Its an hour. Good morning. We have a really great discussion ahead of us this morning of pathways to prosperity examining our possibilities of innovation, and post secondary education and career connected learning for our precious kids in the future of this nation. We know that the font of all wisdom is a repository in the governors offices. We know that we have the greatest collection of education leaders in the history of the country on a bipartisan basis. I think theres a bipartisan consensus about that this morning. Im looking forward to this discussion. Im going to kick it off with comments. A few things well look forward to discussing today. How do we help families finance Higher Education . How do we make it more accessible to Diverse Communities . How do we expand opportunities for a career connected learning . How do we use data to really use strategies to prioritize our investment . Im looking forward to everyones comments. Just preliminary comment about i know governors have been doing really progressive work trying to make Higher Education more affordable and accessible to our families. We know the crushing debt burden our families have. And we recognize we got talent on a bipartisan basis. Governor jerry brown in california has really championed a new system in that regard. The governor in kentucky has overseen a 100 million bond issue to scale up Work Force Development which is really exciting. Weve got governors across the state, governor brown, my neighbor in oregon and others have made the first couple years free. So congratulations to all the governors who are fighting on this front. And we know theres innovation on this front thats available too. Ill talk about a couple things that have been successful in my state. A program we call the opportunity scholarship which allows students if they make a commitment to a stem career to finance their college education. It has been very helpful for Diverse Communities who previously have had low Graduation Rates. Its raised the Graduation Rates all the way through fouryear programs. Its happened because weve had a private and Public Partnership in helping to finance this. We have gary reubens, a successful business person in our state. This thing has been a spectacular success by having a few dollars from the public and the privates that have raised these communities historically that 50 Graduation Rates just in high school or 60 , up to 90 plus through a fouryear Degree Program in stem degrees, high demand fields. We have a program called college bound. It goes to kids mostly lowincome kids in diverse populations. If theyll agree to keep their nose clean and get a good gpa, they get a fouryear program paid. We have increased Graduation Rates by 25 . Once the kids have a vision for thundershower future to get them through high school. We know innovation works. Im looking forward to other ideas an how to do that. We know we have to look at innovation in our kind of our noncollege environment. On how to give people connection to the jobs of the future. I dont know what your experience is, but in my experience, theres one thing that i say when im talking to any group in the state of washington. Republican, democrat, chamber, urban rules. Theres one thing that gets universal applause. That is what we have to quit telling our kids that if they dont get a fouryear degree theyre a failure in life. Everyone gets that transition need we have in getting our kids educational opportunities. Governors are leading in this way, and in many ways. Ill share a little experience in washington. We had the first Apprenticeship Program of advanced manufacturing where kids are actually in a paid Apprenticeship Program in tacoma, washington. We had the first group of 12. It was the first wed done. There was a good job in california and others. Im not the only one. We had the first rollout of the first 12. And they came to sign up to sign up with a company they were going to have an apprenticeship with. Theyd come up and put their hat on with their company logo and put the shirt on. It was as exciting as draft day in the nba. Lebron james wasnt as exciting as these kids signing up for an Apprenticeship Program. 70 of the kids in switzerland are in paid apprenticeships. We had our first apprentice programs, a First Computer Program coding apprentice program. A lot of these people were in midlife. To go into a coding program and an apprenticeship has been successful. Im looking forward to everybody sharing their ideas as well. We need to do a better job giving diverse pop youlations access to Higher Education. Were doing that. Our dreamers are getting Financial Aid to make sure that our dreamers have access and these are some of the most ambitious, smarted kids in our state. Our kids have maybe been 18 years in our country and they want to become doctors and lawyers. I dont know what d. C. Is going to do and how they treat our dreamers but in our state, we want them to be doctors and lawyers, and im glad were giving them a chance to finance that. We have some challenges in d. C. Ill look forward to joining my governors and helping our members of congress understand our challenges. There are some threats right now in the Higher Education act. There are some proposed cuts to some support systems that i hope were all going to be vocal in talking to our legislators to see to it that we dont go back ward in our Financial Aid system. I want to thank everybody pitching in on this. And i want to turn it over to south dakotas great governor who has inspired us in so many ways. And i just want to tell you youve been one of the most inspirational voices ive heard making sure our kids with disabilities get access