Rate of CU-Boulder In-State Tuition Increase is Lower than Usual

The University of Colorado Board of Regents recently approved an increase of 2.9% for the 2015-2016 school year. Parents who are footing the bill of their students breathed a sigh of relief while the general reaction among the general public was, “It’s about time?”

The rate of in-state tuition increases at CU-Boulder since 2004 are listed below (source: Boulder Daily Camera):
2015-16: 2.9%
2014-15: 3.3%
2013-14: 8.7%
2012-13: 5.0%
2011-12: 9.3%
2010-11: 8.9%
2009-10: 8.8%
2008-09: 9.3%
2007-08: 19.0%
2006-07: 2.4%
2005-06: 27.8%
2004-05: 9.0%
These increases are mild compared to out-of-state increases, but in most cases are significantly higher than the rate of inflation.

Funding for higher education comes from a variety of sources. Those sources include tuition, state funding, donations, student fees, federal grants – just to mention a few. CU has reported that:
• Donations are up.
• Over the long-term, state funding is also up. In 2004-2005 CU Boulder received $56.5 million in funding from the state of Colorado. In 2015-2016 the University is expected to receive $66.6 million from state funding. During this period funding was volatile. As a result, recent short-term funding is trending downwards.
• Enrollment has increased.
• In some schools within the CU-Boulder, federal funding is up; however, overall U.S. federal funding for all universities has dropped to 2002 levels, not adjusted for inflation.
Students have been left holding the bill and the problem has been exacerbated by CU Boulder leaders spending as if there is no tomorrow.

Higher education is critical to the future of Colorado. It is imperative for the leadership of CU-Boulder to focus its efforts on making the state’s flagship university more relevant, fiscally responsible, and affordable to in-state students.

In-State Tuition Increases vs. CPI
Comparison of rate of increase for CU-Boulder in-state tuition versus the CPI.

It is Time to Bury the Colorado Paradox

Many years ago, the Colorado paradox was contrived as a way to draw attention to Colorado’s low high school graduation rates.

The paradox is explained as follows: Colorado has one of the most highly educated work forces in the country, yet Colorado is at the lower end of the rankings for high school graduation rates.

The two facts have been tied together for the purpose of shaming policy makers for not providing greater, if not unlimited, funding for Colorado education.

The factors that cause Colorado to be a highly educated state are not responsible for the low graduation rates. If anything, there is more likely to be an inverse relationship between these two variables rather than a positive relationship.

It is no accident that Colorado has a highly educated workforce:

  • Many primary jobs have higher statewide multiplier than most jobs. This means the addition of primary jobs (with highly educated people) will result in the addition of many more support jobs (which may not require a high school or college degree).
  • Forty-seven of the 64 counties are rural. They have a lower level of education and an older population. In other words, people older than 50 who have lived in a rural community all their lives are not likely to need a high school or college education degree and they probably won’t get one. This is not a bad thing. Their happiness and success is not determined by their level of education.
  • The Office of Economic Development and International Trade (OEDIT) has actively recruited companies such as Vestas, Sun, Level 3, and Arrow Electronics. There are many jobs at these companies that require bachelor’s degrees. When these companies moved to Colorado, they brought many workers with them, which in turn created jobs for other Coloradans. As these companies became established they have recruited workers from local colleges and universities.
  • Denver has been identified as a city that attracts highly educated younger workers. They want to move to Denver, live in a loft, work at a company in downtown Denver that pays well, play in the mountains, and live in a state where marijuana is legal. The state is appealing to highly educated workers because of the its lifestyle and its mix of companies.
  • The tourism industry (which is part of OEDIT) markets Colorado as a place to live, work, and play. Some of the people who come here to ski, ride bikes, hike, smoke dope, raft, etc. want to come back and live here. If they have the money to visit Colorado, they are likely to be highly educated and able to afford to live here.
  • Many years ago, officials restricted the number of out-of-state students. They have since decided to allow more international and out-of-state students and raise out-of-state rates disproportionately. This has increased the diversity of their student population and has been a significant source of much needed revenue. It has also increased the number of out-of-state college students who decide to stay here and work.
  • Colorado is a small state. The state’s MSAs have colleges, universities, and federal labs that have a high percentage of workers with college degrees. As the population increases, the number of highly educated workers at these facilities will not increase proportionately with the population growth.
  • Even If Colorado had the best education system in the universe, it would be impossible for it to meet the needs of the public and private workforce. During the Go-Go Nineties the state added almost 700,000 net jobs with gains in all sectors, except Natural Resources and Mining. During the Lost Decade, only 8,500 net jobs were added. For that ten year period, there were net job losses in 5 of the 11 sectors. The state has to import talent do deal with the volatility in the workforce caused by fluctuations in the business cycle. For example, an economic case can be made that it is a wiser investment of scarce resources to import 100 machinists than it is to try to build the infrastructure to train them here.

