Commission Focuses 2023-25 Budget Recommendations on Improving Affordability and Equity
Message from Executive Director Ben Cannon
I am pleased to report that at its August 11 public meeting, the Higher Education Coordinating Commission approved its comprehensive postsecondary education Agency Request Budget (ARB) for 2023-25. This year's process is anchored in the priorities for strategic action articulated in the Commission’s Strategic Roadmap. It is also grounded in the current concerning trends in investment in higher education, which show that despite progress in recent years, Oregon has placed a comparably high burden of higher education costs on students and families, and we are seriously behind in funding financial aid.
Overall, HECC's state budget recommendation calls for a large increase in spending on higher education to support the transformative change needed to improve equity and affordability in postsecondary education and training for all Oregonians. The ARB focuses the vast majority of new state funds on state-funded financial aid to students and equity strategies to align with the important developing work of the Task Force on Student Success for Underrepresented Students. HECC leaders will be closely involved with the task force in coming months as they craft their specific recommendations. Finally, we have recommended public university and community college funding levels designed generally to sustain those institutions’ program and service levels without the need for major tuition increases.
We sincerely thank our many partners who have provided us with input that helped us improve these proposals over the course of their development. And while we take this first step in the process very seriously, we recognize that it is only a first step. After the HECC submits the ARB September 1, we will look forward to the release of the Governor's Recommended Budget (to occur sometime after a new Governor is elected this fall), and the subsequent deliberations and decisions of the Oregon Legislature. We look forward to the continued discussions and partner engagement about state needs that are always a rigorous and critically important part of this public process.
As we prepare for the 2023 Legislative Session, we are simultaneously working with our many partners to roll out the exciting, transformative investments made by the 2022 Legislature in Future Ready Oregon and the Oregon Tribal Student Grant. We thank all for the engagement and commitment to Oregon students, now and tomorrow.
Agency Request Budget: Featured Components
At its August 11 Commission meeting, the HECC viewed and approved details on the new agency funding requests (Policy Option Packages) in the agency request budget. The ARB will be submitted to the Department of Administrative Services on September 1. Read more about other the POPs approved by the Commission here. The largest proposals are briefly summarized below.
Financial aid and equity investments:
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$40 million General Funds (GF) to the Oregon Tribal Student Grant (established in 2022) to continue this newly launched grant as a permanent program and continue to serve new and existing eligible tribal students. The program is focused on eliminating college affordability barriers for students who are registered members of Oregon’s nine federally recognized Tribes.
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$789 million Total Funds (TF) increase above the 2021-23 state budget in financial aid funding to increase student support and adjust the design of the primary state grant programs for equity and access.
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This would greatly increase Oregon Opportunity Grant funding by nearly four-fold (373 percent), serving many more students and increasing current award amounts to meet a higher percentage of college costs (up to tuition and fees plus books and supplies) at public institution rates for the highest need students. The grant would be awarded in tiered award amounts based on student needs and sector costs, and add more flexibility to award nontraditional learners such as those who attend less than half time. The proposal also adds targeted awards to students near completion to incentivize degree completion.
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The Oregon Promise investment would roughly double in funding (103 percent increase), and policy changes would increase eligibility so the award may be accessed by a larger number of students through the removal of the current 2.0 GPA requirement, removing the discounting of accelerated credit prior to Oregon Promise, and allowing students broader college access options to use the grant used at any eligible Oregon postsecondary institution, including four-year colleges/universities.
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$100 million GF new funding for equity strategies to carry out the recommendations of the Task Force on Student Success for Underrepresented Students in Higher Education.
Institutional operations funding including:
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$205 million GF increase (29.5 percent above the 2021-23 state budget) to sustain operational and educational funding for the 17 community colleges through the Community College Support Fund (CCSF), bringing it to $905 million. Because $50 million of that would represent one-time funding, the base (i.e., ongoing) CCSF level would be $855 million, or 20.1 percent above 2021-23. The CCSF is the largest component of the total support to community colleges, which totals $935 million (including cybersecurity funding and other items).
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$92 million GF increase (10.3 percent above the 2021-23 state budget) to sustain operational and educational funding for the seven public universities through the Public University Support Fund (PUSF), bringing it to $992 million. The PUSF is the largest component of the total support to public universities, which totals $1.0 billion (including cybersecurity funding and other items).
Capital project funding, from the sale of bonds, for:
- 13 public university capital projects ($610 million) and five community college capital projects ($38 million).
