2016 UNIVERSITY EVALUATION: Portland State University - Oregon
2016 UNIVERSITY EVALUATION:Portland State University1
2016 UNIVERSITY EVALUATION: PORTLAND STATE UNIVERSITYTABLE OF CONTENTSINTRODUCTION3Legislative MandateEvaluation ProcessStatewide ContextOVERALL EVALUATION6STUDENT SUCCESS AND ACCESS11AFFORDABILITY16ACADEMIC QUALIY AND RESEARCH17COLLABORATION19SHARED ADMINSTRATIVE SERVICES23FINANCIAL METRICS24BOARD OF TRUSTEES26CONCLUSION282
INTRODUCTIONThis report is guided by Oregon Revised Statute 352.061, which requires that the Higher EducationCoordinating Commission (HECC) conduct an annual evaluation of the public universities in the state. Thepurpose of this report is to evaluate Portland State University’s (PSU) contributions to State of Oregon (State)objectives for higher education as articulated in statute and in the HECC’s Strategic C/Reports-and-Presentations/HECCStrategicPlan 2016.pdf). The Report relies on a combination of accreditation reports, self-assessmentsconducted by the university on criteria jointly developed with the HECC, and state and federal data. This is thesecond annual report, and as such, it builds on the descriptive benchmarks identified in the 2015 Report. As abenchmark document, it is a formative in that it signals areas of key interest to the HECC that support theobjectives of the State of Oregon: student success as measured by degree completion; access and affordabilityas measured by equity across socioeconomic, racial/ethnic and regional (urban/rural) groups; academic qualityand research; financial sustainability; and continued collaboration across universities in support of the State’smission for higher education. Additionally, it describes how the Portland State University’s Board of Trusteeshas operated since its formation in 2013-2014. The form and content of subsequent annual evaluations willcontinue to be guided by feedback from legislators, the public, and the universities about how to improve theusefulness of this process and product.LEGISLATIVE MANDATE (SB 270)Passed by the Oregon legislature in 2013, Senate Bill 270 (SB 270) (2013) established individual governingboards at the University of Oregon (UO) and Portland State University. It also established a process for theother five Oregon public universities to establish individual governing boards, which they subsequently did. Inaddition, the bill required the Higher Education Coordinating Commission to conduct annual evaluations ofthe universities. The stipulations required by the bill are codified in Oregon Revised Statute (ORS 352.061).ORS 352.061(2) stipulates that the HECC’s evaluations of universities must include:a) A report on the university’s achievement of outcomes, measures of progress, goals and targets; andb) An assessment of the university’s progress toward achieving the mission of all education beyond highschool as described in ORS 350.014 (the 40-40-20 goal).Finally, ORS 352.061(2) (c) also requires that the HECC assess university governing boards against thefindings set forth in ORS 352.025, including that governing boards:a)b)c)d)Provide transparency, public accountability and support for the university.Are close to and closely focused on the individual university.Do not negatively impact public universities that do not have governing boards.Lead to greater access and affordability for Oregon residents and do not disadvantage Oregonstudents relative to out-of-state students.e) Act in the best interests of both the university and the State of Oregon as a whole.f) Promote the academic success of students in support of the mission of all education beyond highschool as described in ORS 350.014 (the 40-40-20 goal).3
For context, ORS 352.025 notes four additional Legislative findings:a) Even with universities with governing boards, there are economy-of-scale benefits to having acoordinated university system.b) Even with universities with governing boards, shared services may continue to be shared amonguniversities.c) Legal title to all real property, whether acquired before or after the creation of a governing board,through state funding, revenue bonds or philanthropy, shall be taken and held in the name of the Stateof Oregon, acting by and through the governing board.d) The Legislative Assembly has a responsibility to monitor the success of governing boards at fulfillingtheir missions, their compacts and the principles stated in this section.EVALUATION PROCESSIn an effort to approach the first annual evaluation in a collaborative manner, in 2015 the HECC formed awork group comprised of university provosts, inter-institutional faculty senate, staff from the Chief EducationOffice, HECC staff, then-HECC Commissioner Kirby Dyess, and other university faculty and staff. Theworkgroup began meeting in February 2015 with a focus on understanding the purpose and scope of theevaluation as defined in statutes, the structure of the evaluation, and the process for the evaluation. As a resultof these conversations, an evaluation framework was developed as a tool to assist in the evaluation process.During its development, the framework was shared with various groups such as university presidents,university faculty senates, and others, to seek feedback and input on the framework. The framework wasrevised