There are many good reasons for importing talent and the state has a lengthy track record of doing that. That is a good thing. At the same time, there are many good reasons for strengthening the education system so the state produces a higher percentage of high school graduates and a greater number of in-state college graduates. That is also a good thing.

It is time to put the fallacious Colorado paradox in the closet with beanie babies, floppy drives, and Nehru jackets.

State’s Flagship University one of Nation’s Top Underperformers

Higher education is critical to the future of the U.S as a world leader. Our universities educate the future leaders, athletes, scientists, and bartenders. As well research in conducted that helps the country maintain its competitive advantage in innovation and global output.

On December 12, U.S. News and World Report released a report listing the country’s top higher education overperformers and underperformers. The over/under ratings compare the schools overall ranking and the peer assessment ranking. If the peer assessment ranking is higher than the overall ranking, then the school is an overperformer. If the peer assessment is lower, then the institution is an underperfomer. The authors stated that overperformers do better on a relative basis in the following key academic statistical indicators: admissions selectivity, financial and faculty resources, graduation and retention rates, alumni giving and graduation rate performance.

Most of the overperformers are small research universities which tend to be located in the Midwest or East Coast. On the other hand many of the underperformers are large public universities located in the Midwest or West Coast.

At the time the University of Colorado joined the PAC-12 Athletic Conference, CU President Benson got in hot water for discussing the academic strength of the PAC-12 and the academic weakness of certain schools in the Big 12. Ironically, there are only two schools from the former Big 12 Conference on the list of underperformers and they are five PAC-12 schools, including CU Boulder, on the list of underperformers. Hopefully, the mention of the two CU campuses on the underperformer list will be addressed.

There are a variety of reasons schools may be underperformers, some of those reasons relate to deficiencies in the universities, while others relate to idiosyncrasies in the ranking process. There are flaws in reports such as those produced by U.S. News just as there are flaws in the system used to determine the national collegiate football champion. Having said that, the rankings provide universities with a set of metrics for evaluating their systems and processes and improving services to their students.

The Overperformers

University

Overperformance Value

Maryville University of St. Louis

99

University of La Verne (CA)

85

St. John Fisher College (NY)

82

Andrews University (MI)

79

Biola University (CA)

77

Azusa Pacific University (CA)

73

Edgewood College (WI)

70

Stevens Institute of Technology (NJ)

70

University of St. Thomas (MN)

70

Yeshiva University (NY)

70

University of Tulsa (OK)

66

Immaculata University (PA)

64

Adelphi University (NY)

59

St. Mary’s University of Minnesota

58

Mississippi State University

57

Indiana University of Pennsylvania

54

University of Dayton (OH)

54

University of the Pacific (CA)

54

Widener University (PA)

50

SUNY College of Environmental Science and Forestry

47

 

The Underperformers

University

Underperformance Value

Arizona State University

-71

University of Arizona

-68

University of Montana

-68

University of Colorado–Denver

-57

Virginia Commonwealth University

-50

University of North Carolina–Charlotte

-49

University of New Mexico

-48

University of Colorado–Boulder

-46

University of Oregon

-44

Oregon State University

-41

University of Maryland–Baltimore County

-41

George Mason University (VA)

-40

University of Illinois–Chicago

-37

University of Kansas

-36

Indiana University–Bloomington

-35

Montana State University

-35

San Diego State University

-35

University of Alabama–Birmingham

-35

University of Missouri–Kansas City

-35

Kansas State University

-34

 Source: U.S. News Analysis Shows Universities Where Reputation, Rank Don’t Match

by Diane Tolis and Robert J. Morse December 12, 2013.

