Tuition Strategy Lacking

(Information excerpted from Inside Higher Ed)

Setting tuition at public colleges and universities is no simple task.

Governors and lawmakers approve different levels of state funding to subsidize higher education from year to year. Those same politicians are frequently unhappy with rising college costs, and they sometimes move to freeze tuition or cap its rate of increase.

tuition strategy

But flat tuition, if not accompanied by an increase in appropriations, can result in fewer sections and longer times to graduation, which is expensive for students and families. And because of the way many state aid programs are structured, public tuition rates can directly affect the amount of financial aid students receive.

In other words, setting public tuition is an exceedingly complex process involving numerous power centers. It’s a process with numerous possible unintended consequences for students’ ability to pay for college. Yet it’s a process that’s not even close to being standardized from state to state.

Most states don’t even have a single strategy for addressing affordability, according to a new report (http://www.sheeo.org/projects/state-tuition-fees-and-financial-assistance/2017-report) from the State Higher Education Executive Officers Association. SHEEO found that 68 percent of higher education agencies it surveyed had no unified affordability strategy taking tuition, fees and financial aid into account.

That lack of strategy comes even as four out of five states have put in place attainment goals for increasing the percentage of their residents with postsecondary credentials. As a result, SHEEO is calling for states to bring together governors, lawmakers, higher ed governing boards and college presidents in order to set tuition and fees in ways that line up with attainment goals.

Although SHEEO is pushing broadly for a balance to be found between the cost students pay and colleges’ revenue needs, it didn’t issue its new report to examine actual tuition costs in depth. Instead, it looked at the different ways states set tuition, fees and student aid by conducting a survey that received responses from 54 higher education agencies in 49 states.

Specifically, SHEEO is calling for policy makers to incorporate tuition policy into broader affordability and attainment strategies. Institutional revenue sources like state appropriations, financial aid and tuition should be coordinated, and more transparency should be established around institutional expenditures, the organization says. It also called for a multiyear approach to tuition policy – one that would not necessarily lock in specific tuition rates over a set number of years but would create a range of allowable increases over three to five years, allowing institutions, students and families to plan better.

There are still skeptics about the effectiveness of those strategies. Andrew Gillen, an independent higher education analyst, said increased coordination between policy makers could be worthwhile for some reasons. But he doesn’t think it will lead to a lower cost of delivering education or encourage third parties to shoulder more of the cost.

“The bottom line is that increased coordination doesn’t have much potential to reduce or reallocate costs,” he said. “And even if it did, it is unlikely students would see any of the benefit.”

There is also no guarantee that bringing different parties together would result in better coordination. Many players with power would be hesitant to give up the ability to set tuition, said Joseph Rallo, Louisiana’s commissioner of higher education. Different institutions also face vastly different situations.

Good Progress Being Made on Chamber’s ‘Repeal’ List

At the start of 2017, the Indiana Chamber sought input from its members on the federal rules, regulations and executive orders that were affecting the bottom line for Hoosier businesses and hampering expansion and job growth. These onerous policies, for the most part, circumvented Congress and amounted to attacks on business, industry and, ultimately, the workforce.

The finalized list was submitted to Vice President Mike Pence and the Indiana congressional delegation in late January. We are pleased to report that much progress has been made on many of the items and encourage you to review the updated document.

White House

Military Members Seek School Choice

School choice

(David Boyle is board chair of the Alaska Policy Forum. He and his wife have 45 years of Air Force experience. His words follow).

“We got orders, and we’re moving this summer.”

As a veteran, I can tell you these can be some of the most challenging words a military member can utter to their family.

Reactions can range from, “Not again. We just got here,” to, “Great news! I hate this place.” Relocating to an unfamiliar place is daunting in itself. Choosing a place to live with schools in mind is even more so.

We face a lot. The movers come and pack things – some of which we might never see again. Likewise, our kids pack up their lives to probably never see their friends and classmates again. Our children feel like their friendships and social lives may never be the same. On top of that, our kids also must adapt and survive in new classrooms.

In many cases, some spouses remain in their current location, so their children can complete a school year after receiving relocation orders. Some spouses even stay put until their kids finish high school, which can take years. Uncertainty of the quality of education in the next place is enough for some families to feel they have no better option than to brave the hardships that such a distance can bring.

The challenge often begins with new neighborhood schools that may have a different curriculum, different sports programs, no advanced placement classes or fewer course options than families’ previous schools. Military kids lose the continuity of a curriculum.