based on input and suggestions and three categories were identified as organizers. These includedinstitutional focus areas, governance structure focus areas, and academic quality. Each category contained keymetrics and performance measures of academic quality that were aligned with the newly-adopted studentsuccess and completion model indicators. After final review and consideration of stakeholder feedback, theHECC adopted the framework on September 10, 2015. The framework template is populated with data fromthe HECC Office of Data and Research and then verified by university offices for institutional research anddata. All data included in this report is from the HECC, unless otherwise indicated.A balanced evaluation of whether Oregon’s public universities are meeting the goals described for them byState law does not lend itself to a formulaic or mechanical approach. The Commission draws from contextualelements such as the State’s fluctuating funding for higher education and changing student demographics tohelp explain data in the framework, and progress towards goals. The Commission also leverages otherevaluations already undertaken by universities including self-studies, accreditation reports, and the work ofboards of trustees, to provide a perspective that is uniquely focused on each institution’s contribution toserving the State’s higher education mission under the new governance model.This document is focused on the legislative charge and the HECC’s primary areas of emphasis as indicated inits Strategic Plan. This report is not a comprehensive evaluation. It reflects the narrower scope of legislativeissues of interest, incorporating findings from accreditation studies where there is overlap.4
STATEWIDE CONTEXTFunding HistoryOver the past several biennia, state funding for public universities has not kept pace with enrollment orinflation. While recent investments have moved the needle in the right direction, additional funding isnecessary to support institutions as they work to increase the graduation and completion rates for a growingdiverse population.Figure 1: Public University FundingGovernance ChangesSenate Bill 270 outlines the benefits that are to be achieved from having public universities with governingboards that are transparent, closely aligned with the university’s mission, and that “act in the best interest ofboth the university and state of Oregon as a whole.” In addition, the Legislature found that there are benefitsto having economies of scale and as such, universities were granted the ability to continue participation inshared service models. It is important to note that all public universities are required to participate in grouphealth insurance, a select set of group retirement plans, and collective bargaining through July 1, 2019, perORS 352.129.Local Conditions and MissionPortland State University (PSU) is a dynamic public urban university that supports partnerships between theuniversity and the city that create community-based learning experiences for students and teaching andresearch opportunities for faculty. As Oregon’s public urban university, PSU provides educationalopportunities to students who are demographically, financially, and academically diverse. In 2015, PSU5
conducted an in-depth process involving over 3,800 faculty, student, staff, and community stakeholders thatresulted in a new mission statement and a new strategic plan for 2016-2020. ORS 350.075 and 350.085 requirethe HECC to review and approve public university mission statements. The Board of Trustees approved thenew mission statement in December 2015, followed by the HECC in April 2016, and the NWCCU(Northwest Commission on Colleges and Universities) in July 2016 (PSU Year One Self-Study).VISION:Portland State University leads the way to an equitable and sustainable future through academic excellence,urban engagement, and expanding opportunity for all.MISSION: We serve and sustain a vibrant urban region through our creativity, collective knowledge andexpertise. We are dedicated to collaborative learning, innovative research, sustainability, and communityengagement. We educate a diverse community of lifelong learners. Our research and teaching have global impact.The 2016-2020 Strategic Plan identifies five (5) goals which, with the attendant metrics, measure how PSU willexecute its vision and mission (PSU Year One Self-Study). These goals include:1. Elevate Student Success.2. Advance Excellence in Teaching and Research.3. Extend Our Leadership in Community Engagement.4. Expand Our Commitment to Equity.5. Innovate for Long Term Sustainability.These goals, which also serve as the core themes for accreditation, are discussed and incorporated in relevantsections of this report.OVERALL EVALUATIONThis report is formative and focuses on the areas of interest identified by the Legislature and in alignment withthe HECC’s Strategic Plan. It is not intended to be a comprehensive evaluation of Portland State University. Amore comprehensive assessment and review of academic and institutional quality is available from theNorthwest Commission on Colleges and Universities (NWCCU), which accredits PSU and other universitiesin Oregon. Accreditation of an institution of higher education by the NWCCU indicates that it meets orexceeds criteria for the assessment of institutional quality evaluated through a peer review process. Anaccredited college or university is one that has been found to have the necessary resources available to achieveits stated purposes through appropriate educational programs, and to be substantially doing so, and whichprovides reasonable evidence that it will continue to do so in the foreseeable future. Institutional integrity isalso addressed through accreditation. This section draws on the relevant parts of NWCCU reports,6
