Call to Order and Roll Call
The second meeting of the Interim Joint Committee on Education was held on Monday, July 14, 2014, at 12:30 PM CST, in the Hodge Center located on the Lindsey Wilson College campus. Senator Mike Wilson, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Mike Wilson, Co-Chair; Representative Derrick Graham, Co-Chair; Senators Walter Blevins Jr., Joe Bowen, David P. Givens, Jimmy Higdon, Stan Humphries, Gerald A. Neal, Katie Stine, and Johnny Ray Turner; Representatives John Carney, Leslie Combs, Jim DeCesare, Jeffery Donohue, C.B. Embry Jr., Richard Heath, Joni L. Jenkins, James Kay, Brian Linder, Mary Lou Marzian, Donna Mayfield, Reginald Meeks, Ruth Ann Palumbo, Jody Richards, Tom Riner, Bart Rowland, Rita Smart, Wilson Stone, Ben Waide, and Jill York.
Legislative Guest: Representative Arnold Simpson
Guests: Donna House, Kentucky Association of Professional Educators; Jennifer Rowe and Joe Lancaster, Legislative Research Commission Budget Review Office.
LRC Staff: Kenneth Warlick, Daniel Clark, Joshua Collins, and Lisa W. Moore.
Chairmen Wilson and Graham congratulated Committee Staff Administrator, Dr. Ken Warlick, on his pending retirement on August 31, 2014. Dr. Warlick received a standing ovation from committee members for his outstanding service to the Legislative Research Commission from 2008-2014.
Approval of the Minutes of the June 9, 2014, Meeting
Representative Graham motioned to approve the minutes and Representative Kay seconded the motion. The motion carried.
Overview of Lindsey Wilson College
Dr. William T. Luckey, Jr., has served as the President of Lindsey Wilson College (LWC) for the past 16 years, but he began his career 32 years ago as an admissions counselor responsible for recruiting students from eastern Kentucky. He thanked the committee members for the important work that they do in promoting and supporting education. He said the mission of LWC is to provide a living-learning environment exemplified by caring and Christian concern.
Dr. Luckey said enrollment has increased from 260 students in 1977 to more than 2,645 for the 2013-14 school year. Approximately 1,145 students reside on campus increasing from 721 students five years ago. During the last 20 years, LWC has been one of the fastest-growing four-year independent colleges in Kentucky. About 80 percent of LWC students come from Kentucky and the remainder from more than two dozen states and almost three dozen foreign countries. LWC has one of the most diverse student populations among the Kentucky’s independent colleges and universities. More than 15 percent of the LWC student body is composed of minority students. In May 2014, LWC graduated 664 students. This is a substantial increase from 151 graduates just eleven years ago.
Dr. Luckey said the LWC faculty has grown from 42 in 1977-98 to 114. More than 75 percent of LWC faculty members have terminal degrees, an increase from 36 percent in 1990. An aggressive building campaign resulted in more than 24 buildings added to the A.P. White Campus in the last 20 years. In the last eight years, over 300,000 square feet of facilities have been added. Highlights include: a chapel; a health-and-wellness center; nursing and counseling building; a business leadership center; a campus ministry center; a worship center; a library; four residence halls; a regional dining and conference center; a science center; an expanded student union building; a European-style soccer stadium; a sports park with a football and track-and-field stadium, and baseball and softball fields; and a renovated humanities center and art gallery.
LWC is one of the major employers of Adair County, and it is one of the county’s largest private white-collar employers. LWC employees contribute more than $71 million annually to Adair County’s economy and make a salary 30 percent higher than others in the county. The average wage for LWC employers is $41,230.
LWC was reaccredited by the Southern Association of Colleges and Schools (SACS) in December 2013. SACS has given LWC the authorization to begin offering a doctorate degree in counselor education and supervision. LWC offers a master’s degree in counseling and human development and is recognized as the best small college counseling program in the United States.