©Copyright 2011 by CBER.

Amendment 66 Results – Address School Reform in a Sensible Manner

Education of our youth is critical to the growth of the economy!

Yet, Coloradans voted down Amendment 66, a proposal to raise taxes by nearly $1 billion to fund reforms in K-12 education.

Colorado voters support education, but Amendment 66 was overwhelmingly rejected for reasons that did not directly relate to the education of our youth:

  • The Amendment would have become a drag on the state economy. It was not economically viable.
  • Supporters conveniently misrepresented how Amendment 66 would benefit students.
  • Other supporters portrayed the current K-12 system as being broken – there are problems, but it is not broken.
  • As the campaign unfolded, the Colorado Education Association’s support of the amendment was clouded by the possibility CEA would file a lawsuit that would undermine elements of Amendment 66 if it passed.
  • A surprising number of educators did not support it.
  • Supporters of the amendment received over $10 million to run their campaign, including significant funding from out of state.
  • LOTS of money was thrown at the school board race in Adams County. A week before the election, it was disclosed that one of the candidates, Amy Speer, was not eligible to run for her position because she didn’t live in the district she sought to represent.

As the campaign progressed, Amendment 66 supporters became more desperate and their credibility dwindled. Supporters tried to shame the Colorado electorate into voting for Amendment 66 because it was for “the good of the kids”. That was insulting!

When official votes are tallied, Amendment 66 is projected to lose 65% to 35%. To put the vote in perspective:

  • In the 1964 presidential election Lyndon Johnson received 61.1% of the votes and Barry Goldwater received 38.5%.
  • In the 2002 Colorado gubernatorial race, Bill Owens received 62.6% of the votes and Rolliie Heath received 33.7%.
  • Eleven states voted to secede from the state of Colorado. Five of the 11 states voted to secede; however, Weld County turned it down by a vote of 58%-42% and the state remains whole. Said differently, there was a greater likelihood of 11 states seceding than A66 passing.
  • Amendment 66 received a majority of votes in only 2 of 64 counties -it won by slight margins in Boulder and Denver.
  • Amendment 66 lost by 60+% in 55 of 64 counties.

The loser in the race was not the kids, the state of Colorado, nor a few politicos.

Amendment 66 left the Colorado electorate with a bad taste in their mouth for the education process, the teaching profession, and those who advocate for improved funding or school reform. It time to address school reform in a sensible manner.

©Copyright 2011 by CBER.

Businessweek Rankings – Top Areas of Study for CU Leeds School of Business Near Bottom of Rankings

Colleges and universities are held accountable for efficiently providing educational services by state agencies and private companies, such as Businessweek and U.S. News and World Report. In late March, Bloomberg Businessweek produced their 2013 ratings for 124 undergraduate business programs (additional information can be found at www.businessweek.com). The table below shows the rankings by academic specialty for Notre Dame, the top ranked school, and the three Colorado undergraduate business programs that were rated.

The profile for each business school included its top study areas. These are listed below along with their ranking by specialty.

