Minority Serving Institutions America's Underutilized Resource for Strengthening the STEM Workforce (2019) / Chapter Skim
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4 MSI Investment and Returns on Investment
4 MSI Investment and Returns on Investment
Pages 79-116
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John Moder, Senior Vice President/Chief Operating Officer, Hispanic Association of Colleges and Universities "We need the federal government to model the behavior of funding MSIs so that the industry sector will follow." – Carrie Billy, President and CEO, American Indian Higher Education Consortium KEY FINDINGS • Despite having fewer financial resources than non-MSIs, MSIs have proven successful in providing multifaceted returns on investment, which include improving the upward social mobility of their stu dents; expanding the talent pool for the STEM workforce; and sup porting the prosperity of local, regional, and national economies. • Given MSIs' historical inequities in funding and the projections for their continued growth, expanded financial investments in MSIs are 79
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The Minority Serving Institutions (MSIs) described throughout this report have committed leaders, dedicated faculty, enthusiastic students, and proud alumni.
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Beyond other forms of funding provided to the whole of higher education, MSIs receive targeted federal support by way of direct legislative appropriations. Federal funding to Historically Black Colleges and Universities (HBCUs)
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Helps eligible insti tutions to expand their capacity to serve low-income students by "provid ing funds to improve and strengthen the academic quality, institutional management, and fiscal stability of eligible institutions." MSIs that receive funding through Title III, Part A include all MSI types except HBCUs and Hispanic-Serving Institutions (HSIs) .5 • Title III, Part B -- Strengthening Historically Black Colleges and Universi ties Program.
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are not specific to STEM, the Title III and V grant programs can be, and are, utilized by MSIs to strengthen their STEM infrastructure and provide specialized programming for STEM students that facilitate retention and graduation in these disciplines. In 2018, the federal omnibus spending bill provided increased support for these programs.11 The U.S.
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As shown in Figure 4-1, public four-year HBCUs rely more heavily on federal, state, and local appropriations, grants, and contracts as a source of total revenue than do public four-year non-HBCUs (54 versus 38 percent, respectively)
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pims_id=505512) Department of Defense • Research and Education Program for Historically Black Colleges and Uni versities/Minority Serving Institutions (https://www.arl.army.mil/www/pages/8/ FY2018_DoD_HBCUMI_FOA_Research_Education_May252017-FINAL(v2)
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NOTE: Private gifts, grants, and contracts include investment income such as interest on NOTE: Private gifts, grants, and contracts include investment income such as interest on endowments. Percentages were rounded to the nearest whole number (based on on source endowments.
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used North Carolina as a recent case in point: in 2007 the University of North Carolina at Chapel Hill and North Carolina State University (both Predominantly White Institutions, PWIs) received approximately $15,700 in state funding perstudent, as compared to the approximately $7,800 per student state investment in North Carolina A&T and Fayetteville State University (both HBCUs)
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path=/prelim@title25/chapter20&edition=prelim, accessed October 2018.
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. FIGURE 4-3 Federal appropriations per student student authorized versus allocated.
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With the reauthorization of the Higher Education Act's Title V, Part A in 1998, the federal government increased its commitment to support student success at HSIs. However, since then, the demographics of the United States have changed, and correspondingly, so have the demographics of higher education (Hale 2004; Pew Research Center 2014; U.S.
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. Many more could be eligible for Title III funding but are not taking the steps to access it, in particular two-year institutions (CARE 2013)
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SUMMING IT UP: WHY PUBLIC INVESTMENTS IN MSIS MATTER As described in the sections above, MSIs are supported by multiple sources of revenue, including federal, state, and local appropriations; tuition and fees; and, to a lesser extent, endowments and private investments. Given their complex needs, these institutions face substantial resource challenges.
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. And expectedly, MSIs in general spend less per FTE student than non-MSIs, whether for instruction, academic and social supports, or other aspects that contribute to student success (Table 4-3)
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per FTE studenta State and local appropriations $4,989 $5,446 +$457 per FTE student State and local grants and $1,896 $1,107 –$789 contracts Federal appropriations, grants, $4,971 $2,249 –$2,722 and contracts per FTE student (net Pell) b Private gifts and investment $6,586 $863 –$5,723 return TWO-YEAR INSTITUTIONS Difference in Non-MSI (means)
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MSI (means) Spending Total educational and general $28,806 $16,743 –$12,063 expendituresa per FTE student Student services, academic $8,399 $5,750 –$2,649 support, and institutional support per FTE student Research and public service $6,202 $1,638 –$4,564 per FTE student Operations and maintenance $2,024 $1,482 –$542 per FTE student Scholarships and fellowships $959 $1,599 +$640 per FTE student TWO-YEAR INSTITUTIONS Difference in MSI Non-MSI (means)
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Comparison of Endowment Assets between Four-Year MSIs and Non-MSIs In addition to federal and state resources, many institutions maintain endowment funds, defined by the American Council on Education (ACE 2014) as an "aggregation of assets invested by a college or university to support its educational mission in perpetuity." Endowments can provide institutional stability; serve as a source for student financial aid; leverage other sources of revenue; encourage innovation, flexibility, and risk taking; and allow for a longer-term time horizon for improvements to be realized.