Dr. Luckey said LWC receives more funding through the College Access Program (CAP), the Kentucky Tuition Grant (KTG), and the Kentucky Educational Excellence Scholarship (KEES) programs than any other private college in the state because it serves more financially needy Kentucky students. He said Adair County has the highest percentage of students enrolled in a private college, 61.4 percent, than any other county in the Commonwealth.
Dr. Luckey said the average student debt for a student attending LWC is $18,683, which is 35 percent less than the average debt across the country, 16 percent less than the debt incurred at Kentucky’s public colleges, and 7 percent less than the graduates of other Kentucky private colleges.
Representatives Richards and Carney and Senator Wilson spoke very highly of LWC. Each has a personal connection to the college and attributed the quality of life in southeastern Kentucky to the degrees being earned at LWC.
Performance Update of the Association of Independent Kentucky Colleges and Universities
Dr. Gary Cox, President, and Mason Dyer, Vice President for External Relations and Information, Association of Independent Kentucky Colleges and Universities (AIKCU), reported on the progress and status of the nonprofit private college sector. He commended the committee members for their support of both public and private postsecondary education efforts in Kentucky. He said AIKCU has a good working relationship with the Education Professional Standards Board (EPSB), the Council on Postsecondary Education (CPE), and the Kentucky Department of Education (KDE).
Dr. Cox said the Association of Independent Colleges and Universities (AIKCU) is the member organization for the 19 private nonprofit, Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) accredited 4-year colleges and universities in Kentucky. There were 36,195 students enrolled in the fall of 2013, and 28,855 are undergraduates. He noted 71 percent of AIKCU students are Kentucky residents, representing every county in Kentucky, while 8,328 are out-of-state students, including 890 international students. Students are from all 50 United States and more than 100 countries.
Dr. Cox said AIKCU members enroll 14 percent of all postsecondary students and produce 22 percent of Kentucky’s total bachelor’s degrees. Discrepancies exist between CPE and the Integrated Postsecondary Education Data System (IPEDS) data for the 2012-13 cohort. Preliminary IPEDS data indicates an overall 6-year AIKCU graduation rate of 50.5 percent for 2012-13. Graduation rates vary widely by institution and the college readiness of entering students. AIKCU students are more likely to graduate in four years than in five or six. He said 76 percent of the students who graduate do so in four years. The AIKCU 4-year IPEDS graduation rate is 38.1 percent.
Dr. Cox said the Kentucky Community and Technical College System (KCTCS) transfers, adult students, and graduate degrees remain a priority for many AIKCU members. He said 25 percent of the undergraduates are 25 or older, and community campuses and partnerships with KCTCS extend AIKCU’s presence to many additional communities in rural areas of the state. Designated transfer scholarships are available at many AIKCU campuses, and graduate enrollment and degrees continue to expand to meet the needs of Kentucky employers and the Commonwealth.
Dr. Cox said the average published costs at AIKCU institutions are less than southern and national private college averages. The average tuition increase for 2014-15 is approximately 2.7 percent. Almost no AIKCU student pays the sticker price. A private college education is attainable for many students thanks to a four-prong partnership of student/family, institution, federal, and state aid. He said 98 percent of full-time first year students receive some financial aid, and 92 percent receive institutional grants and/or scholarships.
Dr. Cox said Kentucky’s private nonprofit colleges and universities receive no direct state money. Students attending private colleges are eligible for state financial aid programs, such as the need-based CAP and KEES. AIKCU students received a combined $29.61 million in 2012-2013 from CAP and KEES programs.
Dr. Cox said the KTG is the only state student financial aid program explicitly for Kentucky residents attending in-state private colleges. The need-based program is designed to help offset the higher costs of attending a private institution. The maximum award is half the average appropriation per full-time equivalent (FTE) student enrolled in all public institutions. The current maximum KTG award equals $2,930. He reported 10,381 students in AIKCU institutions received $27.98 million in KTG in 2012-2013.