Notre Dame Mendoza

  • 2             Accounting
  • NA          Consulting
  • 4             Finance
  • 4             Management of Information Systems
  • 65           Marketing

DU Daniels

  • 22           Accounting
  • 39           Finance
  • NA          Hotel Administration
  • 60           International Business
  • 100         Marketing
  • NA          Ethics, Social Responsibility, General Business

CU Leeds

  • NA          Certificate programs (Real Estate, Entrepreneurship, and Sustainability)
  • 119         Accounting
  • 73           Finance
  • NA          Human Resource Management
  • 121         Marketing
  • 114         Operations Management

CSU Business School

  • 97           Accounting
  • 84           Finance
  • 113         Management of Information Systems
  • 86           Marketing
  • 42           Operations Management

As expected, Mendoza’s top areas of study were also highly ranked, signifying that it is an elite school. At the other end of the spectrum, the top areas of study for CU Leeds were ranked in the lower half of all schools, between 73rd and 121st. This is an indication that it is a third or fourth-tier school. DU Daniels and CSU fall somewhere in between.

These rankings show the depth and quality of the elite programs and point out deficiencies of the lower ranked schools. While these rankings point out strengths and weaknesses of American business schools, the ultimate measure is whether it meets the needs of the individual students.

©Copyright 2011 by CBER.

DU is Top Business School, CSU is Best Buy, Leeds School Lags

On March 20th, Bloomberg Businessweek published the 2013 rankings for 124 undergraduate business programs (www.businessweek.com). Much to the chagrin of alumni and staff at the Dyson, Olin, Wharton, and Carroll schools, the Mendoza School of Business topped the charts for the fourth consecutive year.

Once again the rankings for Colorado universities showed the DU Daniels School is the top ranked school, #68, followed by CSU, which moved up in the ranks to #89. Once again the University of Colorado Leeds School of Business brought up the rear. This past year CU Leeds dropped in the rankings from #92 to #101, out of 124 schools.

On the lighter side, the three Colorado business schools were ranked third (DU), fourth (CSU), and fifth (CU) as he best business schools for ski bunnies. The University of Utah and BYU claimed the top slots.

The table, below, compares a portion of the Businessweek ratings for the Daniels, Leeds, and CSU business schools.  The data covers three basic areas: cost, diversity/SAT scores, and quality/rankings in key areas.

Cost – The cost to attend these schools for four years, assuming an annual increase of 5% each year, is:
• Notre Dame – Mendoza  $241,000.
• University of Denver – Daniels  $223,000
• CU – Leeds (out-of-state) – $209,000
• CU – Leeds (in-state) – $119,000
• CSU – (out of state) – $151,000
• CSU – (in state) – $83,000.
The cost for an out-of-state student to attend CU Leeds is slightly less than Mendoza or Daniels, yet the data suggests the quality of the degree is significantly less.

Diversity/SAT of Students – The Daniels School has a higher percentage of female and international students than its peers. It and Mendoza have a greater mix of minorities.

There is no difference between the CU Leeds and CSU average SAT scores and both are significantly lower than the Daniels and Mendoza schools.  There are bright students at all schools, but the caliber of students at CU Leeds and CSU is lower.

Quality/Rankings in Key Areas – CU Leeds has positioned itself as an expensive program that focuses on serving a large number of students by having large class sizes, i.e. the primary goal is quantity. Of the 124 programs, CU Leeds is the 21st largest. Only 6 of the top 25 schools have more students than CU Leeds; these schools are ranked 9th, 13th, 20th, 21st, 22nd, and 25th, i.e. quantity is secondary to quality at the top schools. Revenue generation for the University of Colorado is a priority of the Leeds program.

Unfortunately, CU Leeds is ranked 107th in the student survey and 92nd in academic quality. It only received a grade of B in teaching quality. In 2007 a $38 million renovation of Koelbel Hall was completed and the staff was reorganized to better meet the needs of the students. These changes fell short, as yet CU Leeds was only rated B for facilities and services.

A final consideration is the average wages for graduating students. CU Leeds is slightly higher than its Colorado counterparts, but not enough to warrant the extra cost of tuition and the lower quality of education.  Most likely the average wages for DU Daniels students is lower because of the number of students that study in hotel management, an industry with lower wages.

It is possible for students to obtain a quality business degree at any of Colorado’s colleges and universities. Rankings such as those produced by Businessweek are a valuable tool for identifying the strengths and weaknesses of various schools and determining which ones are the best match for each individual’s needs.

