Higher education budgets and the global recession: Tracking varied national responses and their consequences — from cshe.berkeley.edu

Excerpt from the Abstract:

States have very limited ability to borrow funds for operating costs, making the federal government the last resort. In short, how state budgets go, so goes US higher education; whereas most national systems of higher education financing is tied to national budgets with an ability to borrow. Without the current stimulus funding, the impact on access and maintaining the health of America’s universities would have been even more devastating. But that money will be largely spent by the 2011 fiscal year (Oct 2010-Sept 2011), unless Congress and the White House renew funding support on a similar scale for states that are coping with projected large budget gaps. That now seems unlikely.

  

Original posting from George Siemens — Higher Education Budgets and the Global Recession

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The 2011 Budget makes a strong commitment to technology that transforms how educators teach and how students learn. The President strongly believes that technology, when used creatively and effectively, can transform education and training in the same way that it has transformed the private sector. It makes a broad array of Department of Education programs, including the $500 million “Investing in Innovation” Fund, eligible for technology-related investments, encouraging the infusion of educational technology across a broad range of programs in order to improve teaching and learning, and build the capacity at the State and local level to support better uses of technology for efficient and effective transfer of knowledge.

Potential for Transformative Impact:
Last year, the President released A Strategy for American Innovation, highlighting the role of technology in educating the next generation. The strategy outlined the role that educational technology could play to improve our quality of life and establish the foundation for the industries and jobs of the future. For example (emphasis below from DSC):

  • Online learning can allow adults that are struggling to balance the competing demands of work and family to acquire new skills, and compete for higher wage jobs, at a time, place and pace that is convenient for them. It can also improve access to a quality education for students in underserved areas.
  • Digital tutors can provide every student with immediate feedback and personalized instruction, providing them with the information needed to diagnose and correct errors, and providing challenging instruction.
  • Digital learning environments can generate a large volume of data that, if analyzed properly, will support “continuous improvement” by providing rich feedback to learners, teachers, curriculum designers, and researchers in the field of learning science and technology.
  • “Games for learning” that are compelling and engaging have the potential to increase the attentive time on task that students engage in learning. Massive multiplayer games can support the social and team-based dimensions of learning.
  • Simulations, such as a flight simulator for pilots or a “digital human” for medical professionals can allow students to engage in hands-on learning.
  • Open educational resources can be shared, adapted, re-mixed, and re-used.
  • Technology can increase parental involvement, provide new opportunities for students with disabilities and for English Language Learners, allow teachers to participate in “communities of practice,” and enlist professionals and retirees as online mentors.

Learning Styles and Tuition Dollars — from Joshua Kim; Joshua is quoted below:

Colleges and universities that invest in creating personalized learning opportunities (emphasis DSC) will gain significant advantages in the competitive market for students.

Some attributes that we will look for in selecting a college:

– A philosophy to play to the strengths of its learners as opposed to correcting their weaknesses.

– The delivery of course and learning materials in formats (and on platforms) that are flexible enough to match a range of learning styles.

– An emphasis on supporting learners in finding their passions and in transitioning to creators and leaders.

Some things that we will not consider in choosing where our tuition dollars go:

– The U.S. News & World Report rankings. Rankings are for the median student, not my student. Your school needs to be the best for my student, not for all students.

– The dorms, the grounds, the gym, etc. etc. We expect these amenities. They are not differentiators.

– The number of books in the library. Books are not scarce, and my kid can only read one at a time.

Should e-learning change university management? [UK] — from Transforming Management

With the university sector bracing itself for planned cuts after the next General Election, the need to respond flexibly to changes in its market and operate more efficiently is paramount. Drew Whitworth considers whether e-learning is the future.