as well. And governor, thank you. And thank you for your leadership. Thank you, governor. Thank you all for being here for this presentation, for this great panel. Today we have the pleasure of being joined by kevin mccarey, the Vice President for education policy and knowledge manage at new america where he directs their education policy program. In addition, kevin is the author of a book called the end of college creating the future of learning and the university of everywhere. And i know hes happy to have me mention thats available on amazon. Hes been thinking act this and writing about this, so im interested to hear from kevin. Also joining us is susan mojika, a former Arizona State university student. A participant in the Starbucks College Achievement plan and currently a candidate for masters at george basmason university. Were going to recognize our third panelist and first presenter. Thank you very much, governor. As the governor of arizona, i take great pride in introducing a force of nature from arizona. Michael crow came to Arizona State in 2002 via Colombia University where he was vice provost and in charge of science and technology. He came to our state with a grand vision, to create a new American University. And the proof is really in the pudding. Not only with the fall bright scholars that hes been able to attract, retain and graduate, but with the distinction of being named the nations most Innovative University for the third year running by u. S. News and world report, beating out institutions such as stanford an and mit. He has transformed the university and laid the groundwork to transform the state. The merits Honors College at Arizona State university was called the nations Gold Standard in Honors Colleges. The equivalent of an Ivy League Education at an incredible value to our arizona students. It gives me great pride to introduce and if we could give a warm nga welcome to president michael crow. Thank you. Groans, its an privilege to be here. I come in hard off the stagecoach from arizona, 48th state added to the lower 48, the frontier. The frontier where new models that can help us to shape our future are possible. We have been able to build a new university model. And i mean literally a new university model. We call it the new American University. It could have been called the old idea of what an American University was supposed to be. One that was connected with everyone, working with everyone, advancing everyone, efficient and effective. All of those things. It could be what the future would need. A university with a connection to everyone. Connecting autoall levels of education and everyone that needs something from the university. You as governors are the arbiters of the future. You have the unique responsibility for advancing and designing those elements of our democracy that are critically again dependent on education and for overseeing the processes in each of the states. The question to each of you is can we build a new kind of college, community college, university, local fouryear public college, Massive Public research university. Can we build a system within Higher Education, public Higher Education, in particular, that can be actually adaptive . Actually respond to the changes that are around us rather than something that youve all been told, well, the fact is theyre running that place. We cant get anything done at that place. Heres what were facing. Were facing and youre facing as governors, i think, and i use this word intently, a fundamental, economic, and social change moment like nothing that anyone alive today or our parents or our grandparents or our great grandparents have ever experienced. Thats the rate of technological advance will accelerate. And through that acceleration all things that we think about, the way an economy works. The way work is done. The definition of work. The definition of education. The definition of a career. The definition of a job. The definition of labor. The definition of all things will be altered by the fact that we all carry around Super Computers in our pocket. Et cetera, et cetera. You know all of that. You match that with the growing diversity of the american population, with the unbelievable rise of Global Economic powers which is fantastic to the longterm benefit of the population of humanity on this planet. You match all of that together, and then you say what does it take for us to be successful in the future . Im not a politician, but im going to say if its not 4 or higher Economic Growth on a threeyear running average in all or most of the states anding a gaiting to a national level, we have problems relative to the further advancement of our populati population. We have problems with continuing the American Dream if we cant stain that level of economic advance. If we cant graduate by the age of 18, 90 to 95 of High School Students were assigning them to a life of suffering. Were assigning them to a life of suffering. As governors, you know all of this. If we cant get at least 60 in fact foreseeable future to some kind of post secondarier iy certifica certificate, these are old terms, fixed boxes of the past. With f we cant get 60 to a post secondarier iy certificate wont have a work force that can change with advancements. If we cant that, our ability to accelerate social mobility, our ability for our democracy to work will be at some point challenged. Unfortunately each of you and me in the 16 years ive been at Arizona State inherited a design for Public Education thats rigid, fixed, largely incapable of understanding how to modernize. I dont mean individual initiatives. I mean in aggregate. Since 1980 the United States government assisted with pell grants. More than half of them have no degree. Half a trillion dollars of expenditures. What do you call a person that goes to college in the United States today and doesnt finish . 