Joint Task Force on Student Success for Underrepresented Students Moves from Listening to Crafting Solutions
The HECC is looking forward to the next phase of work of the Joint Legislative Task Force on Student Success for Underrepresented Students in Higher Education, with thanks to Chair Representative Alonso-Leon, the Task Force members, and all who have participated for the important testimony and insights that have emerged so far. The HECC staff have presented regularly at task force meetings, participated in planning and identifying experts, and have strongly encouraged participation of students and community members in the historic statewide listening tour which concluded last month with a visit to Southern Oregon.
To develop final recommendations the Task Force is now splitting into three workgroups: Affordability, Wraparound Services and Supports, and Continuous Improvement and Accountability. Each group will meet throughout the end of August and September, and HECC will be represented by Juan Báez-Arévalo, Veronica Dujon, Donna Lewelling, and Rudyane Rivera Lindstrom. The Task Force will focus on solutions related to 1) the need for systemic, regular availability of services, program models, and support structures to improve the likelihood of enrollment, retention, and completion of students from underrepresented backgrounds, and 2) ensuring that access to and delivery of these services/models and education is done in student-centered, culturally-appropriate, and streamlined ways. Following the workgroup phase, the Task Force will again convene at the end of 2022 to determine final recommendations and approve a report, which will likely become the basis for proposed legislation in 2023. The HECC has included in its 2023-25 agency request budget a $100 million equity investment to support and align with these future recommendations.
Impact of Public Higher Education Funding and Continued Affordability Challenges Highlighted in National Report
The State Higher Education Executive Officers Association (SHEEO) recently released its latest State Higher Education Finance (SHEF) report examining the trends, context, and consequences of state higher education funding decisions through fiscal year 2021. The SHEF report offers a comprehensive look at where states stood as they weathered the COVID-19 pandemic and economic recession.
HECC Executive Director Ben Cannon participated in a national webinar hosted by The Hunt Institute in July, focused on the key findings of the report and emerging issues in higher education funding. For those who missed it, a video of the webinar is available here. In addition, the HECC has highlighted key trends for Oregon's public postsecondary system in a new summary here. Some key findings for Oregon include:
- Over the last one, five, and ten years Oregon enrollment declines have been 2-3 times steeper than the national average.
- Oregon’s public investment in higher education increased 10 percent between FY2020 and FY2021 but per student funding remained well below the national average and ranked us 36th among all states. Sector-level investment per student varies (released for the first time in this year's report), and the definitions for each sector are important to understand (see our summary for details).
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Tuition and fees made up the majority of Oregon institutional revenue, and a larger proportion than the national average.
- At $574 per student, Oregon’s state investment in financial aid is nearly 40 percent below the national average and well below that our neighboring West Coast states California ($1,084/student) and Washington ($1,904/student).
Fifth Annual "Statewide Higher Education Snapshots" Highlight Key Metrics on Oregon Postsecondary Learners in 2020-21
The Statewide Higher Education Snapshots answer common questions on the enrollment, affordability, and outcomes of Oregon’s college and university students—with breakouts by race/ethnicity, first-generation status, and more. Explore all Snapshots on the Oregon map here, including statewide summaries and 24 individual Snapshots for each public college and university.
Oregon students in 2020-21—337,891 total students were enrolled in college or university in Oregon, with most at public institutions. Among undergraduates from Oregon, 30 percent identified as students of color and 43 percent were over age 25. The Snapshots also show breakouts by program level (e.g., noncredit, undergraduate, graduate).
Affordability—Affordability continues to be a challenge, with 40 percent of students who applied for grant aid unable to meet the cost of attendance with expected resources. A new metric this year reveals that 25 percent of degree-seeking students did not apply for financial aid—but might have received grants if they had applied.
Completion rates—Completion rates continue to show disparities by race/ethnicity and other equity indicators. Among new credential-seeking community college students, 51 percent earned a certificate/degree or transferred to a four-year institution within four years, and 68 percent of new public university freshmen earned a bachelor’s degree within six years.
Economic benefits of a college degree—Another new metric highlights the long-term economic benefits that come with postsecondary certificates and degrees. At every level of credential, wages continue to rise five and ten years after graduation. Questions may be addressed to Amy Cox, director of research and data, at amy.cox@hecc.oregon.gov.
