Association of Independent Kentucky Colleges and Universities (AIKCU) presentation to Kentucky House Postsecondary Budget Review Subcommittee, February 25, 2010.

1. Private Colleges in the Public Interest:
Kentucky’s Independent Colleges and Universities
Gary S. Cox, Ph.D
President
(502) 695-5007
gary@mail.aikcu.org
http://aikcu.org
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2. Kentucky’s 20 independent colleges and
universities: The 10th component of Kentucky’s
postsecondary education system
• 20 independent, nonprofit colleges and universities. All are accredited by the
Southern Association of Colleges and Schools (SACS) and meet the same
rigorous quality standards as KY’s public colleges and universities.
• 31,000+ total students. 75% Kentucky residents.
• Diverse campuses, missions and student bodies. Provide critical choices and
access to postsecondary opportunities. Locations from Pikeville to Mayfield and
beyond via traditional campuses, extended sites, KCTCS and business
partnerships, distance learning, and study abroad.
• Firmly committed to goals of 1997 House Bill 1. Work closely with CPE to
establish and measure sector accountability goals. Regional and local stewards.
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3. Diverse campuses serving diverse students
• Geographic: 75% of the 31,000+ students are Kentucky residents.
Students from all 120 counties, most states, 108 countries.
• Age: 1 in 5 is an adult student (over 24)
• Racial: 10.1% of undergraduates are minorities. 7.5% of undergrads
are African-American. Minority enrollments range from 2% to 28%.
• Economic: 40% receive federal Pell grants
• Academic Preparation: Admissions standards range from open
admissions to highly selective
• Program delivery models: traditional residential, distance learning,
community-based programs, KCTCS partnerships, accelerated
degree completion, graduate programs
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4. Kentucky’s 20 nonprofit, independent colleges and
universities
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5. Independent colleges are affordable
• Average tuitions 1/3 less than national private college average and 1/4 less
than Southern average. 2009-10 average published tuition and fees =
$18,055.
• 2009-10 tuition increases under 5%.
• Net price students actually pay is very different from published price.
Colleges discount tuition 40%, on average.
• Working aggressively to control costs through partnerships, greater
efficiencies and innovations.
• Serving high need students. 40% of all undergraduates qualify for Pell
Grants.
• Institutions are largest source of aid for students, providing about $3 for
every $1 provided by Kentucky. Three-legged student financial aid
partnership (State Aid + Federal Aid + Institutional/Private Aid) is working.
• Timely graduation means quicker entry into workforce or graduate/
professional school, therefore fewer tuition payments and less foregone
income.
• Relatively low average debt at graduation.
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6. Kentucky’s investment in AIKCU students
is less than 4.5% of total state postsecondary spending
($2.2 million)
Other
CAP
4%
17%
KEES ($9.5 million)
28%
84.4% State financial aid ($15.2 million)
State postsecondary
4.4% to AIKCU students
($54.9 million)
appropriation
($1.06 billion)
11.2% KTG
State financial aid to students in
51%
($27.8 million)
other sectors ($140.6 million)
Total State Postsecondary Spending Kentucky’s Investment in AIKCU Students
Sources:
CPE - 2008-09 state appropriation budget data. Includes public institutions, CPE operations, adult education and special programs
KHEAA - 2008-09 student financial aid data
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7. Kentucky’s $52.6 million FY09 investment in financial
aid to AIKCU students through CAP, KTG, KEES
Average
Maximum Total AIKCU Total AIKCU
Program Eligibility Purpose AIKCU
Award Awards Receipts
Award
• Financial need; tied to
College Access Pell Grant eligibility
$1900 • Assist low income students 5,946 $9,537,569 $1,604
Program (CAP) • At least half-time
student
• Assist low/moderate income
students attending independent
colleges
Kentucky Tuition • Financial need • Recognize cost-effective role
$2964 • Full-time independent independent colleges play in 10,481 $27,841,839 $2,656
Grant (KTG) college student educating Kentucky students by
providing up to 1/2 of per-student
subsidy received by public
institutions
Kentucky • Graduate of KY HS or
Educational GED program
• HS GPA of 2.5 or • Reward academic achievement
Excellence $2500 better • Retain Kentuckyʼs best students
9,479 $15,238,495 $1,608
Scholarship • ACT score of 15 or
(KEES) better
Source: KHEAA, Jan. 2010
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8. Percent of KY Resident Undergraduates Receiving State Aid by Program
Alice Lloyd College
Asbury College
Bellarmine University
Berea College
Brescia University
Campbellsville University
Centre College
Georgetown College
Kentucky Christian University
Kentucky Wesleyan College
Lindsey Wilson College
Mid-Continent University
Midway College
Pikeville College
Spalding University
St. Catharine College
Thomas More College
Transylvania University
Union College
University of the Cumberlands
0 20 40 60 80 100
CAP KTG KEES
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9. Kentucky’s Return on Investment
• 22% of Kentucky’s bachelor’s degrees.
