Red Balloon Resources

A primer on higher education funding in California by CSU Northridge Provost Harry Hellenbrand that can be used as a model to help educate faculty about state funding and related policy choices.

Breaking Bad Habits: Navigating the Financial Crisis by Dennis Jones and Jane Wellman The "Great Recession" of 2009 has brought an unprecedented level of financial chaos to public higher education in America. Programs are being reduced, furloughs and layoffs are widespread, class sizes are increasing, sections are being cut, and students can't get into classes needed for graduation. Enrollment losses upwards of several hundred thousand are being reported-and only time will tell whether the situation is even worse. Reports of budget cuts in public institutions in the neighborhood of 15 to 20 percent (Pennsylvania, Virginia, New York, Florida, and California) are becoming common. Halfway through the 2009-2010 fiscal year, 48 states were projecting deficits for 2011 and 2012 (NASBO, 2009). Although states are reluctant to raise taxes, they evidently have less of a problem letting tuitions go up. And up they are going-California, Oregon, Washington, New York, Wisconsin, and Florida announced increases ranging from 10 to 33 percent. The normally tuition-resistant Florida legislature has authorized annual increases in undergraduate tuitions of 15 percent per year until they reach national averages for public four-year institutions. Around the country, the increases are setting off student protests reminiscent of the 1960's, variously directed at campuses, system boards, legislatures, and governors-complete with reports of violence and arrests. The New Normal Higher education has been through tough times before. The pattern of the last two decades has been a zigzag of reductions in state funds for higher education during times of recession, followed by a return to revenue growth about two years after the state coffers refill. But resources have not returned to pre-recession levels. So the overall pattern has been a modest but continuous decline in state revenues. Caption: Percent Change in Appropriations for Higher Education, 1960-2006

"The Coming Meltdown in Higher Education By Seth Godin For 400 years, higher education in the United States has been on a roll. From Harvard asking Galileo to be a guest professor in the 1600s to millions tuning in to watch a team of unpaid athletes play another team of unpaid athletes in some college sporting event, the amounts of time and money and prestige in the college world have been climbing. I'm afraid that's about to crash and burn. Here's how I'm looking at it. Most undergraduate college and university programs are organized to give an average education to average students. College has gotten expensive far faster than wages have gone up. The definition of "best" is under siege. The correlation between a typical college degree and success is suspect. Accreditation isn't the solution, it's the problem."

"February 2, 2012 Multiyear Study of Community-College Practices Asks: What Helps Students Graduate? By Jennifer Gonzalez Community colleges are brimming with programs and policies designed to help students complete their studies. Practices like requiring orientation and establishing early-academic-warning systems have sprouted since 2009, when President Obama announced that he wanted to make the United States the best-educated country in the world by 2020. Now the questions for the nation's community colleges are: Which of the practices work and why? And perhaps most important, how do colleges expand them to cover all students? A new, multiyear project led by the Center for Community College Student Engagement will attempt to get some answers. The research organization plans to analyze data from four different but related surveys and produce reports annually for the next three years. The surveys represent responses from the perspective of entering and experienced students, faculty members, and institutions. Kay M. McClenney, the center's director and a senior lecturer in the Community College Leadership Program at the University of Texas at Austin, says the project will allow community colleges to make more-informed decisions about how they spend money and about the type of policies and programs they want to emphasize. The first of three reports, "A Matter of Degrees: Promising Practices for Community College Student Success" was released last week. It draws attention to 13 strategies for increasing retention and graduation rates, including fast-tracking remedial education, providing students with experiential learning, and requiring students to attend orientation. The strategies specified in the report are not new. In fact, many of them can be found at two-year colleges right now. But how well those strategies are working to help students stay in college and graduate is another matter. The report found peculiarities among responses on similar topics, sugges

A think piece by CSU Northridge Provost Harry Hellenbrand about how to think about change.

What's so special about a diploma? With the advent of Massive Open Online Courses and other online programs offering informal credentials, the race is on for alternative forms of certification that would be widely accepted by employers. "Who needs a university anymore?"