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As First Notifications of Awards go out, Students Can Still Apply for the Oregon Tribal Student Grant
We are pleased to report that as of August 12, approximately 400 students have submitted complete Oregon Tribal Student Grant applications and are tentatively eligible for the grant for the 2022-23 academic year, including 357 who completed applications by the August 1 priority deadline. The HECC Office of Student Access and Completion started notifying students of their eligibility, and details will be provided by the financial aid offices at the institutions they plan to attend. While the August 1st priority deadline has passed, the HECC Office of Student Access and Completion is continuing to accept and review applications for the Oregon Tribal Student Grant for 2022-23 until funds are exhausted.
The Oregon Tribal Student Grant is a new state financial aid program supported by the Oregon Legislature’s 2022 historic investment in equitable college access and success for tribal students. The grant is expected to pay for most or all public undergraduate college-related expenses—including tuition, housing, books, and other costs not covered by other grants—for eligible students who are enrolled members of Oregon’s nine federally recognized Tribes. Current and prospective students can learn more and apply here. Students planning to attend college in the 2022-23 academic year—including fall term—are still encouraged to apply.
Future Ready Oregon Implementation updates
We are pleased to announce that the first funding distributions of the $200 million dollar Future Ready Oregon funding package are well underway by HECC and partner agencies. This funding supports workforce education and training systems that have shown a history of success as well as new programs to foster equity-focused solutions and innovations.
The first round of Workforce Ready Grants focusing on capacity building is under review. Funding under “Prosperity 10,000” has begun distribution through the local boards resulting in high impact projects in local areas. The Credit for Prior Learning applications are under review, and funding for the Postsecondary Career Pathway Training program has been distributed to Oregon’s community colleges. Finally exciting progress has been made toward establishing the Industry Consortia. In consultation with the Woolsey Group, we are designing the three consortia in healthcare, manufacturing, and technology. This work has included multiple conversations with leaders from business, agencies, community-based organizations, the Workforce and Talent Development Board (WTDB) and others.
In addition to the Future Ready Oregon components led by the HECC, please reference opportunities for funding through the Bureau of Labor and Industries Apprenticeship Grants Program as well as the Youth Development Division’s Future Ready Youth Programs.
Registration is Now Open for Adult Basic Skills Conference 2022 "Going the Extra Mile," October 24-25
Registration has just opened and early bird tickets are on sale now for the 2022 Adult Basic Skills Conference: Going the Extra Mile. The two-day conference to be held on October 24-25 in Salem will focus on the lengths we go to administer exceptional programs and deliver high-quality instruction. The conference's goal is to provide effective strategies, techniques, latest trends, and best practices in the field of adult basic skills and high school equivalency education. We invite GED® test educators, academic advisors, high school and postsecondary administrators and faculty, current and former GED® test students, community organizers, Department of Corrections and other state partners, adult higher education instructors, practitioners, and staff to participate.
The Adult Basic Skills Conference follows in the tradition of HECC hosting an annual GED Summit, an event first convened in 2014 and organized by the HECC Office of Community Colleges and Workforce Development (CCWD). In recent years, the event has broadened to focus not just on high school equivalency but on the full spectrum of Adult Basic Skills training and certification. Learn more on the Going the Extra Mile Conference Website here.
 HECC Staff Highlights from Tribal Visits
This summer HECC staff had opportunities to meet and work with many of our tribal partners. Visits allow us to build relationships and work directly with tribal partners on grant programs and awards, such as the Oregon Tribal Student Grant and the Oregon Youth Corps (OYC). These visits provided time for reconnecting after two years of pandemic interruptions and reminded us to center community in our collective work.
Through our visits we have seen how members of the tribe support and encourage their youth while creating cross-generational community connections. This is seen when Coquille Indian Tribe youth assist community childcare programs and play an integral in role setting up community events. Young people are then celebrated by the entire Tribe when they graduate from high school. It is also seen when the youth at the Confederated Tribes of Warm Springs clean and care for huckleberry gathering sites, where they chop wood and deliver the logs to their elders.
The OYC Community Stewardship Corps Grant Series provides on the job training that honors traditional practices that benefit the entire community. After a recent visit with the Confederated Tribes of the Umatilla Indian Reservation where an OYC grant agreement is in process, HECC program analyst Jeremy Ahola said “In-person visits help me gain perspective on the grant program and its impact from a variety of viewpoints. These demonstrate what community stewardship means in action.”
HECC staff hope to continue visiting and learning from our tribal partners and finding ways to collaborate and improve our processes. We extend gratitude to our hosts for sharing these moments with us and with their youth.