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From DSC:
The following article got me to thinking of the future again…

Thousands to lose jobs as universities prepare to cope with cuts — from guardian.co.uk (original posting from Stephen Downes)
Post-graduates to replace professors | Staff poised to strike over proposals of cuts

I post this here because I believe that we are at the embryonic stages of some massive changes that will take place within the world of higher education. The timeframe for these changes, as always, is a bit uncertain. However, I would expect to see some of the following changes to occur (or continue to occur) yet this year:

  • Cost cutting
  • The cutting of programs
  • Laying off of staff and faculty
  • Not filling open positions
  • More outsourcing
  • The move towards using more cloud-based-computing models
  • The movement of students to lower-cost alternatives
  • Greater utilization of informal learning
  • The rise of online-exchange oriented offerings (i.e. the matching up of those who teach a subject and those who want to learn that subject)
  • The threat to traditional ways of doing things and to traditional organizations — including accreditation agencies — will cause people within those agencies to be open to thinking differently (though this one will take longer to materialize)
  • The continued growth of online learning — albeit at a greatly-reduced price
  • …and more.

This isn’t just about a recession. The Internet is changing the game on yet another industry — this time, it’s affecting those of us in the world of higher education. When the recession’s over, we won’t be going back to the way higher education was set up previous to the year 2010.

What did those us of in higher education learn from what happened to the music industry? What did we learn from what happened to the video distribution/entertainment business? To the journalism industry? To the brokerage business? To the travel and hospitality industries? To the bookstores of the world?

Along these lines…back at the end of 2008, I posted a vision entitled, The Forthcoming Walmart of Education. So, where are we on that vision? Well…so far we have:

  • Straighterline.com
  • A significant open courseware movement, including MIT Open Courseware, the Open Courseware Consortium, Connexions, Open Content Alliance, OpenLearn, Intute, Globe, Open Yale Courses, Open Education, The Internet Archive and many others
  • University of the People
  • YouTube.edu
  • iTunes U
  • Academic Earth
  • and more…

I realize that several of these items were in place before or during 2008…however, at that time, there was no dominant, inexpensive alternative. And there still isn’t one that has jumped into the lead (the University of Phoenix with their 150,000+ students doesn’t qualify, as their pricing is not yet nearly aggressive enough as what I’m predicting will occur).

Though we aren’t there yet, there has been significant change that has already taken place. So…if I were an administrator right now, I’d be asking myself the following key questions:

  • Can we reduce tuition and fees by at least 50%? If not, how can some of our offerings be delivered at half the price (or more)?
  • How are we going to differentiate ourselves?
  • How are we going to deliver value?
  • How are we going to keep from becoming a commodity?
  • Are we using teams to create and deliver our courses? If not, why not? What’s our plans for staying competitive if we don’t use teams?

Most likely, further massive changes are forthcoming.  So fasten your seatbelts and try to stay marketable!



The online higher education market in the USA — from Tony Bates

“The main message appears to be that for-profit institutions offering 100% online programs such as University pf Phoenix Online and Kaplan are much better placed to expand over the future than public and private universities, who, partly because of faculty resistance and partly because of a wish to exploit the benefits of a physical campus, have neither the desire nor the capacity to expand rapidly into fully online learning. However the demand for online learning is there and is likely to grow, while at the same time campus-based enrolments from high schools are likely to decline over the next few years, due to demographics. Lastly, online enrolments have benefited from the recession in the USA and therefore could act as a stabilizing factor for student enrolment in both for-profit and public universities.”

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The Future of Higher Education: Beyond the Campus — from iangardnergb.blogspot.com

“Lots and lots at the time being on the future of HE, especially in the UK due to the funding cuts, imminent election, etc. One of the latest reports is a joint one from JISC, SERF, EDUCAUSE and CAUDIT, showing many issues are not just affecting the UK.

Abstract:
Higher education’s purpose is to equip students for success in life—in the workplace, in communities, and in their personal lives. While this purpose may have remained constant for centuries, the world around colleges and universities is undergoing significant change. Higher education is under pressure to meet greater expectations, whether for student numbers, educational preparation, workforce needs, or economic development. Meanwhile, the resources available are likely to decline. New models, an intense focus on the student experience, and a drive for innovation and entrepreneurism will ensure that higher education continues to meet society’s needs. Information technology supports virtually every aspect of higher education, including finances, learning, research, security, and sustainability, and IT professionals need to understand the range of problems their institutions face so they apply IT where it brings greatest value. Creating this future will require collaboration across organizational and national boundaries, bringing together the collective intelligence of people from backgrounds including education, corporations, and government.

