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Online university to make a college degree more affordable and accessible for Texans

AUSTIN – Gov. Rick Perry, with the support of Higher Education Chairs Sen. Judith Zaffirini and Rep. Dan Branch, today announced the creation of WGU Texas, a subsidiary of Western Governors University (WGU), which is an accredited, nationally-recognized, nonprofit university. WGU Texas will offer an affordable and flexible alternative for Texans seeking a higher education degree. The governor also signed a memorandum of understanding (MOU) to enhance the state’s participation with and support of WGU, which was founded in 1997 by governors of 19 states, including Texas.

“Earning a college degree is one of the most effective ways for individuals to improve the quality of life for themselves and their families,” Gov. Perry said. “By offering online, competency-based courses in key workforce areas, WGU Texas provides another flexible, affordable way for Texans to fulfill their potential and contribute their talents for years and decades to come, without any need for state funding. Our strengthened collaboration with WGU plays an important role in the effort to ensure Texas has an equipped workforce to meet the needs of job creators.”

WGU is an online university that primarily serves working adults and offers bachelor’s and master’s degrees in key workforce areas of business, information technology, education and health professions, including nursing. More than 75 percent of students are low income, minority, first generation to attend college or rural students. WGU does not receive state funding, but is self-sustaining on tuition of about $5,780 per 12-month year. WGU was started through a memorandum of understanding and provision of $100,000 in start-up funding from each of the 19 founding states.

“Working Texans who cannot pursue their higher education goals on college campuses certainly should reap the benefits of WGU Texas’ online, competency-based model,” Sen. Judith Zaffirini said. “They also should benefit from the program’s flexibility, which will allow them to meet family and work responsibilities while continuing their studies. Although WGU Texas does not receive state funding and is self-sustaining through tuition, it will help address our state’s key workforce needs while offering affordable career and continuing education opportunities to Texans over 30.”

WGU Texas is being created through Executive Order RP 75, which calls on state agencies to work cooperatively with WGU toward the creation and establishment of WGU Texas. It also directs agencies including the Texas Higher Education Coordinating Board (THECB), Texas Education Agency and Texas Workforce Commission to create appropriate data sharing processes as may be required by state or federal guidelines for higher education providers.

“Texas needs legions of new, sharp, credentialed minds to succeed in a knowledge-based economy,” Rep. Dan Branch said. “The creation of WGU Texas will provide another low cost, flexible and tested option for Texans seeking to compete in a global marketplace.”

This MOU is an addendum to the one executed by the state and WGU in 1997, and further enhances Texas’ participation and support of WGU Texas, particularly through the creation of an advisory board whose members will be appointed in consultation with the governor.

“By establishing WGU Texas, Gov. Perry and the State of Texas are making quality higher education more accessible for working adults throughout the Lone Star State,” said Dr. Robert W. Mendenhall, President of WGU. “We look forward to this partnership with the state, which will help thousands of Texans earn the college degrees they want and need, on a schedule they can manage, at a cost they can afford.”

WGU degrees are competency-based, meaning students advance by demonstrating their knowledge and abilities, rather than accumulating credit hours. This model better serves adult learners who enroll with specific skill sets, allowing them to graduate faster. Additionally, this model particularly benefits veterans, who are able to apply the skills they learned in the military toward their degrees, which helps implement SB 1736 that created the College Credit for Heroes Program and was signed by Gov. Perry. More than 25,000 students from all 50 states, including 1,600 Texans, are enrolled at WGU, which has grown more than 30 percent annually.

“WGU Texas will significantly expand access to affordable, high quality education and training,” said THECB Commissioner Raymund Paredes. “This initiative is yet another innovation that is making Texas a national role model for reinventing higher education.” Read More

By Darrell Preston andDavid Mildenberg

Under Rick Perry‘s leadership, Texas has registered the largest growth in jobs and population among the 50 states while amassing a deficit estimated at between $15 billion and $27 billion for the next two years.