Our children could use much more stability, and many schooling alternatives, including distance learning, charter networks, virtual learning and even home schools could provide that as kids move from place to place.

Those alternatives are not available everywhere – a problem for families that move frequently from state to state. It’s a problem that could be solved, however, with education savings accounts (ESAs) – a flexible type of school choice – provided at the federal level. And why not? These parents are actually federal employees. In this way, military families would have more opportunities to ensure continuity in their children’s education. After all, our kids need that stability in what, to most, would be a disruptive life.

ESAs allow parents to access the public funds already set aside for their children’s education. Those funds – often distributed to families via a restricted-use debit card – can cover private school tuition and fees, online learning programs, educational therapies, private tutoring, community college costs, higher education expenses and other approved customized learning services and materials. ESAs could even allow families to use their funds to pay for a combination of public school courses and private services, depending on their children’s needs.

A 2017 Surveying the Military (https://www.edchoice.org/blog/new-2017-survey-finds-military-veteran-families-want-americas-k-12-education-system/) report by EdChoice found young military/veteran parents and especially active-duty military parents are more likely than their counterparts to have already sought schooling options beyond a neighborhood public school for their kids. Not only that, but the vast majority of military-connected families said they support programs like ESAs and for good reasons. Mostly, they want access to better academic environments, more flexibility as parents and more individual attention for their kids.

While serving, my wife and I relocated our kids to five different state school districts in a 10-year period. I can say that finding that “good neighborhood with good schools” in which to rent or buy a home is a formidable task.

I remember arriving in a new location. I asked a friend who was already stationed there, “Is X school a good school?” She said it was. Later on, my son told me, “Dad, I was sure glad to see you pick me up every day after school.” I came to find that his school was a dismal failure, and my son actually feared for his safety every day! What an eye opener that was. (But, hey, he got straight As.)

How does a military family get current, valid, reliable data on a local school system?

The military base or post does not provide any information on the performance of local schools. The real estate industry provides some, although it’s dated and inaccurate. Most military families get their information from friends and by word of mouth. In my experience, that was not a very good source to determine my child’s future.

This information vacuum needs to be filled to help military families find the best fit for their children’s educational needs.

Tech Talk: Innovation Policy Takes Center Stage

Fact: Indiana is enjoying success in attracting and growing technology and innovation businesses.

Next step: What public policies can help continue that momentum?

Find out during the Indiana Technology and Innovation Policy Summit on December 1 at the Conrad Indianapolis.

tech summit

Influential industry, government and legislative leaders will highlight policy priorities during morning sessions. Micah Vincent, director of the Indiana Office of Management and Budget, will deliver the luncheon keynote.

This year’s summit builds on the successful 2017 legislative session when a number of key issues supported by the Indiana Chamber became law.

Among the legislative priorities to be featured during this year’s summit:

  • Autonomous Vehicles – Find out about the opportunity for Indiana to engage in and capitalize on the growing interest and work done in autonomous vehicle research and programs. State Rep. Ed Soliday will lead the discussion.
  • Software-as-a-Service (SaaS) and tax implications – Indiana ranks second in software job growth. It’s important to clarify the tax situation for SaaS companies so Indiana remains competitive with other states.
  • Data Centers – With the economy increasingly dependent on data, hosting data centers is an economic growth opportunity for Indiana. Rich Carlton, president and COO of Data Realty in South Bend, will talk about fundamental changes the state needs to make to attract data center facilities.

Fisher Mayor Scott Fadness will discuss Smart Cities, Smart State initiatives and the future of certified technology parks will be analyzed. Ted Baker of the Muncie Innovation Center and Karl LaPan of the Northeast Indiana Innovation Center are presenting.

Registration and a continental breakfast start at 8 a.m. The summit begins at 8:30 a.m. and concludes at 1:30 p.m. View the complete agenda.

Registration is $95 for Indiana Chamber members and $125 for non-members. For more information, visit the event page.

Event sponsors are Smithville, the Digital Policy Institute and Purdue University. Additional sponsorship opportunities are available by contacting Jim Wagner.

Tennessee to Offer Skills ‘Warranty’

Tennessee has drawn its share of higher education attention with its Promise program gaining national recognition. A new initiative seeks to further address workforce skills challenges.

The Times Free Press in Chattanooga has the details.

Beginning next fall, new graduates of the Tennessee College of Applied Technology (TCAT) or similar technical programs offering certificates and degrees from state community colleges will come with an eye-catching “warranty” for prospective employers.

