Presented to the Utah Legislature's Economic Development Task Force on 11/15/12

1. Economic Development Task Force
David Buhler, Commissioner of Higher Education
November 15, 2012

2. Introduction/Overview
1. Directly as a large enterprise
2. Creation of Innovation
3. Expanding the Talent Pool
4. Partnering with Business and Industry
5. Strategies for Our State
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3. 1) Higher Ed as an Enterprise
3

4. A $4.5 Billion Enterprise
Tuition/Fees, $592,
409,100
State
Appropriations, $7
03,119,511
Everything
Else, $3,231,202,1
87
4

5. Leveraging State Dollars
USHE provides $2.6 for every state dollar of capital development
Donations &
Federal, $1,103,
629,900
State Funds Other
$968,433,400 $2,476,873,600
28% 72%
Revenue Bonds
$1,255,477,400
Student Fees
$117,766,300
USHE Capital Funding by Source (1996-2012)
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6. A major employer
USHE Institutions 33,162
Tax funded: 15,204
Other: 17,958
Intermountain Healthcare: 32,000
State of Utah: 25,000
Hill Air Force Base: 15,000
Wal-Mart (in Utah): 20,000
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7. 2) The Creation of Innovation
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8. Creation of Innovation
Basic Research and USTAR (since 2005)
• 202 patents (106 UU, 96 USU)
• 330 disclosure (142 UU, 188 USU)
• 120 startups at University of Utah
Applied Research
• Support for gov’t and business on specific projects
• All institutions participate in applied research in
varying degrees
– Example: Bureau of Economic and Business Research
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9. Just like these innovators…
John Warnock David Evans Ivan Sutherland
Adobe Evans & Sutherland
Ed Catmull Tom Stockham Alan Kay
Pixar/Disney Soundstream Xerox/Apple

10. Inspiring the Next Generation of Entrepreneurs
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11. 3) Expanding the Talent Pool
(Preparation, Participation, Completion)
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12. Expanding the Talent Pool
• By 2018, 66% of jobs in Utah will require
postsecondary education.
• Utah is currently at 43%.
• 20 highest-paying occupations in Utah currently
require at least a Bachelor’s degree.
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13. Expanding the Talent Pool
Increase degrees 4% annually to reach 66%
47,000
45,000
43,000
41,000
12,100
39,000
10,300
8,600
37,000 7,000
5,500
4,000
35,000 2,600
1,300
33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600
33,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Utah Base USHE
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14. More Participation Needed…
• Enrollment growth is not keeping up with population
growth
• Between 1994 and 2009:
– Youth (18-24) population grew 40%
– First time freshmen enrollment grew 20%
• 49% of 18-24 year olds not enrolled in college
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15. Socioeconomic Status a Predictor of Success
• Utah High School Graduation Rates (2011)
– All Students: 76%
– White: 80% (6,448 not graduating)
– Hispanic: 57% (2,592 not graduating)
– Econ. Disadvantaged: 65% (4,209 not graduating)
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16. Socioeconomic Status a Predictor of Success
Utah high school graduates who enroll in college by income
80.0%
71.1% 70.1%
70.0% 67.7%
60.0%
51.6% 49.9% 48.8%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2007 2008 2009
Regular Low Income (Free or Reduced Lunch in High School)
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17. Benefits of Higher Ed are Undeniable
8.2%
7.6% $59,843
5.5%
$41,273
$30,632 4.1%
$26,355
$19,316
1.4%
Less than High School Diploma
High Some College, Certificates & Associate's Degrees
School Diploma Bachelor's Degree Graduate Degree
Median Wage Unemployment Rate
Sources: American Communities Survey 2009, Utah Department of Workforce Services
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18. Benefits of Higher Ed to the Economy
Utah Population (25 & over)
by education level & state tax contribution
48% Taxes Paid
Population
40% 38%
34%
28%
12%
No Postsecondary Education
Some College, Certificates & Associate's Degrees
Bachelor's & Higher
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19. Benefits of Higher Ed to the Economy
If Utah reaches the 66% goal:
• Wage income would increase annually by between
$1.5B and $3B annually.
• 5%-10% increase in total state wage share of GDP.
Source: Dr. Jeff Strohl, Center on Education and the Workforce, Georgetown University
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20. 4) Partnering with Business
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21. Engaged Experiential Learning
• Business partners housed at USHE institutions
provide critical geographic hubs:
– USTAR (Regional outreach)
– Small Business Administration
– GOED (Rural Development, Fast Track, etc.)
– Procurement Technical Assistance (PTAC)
– Cluster Acceleration Partnership
– Small Business Development Center (SBDC)
– Etc….
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22. Engaged Experiential Learning
• Resulting in enriched student experience relevant
to the regions/industries
– Internships
– Undergraduate and Applied Research
– Business Incubation
– Business and Entrepreneur resources (market research, capital,
consulting)
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23. Working with industry to align outcomes:
• Regional tech outreach partnership with USTAR
– WSU, SUU, Dixie, UVU, USU East
• New certificates in high growth/high wage industries
– aerospace, life science, health care
• Economic Gardening (USU, Snow, SUU, Dixie)
• Goldman Sachs - 10,000 small businesses (SLCC)
• Custom fit/CTE realignment (Snow)
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24. 5) Strategies for our State
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25. Are we as wise as our founders?
University of Deseret Southern Utah University
Originally housed in the first Mortgaged surrounding farm
public building built in the state. properties to sustain the campus after
fire destroyed Old Main in 1948.
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26. Who pays?
Funding per FTE Funding per FTE
2008 2012
Tuition Tax Tuition Tax Funds
37% Funds 51% 49%
63%
Tuition is up, yet spending is $600 less per student
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27. The 66% Goal: How?
Utah Needs a Bold, New Plan
• Increased Innovation
• Increased Investment
• We won’t get there by maintaining the
status quo

28. How do we get to 66%?
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29. The 66% Goal: How?
Innovation
• Leverage technology
• Broaden reach to K-12 students
• College readiness
• 1st generation college-goers
• Focus on industry needs
• STEM & Health Professions

30. The 66% Goal: How we get there
Investment in Capacity and Completion
• Year 1 of 7-year plan
• Invest in STEM & health professions
• Student preparation for high-income careers
• Build teaching/completion capacity

31. The 66% Goal: How?
Investment in Capacity and Completion
$30M increases capacity in critical programs
+ $10M scholarships to assist in completion
_________________________________
Total: $40 million investment

32. The 66% Goal: How?
$20/$20 Investment Plan
$20M state contribution
+ $20M institutional innovation & investment
_________________________________
Total: $40 million investment

33. Investing in our Children’s Futures
• Not simply a new budget request
• It will take everyone: K-12, higher ed, business & state
• We need your support!

34. Summary
1. Higher Ed is a large enterprise.
2. Higher Ed is critical to innovation.
3. We must expanding capacity to expand the
talent pool.
4. Continue building partnerships with business
and industry.
5. Strategies for our state require support of all
stakeholders.
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35. Thank You
Questions/Discussion
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