33 million or so of those individuals are living in our states. Whats the word . What do you call someone that didnt finish college . Dropout. Its a derogatory term. We have a system of Higher Education which uses derogatory terms to label people that didnt finish their institution which couldnt adjust to helping them to finish. This fixed model of Higher Education is so intense. Ill give you two examples. One of your former governors is now the president of Purdue University, mitch daniels. He has been innovative and driving forward a number of initiatives. He was so bold as to try to acquire an Online Platform so he could scale Purdue Universitys Land Grant Mission to something other than just the few kids that could attend the university in a physical form. Could he take the land grant model and expand it so everyone had an opportunity to engage purdue, which is a world class fantastic, unbelievable institution . Could he do that . He took that risk. Whats going on now . His faculty have assembled voting against him. Theyre going to chicago and meeting with the Higher Learning commission and urging this thing he acquired from the market that hes extending to extend the power of Purdue University not be accredited. That is, and ill say it, thats insanity to those of you on the purdue faculty. Im just telling you. [ applause ] we did a program a few years ago. Youll hear from one of our graduates with the starbucks graduation. Starbucks has more than 130,000 or 140,000 employees in the United States. Half of them went to college and never finished. Couldnt a great conscious capitalist Corporation Company like starbucks working with their partners work with a civic minded university to find a program to get a way to find people who had debt and a problem and couldnt solve the problem, would we figure out a way to graduate from college from a Great University with no debt. Weve graduated 1,000 people. We plan an graduating 25,000 for which we had to do brand control to maintain damage control on our own brand because only a low life scum university would be so foolish as to divert the energy of its elite faculty to educating College Dropouts working at starbucks. Thats how bad it has gotten. So out on the frontier, heres what we decided to do. I was 12 years at Colombia University as executive vice provost there. Got tenure there. That was like proving that one could be, you know, operate at that kind of level. But i learned a lot of lessons. One of them was that innovation was central to everything and innovation was largely academic culture. Except in a Science Laboratory or engineer laboratory where it prospers around the discoveries of technologies. On the frontier heres what we decided to do. We built a new design at all levels. First was purpose. The university does not exist for the faculty. This is serious business. Our university exists first for the students. Second for the community. And the community we serve. And lastly the faculty are the means rather than the end of the institution. So to do that, we redefined our purpose. We restructured a charter built around with a university is supposed to be. Its based on inclusion and the success of our students. Its based on who we include and how our students succeed. Well measure the research by what did we do to benefit the public in a measurable way. And lastly, the university actually will take responsibility for the outcomes of our community. Economic, social, education, health and well being. If k12 is underperforming, were partly to blame and better look at it as something were partly responsible for. We change the design of the university. Most of the universities and colleges and Community Colleges you all oversee or fund or interact with in one way, theyre run like public agencies. Thats an archaic model. It will never deliver what you want. They will not be able to be efficient or effective or largely increase their efficacy with some exceptions because the design is wrong. We went away from the agency model to the enterprise model. Were responsible for finding resources beyond those resources provided by the government. Some universities do it more than others, but a design shift. We set out to design a different kind of university. We changed our clock speed. This watch that my wife gave me many years ago measures the rotation of the earth and the speed of the earths rotation. Not a semester. Each second is not a semester. In a normal academic watch, five seconds is five semesters. Thats two and a half years. That doesnt work. The clock speed of a Public University must be at the speed of the economy, the speed of change. The speed of what it takes to be competitive. Technology. We embraced Technology Like no tomorrow. Heres what the law says about organizations that do not embrace technology. All organizations, this is a Nobel Prize Winning economist. If you dont embrace economy, your price will rise infinitely. Health care suffers from this. Academia. We embrace technology in every day. I have a punch line im working forward. We have 175 Technology Partners on campus allowing us to project awe of campus. Scale. All campuses sit in an isolated interactive arena where they believe they have to solve everything themselves. Their scale is what they think of as the learners who come to their campus. If you dont finish, youre a dropout and a castoff. Youre a castaway. We decided to change the scale of the focus of the institution to social scale. Could we help ten corporations or Big