If companies can demonstrate the graduates they hire aren’t up to snuff, “we’ll take them back and train them for free,” Tennessee Board of Regents Chancellor Flora Tydings told Gov. Bill Haslam.

Replied Haslam: “I love the idea. … That’s accountability at its finest.”

“It’s exactly what it sounds like,” Tydings told reporters. “If you do not have the skill set for which we say we have trained you, we’ll take you back and retrain you for free – if an employer documents that you do not have those skill sets within a year of graduation.”

Tydings said she doesn’t expect community colleges and TCAT to have to do much graduate retraining because of the job the institutions do.

promise

House and Senate Get Started on Tax Reform; Where Does Donnelly Stand?

Late last week, the House Ways and Means Committee concluded its markup of the GOP tax reform bill (the Tax Cuts and Jobs Act) and voted along party lines to move the measure, 24-16. The core of the House bill reduces the number of individual tax rates, slashes the corporate tax rate and eliminates many deductions and credits.

The bill now will be taken up by the full House of Representatives for debate and vote – likely before the Thanksgiving recess. What are some sensitive issues being discussed in the tax reform bill? Pass-throughs, adoption tax credits, deductibility of state and local taxes (SALT), excise tax and more.

The GOP can only lose 22 votes in the House and whip counts are being held very close to the vest – only five or six Republicans have publicly stated that they are against the bill in the current form (all due to SALT).

Meanwhile, the Senate decided on Thursday to release its own tax reform plan. From the business perspective, the differences largely are about adjusting the dollar dials and creating negotiation items. In other words, politics. The Senate option does delay some positive economic effects, but if that’s what it takes to get a permanent tax reduction in the books so be it! We do want to point out that there are some notable differences between the two versions, particularly on the individual side – including with the estate tax and mortgage deduction, which, again, serve to set up further negotiations.

Senator Todd Young welcomed the effort from the Senate Finance Committee.

“I’m encouraged by the Senate’s proposal to create a tax code that is simpler, fairer and allows hardworking Hoosiers to keep more of what they earn. I’m also glad that this proposal maintains the adoption tax credit that is important to so many Indiana families. As we continue to debate a final tax relief package, I will keep working to ensure Hoosier voices are heard.”

Meanwhile, Sen. Joe Donnelly, didn’t give away his stance: “As I have said, tax reform should create jobs, protect jobs, invest in American workers and benefit middle class families. I will carefully review the Senate proposal and continue to engage with my colleagues and the White House on behalf of Hoosiers as the Senate works on tax reform.”

Donnelly also met on Thursday with the White House Director of the National Economic Council Gary Cohn to discuss his tax reform priorities. Earlier last week, Donnelly participated in another such meeting with White House Director of Legislative Affairs Marc Short and Cohn. President Donald Trump called in for a portion of the event. In that meeting, Donnelly discussed his tax reform priorities and shared a letter that he also sent to Vice President Mike Pence on Tuesday emphasizing that the tax policies should align with the interests of American workers and support companies that invest in the U.S.

Donnelly’s priorities are consistent with his End Outsourcing Act, which would support companies that invest in American workers and penalize companies that ship American jobs to foreign countries.

The Hill reported late last week that “Blue Dog Democrats are lining up in firm opposition to the Republicans’ tax code overhaul, hoping that Tuesday’s election results (particularly in Virginia) will force GOP leaders to reach across the aisle for a bipartisan alternative.”

Donnelly, a Blue Dog Democrat, has not said anything of the kind publicly and has been heavily courted by the Trump administration for his vote.

Happy 25th Anniversary, Kevin!

The Indiana Chamber of Commerce has had just seven executive leaders throughout its nearly 100-year-existence (the Chamber was officially formed in 1922) in our drive to fulfill our mission to “cultivate a world-class environment which provides economic opportunity and prosperity for the people of Indiana and their enterprises.”

President and CEO Kevin Brinegar, in the role for 15 years and celebrating his 25th anniversary with the Chamber yesterday, has been part of major policy and legislative accomplishments during his time at the helm of the organization. A few to mention include: observance of Daylight Saving Time, Right to Work, a preschool pilot program, numerous tax reforms, and most recently, needed investment that will ensure adequate transportation infrastructure funding for the next two decades.

Brinegar’s anniversary comes just two days after our 28th Annual Awards Dinner, where he was presented with a Sagamore of the Wabash by Gov. Eric Holcomb. The award for distinguished service is his second; the first was presented in 1992 by then-Gov. Evan Bayh.

