Office of Planning and Budgeting

Student Exchanges Hit Record High.  According to the Open Doors Report on International Educational Exchange, the number of international students at U.S. colleges and universities and the number of American students studying abroad are at record highs. In 2012-13, 820,000 foreign students attended American higher ed institutions, a 55,000 increase (7.2 percent) from the previous year. Chinese undergraduates exhibited the biggest increase, 26 percent, bringing the total number of Chinese students studying in the U.S. (undergraduates and graduates) to 235,000. In 2011-12 (the most recent year for which data are available) 283,000 American students went abroad for credit university courses, up 3.4 percent from the prior year.  For institutions hosting the most international students, the UW ranked 14th in the country.

New Studies Cast Doubt on Effectivenessof State Performance-based Funding.  Now that economies are recovering from the Great Recession, state legislators across the country have been hurrying to adopt systems that link state funding for higher education to student outcomes like degree production and completion rates. However, several research papers presented at the annual meeting of the Association for the Study of Higher Education question the effectiveness of these “performance-based funding” systems. See Inside Higher Ed for a summary of the findings.

College Completion Rates See Little Improvement.  College-completion rates remained largely unchanged this year, according to the National Student Clearinghouse Research Center. Of the first-time students who entered college in fall 2007, 54.2 percent earned a degree or certificate within six years—up 0.1 percentage points from the 2006 cohort. In the public sector, completion rates rose by 1.3 percentage points for students who started at public four-years and by 1.1 percentage points for those who began at public two-years. Unlike the federal government’s college-completion measure, the center tracks part-time students and students who transfer to a different college, sector, or state. Only 22 percent of part-time students earned credentials within six years, compared with 76 percent of those enrolled full time. The research center will issue its full report next month.

University of Michigan’s Shared Services Strategy Faces Opposition.  The University of Michigan is the latest campus to implement “shared services,” a cost-saving strategy that has academic departments rely on centralized staff, rather than department-level staffers. Theoretically, employees in the central pool could become more specialized, and thus more efficient, than departments’ jack-of-all-trades staff. Administrators at Michigan hoped to save $17 million by moving 275 staffers from their campus offices to a single building on the edge of town. However, not only are faculty and students speaking out in opposition, the plan is no longer expected to save nearly as much as once hoped and may barely break even in the short term. Read more at Inside Higher Ed.

Today’s release of the November general fund state revenue forecast indicates that current biennial revenue is slightly down from September’s projection. The decline is largely due to a technical adjustment which resulted in a $41 million decrease of available funding this biennium, though collections for the current biennium are $16 million over prior projections. The net decrease in November’s revenue forecast is $24 million less than the September revenue forecast.

In other words, new revenue and an offsetting technical adjustment give Governor Inslee a $32.98 million general fund target for his supplemental operating budget, expected in December.

This forecast, once again, does not contemplate any tax revenue associated with the impending sale of cannabis.

Consumer advocates applauded the Department of Education’s second—and substantially more stringent—set of draft regulations for the “gainful employment” rule, released on Friday. They claim the metrics, which apply to vocational programs at for-profit institutions and community colleges, will better measure the program’s loan default and repayment rates. Programs that do not meet the Department of Education’s standards under the gainful employment rule will lose federal student aid eligibility.  

The Department of Education’s initial regulatory language, released in September, included two measures of debt-to-earnings ratios for graduates of vocational programs. However, these measures did not require the institutions to report debt-to-earnings ratios for students who dropped out of the program without earning a degree—an oversight that critics of for-profits believed would be misleading.

The new regulations would include a loan default ratio metric, as well as a measure of repayment rates across an academic program’s “portfolio” of loans. The law would require that the total principal balance of loans borrowed for an academic program is less at the end of the year than it was at the beginning. The measure will therefore capture repayment rates both for students who earn a credential and those who do not.

For-profit supporters are critical of the new language, saying their ideas and suggestions for crafting a metric for gainful employment were not taken into account. They claim that the new rules, if implemented, could deny needy students access to vocational programs that may help them get better jobs. Critics of for-profits counter that the rules will help students make more informed decisions about the likelihood that they will be able to repay their loans, as well as ensure that institutions that receive federal aid dollars are offering high-quality degrees.

While the gainful employment rule applies only to vocational programs at for-profit institutions and community colleges, President Obama’s proposed ratings system, which would tie federal financial aid funds to performance metrics, applies to all institutions that receive federal dollars. If implemented, the ratings system would hold all institutions accountable to similar standards—a prospect that worries many administrators who claim they cannot control their students’ career success or the labor market.

The second round of negotiations on the gainful employment rule begins this week. As always, we will keep you posted on their progress.

Governor Inslee signed two bills into law Monday, November 11th, to encourage Boeing to build 777X planes in the Pacific Northwest. Both bills remained largely unchanged from their original form and neither included provisions for the University of Washington. Bill summaries are available here and here.

While Boeing stands to benefit most from this bill activity, the State Board for Community and Technical Colleges would receive $8 million in supplemental operating appropriations for 1,000 additional student FTE in aerospace worker education and training.

Governor Jay Inslee called the Washington State Legislature back to Olympia beginning today, Thursday, November 7, 2013 to introduce and ultimately approve several bills aimed at Boeing production of a 777x plane and its carbon fiber wing. The Governor’s press conference is available on line, but a cursory read of the initial bills introduced today indicate that the package will not directly affect the University of Washington.

Stay tuned!

UNC institution may cut physics, political science, history

Elizabeth City State University, a historically black college in North Carolina, may discontinue its physics, political science, and history degree programs because they are considered “low productive.” Many higher education leaders are alarmed by this move, claiming that history education is fundamental to American higher education, particularly at a historically black university in the South. Read more about the potential cuts here.

Complete College America analyzes states’ performance funding models

Complete College America, a proponent of linking state funding for higher education to student outcomes like degree production and completion rates recently released a report that details and scores how states are implementing performance-based funding formulas. Sixteen states currently have performance funding strategies; the majority account for universities’ unique missions and reward institutions  that help underserved student populations succeed. The report argues that there is now enough knowledge about how to implement a successful performance-based funding program that such strategies could be adopted nation-wide. Check out this Inside Higher Ed article for more.

Coursera and U.S. government partner on world-wide MOOC service

One of the largest MOOC providers, Coursera, announced on Thursday that it is partnering with the federal government to establish “learning hubs” around the globe, where students can access MOOCs and attend weekly, in-person class discussions facilitated by local instructors. The learning hubs are intended to remedy the lack of reliable internet in certain countries as well as address the growing opinion that students are more successful when they discuss classwork and meet with their teachers in person. Read more at an article by the NY Times.

Flipping the classroom may have its limits

Flipping the classroom, a practice in which students listen to pre-recorded lectures at home and then engage in hands-on learning exercises in class, has gained popularity and esteem as a way to improve student performance. However, an experiment at Harvey Mudd College compared the outcomes of students in flipped STEM courses with those of students in traditional STEM courses and found no demonstrable differences. Professors also claimed they spent much more time preparing for the flipped classes (creating videotaped lectures and engaging classroom activities) than they had preparing for traditional classes. The findings are still preliminary, and the sample at Harvey Mudd is very small. The study could, however, highlight the fact that flipped classrooms may not be well-suited for every  context or class type. Certain conditions are likely to produce better results than others. Read more here.  

UC President announces aid for illegal immigrants

Janet Napolitano—former Secretary of Homeland Security and current president of the University of California (UC)—said Wednesday that the UC system would put $5 million toward special counseling and financial aid for students living in the country illegally. The NY Times reports the move is “aimed at disarming critics who worried she would be hostile to the small but vocal student population.”