The population has surged by about 3.9 million since 2000, giving the state four new seats in Congress, the biggest gain for any state, Census Bureau figures show.

Payroll jobs, meanwhile, have grown by more than 1 million while total U.S. employment was little changed, said Richard Froeschle, deputy director of Labor Market and Career Information at the Texas Workforce Commission.

“A lot of the job growth in Texas has occurred in lower-wage industries, which is problematic but also no different than in other states,” Froeschle said.

“People and companies are coming to Texas because of good public policy that includes low taxes,” said Merrill Matthews, a resident scholar at the Institute for Policy Innovation, a conservative research center that advocates for lower taxes and smaller government.

While Perry appears to be testing the presidential waters by traveling to U.S. cities, including Los Angeles on Thursday, and touting Texas’ business-friendly environment, corporate leaders are criticizing a 2012-2013 state budget that cuts higher-education spending while shortchanging primary and secondary schools by $4 billion in the two years that begin in September.

Executives including Ed Whitacre, a former chairman of Dallas-based AT&T, have said cuts of that magnitude may make Texas less competitive. The state ranks 43rd in graduation rates, according to the Legislative Budget Board in Austin.

“For Texas to cut $4 billion from public-school funding now, when a better-educated Texas can be a bulwark against future recessions, seems unwise, not conservative and, in fact, very risky,” Charles Butt, chairman of H.E. Butt Grocery in San Antonio, wrote in a letter published June 10 in the Houston Chronicle.

Public schools have started firing teachers and increasing class sizes, while colleges and universities will receive $1.2 billion less. Lawmakers didn’t raise taxes or dip into the state’s $9 billion Rainy Day fund. Read More

By Elizabeth Hinojos

Unemployed graduates may be better off staying in Austin after a new report shows the city is No. 1 in professional opportunities for young adults.

Business Journals, which oversees the Austin Business Journal and other publications around the country, gave Austin top marks in a number of criteria that showed a good job market for people in their 20s and 30s. Houston and Dallas-Fort Worth also made the list of top 10 cities, coming in at No. 2 and No. 5, respectively.

Austin offers various employment options for both men and women, along with a moderate cost of living according to the journal. Texas stood out because of strong growth rates and the range of young adults who are college-educated and employed, the report said.

Austin has a lower unemployment rate because it thrives on the “newness” of its economic base, which is less impacted by globalization or outflow of capital investment, said urban studies assistant professor Ipsita Chatterjee in an email. Austin and other cities in Texas fall within the model of a “new economy city,” meaning they are not based on manufacturing, Chatterjee said.

Urban centers heavily dependent on manufacturing and/or finance have been more impacted by the economic crisis,” Chatterjee said. “However, Texas’ economy is fragile at the moment and the desire to promote a friendly and free business climate by depending largely on sales taxes is exposing the weakness of the economy.”

Lecturer Eliot Trettor from the Urban Studies program said even though the University and government have experienced cuts every year for the past few years, other sectors in the Austin economy are growing. Read More

By Anita Miller

Texas and the nation need to break away from the “one size fits all” attitude concerning higher education.

That was among points made by Texas Workforce Commission Chairman Tom Pauken on Thursday after he addressed a Texas Rural Challenge meeting at the San Marcos Conference Center.

“We’ve got to bring it back,” he said of vocational education in public secondary schools. “We’re setting people up for failure if you’re pushing them into a four-year college.”

Citing studies, Pauken said two-thirds of high school diploma holders who graduated in the bottom 40 percent of their class and go immediately into a four-year institution still haven’t graduated nine and a half years later. Read More

By Tom Pauken
Meanwhile, a story in the May 6 edition of The Wall Street Journal reports that manufacturing businesses across the country are struggling to find employees with the math and science skills and training necessary to “operate and repair sophisticated computer-controlled factory equipment.” These jobs pay well – some as high as $80,000 – yet high school students are consistently pressured not to pursue them by an educational system that believes earning a college degree is the only path to success. Read More