Companies like starbucks to graduate another 100,000 people over a certain number of years . Could we scale or find a way to work with the k12 community . We did. We have a platform. Could we build Charter Schools to prove certain things and integrate them . The answer is yes. Would we combine excellence and access into a Single Institution . Academic excellence means you allow thundershow allow your faculty members who think well of themselves. If you call it a college or university, theyll believe themselves to be in a social hierarchy. If theyre second class, soon theyll be unionized and organizing against you. Thats the way it works. Resources. We acquire resources not from the lord and master of the State Government. The State Government invests what they can. Our other resources are acquired through partnerships and engagement in the market and engagement in the ideas and activities. Access. At the university itself its not accessible to the broadest Cross Section of society and it calls itself a Public University, then it has not been successful. Our student body is representative of the entire socioeconomic diversity of our state and our region. It took 12 years of changes to be able to get there and weve been there for four years at that level of diversity. Unbelievable changes. And then finally quality. If its not quality, dont do it. Close it. Shut it. Eliminate it. Change it. Change the leaders. Do whatever is necessary if its not quality. Heres the results. Two examples. In all states including arizona were interesting in having more stem graduates. Just picking that one area, we decided to eliminate our engineering departments in 2008, change the basic logic of our engineering schools such that we could change who would graduate and attend the school . Would we get more women, more minorities more people . We had an older model, and combined them. 8,000 students in engineering in 2008 with a 68 freshman retention rate. 17,000 on campus. 4,000 online and 90 freshman retention rate. The Online Students have the first fully accredited Electrical Engineering degree. Unbelievable degree format so that the guy sitting on a ship or the woman sitting on a ship off the coast of korea or afghanistan while theyre wo working serving our country can get an Electrical Engineering degree. Were actually trying to produce fantastic opportunities at the university. University outcomes, and this is the crux of the story, since 2003, 2002 was the first year we began implementing the new model. We produced three times for graduates. 8,000 to 24,000 graduates from our institution. Five times the level of research. More research than is going on outside of medicine at stanford, ucla, usc, harvard, princeton, a range of schools. A huge met mor fis of our faculty. We have ten times the number offeof learners online. We have a 95 improvement in our fouryear graduation rate. 95 improvement using technologi technologies. We have 575 reduk in the cost of the state to produce a single degree. Our faculty is the same size. That is a metaphoric transformation. Out on the frontier where we are, we dont have a fixed idea of what were supposed to be. Most universities have become fixed ideas. Fixed. That doesnt work anymore. It worked very well. We have unbelievable achievements. It doesnt mean everyone has to change. Our 2025 goals are even more significant. 32,000 graduates. Matching the diversity of our society. Men, women, ethnicity, socioeconomic class. No predictability based on Family Income for graduation. And whats the key drive . New design. New design. New design. Anyone of you as governors attempting to enhance the productivity of your universities by managing the present design, you will not be successful. With some exceptions, you will not be successful. A new model and way of looking at things, particularly to operate at scale. You know definitively that for a tenyearold child today, born in 2008, for that child 60 of the jobs that that child will have access to when they enter the work force and i dont mean this lightly, they dont exist. All we know is that for them to be able to do those jobs successfully to advance our country economically and socially and culturally, theyll have to be master learners of some type. You cant do that unless you can scale in a way weve never been able to scale before. So thank you for the invitation, and a little story from the stagecoach from arizona. Thank you. We now are happy soft susana muj mujika, a First Generation College graduate. Thank you for having me. My fiveyearold daughter was really excited that i would get to speak with the state bosses. My parents are from mexico. They emigrated to the United States to give us a better opportunity. I was born in california and growing up, it wasnt a question if i would be going to college. That was my main goal. The only issue was that once it came time to go to college, there was no money. My parents didnt have the resources to save for college, so as determined as i was, i said ill take loans out. Its okay. So i flew from california to new york, went to skoous for a year. After the first year i knew there was no way i could graduate from there in four years and have that large of a loan over my head. How would i live . How would i survive . So i got scared and i became a dropout. It definitely had a negative connotation, one that kind of stuck with me. At that time i fell in love and got married to my husband, edgar of 17 years now. Hes in the coast guard and we started moving around. I didnt know how to bring my education back in with so many deployments. Would i be studying and we would have to deploy . Would the credits transfer . Would i then waste even