Higher Education

Issue

How can Minnesota maximize its investment in higher education to prepare and educate the workforce to meet the needs of Minnesota’s businesses?   

Policy

In 2018, 70 percent of Minnesota jobs will require some education beyond high school. The options for postsecondary education are numerous including industry recognized certificates, two-year degrees, apprenticeship programs, four-year degrees, graduate degrees and professional programs. To help fulfill the projected employment needs in 2018, we need students enrolling in a wide range of programs within these options. The Minnesota Chamber of Commerce supports legislation that ensures students are benefiting from postsecondary experiences by:

• Expanding affordable access
• Requiring transparency

Expanding Affordable Access. 
Over the next decade, Minnesota will experience significant demographic shifts. The state will experience a significant drop in the number of white, middle- and upper-class students which will be offset by an increase in first-generation, minority and lower-income students. Many of these students come from families who cannot access college on their own. We must support students in their academic efforts by providing support for them in gaining the skills necessary to effectively participate in the state’s economy.   

The state’s current pattern of investment does not provide adequate incentives for colleges and universities, nor does it direct public resources to citizens who are least able to invest in higher education. Significantly more public funds should be put directly in the hands of students who are looking for education and training.

State Grant Program
Minnesota should invest 30 percent of the state higher education appropriation in programs that distribute resources directly to students; currently it is 10 percent.  The Minnesota State Grant Program, the state’s need-based aid program, should be utilized to help lower- and middle-income students access and afford a college education or additional training beyond a high school diploma at the higher education institution of their choice. The remaining 70 percent of the appropriation should be invested in the public institutions.  The state should expand the parameters of the Minnesota State Grant program whenever Congress expands Pell grant funding to maximize grants in Minnesota.

Transparency
Regardless of their type, all programs and institutions must be held accountable for their performance and provide transparency to allow students to make educated choices on the institutions and programs that best fit their needs. This information, paired with reliable projected future workforce shortages, should be easily accessible at no charge, and readily understood by the general public. In addition, more must be done to ensure institutions provide transparency of the true cost of attending individual institutions, the effectiveness in student learning, transfer of credit policies, completion rates and accreditation reviews. This will allow for more informed competition and choices for students.

Business Impact

Maintaining a highly skilled and well-educated workforce is essential to a strong Minnesota economy.  Research has stated that due to the increasingly competitive global economy and evolving technologies, Minnesota’s need for a highly-skilled workforce by 2018 is among the highest in the country. Policy-makers need to anticipate the change in demographics by acknowledging that an increasing percentage of the workforce will need a postsecondary education.  In anticipation of this change, it is important to the business community that institutions become more responsive to the needs of the economy by expanding access and being more transparent for consumers.