The Tennessee Higher Education Commission (THEC) was created by Tennessee state statute in 1967 to support post-secondary education in Tennessee. They provide direction to institutions of higher learning and secondary schools in the state of Tennessee via its master plan for higher education. THEC influences the direction of higher education by providing direction to state law makers.
In March 2011, THEC published a report called Tennessee Higher Education Profiles and Trends (Tennessee Higher Education Commission, 2011). State of Tennessee law requires THEC “to submit a biennial report to the governor and general assembly, commenting upon major developments, trends, new policies, budgets and financial considerations which in the judgment of the commission will be useful to the governor and to the general assembly in planning for the sound and adequate development of the state’s program of public higher education” (T.C.A. §49-7-202 (c) (7), 2011). The purpose of the report was to provide information on major developments to state of Tennessee policymakers on the following topics:
1. State economy and higher education;
2. Student preparation;
3. Student participation;
4. Student retention and completion;
5. Finance;
6. Tuition and financial aid; and
7. Student satisfaction.
Tennessee is ranked 38th in the United States in per capita income with average income in 2009 at $34,245 (Tennessee Higher Education Commission, 2011). In terms of attainment of an associate’s degree, Tennessee ranked 45th with only Mississippi, Kentucky, Louisiana, Arkansas and West Virginia, ranked lower than Tennessee (Tennessee Higher Education Commission, 2011). It appears there is a correlation between degree attainment and per capital income. The nationwide average reflects that about 37% of adults have an associate’s degree or higher and on average earn about $40,000. The THEC report references data from the National Center for Higher Education Management Systems which shows a chart (Figure 1) indicating that the states of Connecticut, Massachusetts, and Colorado have the highest college degree completion. These states average over 45 percent of residents completing a college degree and additionally Massachusetts and Connecticut residents have high income, averaging over $50,000 annually (Tennessee Higher Education Commission, 2011). Colorado also has income higher than Tennessee with an average income about $43,000 annually.
In the report, THEC indicates that it is concerned about its economic viability of the state of Tennessee and links income and attainment of a college degree to the state’s ability to compete economically (Tennessee Higher Education Commission, 2011). Increasing the number of well-paying jobs would assist Tennesseans in increasing its per capita income. One factor in the state’s ability to attract out of state industry is the level of educational attainment of its citizens. Tennessee is gaining ground in this area but more work is needed.
In 2007, 10,000 more workers moved to Tennessee with at least an associate’s degree than those who left the state. The ability to increase the number of residents with a college degree is related to those in the pipeline who have completed high school. However, only 72% of new Tennessee residents had a high school degree (Tennessee Higher Education Commission, 2011). Since 1992, the number of Tennessee high school graduates attending college right after high school has increased from 46.7% to 61.6% (Tennessee Higher Education Commission, 2011). However, despite the increase, Tennessee still ranked 22nd in the United States on high school graduates immediately attending college (Tennessee Higher Education Commission, 2011).
There is some good news. The enrollment of adults in Tennessee has reversed the decline of adults attending college that had been occurring since 1996. Adults seem to enroll in two year public institutions such as community colleges at a greater rate than they enroll in four year public institutions. For example, in 2009, 35,982 adults were enrolled in two year public institutions yet only 23,992 were enrolled in four year public institutions. The largest growth rate for adults attending college was for private institutions, including for profit schools with a growth rate of 286% from 1997 to 2009 (Tennessee Higher Education Commission, 2011). While the growth rate of private institutions is greater than public four year or two year institutions, the overall enrollment at private institutions is less than two year public institutions (25, 371 versus 35, 982).
THEC’s report demonstrates that to improve the long term economic viability of the state of Tennessee, the number of students attending college and the number of students who graduate must increase. A six year graduation rate is used as the standard. In Tennessee 52% of students graduate in six years at four year public institutions and 30% graduate at two year public institutions (Tennessee Higher Education Commission, 2011).
The state of Tennessee has provided fewer state appropriation dollars to its public higher education institutions since 1998. Between 1998 and 2010 there was a steady decline in the amount of state appropriations provided to public higher education institutions for each full time equivalent student. For example in 1998, the state provided $13,060 dollars per full time equivalent student to each public higher education institution. Yet by the 2010 school year, the state was only providing $7,175 per full time equivalent student to each public higher education institution (Tennessee Higher Education Commission, 2011). Viewed in yet another way, in 1998 for each $1,000 in personal income, the state of Tennessee provided $7.75 in state appropriations to public institutions but by 2010 it provided $7.41 (Tennessee Higher Education Commission, 2011). However, this is one area in which the state of Tennessee outpaced the rest of the nation. The United States average state appropriation to public institutions per $1,000 of personal income was $8.06 in 1998 but had reduced to $6.11 in 2010. The state of Tennessee lottery is one factor that accounts for the amount of state appropriation per student.
While the state of Tennessee appropriations is greater than the national average it is still lower than it was 1998. The reduction in state appropriation has created a gap in funding to public institutions in the state of Tennessee. Increasing tuition rates has been one way to close the gap. Tuition rates in Tennessee have risen steadily over the past ten years. In 2010, the tuition rate was 65% higher than it was in 2000 (Tennessee Higher Education Commission, 2011). For example, in 2000 tuition at a public four year institution was $3,767 and in 2010 it was $6,234. There is no indication that the rate of tuition increases will slow. Tuition increases have caused middle income families to spend 21% of their income on college tuition and fees to finance a public four year institution. This is a five percent increase since 2000 (Tennessee Higher Education Commission, 2011).
Tennessee students do receive financial aid at greater levels than other students in the nation. Tennessee ranked third in state grants provided to students behind South Carolina and Georgia (Tennessee Higher Education Commission, 2011). Ten years ago Tennessee ranked 32nd in the nation. This is a remarkable increase. THEC claims that Tennessee’s third place rank is due to the Tennessee Education Lottery Scholarship created in 2003 (Tennessee Higher Education Commission, 2011). Thus, the THEC report suggests the Tennessee lottery should continue as it provides needed money to students to help offset increasing tuition rates.
References
Tennessee Higher Education Commission (2011). Tennessee higher education profiles and trends. Retrieved from http://www.tn.gov/thec/Legislative/Reports/reportsadd2011/ProfilesAndTrends2009.pdf.
Tennessee Code Annotated, T.C.A. §49-7-202 (c) (7) (2011).