From DSC:
Many quotes jumped off of the pages of the report, but here’s one of them:

Higher education represents a complex, adaptive system that is influenced by larger societal trends and information technology. If higher education is adaptive, what will its future be?

New Federal Budget Plan Favors Higher Education — — from education-portal.com

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The Power of Online Exchanges

From DSC: Here are a couple of items to highlight the continued power of the Internet to create exchanges & new business models within the worlds of education — both for K12 as well as for higher ed:

http://powerspeak.com/

From DSC:
The above reminds me of a graphic I did last July:

Some potential/different models of pricing -- Daniel Christian --  July 2009

Some potential/different models of pricing -- Daniel Christian -- July 2009

From Ray Schroeder:

A paradigm shift is ahead for higher education – Lori Sturdevant, Star-Tribune
Governor Tim Pawlenty at a Jan. 15 news conference said “You’re going to have the equivalent of iTunes in higher education, where instead of buying a song for 99 cents, you’re going to be able to click on Econ 101 for probably $199 or $399,” the governor predicted. “Unleashing technology … will massively decentralize the delivery of higher education in our country. The idea that we’re going to be here 20 years from now talking about how many more buildings can we put up is going to come into conflict with this new frontier.” Bona fide education forecasters say that Pawlenty isn’t all wrong about an explosion of online learning — though they’re not as sanguine as he is about its cost-saving potential or effectiveness.

A Better Way to Manage Knowledge

We give a lot of talks and presentations about the ways and places companies and their employees learn the fastest. We call these learning environments creation spaces — places where individuals and teams interact and collaborate within a broader learning ecology so that performance accelerates. During these discussions, it’s inevitable that somebody raises their hand. “Wait a minute,” they say, “isn’t this just knowledge management all over again?”

The New Reality: Constant Disruption

We now face something entirely different. Today’s core technologies–computing, storage, and bandwidth–are not stabilizing. They continue to evolve at an exponential rate. And because the underlying technologies don’t stabilize, the social and business practices that coalesce into our new digital infrastructure aren’t stabilizing either. Businesses and, more broadly, social, educational, and economic institutions, are left racing to catch up with the steadily improving performance of the foundational technologies. For example, almost forty years after the invention of the microprocessor, we are only now beginning to reconfigure the digital technology infrastructure for delivery of yet another dramatic leap in computing power under the rubric of utility or cloud computing. This leap will soon be followed by another, then another.

From DSC:As an educational technologist, I can instantly relate to the blazingly-fast speed they are referring to. The questions are:

  • How do we set up the best learning ecosystems given such rapid pace of technological change?
  • How long will those elements last (and/or what principles/tips/tricks can we employ to have things around long enough for a solid ROI)?
  • How do we best equip our students?

For one thing, we must all learn to be very, very flexible…and adaptive. Change truly is not an option if you want to be marketable and relevant. And, you MUST BE PLUGGED INto a network or networks.

Management and the Liberal Arts — Peter Drucker

From Peter F. Drucker’s “The Daily Drucker”

Management and the Liberal Arts

Management is a liberal art.

Management is what tradition used to call a liberal art—”liberal” because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; “art” because it deals with practice and applica­tion. Managers draw upon all of the knowledges and insights of the hu­manities and social sciences—on psychology and philosophy, on economics and history, on the physical sciences and ethics. But they have to focus this knowledge on effectiveness and results—on healing a sick pa­tient, teaching a student, building a bridge, designing and selling a “user-friendly” software program.

ACTION POINT: What is your plan to develop yourself in the humanities and social sciences? Develop such a plan today.

The New Realities

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Student loan demand at record high — from reuters.com
NEW YORK (Reuters) – As lenders continue to curtail access to mortgages, credit cards and other types of loans, one area of the credit market is rapidly expanding: student loans.

“You have a whole generation of consumers who have never had this debt load, so they’re walking into this tough unemployment situation with higher degrees of debt,” Adams said. “Young adults probably face higher taxes ahead, and a national system overloaded with debt.”

The growth in student loans comes as other types of credit are drying up. A higher savings rate means less demand for credit, while supply is down as lenders increasingly target only the lowest-risk borrowers with strong credit scores.

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