.montana.edu/wwwbor/SharedLeadInfo.htm

Texas

Elected officials and business leaders in Texas are joining efforts to turn state universities into top-tier research labs in order to jump-start the economy as more federal funding for research becomes available, reports the Fort Worth Star Telegram. The University of Texas (UT) System paid the Washington Advisory Group $1.7 million to study research prospects of the Texas campuses and offer recommendations in order to bring them to a tier-1 level.

Some of the recommendations include working on projects funded by the National Institutes of Health, creating research collaboration between Texas universities, broadening the profile of programs offered, and increasing faculty and student body. The Arlington, Dallas, San Antonio and El Paso campuses would need annual expenditures of $100 million each to be a major force for economic development, according to the Fort Worth Star Telegram. Suggestions on where the funding would come were not offered.

The Washington Advisory Group report, released earlier this month, is available at: http://www.utsystem.edu/news/WAG/homepage.htm

Other States

Florida and Ohio also released reports in the past month calling for more college graduates through increased enrollment. Neither paper contains specific actions or funding recommendations at the level evident in the works of the states described above; however, Building on Knowledge, Investing In People: Higher Education and the Future of Ohio’s Economy calls for creation of a business advisory group to advocate for stronger industry-academic collaboration. The Ohio report is available at: http://www.chee.ohio.gov/index.asp?p=0&text=0

With funding from the National Center for Public Policy and Higher Education, West Virginia is wrapping up several public forums this week in the initial stages of its long-term strategic planning for improving state state's higher education system. The final product of the process is anticipated to clarify state goals, examine current laws and practices, and identify new measures for West Virginia's universities. More information on West Virginia's planning effort is available at: http://www.hepc.wvnet.edu/