"Why Pay for Intro Textbooks? February 7, 2012 - 3:00am By Mitch Smith If ramen noodle sales spike at the start of every semester, here's one possible reason: textbooks can cost as much as a class itself; materials for an introductory physics course can easily top $300. Cost-conscious students can of course save money with used or online books and recoup some of their cash come buyback time. Still, it's a steep price for most 18-year-olds. But soon, introductory physics texts will have a new competitor, developed at Rice University. A free online physics book, peer-reviewed and designed to compete with major publishers' offerings, will debut next month through the non-profit publisher OpenStax College. Using Rice's Connexions platform, OpenStax will offer free course materials for five common introductory classes. The textbooks are open to classes anywhere and organizers believe the programs could save students $90 million in the next five years if the books capture 10 percent of the national market. OpenStax is funded by grants from the William and Flora Hewlett Foundation, the Bill & Melinda Gates Foundation, the 20 Million Minds Foundation and the Maxfield Foundation. Traditional publishers are quick to note that the new offerings will face competition. J. Bruce Hildebrand, executive director for higher education of the Association of American Publishers, said any textbook's use is ultimately determined by its academic value. "Free would appear to be difficult to compete with," Hildebrand said. "The issue always, however, is the quality of the materials and whether they enable students to learn, pass their course and get their degree. Nothing else really counts." In the past, open-source materials have failed to gain traction among some professors; their accuracy could be difficult to confirm because they hadn't been peer-reviewed, and supplementary materials were often nonexistent or lacking because they weren't organized for large-scale

"Pulling for Better E-Textbook Prices January 18, 2012 - 4:50am By Steve Kolowich In a session at the 2011 Educause conference in October, Bradley Wheeler, the chief information officer at Indiana University, issued a challenge to his colleagues. Unless universities assert their power as customers, the vendors that sell them products and services will continue squeezing those institutions for cash while dictating the terms under which they go digital. That conversation revolved around expensive, institution-level investments such as learning-management platforms and enterprise resource planning software. Now Wheeler and his colleagues are looking to apply the same principles of "aggregated demand" to help students save money on electronic textbooks. Internet2, a consortium of 221 colleges and universities, which last year brokered landmark deals with Box.com and Hewlett-Packard that gave its members discounts on cloud computing services, announced today that it had entered into a contract with McGraw-Hill, a major textbook publisher, aimed at creating similar discounts for students on digital course materials. Students have less ability than universities to pool their power as consumers, says Wheeler. The ascendance of e-textbooks means, among other things, that the secondary market for used books -- the one area where students can exercise power over textbook pricing -- could soon disappear. Universities would do well by their students to exercise leverage on their students' behalf, Wheeler says. "If somebody [does not] speak up for students in the move from print to digital, the students [are] going to get killed," he says. Beginning this month, five major universities - the University of Wisconsin at Madison, the University of Minnesota-Twin Cities, the University of Virginia, Cornell University, and the University of California at Berkeley -- will start a pilot program in which certain courses will use only electronic texts. The texts will be a

Executive Summary Fiscal 2010 presented the most difficult challenge for states' financial management since the Great Depression and fiscal 2011 is expected to present states with similar challenges. The severe national recession that most likely ended in the second half of calendar year 2009 has drastically reduced tax revenues from every revenue source. As state revenue collections historically lag behind any national economic recovery, state revenues will remain sluggish throughout fiscal years 2011 and 2012. State general fund spending has been so negatively affected by this recession that both fiscal 2009 and fiscal 2010 saw declines in state spending. This two year decline is unprecedented and is only the second time that state general fund spending has declined in the history of the Fiscal Survey. Forty states decreased their general fund expenditures in fiscal 2010 compared to fiscal 2009. According to governor's recommended budgets for fiscal 2011, 13 states recommended lower general fund expenditures compared to fiscal 2010. In total, 44 states estimate that they will have lower general fund expenditures in fiscal 2010 compared to fiscal 2008. In fiscal 2011, 39 states recommended lower spending than in fiscal 2008. Fiscal 2008 serves as a baseline as it the last fiscal year on record in which states were not significantly affected by the national recession.

"University of the People (UoPeople) is the world's first tuition free online university dedicated to the global advancement and democratization of higher education. This tuition free university embraces the worldwide presence of the Internet and dropping technology costs to bring tuition free and university-level studies within reach to millions of people across the world. With the support of respected academics, humanitarians and other visionaries, this student body will benefit from tuition free university and represent a new wave in global education"

In the last years of the nineteenth century, Charles Dow created an index of 12 leading industrial companies. Almost none of them exist today. While General Electric remains an industrial giant, the U.S. Leather Company, American Cotton Oil, and others have long since disappeared into bankruptcy or consolidation.