@Copyright 2011 by CBER.

Have Budget Cuts Negatively Impacted the Public School System?

A complete answer to this question requires more than a couple hundred words and two charts. On a positive note, K-12 jobs are still being added and assessment scores are above the national norm.

Are jobs being added fast enough, i.e. do the number of new teachers match the increase in students? Are teachers being replaced by teacher aides? Are key administrators being replaced by less experienced and knowledgeable staff? Are deserving professionals not receiving appropriate merit increases? Do the number of employees translate into quality education?

Colorado K-12 public education employment has fared better than the U.S. for the past three years. A review of the 12-month rolling average shows that Colorado employment dropped off from mid-2010 to mid-2011, but has added jobs since. On the other hand, U.S. K-12 public education employment has declined since mid-2009. Undoubtedly many Coloradans may feel the situation could be improved, but it appears to be better than the national trend.

Another area to look at is assessment scores, in particular the National Assessment of Educational Progress (NAEP). NAEP scores show that Colorado 4th grade scores are in the top 18 states for Reading, Math, and Science. Colorado’s eighth grade scores are in the top 10 states for these same subject areas.

Do strong NAEP scores correlate to high graduation rates? Do they mean students won’t need remedial classes if they take college classes? Are they an indicator that students are being educated to perform basic skills in the workplace?

Based on these two data sets, it appears that Colorado is making an effort to staff their K-12 programs as best as possible and that performance, based on NAEP, is better than the national norm. Arguably, other statistics may show the need for improvement, but data in these two areas suggest that Colorado leaders are taking positive steps in a challenging economic environment to educate our youth.

For additional information on the Colorado go to https://cber.co/CBEReconomy.html.

©Copyright 2011 by CBER.

2012 Undergraduate Business School Rankings – DU is State’s Top Business School

Higher education is big business. There are commercial training programs to help students navigate the K-12 system, pass the college entrance exams, and select the right college based on published rankings.

In late March, Bloomberg Businessweek produced the 2012 ratings for 124 undergraduate business programs (additional information can be found at www.businessweek.com). They use nine different measures of student satisfaction, post-graduation outcomes, and academic quality to determine the overall rankings.

The following rankings, from Bloomberg Businessweek, show scores for Notre Dame, the top ranked school, and the three largest Colorado undergraduate programs.The Daniels School is clearly the top ranked undergraduate business school in Colorado, yet it is rated near the bottom of the second quartile of schools. CU and CSU have similar ratings and are on the border of the fourth quartile.

The Leeds School is ranked in the bottom quartile in all of the core subject matters. (The state deserves better from its flagship institution).

CU and DU are in the top quartile for their sustainability and ethics classes respectively. If CU and DU are good enough to be top ranked in specialty programs, why aren’t their core classes stronger?

Of the three schools, CSU is clearly the best buy, in terms of cost and quality.

Over time there is usually minimal variance in the rankings, i.e. schools move up and down within a certain range. When looking at rankings over several years it is important to note that there has been a steady increase in the number of schools ranked.

In 2008 Notre Dame was ranked 3rd of 96 schools. It has obviously improved in the rankings, although it didn’t have far to move. It is now 1st of 124 colleges.

Of the Colorado schools, the Daniels School at the University of Denver has improved the most. It was ranked 67th of 96 (70%) in 2008 and is now 57th of 124 (46%) in 2012.

The business school at Colorado State University has stayed the same. It was ranked 73rd of 96 (76%) in 2008 and is now 94th of 124 (76%). It remains in the bottom quartile of schools for its overall ranking.

And the Leeds School has escaped the bottom quadrant (barely). In 2008 it was ranked 83rd of 96 (86%) and it is now 92nd of 124 (74%).

These rankings are much like the BCS rankings in football. They are meaningful to the schools in the upper echelon and provide prestige and bragging rights. As well, they help the schools attract quality students and donors to the program.