more money . After a few years i had three beautiful children, and at that point they became my priority. From then on i said okay, i will save for college for your college. You wont have these same concerns and worries that i had when it was time for me to go. So they became the priority. I then started working at starbucks. It was just meant to be a very casual part time job. The College Achievement program was then announced. I signed up that very same day. I knew that that was i get very emotional about it. I knew that this was my opportunity to go back to school. Excuse me. [ applause ] so i started attending the very first session that was offered. Fast forward to may of 2017. I flew to arizona, and walked across that stage and got my diploma. [ applause ] it can be said that its been my determination, my hard work, that has gotten me to the point where im at. But it wasnt just my doing. It was starbucks and Arizona State that gave me this lucky break, that created this opportunity for me to thrive. That believed in me and looked at it as a social project and not an investment. Through this i have gained so much confidence. I am currently enrolled at george mason working toward a masters in public health. I should be graduating next spring, and i was promoted to assistant store manager, so i should be running my own starbucks here in a few months. Without this program, i wouldnt be here. So im incredibly grateful for the partnership that dr. Kril and dr. Schultz came up with. That investment in us resonates at the store level. I have a few partners. We refer to ourselves as partners at starbucks. I have a few partners at my store that are participating in the program, and its just created such a different environment in our stores, and in the confidence in our fellow partners. Thank you so much for letting me share my story y with you. [ applause ] thank you. It is our profound hope that when youre done with your degree that youll apply for a job with your great new governor in virginia. I think were going to give him your resume. We now have the Vice President of education, policy, and Knowledge Management at new america. Thank you, kevin. Thank you, governor. Thank you so much to all of you for letting me come to talk today. Ill be brief so we can get to the discussion. Im going to talk about the d. C. Perspective, the federal Higher Education act. This is the big federal education that governors everything from pell grants to Student Loans to Sexual Harassment policy and everything inbetween. Its the good time to be talking about the Higher Education act. Congress basically only does this about once every ten years. Its been ten years since the last time. The last time was ten years before that. A lot is at stake from a financial standpoint and regulatory standpoint. Im going to talk about a couple of things. One is information in data and the other is new models to help students get better jobs. As we all know, the states are the foundation of the american Higher Education system. You establish the universities, pay for them. Then the federal government comes in after youre done, provides pell grants and loans so low income students can go to college, particularly at the undergraduate level. A lot of Research Funding comes from the federal level and a lot of the loan money is federal loan money. Both the states and federal government have a common interest. Thats information. What are we getting as taxpayers and governments for all that money . Are students graduating . Are they going to graduate school . What kind of jobs are they getting . Can they pay their loans back . This is actually surprisingly hard information to come by sometimes. And the reason is we have a National Market for Higher Education and a National Market for labor, so while a lot of states are doing really good work in improving the quality of their data systems, often times youre limited to what happens inside your state. So if youre in a big multistate metropolitan area and you have a lot of people getting jobs in other states, if theyre transferring and graduating somewhere educationalse, its h states to know that. Theres an opportunity for the federal government to fill in the gaps and provide you with more information about your institution of Higher Education and just in general how your work force and education and labor systems are working. If youre competing to bring with one another on a friendly basis, im sure, for a Big Economic Development opportunity, somebody wants to locate in your business, you can provide them with the best possible information about both the quality of your institutions and whats happening to all of your college graduates. Theres some legislation actually out there right now called the College Transparency act. It would allow the federal government to fill in these gaps and the information you have. Its bipartisan. Its bicameral. All of the major associations of public colleges and universities that work for you and you work for them as well as the chamber of commerce and the business round table. This is just one of the things that the federal government was well. They dont do everything well. I started my career working for an indiana governor. I havent forgotten. Ive been in d. C. For a while, but i havent forgotten the state perspective. One of the limited roles the federal government can do a good job with is provide information that goes across states for the whole country. Data i think is going to be a key opportunity in the Higher Education act. The second thing is to really get better about jobs. The governor talked about apprenticeships and Washington State is a leader in that area. Apprenticeships are an