Education Roundtable
How Indiana colleges are weathering the storm
“No matter what else you do, stay in school. Get an education; it’s something that you will have for the rest of your life.” Most young people have heard those lines before. They can readily recall being admonished by their parents – over and over again – about the value of a good education.
When jobs become more difficult to find, as has been the case recently, more people remember those lessons and turn to education as a way to improve their lives. That is exactly what is happening in Indiana. As unemployment hovers around 10 percent, the state’s colleges and universities are seeing rising enrollment.
As a matter of fact, Ivy Tech Community College, which operates the nation’s largest two-year community college system, with branches across Indiana, began the August 2009 school term with an all-time record enrollment of 106,644.
While the recession has left schools with less public funding as state and federal governments have tightened their purses, Indiana colleges have had to figure out a way to accommodate the growing number of students passing through their doors.
So, how should Indiana institutions of higher education cope with the challenges they face as the economy begins to recover, and what do they envision the future holds for them?
The Indiana Minority Business Magazine posed those and other questions to administrators and executives at several of the state’s colleges and universities, including Franklin College, Indiana State University, Indiana University, Ivy Tech Community College, Marian University, Purdue University, and Vincennes University.
Among the education leaders speaking to these issues are:
1. Daniel Elsener, president of Marian University
2. Dr. Richard Helton, president of Vincennes University
3. Dr. Jay Moseley, president
of Franklin College
4. Jeanne Norberg, director of public information
at Purdue University
5. Dr. Benjamin Young, vice provost for student affairs at
Ivy Tech Community College
6. Joyce Rogers, vice president of development at Ivy Tech Community College
7. Dr.Tara Singer, assistant vice president for communications and marketing at Indiana State University
8. Dr. Neil Theobald, vice president and chief financial officer of Indiana University
In light of the economic downturn that the state and nation have been through over the last couple of years, how has your college had to adjust in order to carry out its mission of educating students?
Elsener: You have to be very careful with expenditures. You also have to realize that some of your students’ parents used to have two incomes; they used to get bonus checks and there are no bonus checks because business is down. Some families have lost all income. Some of them, their parents used to get overtime, now they don’t. So sometimes their four-year-plan to get through school has been altered. So we’ve had to put more money in financial aid to help students. We know that quality sells but if your customer has no resources or very few, you have to help them.
Young: We have experienced phenomenal growth. We continue to ensure optimal quality and efficiency during this time of growth. As a single statewide community college, we have been able to take advantage of some of the efficiencies we put in place and generate cost savings to then reinvest in our students.
Norberg: Over the last year, we reduced our staff by 140 people, cut budgets by two percent and froze salaries. We continued with the salary freeze for this year and also have curtailed hiring and have cut our energy use dramatically. Purdue also has started an aggressive effort to cut operational costs and review our organizational structure to make sure we are as cost-effective as possible.
Theobald: Early last year, President (Michael) McRobbie recognized that the economic downturn would start constricting revenue, especially state support. He put in place a number of measures to reduce spending, including an across-the-board salary freeze for 2009-2010, almost 200 fewer administrative personnel, a 50 percent reduction in travel budgets, and a number of other changes that have enabled us to continue operating with no harmful reductions to our core academic and research missions.
Has the amount of charitable contributions and gifts to your institution changed and has it had an impact on your institution’s capability to deliver a quality education?
Rogers: Charitable contributions and gifts to the Ivy Tech Foundation have continued to grow over the last year. While our contributions are up, in spite of the downturn for most colleges and universities across the nation, Ivy Tech did suffer slightly through endowment losses. In 2009, Ivy Tech endowment losses totaled 10 percent less than the average education endowment losses nationwide. Providing over $2 million dollars in scholarships over the past year, Ivy Tech has continued to support the college’s overall goal to provide a quality education for all of its students.
Moseley: We have kept tuition increases in check by careful budgeting. Fortunately, endowment and budget management decisions made in previous years have protected Franklin College from the major budget swings that have forced other institutions to reduce operations. We have not had to cut any positions or freeze any searches and were able to give modest salary and wage increases in 2009.
Singer: While a number of institutions have struggled with fund-raising in recent years, the Indiana State University Foundation launched the public phase of the “March On!” campaign in October 2009, and has raised $58 million of its $85 million goal to date. By relying on priorities set forth in “The Pathway to Success,” and with the continued dedication of faculty, staff and administrators, we are confident we can maintain the quality education provided at Indiana State. Indeed, the strategic plan, the budget reduction plan and a separate early retirement incentive package are designed to ensure that limited resources are invested in areas that directly serve students and the State of Indiana.
Helton: Vincennes University continues to deliver quality education and a robust scholarship program, in part due to the VU Foundation’s conservative investment policy. Many foundations were down 25-35 percent (more at the peak of the crisis) but, at worst, the VU Foundation was down about 17 percent in fair market value. With new contributions added into the mix, we are now managing more dollars than prior to the financial crisis having exceeded $41 million in assets under management for the first time.