The schools below the elite level have deficiencies, based on the ranking criteria. Many college officials tend to respond by saying, “The rankings don’t really matter” or “They just don’t take into account the challenges we face.” or “The criteria don’t really capture what a great school we are.”

There are many variables for measuring the quality of a business education. Most importantly, students must find a program that meets their individual needs. Then they must demonstrate willingness and motivation to learn. When that happens the rankings are irrelevant.

 

©Copyright 2011 by CBER.

HB 12-1061 Skills for Jobs Act – Challenges for Meeting Workforce Needs

On April 2, 2012 the Governor signed HB 12-1061, known as the Skills for Jobs Act. In a nutshell, the new legislation mandates an annual report that looks at the relationship between education degrees, awards, and certificates and the needs of the state workforce.

The intent of the legislation is to increase efficiencies within the education system during times of reduced funding for K-12 and higher education. The reports are intended to provide knowledge and motivation to reduce or eliminate redundancies, cut back on degree programs that don’t lead to jobs, expand existing programs, or develop new ones.

In an ideal world, students will graduate from college and will have adequate training to enter a job in their field of study with a company in Colorado. At the same time current workers will be able to find training that would allow them to retain their jobs or advance their careers. In addition, unemployed workers can receive training that allows them to find a job in the ever-changing workplace. The ideal training system eliminates the severe skills mismatch that currently exists between unemployed workers and the needs of the private sector.

There are unintended consequences that might arise from this piece of legislation. The following questions and comments consider some of these consequences as well as other issues related to HB 12-1061. The presentation of these ideas is not intended to support or oppose the new act. The purpose is to stimulate discussion about the issue.

Meeting the needs of our workforce is critical to our national security, competitiveness, innovation capabilities, and our world leadership position. And it makes sense (and cents) to meet these needs in a cost effective manner.

The questions and comments are divided into five areas.

1. Training and education have become a big and lucrative business. Who should determine the classes taught by the public sector and those taught by the private sector? For example, it has been demonstrated and accepted that the private sector is better suited to provide training in computer systems certification programs. Should other disciplines such as business, music, and foreign language also be taught exclusively by the private sector? In another example, partnerships between the public and private sectors have benefitted all parties. A case in point is the Laboratory for Atmospheric and Space Physics at CU-Boulder. As part of their education experience, students can track satellites and secure internships with local aerospace companies. In this case, a degree with an internship virtually guarantees a job. In other words, some degrees are more likely to result in a job than other degrees. What about degrees, such as liberal arts or general studies, which do not directly prepare a student for a particular job? Are they more valuable because they provide students with a broad perspective of ideas and prepare them for many jobs or less valuable because they don’t prepare a person for a targeted position? When measuring the effectiveness of higher education, how do you account for a person who receives four years of education in their area of choice, then after working in that profession for six months decides they don’t like it and seeks employment in another area? And how do you account for the individuals who obtain a degree, but work in occupations that don’t require advanced education? The process of matching supply and demand might be accomplished more efficiently if students were required to take a battery of tests and limited to areas of study where they were the strongest. Would such an approach be too Draconian?

2. This leads to the age-old debate about the role of higher education. Is the purpose of our college and universities to train the workforce or is it to provide a safe haven for students to learn and grow up? Or are there other reasons to have higher education? Are students entitled to have a free or inexpensive college experience? Do college leaders and the public have the same perception about the role of higher education in society? Is higher education obligated to offer classes in areas that are a financial drain to the university, such as ethnic studies or the arts? In a similar light, is higher education obligated to provide courses in areas where there may not be a critical mass of students? This includes subject matters that might lead to future growth of the U.S. economy, such as cutting edge courses in nanotechnology, RFIDs, astrophysics, or molecular biology? Are programs that are cash cows more important than other programs? How do you apply university research to the classroom? How does commercialization of research fit into the education process? Should higher education have two sets of faculty – one to teach and one to conduct research that generates revenue and notoriety for the university? What role does experiential learning have in the education process? How do you ensure that degree and certifications are of the highest quality given the escalation of faculty wages, reduced state funding, increased donor funding, and donors who expect to have input into the development of curriculum? How do you deal with the diminishing perception of higher education? Has higher education been out of control for a long time? Are futurists and former education leaders justified in foretelling of a higher education bubble? Is higher education at fault for massive student debt because they have effectively marketed their services or does that blame lie with students who made poor business decisions? Will this massive debt cause future students to look at professions that do not require college degrees?