• Campuses provide well over $1 billion in
educational facilities. More than $100 million in
new or renovated academic facilities in the last
four years.
• 100,000 alumni in Kentucky generate $4 billion in
annual earnings and $416 million in state tax
revenues.
• Combined total annual economic impact of more
than $1.4 billion. Responsible for creating more
than 12,000 jobs in Kentucky.
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10. Annual Economic Impact of Kentucky’s Independent
Colleges and Universities = more than $1.48 billion
Total economic impact (in millions), by spending category
Direct Indirect
800
700
600
500
400
300
200
100
0
Institutional Expenditures Capital Expenditures
Source: Private Colleges, Public Benefits: The Economic and Community Impact of Kentucky’s Independent Colleges and Universities on
the Commonwealth of Kentucky. Human Capital Research Corporation, 2006.
http://www.aikcu.org/wp-content/uploads/2007/08/Private%20Colleges,%20Public%20Benefits%20-%20AIKCU%2011-1-06.pdf
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11. Independent colleges promote timely graduation
Percent of first-time, full-time students who graduate in...
50
40
30
20
10
0
4 years 5 years 6 years
AIKCU KY Public Universities
Source: IPEDS, Fall 2001 GRS Revised Cohort of first-time, full-time bachelor’s degree seeking students
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12. AIKCU Total Headcount Fall Enrollment, 1999-2008
31,264
30,411
29,041
26,908 27,440
26,151
25,252 25,532
24,764
23,836
23,206
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Source: CPE Comprehensive Database
*Estimated Fall Enrollment
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13. AIKCU Bachelor’s Degrees, 2000-2008
4,200
4,191
3,902 3,881
3,779 3,801
3,575 3,555
3,453
3,150 3,271
2,100
1,050
0
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
AIKCU enrolls about 19% of KY’s bachelor’s degree seeking students and
produces 22% of bachelor’s degrees.
Source: CPE Comprehensive Database
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14. Growth in transfer from KCTCS to AIKCU
1,100
1,093
926 938
825
550 583
514
402
358 351 365
275
0
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
Source: CPE Comprehensive Database
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15. The recession has caused AIKCU members to
question and evaluate everything...
• Operations • Tuition and aid policies
• Personnel and staffing • Strategic plans
• Administrative costs • Investments
...except fundamental commitments to
• supporting • academic • institutional
students integrity missions
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16. Institutional strategies
• Putting additional institutional funds into need-
based aid
• Developing innovative programs and new
delivery models
• Promoting collaboration and expanding
offerings to adult and underserved populations
• Instituting salary freezes, leaving positions
unfilled, combining positions, postponing
projects, reducing overtime, etc.
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17. You can count on me wearing you
out with ideas and questions - some
of them tough ones - about how we
conduct our business.
Centre College President John Roush
in a fall 2009 address to faculty and staff
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18. Already modest endowments have lost a
combined $227 million (13.6%) since 2008
AIKCU member endowments by value (2010)
7 7
3 3
Less than $10 million $10 to 30 million $30 to 50 million $100 million plus
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19. AIKCU efforts to build strength through collaboration
• Developing business partnerships for cost containment and increased
efficiencies: office supplies, insurance, information technology, fuel, many
more
• Resource and information sharing
• Providing low cost professional development
• Building relationships with public institutions and agencies (KCTCS, KYVL,
CPE, EPSB, MoSU-EKU-AIKCU Appalachian Education Initiative, others) to
promote common good
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