Dr. Cox reported in 2012-2013, 14,461 unduplicated AIKCU students received $57.58 million in state grants. He said 70 percent of that total was distributed through the need-based CAP and KTG programs. KTG awards, about $28 million, to AIKCU students are equivalent to 2.4 percent of the state postsecondary appropriation. In 2012-2013, Kentucky appropriated approximately $1.2 billion to postsecondary education, including appropriations to public postsecondary institutions, CPE, and the Kentucky Higher Education Assistance Authority (KHEAA).
Dr. Cox said AIKCU’s number one policy priority is to support KHEAA’s budget recommendation to appropriate all lottery revenue to student aid. Kentucky’s need-based programs are first-come, first-served, and are quickly exhausted. The average loan debt of 2012 college graduates is $22,380 for AIKCU students, $24,625 for Kentucky public university students, while $29,400 is the national average, including statistics for-profit colleges.
Dr. Cox reported a key finding of an economic benefit study was that AIKCU members add $617.6 million to Kentucky’s economy annually. This includes $344 million in direct wages and benefits, and 7,037 total employees with annual wages and benefits of at least $48,920. He said indirect benefits are $102 million, while 1,166 Kentucky jobs exist because of AIKCU members’ operations. The induced benefits--the response by Kentucky’s economy to direct and indirect benefits--is $162 million.
Dr. Cox discussed the challenges facing Kentucky private colleges
and the responses to the challenges. The complete list can be found in the
meeting materials located in the Legislative Research Commission (LRC) library.
The median endowment value at the end of fiscal 2012 was $18.6 million.
Senator Wilson said he was surprised and pleased to see the increased number of Science, Technology, Engineering, and Mathematics (STEM) degrees earned at private colleges compared to public universities.
Representative Carney said it should be a priority to get the KTG and CAP programs fully funded. The significant decrease in these funds from 2009-2014 is unacceptable.
Responding to a question from Senator Stine regarding student job placement statistics for private and public schools, Dr. Cox said there is data for teachers and nurses who go to work immediately after graduating, but some students pursue graduate degrees and are not calculated in the statistic. He noted that undergraduates tend to earn less than those who seek professional degrees initially, but earn a better income ten or fifteen years later.
Dr. Luckey said there is a 340 percent increase in the number of graduates since 1977. Dr. Cox said the small classes and personal interaction with the instructors help to keep students on the path to a timely four-year graduation.
Responding to Senator Bowen, Dr. Cox said 80 percent of AIKCU students graduate in a four-year period, but 40 percent who enroll in an AIKCU institution require at least one remedial course. Senator Bowen said he did not realize that if students transfer from a public to a private college or vise versa that they are not calculated in either graduation rate.
In response to a question from Representative Waide regarding technology and on-line courses reducing the cost of a postsecondary education, Dr. Cox said KCTCS has on-demand courses being offered in a pilot project. Teacher preparation time must be calculated in the cost of on-line degrees. Many rural areas in Kentucky still do not have internet access, which creates a problem for on-line instruction.
Responding to a question from Senator Givens regarding the value of undergraduate degrees, Dr. Cox said it is still a challenge to prove to many Kentucky families the worth of a college degree. He emphasized the importance of partnering with the business community and providing internships.
Representative Stone said many students in Allen County only attend LWC because of the close proximity and satellite campus in town. He commended the college for its ability to recruit first-time generation college students. Dr. Cox noted 20-25 percent of the AIKCU’s students are adults and first-generation students.
Representative Graham said that the Kentucky Center for Education and Workforce Statistics (KCEWS) has a website that includes many of statistics mentioned in the meeting. Specifically, it provides statistical data on AIKCU’s students and job placement after graduation.
Senator Neal commended the college and its success. He said his wife and her sisters graduated from LWC, and all have had successful lives and careers.
With no further business before the committee, the meeting adjourned at 3:00 PM CST.