3. When developing education and training programs, how do you account for changes in the economy? During the 1990s, the high-tech clusters expanded at an unsustainable rate. Is it realistic to expect higher education to provide a trained workforce during such rampant periods of growth? Over the past decade many of the same clusters experienced a number of layoffs. Why would anyone want to pursue those occupations (engineers, software developers, hardware manufacturers) after experiencing a decade where no net jobs were added? How can companies forecast workforce demand and higher education provide an ever-changing workforce during such boom and bust cycles? How do you develop training programs for jobs that didn’t exist 20 years ago such as web designer, application developer, or games programmer? Should higher education focus more on providing a set of transferable skills or should they focus on training workers for specific occupations? Colorado only has about 2.2 million wage and salary workers, or less than two percent of the U.S. workforce. Those workers are in a wide array of industries spread across 64 counties. How do you provide training programs in topical areas and geographic regions where there is frequently not a critical mass of workers to run a program?

4. Over the last 35 years, the state has adopted fiscal policy that allows local colleges and universities to bolster their coffers by accepting a higher percentage of out-of-state students. Is it appropriate for Colorado’s universities to be training employees for other states and countries? What contributions do out-of-state students make to our higher education system and business community?

5. Will the required reports from HB 12-1061 cause college officials to take steps to adjust their admission requirements so their graduating students will have the degrees to meet the needs of the workforce? Will future college funding be based on the ability of the schools to meet the needs of the local workforce? Will future scholarships be given to those students seeking degrees that will fill occupations most critical to the state’s economy? Will students in “non-essential” areas be prevented from scholarship opportunities? How do you mandate or encourage participation in programs for machinists, lineman, and manufacturing technicians when they are not perceived as sexy occupations by many? What happens if you train 300 people for renewable energy jobs and only 6 of them are able to find jobs (this actually happened in a federally funded program in Colorado)? Colorado colleges graduate approximately 30,000 students a year with four-year degrees. In other words, about 150,000 students were added to the pool of potential workers between 2007 and 2011. Given the dire economic conditions at that time, how many of these graduates found jobs in their degree? Was there a surplus of degreed students? What happened to students who didn’t find degrees in their jobs? Do colleges and universities have an obligation to prevent students from entering degree or training programs where there is an obvious surplus?

There is sufficient evidence that the public and private sectors have collaborated over the years to meet the workforce needs of the private sector. Some of these efforts have been more successful than others.

Hopefully, HB 12-1061 will strengthen the partnerships that have been built in the past, higher education, and the private sector. The challenge of identifying and training workers to meet the demands of the workforce is much more easily debated than achieved.

 

©Copyright 2011 by CBER.

Sectors Losing Jobs Have Higher Wages

Through the first 8 months of the year there are 7 sectors of the economy that have lost a net total of 25,100 jobs, compared to the same period last year.

Construction                                     -8,800
Financial Activities                            -4,200
Federal Government                         -3,400
Information                                       -3,400
B-to-B (Not Employment Services)  -2,600
Local Government (Not K-12)         -1,600
K-12 Education                               -1,100

These sectors account for 33.3% of total employment. Average wages for this mix of workers is about $56,600 compared to average annual wages for all employees of about $47,900 (calculations based on 2010 QCEW data). In other words, the average wages for the sectors that are losing jobs is significantly greater than the overall state average, based on 2010 data.

The 2011 prognosis is that each of these sectors will show job losses for the year (2011) and that average annual wages for the group will remain well above the overall state average.

For a comprehensive review of the Colorado economy visit the CBER website.

©Copyright 2011 by CBER.