In regards to total dollars available to award scholarships, due to receiving several planned estate gifts during the last couple of years, we may even be able to award slightly more scholarships in the upcoming 2010-2011 school year. Furthermore, unrestricted annual giving through Dec. 31, 2009, was up 10.7 percent over 2008 comparables, which also was above historical unrestricted annual giving levels.
In 2008, Indiana students left college with an average debt of $23,264. What advice can your college give to students, or prospective students, to help them keep their education costs/debt as low as possible?
Theobald: First of all, I would point out that students graduating from Indiana University in 2008 carried an average of $13,728 in debt. Published figures inflate the actual amount of debt by excluding students who graduate debt-free from the calculation. Also, national studies indicate that much of this student debt is created by spending that is unrelated to tuition and housing costs.
At IU Bloomington, our average out-of-pocket tuition cost for Hoosier undergraduate students has actually fallen in each of the last four years. This is due to a series of innovative new financial aid programs that make IU Bloomington a national leader in affordability – as noted by the recent Kiplinger Personal Finance magazine ranking of public colleges and universities that “deliver strong academics at affordable prices.” The magazine ranked IU Bloomington 28th in the nation, based on a comparison of its quality and costs with more than 500 other public institutions.
Our financial aid programs continued to drive down the cost of attending IU Bloomington this year by providing $11.3 million in additional financial aid grants (no loans) to the 60 percent of Hoosier undergraduates receiving gift aid this year. Because of these programs, we can virtually guarantee that every Hoosier high school student can earn much of their college tuition by performing well enough in high school to qualify for one of IU Bloomington’s incentive grant awards, which are renewable for up to four years.
Norberg: The best advice is to take advantage of the scholarships and aid available. Purdue has raised more than $120 million in the last two years just for scholarships. We also created two new scholarships last year specifically to help Indiana students afford college. The first was the Marquis Scholarship, which goes to good students from middle-class families that make less than $100,000 per year. The latest is called Emerging Urban Leaders and is specifically for students from Indianapolis, Hammond, Gary and East Chicago. Colleges also provide many work-study jobs. These jobs are funded by the colleges and the federal government for low-income students. The work hours often are flexible so they fit well with class schedules.
Elsener: Of all of the things in your life, including your house, one of the only things that will pay off enough to make it worthwhile to go into debt at $20,000 or $50,000 or even $100,000 is education. Once you decide to do that, only borrow what you absolutely need to get an education. There are students from universities all over the country going on spring break in Florida, and they are borrowing the money. They’re using credit cards. They should be home working a part-time job. You cannot have instant gratification and stay responsible on debt.
Young: Be smart when you make decisions regarding loans. Students should explore all financial-aid and scholarship options. And be sure to get their paperwork in on time so that they are eligible for as much support as possible. In Indiana, March 10 was the key date to have your Free Application for Federal Student Aid (FAFSA) filed. Don’t wait until the last minute to decide to go to college, start planning as early as you can.
Indiana colleges, coaxed by the growing numbers of prospective teachers who are being trained through non-traditional education programs and methods, are in the process of re-examining how the state’s future teachers are taught. What has your school done, if anything, to accommodate this new trend?
Moseley: We do not believe there are easy ways or shortcuts to education, including the education and preparation of teachers. Our teacher education students learn from excellent and demanding teachers themselves, and they spend considerable time in a variety of teaching environments before they’re student teachers. They all get jobs.
The new standards that require disciplinary expertise (a standard academic major) as well as pedagogical training (education classes) seem to recognize the way we’ve been doing teacher education for a long time and do not require any changes at Franklin College. A teacher education program in a liberal arts curriculum makes a lot of sense.
Singer: We are not “coaxed” by fast track alternatives or any other alternative pathway teacher programs. However, we are constantly seeking innovations within our program to ensure relevant and rigorous coursework that graduates the best possible teachers.
We have implemented more clinically-based experiences for pre-service educators. Our teacher candidates now have a full year of immersion prior to graduation. This allows teacher candidates to see how a year begins and how one ends under the close supervision of well-qualified supervising teachers. A Center for Collaboration and Innovation in Teacher Education has been established to connect with and assist our teacher graduates for the first five years after graduation. We know that staying connected to our graduates helps ensure their teaching success.
Finally, the PRAXIS exam can be a gatekeeper to the teaching profession. We now offer a scholarship to those who take and pass the test prior to entry into our program. We hope that taking the test earlier will better enable success or identify those who need assistance in passing the exam. Professors have also been identified to offer one-on-one assistance as well as offer courses to prepare students for the exam.
Helton: Reaching out to a wide audience to provide teacher education is an important part of Vincennes University’s mission. This is true because it makes teacher education more accessible for all kinds of students.