"A Bottom-Line Approach That Looks Beyond the Bottom Line For several years, a cadre of some of the savviest executives in higher education have been practically begging university administrators and trustees for the chance to advise them on a "strategic finance" approach to restructuring and planning. Until recently, they had a tough time getting college leaders even to set aside the time for a presentation on the topic-a free one at that. When you're preoccupied with the immediate demands for budget slashing, or perhaps still hoping that the state cutbacks and declines in donations are just another cyclical bump in the road, it is certainly understandable that you might duck a major reconsideration of the university's very financing model and mission. But with stimulus money drying up and signs of a full recovery still distant, the case for thoughtful reinvention becomes more compelling. Ellen Earle Chaffee, a former college president who heads up a Lumina Foundation for Education-backed project on strategic finance for the Association of Governing Boards of Universities and Colleges, says she is seeing more colleges "facing the monster" of their financial challenges. "People understand that we all need to get a grip here and figure out what we're going to do," Ms. Chaffee says. She spoke from her home in North Dakota last week, fresh from a meeting of college trustees where several more boards had signed up for the workshop. Simply put, strategic finance is an approach to planning and budgeting that involves rigorously identifying the full expenses of programs to gain a complete picture of their costs-including indirect costs (like utilities and marketing) that are rarely quantified to that scale. With that information, an institution or system can better identify where costs might be out of line and where to invest to take advantage of new opportunities, untapped demand, and, in the best tradition of the academic mission, societal need. Large public i

"A Disrupted Higher-Ed System January 26, 2012, 2:40 pm By Jeff Selingo The "disruption" of the higher-ed market is a popular refrain these days. Rising tuition prices and student debt have left many wondering if the current model is indeed broken and whether those like Harvard's Clay Christensen are right when they say that innovations in course delivery will eventually displace established players. What exactly those innovations will look like remains a matter of debate. One view from Sheryl Sandberg, chief operating officer of Facebook, envisions a future in which every industry will be disrupted and "rebuilt with people at the center." In this recent interview with The Wall Street Journal, Sandberg talked specifically about the gaming industry, which has been upended by the popularity of social-gaming venues, such as Words With Friends and Farmville. But what if we applied her people-centered vision to higher ed? While amenities and services on campuses have been redesigned in the last decade with students clearly at the center, the core of the academic experience for students today is almost exactly the same as it was for their parents decades ago. While other industries have been able to find productivity gains without sacrificing quality, on most college campuses we still have professors at the front of a room or at a table with an average of 16 students in front of them. We all know that's one of the key drivers of rising college costs. Higher ed is people intensive, and for many prospective students and their parents, the professor-centered academic experience is well worth the high price and will be for a long time. It's one reason why high-quality institutions really have little to worry about. But we also know that the traditional academic experience isn't for everyone these days. The students we used to call "nontraditional" are now a majority, yet we have way too many colleges chasing after high-achieving 18-to-24-year-olds

Most colleges want to do more with less. The University of Southern Maine had to. The institution has been facing dual crises: a deficit and a six-year graduation rate of 34 percent for first-time, full-time students, compared with 56 percent nationally. "We're hemorrhaging students each year," said Selma Botman, president of Southern Maine. So the university took a hard look at support for its almost 8,000 undergraduates. "We found that we had lots of stuff, but not much of it was coordinated in any way," said Susan M. Campbell, associate vice president for academic affairs. She led a major reorganization. On its three campuses, the university eliminated offices of academic advising, career services, and early student success, and laid off 21 employees. At the same time, it created a student-success center on each campus, in Gorham, Lewiston, and Portland, rehiring 11 people to run the one-stop shops. "The question was, Can we achieve savings through an integrated model?" Ms. Campbell said. The short answer: yes. The university has saved almost $370,000 in base salaries over all. But that move had another price: six age-discrimination complaints, still pending, from former employees who were not rehired.

"INDIANAPOLIS - State leaders Friday launched an online only university designed to help adults who live in rural areas or whose work schedules make attending regular classes impossible to obtain bachelor's and master's degrees. Western Governors University Indiana, the first state branch of the nationwide Internet-based school, has established offices in Indiana and will begin enrolling students in July for classes that can begin as early as August. Gov. Mitch Daniels, who signed an executive order for the creation of WGU Indiana on Friday, said it will provide a convenient and affordable option - tuition is $5,800 per year, and students never have to make an in-person visit - to an underserved population. "