old idea where theres an opportunity to translate them now to the new labor market of the future. Its absolutely correct. We cant just have a system that depends on people getting fouryear degrees. Most people dont get fouryear degrees. We need a system that works, that provides status and pathways to jobs beyond the very upper level professional classes. But we need to do it in a way that doesnt segregate and bifurcate our population into two areas. If you look at switzerland which has been very successful in providing more apprenticeship opportunities, apprenticeship there is not separate from the Higher Education system. Its part of the Higher Education system. So at the same time that we want to create more opportunities for apprenticeships in new fields, fields like health care, fields like i. T. , outside of the traditional building trades, we dont want to create pathways that have no way to get back into the Higher Education system. So when idea weve been talking act at new america, this is where the federal government can play a role by playing standardization. A student apprentice. So when where you can register as a student apprentice in the same way you register as a student or apprentice. So we can provide resources. So we can connect information about the apprentices with local businesses so businesses know what kind of Training Programs are going on and can connect into be a partner in creating policy around them. Where we can provide resources, prance, to help subsidize the tuition that apprentices have, and also subsidize some of the costs of providing the training. Were the only country with an Apprenticeship Program where businesses pay the whole cost of the education as theyre kind of going along. So this is a field i think modern apprenticeship is an idea whose time has come. Businesses need people with these skills. People need these skills to get connected to businesses. And this is a role where a limited federal role in partnership with states can really make a big difference. And finally, ill just close by offering, i guess a prod observation about some of the conversations i think youll be hearing as we move ahead with the Higher Education act. Everyone has a different perspective on these things. I think states and institutions have a shared need and a shared agenda when it comes to making sure our federal loan programs and Grant Programs are there for our colleges and our students when we need them. When you get into some of these issues around data and transparency, thats where sometimes the agendas can dweo n can diverge. Someone might say its entro intrusive. Using federalism to make an argument against information. Really, its often an argument against transparency. Its an argument against accountability. Great universities like Arizona State are 100 on board with more information because they know when youre transparent about how youre doing, outcomes like the great speech we heard just now, innovation, new people and ideas, places like Arizona State look great. But not all colleges are like Arizona State. Not all universities are as good as Arizona State. Some of them we need to provide consumers with more information so theyll make good choices and we need to provide all of you with more information so you can focus on quality, have the right leaders, move people in the right directions and governor the way that you need to governor your institutions. So we have a great opportunity with the Higher Education act and to really move the american Higher Education system ahead so we have both the innovation, the quality, and the access that all of students and families need. Thanks again for the opportunity to speak. I look forward to the conversation. So we have a portion where we can ask questions of this great panel. And it is a great panel. And i appreciate it. We have just witnessed the first bipartisan standing ovation. Thats quite an achievement. President crow, your comments were so inspirational. I almost feel bad about the husky game against your Basketball Team a couple weeks ago. How did that Football Game go . I dont know how that went. Heres a question. If we if i go back and talk to my president s about your presentation, which is incredibly exciting, and talk about the need for innovation and talk about some of the Innovative Systems youve used, and they respond to those ideas, what would they say that might create a resistance to some of those ideas and how would you respond to those and what could governors do most effectively to help College Leadership along the path youve chose snn sn. Whats interesting is typically what im familiar with the uwn, Washington State president s in the state of washington. They would say interesting experiment. Going in the right direction. Different model than we have, the stuff. But typically what we hear is well, they dont have unions in arizona so they can get things done there. Or well hear, and we do have unions in arizona but not Union Employees at asu. Theyll Say Solutions have to come from the faculty. The way to change that up is to set expectations and goals for the universities that are because we live in such a privileged position. We have you as governors created public universities and colleges that live in privilege. We need to be given an assignment, and the assignment is were interested in you educating the kids that come to the university and the college at the highest possible level, graduating the kids that come to the Community Colleges, advancing to a level of metrics, thats off the charts. Meaning we need goals that are really difficult to achieve. We also need as i said in the earlier comments, to be freed from bureaucratic control