During an Indiana Chamber staff meeting, Brinegar received a commemorative photo collage signed by the Chamber’s staff. We also celebrated with cake!

Kevin Brinegar

Brinegar discussed being presented with the Sagamore of the Wabash and said all current and past staff members of the Indiana Chamber made the award possible and have worked tirelessly to move public policy forward in Indiana and make it a top tier state and a leader across the nation.

Thank you for your hard work on behalf of our staff and the state of Indiana, Kevin. Congratulations on 25 years!

And the Winners Are…

28th Annual Awards Dinner

With a day to absorb and reflect on the events of Tuesday evening’s 28th Annual Awards Dinner, we’ve concluded it was one of the best yet – and the largest audience by far with over 2,000 business, government and community leaders in attendance from all over the state.

Gov. Holcomb, Kevin Brinegar

Highlights of the event included the revealing of recipients of our four annual honors: Tom Easterday, Business Leader of the Year; Rep. Ed Soliday (R-Valparaiso), Government Leader of the Year; the City of Goshen, Lifeline Data Centers Community of the Year Goshen; and Scott McCorkle, Indiana Vision 2025 Dynamic Leader of the Year.

Additionally, Gov. Eric Holcomb touted Indiana’s economic development success to the crowd and presented Indiana Chamber President and CEO Kevin Brinegar with a Sagamore of the Wabash (his second award for distinguished service; the first was presented in 1992 by then-Gov. Evan Bayh).

Videos of the award winners are available here, along with the press release and more photos.

Our 2017 Volunteer of the Year luncheon, fall board of directors and annual membership meetings also took place earlier in the day. During the meeting, outgoing board chair Ron Christian passed the chairmanship to Chuck Baldwin, managing director at Ogletree Deakins law firm and based in Indianapolis.

Chuck Baldwin

Incoming Indiana Chamber Board of Directors Chair Chuck Baldwin (left) receives the gavel from outgoing Chair Ron Christian.

The November-December edition of BizVoice magazine is now live as well. Read in-depth stories about all our award winners, along with the sixth and final story in a series on Fishers-based Recovery Force. Other content includes our 50-year honor roll of Indiana Chamber member companies, a look back at two companies celebrating 100 years in business this year, and where we’re heading with Indiana Vision 2025, the Chamber’s long-range economic development plan for the state.

The 28th Annual Awards Dinner will be remembered for years to come, not only because of the people and communities honored, but because it caps off a year of business and legislative success in Indiana. Thank you to all who attended and made the evening memorable.

Be sure to mark your calendars for next year’s event on November 13, 2018.

28th Annual Awards Dinner crowd

EchoChamber: Behind the Scenes for 20 Years of Award Dinners

EchoChamber

The Indiana Chamber’s 28th Annual Awards Dinner takes place this evening. The EchoChamber team has been around for 20 of the outstanding events – helping tell the stories of award winners through video and print, as well as interacting with a tremendous lineup of keynote presenters. This is your opportunity to hear some thus-far untold anecdotes. Listen now.

EchoChamber is the Indiana Chamber podcast featuring conversations with business, education, political and technology leaders. It’s your opportunity to listen in on your terms.

Visit www.indianachamber.com/echochamber or subscribe at iTunes, GooglePlay or wherever you get your podcasts. Please rate and review us on Apple podcast. Don’t forget to subscribe so you will always be informed about the latest conversation.

And keep an eye on our Twitter, Facebook and Instagram accounts for updates from the 28th Annual Awards Dinner tonight.

Tech Talk: Be Part of the Talent Solution

You don’t need anyone to tell you about the workforce/talent challenges that companies across the state are facing. The tech and innovation sectors, of course, are not alone in dealing with this dilemma.

Solutions must be both short and long term. Think coding schools and other training opportunities as more immediate; reaching deeper into the K-12 system to introduce potential careers at an earlier age as being on the other end of the spectrum.

But a message we’ve shared, no matter the business or industry, is to be part of that solution. Don’t just point out the problems. Don’t blame others unless you’re willing to help produce answers.

One way that everyone can contribute is to Share Your Road. It’s not just a phrase, but a coordinated initiative to introduce young people to the possibilities and what they can and should be doing to help reach those career destinations.

The Indiana Chamber Foundation and Indiana INTERNnet are among the Share Your Road partners, part of the Roadtrip Indiana initiative that sent three students on the road earlier this year. A public television series in 2018 will highlight what they learned.

See some of those who have helped pave the way thus far and take the time to inspire others at https://indiana.shareyourroad.com.

Share Your Road