One way VU is doing this is by offering course work online. VU offers online to almost half of our first two years of education classes. With the current available technology, we can offer hybrid courses, in which hands-on practical experiences are demonstrated in a workshop format and through practical experiences in public schools, while holding much of the course work online. This is part of VU’s long-standing mission of reaching out to serve students’ needs statewide and beyond the state’s boundaries.
Elsener: We are absolutely in the forefront of that whole movement. I am on the State Board of Education, so I see it from two sides; probably three or four sides. I was a teacher, principal, superintendent and I’m a university president now. Secondly, I see it from the policy and needs of the state. Especially in poorer schools, some rural schools, urban schools, we don’t have enough math/science teachers with real math/science degrees. And we know that teachers who do not know their content are not very good teachers. So you’ve got all of these children from disadvantaged homes getting teachers who don’t know a subject. They’re being disadvantaged. It’s a gross injustice.
Teachers make a big difference in the quality of education. I’ve never seen a building teach a kid or a program teach a kid. Teachers teach them and that’s what drives test scores. A teacher with a strong subject area is a better teacher than one without.
Teachers are the most important variable in student learning, but it’s an even more dramatic effect where there’s a disadvantaged child. Marion probably put over 100 teachers with degrees in math and science into Indianapolis Public Schools by using alternative systems, and is taking career changers and helping them become teachers. That puts a more mature person in the classroom, too. We have 300-400 people now being prepared in non-traditional teaching programs at Marion.
As the amount of government funding for higher education decreases, what is your school doing to help keep its tuition down?
Young: We at Ivy Tech do not want to put the cost on the backs of our students. We are dedicated to having the most affordable tuition in the state. We have become more efficient than ever before and generated internal cost savings to help offset the fact that funding is not keeping up without growth.
Norberg: Purdue has embarked on an aggressive campaign to assess and revise its operations to keep costs low. We intend to cut our budget by $67 million on a recurring basis. To do this, we are examining every aspect of our operation, from the energy consumed to the services we provide. Everything is on the table, except the quality of our Purdue degree. Initial decisions are expected later this spring.
Theobald: President McRobbie and our board of trustees are very cognizant of the need to hold tuition increases down to the absolute minimum necessary to ensure that we can provide the quality of academic programming that our students demand. To date, IU has realized $177 million in operating expense reductions as part of an ongoing university-wide effort to become more efficient in our non-academic enterprises and we expect to find additional savings that will help us hold down budget increases. Savings to date include this year’s salary freeze – the first at IU in over 50 years, reductions in non-faculty employment, a 3.2 percent decrease in IU prescription costs at a time when national spending for prescription drugs is increasing at nearly 9 percent per year, reduced retirement benefits, reduced administrative costs, and self-funding of employee health care plans.
Moseley: Last summer Franklin College increased need-based financial aid to students whose State Student Assistance Commission of Indiana funding was reduced. Our tuition is and will remain in the bottom half, probably even in the bottom third of Indiana’s independent colleges.
Indiana’s public colleges saw some of the largest enrollment increases in their histories at the beginning of the 2009-2010 school term; why are more students entering or returning to college these days?
Singer: More students are entering college because students and their parents recognize the value of a degree in an increasingly sophisticated and competitive job market. More students are choosing Indiana State because they see the benefit of the unique real-world opportunities we provide to work alongside professors as colleagues in research, learning and community engagement. Such broad-based learning is essential in today’s market.
Helton: The economic downturn has emphasized for students, of all ages, the importance of pursuing higher education as a means to achieve greater economic opportunities and security. They recognize the value of education on a very personal level and that helps motivate them. I believe this will continue throughout their lifetime as they pursue continuing education at a rate unprecedented by past generations. This will serve them and our nation well since it is the key to economic growth and competitiveness.
Vincennes University is also welcoming growing numbers of non-traditional students, including dislocated workers and military veterans, many of whom are enrolling in our Distance Education programs and on-site instruction at corporations and public libraries. These students understand the value of lifelong learning as they compete for the best careers in this economy.
Young: We believe more people are seeing the value in Ivy Tech and the community college. The community college concept is new to Indiana and in the last few years people have come to realize it is affordable, provides two-year degrees that result in a career and has credits that transfer.
Norberg: Here are some reasons:
• Demographics:
Unlike many states, Indiana is not experiencing a drop in the number of high school graduates.
• The economy:
Much of the growth is due to adult learners who are under- or unemployed – eager to learn new skills to prepare for new career opportunities – particularly those displaced by lower-skill manufacturing jobs that are not likely to come back even when the economy recovers.
• Greater awareness about the importance and greater earning power associated with college education among students/families who were not traditionally college-bound in the past:
Indiana’s network for Twenty-first Century Scholars, LearnMore Indiana, new high school graduation diploma requirements, etc., are getting the message across that jobs and careers of the 21st century will require a post-secondary credential of some sort – and in many cases, an associate’s or bachelor’s degree. Students are becoming more ambitious in their educational aspirations.