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N 416 954 39 38 36 18 68 68 NOTE: See the Annex at the end of this chapter for notes. SOURCE: IPEDS FY 2015 Finance Survey; Analysis by the American Council on Education for this report.
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Furthermore, if the Endowment Challenge Grant program were active, it would require institutions, even the most financially challenged institutions, to provide nonfederal matching funds equal to the amount of the federal funds provided.21 HEA has a few other MSI-focused Title III and V program grants. While these programs can be used to establish or enhance an institution's endowment fund, an institution may not use more than 20 percent of grant monies to do so.
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The committee examined the research on ROI in terms of the pathways toward education and work in STEM fields, upward mobility and earnings potential, and local and regional impact. It should again be noted that the dearth of overall research for all MSI types has necessitated a less-than-comprehensive look at this topic, despite the high level of interest in higher education ROI by a multitude of stakeholders (Gasman 2017)
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as an ROI in terms of student outcomes, with the implication that the higher the graduation rate of an institution, the better its ROI. However, if graduation rates are indeed to be considered a component of ROI, then it is important to more accurately reflect degree and credential completions among MSI students.
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. The University of Puerto Rico Rio Piedras Campus, Florida International University, University of Puerto Rico Mayaguez Campus, and University of Texas Rio Grande Val 25 See https://www.nsf.gov/statistics/2017/nsf17310/static/data/tab5-12.pdf, accessed October 2018.
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However, a significant number of the Hispanic and African American students who go on to STEM doctoral studies begin their postsecondary education at HSIs and HBCUs, according to 2011-2014 data compiled by the National Science Foundation (NSF 2017c)
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in terms of their role in income mobility for low-income Americans. The researchers define mobility, calculated via a "mobility rate," as a product of a given institution's access for low-income students, or "the fraction of its students who come from families in the bottom quintile," and an institution's success rate, or "the fraction of students in the bottom income quintile who reach the top quintile" (emphasis in original, Chetty et al.
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When looking at the extended mobility rate,31 which takes into account students who start in the bottom two income quintiles and end up in the top two income quintiles as adults, MSIs continue to have higher mobility rates than those of non-MSIs. As with four-year MSIs, two-year MSIs also have higher mobility and extended mobility rates than those of non-MSIs.
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Mobility Rate 1.5 4.4 4.1 3.5 NAa Extended Mobility Rate 9.9 21.5 16.4 20.8 NAa N 714 39 44 11 NAa Two-Year Institutions Mobility Rate 1.5 3.2 2.4 1.8 2 Extended Mobility Rate 10.9 17.2 13.4 13.2 13.3 N 604 53 44 40 6 NOTE: See the Annex at the end of this chapter for notes. SOURCE: Adapted from Espinosa et al.
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.34,35 In sum, increased investments to help bolster the success of MSIs holds great promise for advancing the income mobility of millions of citizens of color. The Local and Regional Impact of MSIs Many MSIs have as a stated or implicit part of their mission to strengthen the local and regional communities in which they are located.
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39 UTRGV School of Medicine, see http://www.utrgv.edu/school-of-medicine/our-story/about-us/ index.htm, accessed October 2018.
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. Over the past few decades, billions of federal dollars have been allocated to MSIs to focus on improving STEM degree production; however, few studies can effectively demonstrate which of these funded programs best serve the national goal of increasing the number of students of color with high-quality STEM degrees, or increasing their presence in the STEM workforce.
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codes were placed into Science and Engineering categories based on the fields of study classification found in the NSF's "Science and Engineering Degrees: 1966–2012," appendix B, with additions made to cover CIP codes found in the IPEDS completions data that were not included in the NSF taxonomy. For completions, the racial category "other" is defined as the combination of "nonresident," "race unknown," and "two or more races." Race reporting varies across years in the IPEDS, so information pertaining to Pacific Islanders is not available for all years and would be combined with counts for Asian American students.
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The First Look Report uses provisional IPEDS data and therefore totals may be slightly different than those reported in other federal reports, though these differences will be minor. Table 4-2 a Total revenue is defined as net tuition; state and local appropriations; state and local contracts; federal appropriations, grants, and contracts net of Pell grants; private gifts; grants and contracts; and investment return and revenue from affiliated entities.
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An extended mobility rate is the product of the percentage of students who come from families in the bottom 40 percent (two bottom income quintiles) and end up in the top 40 percent (top two income quintiles)
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2018. "The higher education act and minority serving institutions: Towards a typol ogy of Title III and V funded programs." Education Sciences 8 (1)
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2018. How Asian American and N ative American Pacific Islander Serving Institutions (AANAPISIs)
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2011. "Diverse colleges of origin of African American doctoral recipients, 2001–2005: historically black colleges and universities and beyond." Research in Higher Education 52 (8)
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2018. Public and Private Investments and Divestments in Historically Black Colleges and Universities.
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