"Experts Ponder the Future of the American University By Karin Fischer and Ian Wilhelm Washington American universities have long set a global standard for higher education. But U.S. institutions will have to change, an international panel of experts said Monday, if they want to retain their edge and help the country in an economy ever more dependent on knowledge and innovation. "The American model is beginning to creak and groan, and it may not be the model the rest of the world wants to emulate," said James J. Duderstadt, president emeritus of the University of Michigan at Ann Arbor and one of the speakers on a panel assembled by the Woodrow Wilson International Center for Scholars here to discuss the university of the future and the future of the university. The other panel members largely agreed with Mr. Duderstadt's assertion that higher education could be among the next economic sectors to "undergo a massive restructuring," like the banking industry has seen. Among the factors that could lead to change, they said, are the globalization of commerce and culture, the accessibility of information and communication technologies, and the shift in demographics in developed countries that will result in the need to educate greater numbers of working adults. One model of a new approach to education could be the for-profit University of Phoenix, whose president, William J. Pepicello, also spoke at the Wilson Center forum. He argued that higher education must be more responsive to and tailor the curriculum to students' needs. Web sites like Google and Yahoo take note of users' preferences to give them information more attuned to their needs, he noted, adding, "Is there any reason why a higher-education platform shouldn't be able to adapt?"

The Massachusetts Institute of Technology ended 2011 with a grand announcement: It would broadcast massive, open online courses - equal in rigor to its on-campus offerings - to tens of thousands of non-enrolled, non-paying learners around the world. Eventually, the university would offer these students a pathway to some sort of credential.

"Tenured Professor Departs Stanford U., Hoping to Teach 500,000 Students at Online Start-Up January 23, 2012, 4:53 pm By Nick DeSantis The Stanford University professor who taught an online artificial intelligence course to more than 160,000 students has abandoned his tenured position to aim for an even bigger audience. Sebastian Thrun, a professor of computer science at Stanford, revealed today that he has departed the institution to found Udacity, a start-up offering low-cost online classes. He made the surprising announcement during a presentation at the Digital - Life - Design conference in Munich, Germany. The development was first reported earlier today by Reuters. During his talk, Mr. Thrun explored the origins of his popular online course at Stanford, which initially featured videos produced with nothing more than "a camera, a pen and a napkin." Despite the low production quality, many of the 200 Stanford students taking the course in the classroom flocked to the videos because they could absorb the lectures at their own pace. Eventually, the 200 students taking the course in person dwindled to a group of 30. Meanwhile, the course's popularity exploded online, drawing students from around the world. The experience taught the professor that he could craft a course with the interactive tools of the Web that recreated the intimacy of one-on-one tutoring, he said. Mr. Thrun told the crowd his move was motivated in part by teaching practices that evolved too slowly to be effective. During the era when universities were born, "the lecture was the most effective way to convey information. We had the industrialization, we had the invention of celluloid, of digitial media, and, miraculously, professors today teach exactly the same way they taught a thousand years ago," he said. He concluded by telling the crowd that he couldn't continue teaching in a traditional setting. "Having done this, I can't teach at Stanford again," he said. One o

Michael Wesch has been on the lecture circuit for years touting new models of active teaching with technology. The associate professor of cultural anthropology at Kansas State University has given TED talks. Wired magazine gave him a Rave Award. The Carnegie Foundation for the Advancement of Teaching once named him a national professor of the year.

"February 12, 2012 'Academically Adrift': The News Gets Worse and Worse 'Academically Adrift': The News Gets Worse and Worse 1 Michael Morgenstern for The Chronicle Enlarge Image By Kevin Carey In the last few months of 2010, rumors began circulating among higher-education policy geeks that the University of Chicago Press was about to publish a new book written by a pair of very smart sociologists who were trying to answer a question to which most people thought they already knew the answer: How much do students learn while they're in college? Their findings, one heard, were ... interesting. The book, Academically Adrift, by Richard Arum and Josipa Roksa, fulfilled that promise-and then some. It was no surprise that The Chronicle gave prominent coverage to the conclusion that "American higher education is characterized by limited or no learning for a large proportion of students," but few people anticipated that the book would become the rare piece of serious academic scholarship that jumps the fence and roams free into the larger culture. Vanity Fair used space normally allotted to Kennedy hagiography to call it a "crushing exposé of the heretofore secret society known as 'college.'" The gossip mavens at Gawker ran the book through their patented Internet cynicism machine and wrote that "To get a college degree, you must go into a soul-crushing amount of debt. And what do you get for all that money? Not learning." The New Yorker featured Academically Adrift in a typically brilliant essay by Louis Menand. In one of her nationally syndicated columns, Kathleen Parker called the book a "dense tome" while opining that the failure of higher education constituted a "dot-connecting exercise for Uncle Shoulda, who someday will say-in Chinese-'How could we have let this happen?'" Her response proved that Kathleen Parker has a gift for phrasing and did not actually read the book, whose main text runs to only 144 concise and well-argued pages. But the definitive