Jennifer Purcell Hired as Director of Future Ready Oregon
We are pleased to announce that Jennifer Purcell, Workforce Policy Advisor for Governor Brown, has been hired to lead HECC’s work on Future Ready Oregon. In this role, she will lead the implementation of the components of Future Ready administered by the HECC. This historic $200 million package invests in existing successful programs and in innovative equity-focused solutions to bolster recruitment, retention, and career advancement opportunities for historically underserved and priority populations.
Jennifer Purcell brings extensive experience with strategic policy and program leadership and collaboration among local, state, and federal partners, including community and economic development, education and workforce, private sector business, and government. While in the Governor’s Office, Ms. Purcell has led economic development projects serving as the North Coast Regional Solutions Coordinator and played a pivotal role in development and passage of the Future Ready Oregon funding package in 2022. She previously represented the Oregon Department of Environmental Quality on the North Coast Regional Solutions team, and has been active in her community, serving on Tillamook Bay Community College Board of Education, the Tillamook County Futures Council, Tillamook Area Chamber of Commerce, and other organizations. Jennifer earned her EMPA from Portland State University, and her BA from Pacific Lutheran University.
Ramona Rodamaker, deputy executive director of the HECC, says, "We welcome Jennifer Purcell who brings extensive experience with community collaboration and policy strategy. Ms. Purcell has a deep commitment to economic and community vitality and ensuring equitable opportunities in workforce and education, and we are excited for her leadership of Future Ready Oregon."
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Julia Steinberger Hired as Director of Workforce Investments
We are pleased to announce that Julia Steinberger has been hired as the permanent director of the HECC Office of Workforce Investments (OWI), after serving in this role on an interim basis since November, 2021. She will lead the HECC office responsible for administering numerous statewide workforce programs, collaborating with the Oregon Employment Department, convening partnerships in the workforce system, supporting the Workforce and Talent Development Board (WTDB) and Local Workforce Development Boards, and implementing the Governor's vision for workforce.
During her time as the interim director, Julia Steinberger led the work with HECC internal and external partners to inform and launch Future Ready Oregon, one of the state’s largest investments in Oregon’s workforce and training system. Ms. Steinberger has also served in numerous positions at HECC since 2017, including director of the STEM Investment Council, the OWI systems alignment manager, OWI deputy director, and community college and workforce policy analyst. She has previously worked in Washington, DC as a staffer in the U.S. House of Representatives, at the National Head Start Association, and for the U.S. Department of State. She holds a BA from Amherst College and an MPA from George Washington University.
Ramona Rodamaker, deputy executive director of the HECC, says, "Julia Steinberger has excelled in her previous positions with the agency, and as interim director she has already demonstrated extraordinary leadership, skills, and a commitment to OWI staff, partners, programs, and the Oregonians they serve. We are so fortunate she has accepted the position as OWI Director."
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Recent Reports and Resources
Oregon Joins Partnership with U.S. Census to Offer Employment Data on College Graduates
The Higher Education Coordinating Commission (HECC) announced in a recent press release that Oregon is partnering with the United States Census Bureau on a new online searchable data tool to provide public access to information on the employment outcomes of postsecondary education and training. The Census Bureau’s Center for Economic Studies links state data on college and university graduates with state and federal employment data to create the Post-Secondary Employment Outcomes (PSEO) tool. The data tools show job placement and earnings outcomes across the country for graduates of each of Oregon’s 17 community colleges and seven public universities.
The Oregon Workforce and Talent Development Board (WTDB) and the HECC announced in a recent press release the publication of the 2022 Oregon Talent Assessment, providing a comprehensive look at the current employment market, highlighting Oregon business and industry’s input on in-demand occupations, skills, talent, gaps, and trends. The 2022 Talent Assessment was developed for the WTDB and HECC by ECONorthwest in partnership with Program and Policy Insight. The Assessment details how the effects of the pandemic, public health measures, and the ongoing effects of the robust federal stimulus have created a highly unusual labor market.
HECC Presentation at SHEEO Higher Education Conference Focuses on Funding Equity
Oregon policy work was featured among the many topics explored this month in the 2022 SHEEO Higher Education Policy Conference, held in Indianapolis, Indiana August 8-11, 2022. The conference highlighted the crucial issues and policy considerations states must address to build and sustain excellent systems of higher education. Jim Pinkard, HECC director of postsecondary finance and capital, joined policy leaders from Wisconsin and Louisiana to present on Funding Equity Analysis –Emerging Best Practices. The presentation focused on how state policymakers can conduct analysis to promote equity-based funding.
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