supplemented with information on economic and community impact (identified from PSU sources). Othercomponents of NWCCU reports are incorporated elsewhere, as appropriate.Portland State University occupies a unique position in Oregon and plays a crucial role in the metropolitanregion that it serves. As the state’s premier urban research and teaching university, PSU has a well-definedmission to positively impact Portland and the broader community through educational access, engagementwith local partners and the expertise of top-quality faculty and staff.Founded in 1946 as a college for returning World War II veterans, PSU has grown to offer more than 200degrees. It serves more than 27,000 students, 78 percent of whom are Oregon residents: a significant numberare from historically marginalized and underrepresented racial and ethnic backgrounds, or are students withdisabilities, working parents, first-generation students, international students, veterans, or returning students.PSU also attracts a large percentage of students who transfer from community colleges or other universities. Itis an access institution that offers a quality liberal arts education as well as professional, graduate, and doctoralprograms. PSU considers diversity an integral part of how it defines academic excellence.Based on its curriculum and dedication to community engagement, PSU is widely perceived as a nationalmodel for how universities can partner with their communities to solve problems and improve quality of life.Beginning in the early 1990s, PSU defined and embraced its identity as an innovative and engaged institution.Its location in the heart of downtown Portland, Oregon, enables the University and the city to maintain longterm collaborative partnerships, fostering community-based learning experiences for students and engagingfaculty in applied teaching and research opportunities. PSU is among 240 universities that have achieved theCarnegie Community Engagement classification.Portland State University’s innovative general education curriculum, University Studies1, is nationally acclaimedfor its integration of community engagement and interdisciplinary teaching and learning across the four yearsof the program.Central to PSU’s mission are strong graduate programs. The University offers a variety of educational andresearch opportunities through more than 70 masters and 20 doctoral programs. PSU serves more graduatestudents than any other institution in Oregon. The growing research enterprise creates opportunities forfaculty and graduate students to create new knowledge and to work with community partners in applyingknowledge to real-world problems. External funding for its research has increased by an average of eightpercent per year over the past seven years. In fiscal year 2015, PSU received sponsored awards totaling 64.6million.1https://www.pdx.edu/unst/home7
Table 1 shows the magnitude of growth in enrollment, research, programs and space over the past 10 years.Table 1. Growth at Portland State University from 2000-2001 to 2015-2016Total EnrollmentResearch Expenditures2000-200120,026 26.4 millionGraduate ProgramsFull-time FacultyPart-time FacultySquare Footage515903323.91 million2015-201629,057 62.5 million(2014-2015)21238647185.18 millionSource: HECC (2016)In 2015, PSU completed the final year of the 7-year accreditation cycle. A review team visited the campus inOctober 2015. The NWCCU report on the findings of this review is available 20recommendations.pdf.The 2015 NWCCU Year Seven (Mission Fulfillment and Sustainability) evaluation resulted in affirmation ofaccreditation. The NWCCU report contained two commendations:1. The University was deeply engaged with the community and connected to the city of Portlandparticularly as evidenced in its capstone courses and community-based research. The regularassessment of capstone courses lead to continuous improvement led by faculty and in alignment withthe University’s learning goals.2. The University’s use of innovative approaches to curricular development and student success,including the ReThink PSU initiative; the advising portal; and the Last Mile initiative that identifiesundergraduate students who have dropped out within a term or two of completing a degree becauseof curricular or financial problems to return and complete their programs.The report also contained two recommendations:1. The evaluation committee noted the absence of the required management letter (ManagementDiscussion and Analysis – MD&A) which should accompany Portland State University’s auditedfinancial statements per Governmental Accounting Standards Board (GASB) requirements andNWCCU standards. The evaluation committee recommended that Portland State University includethe MD&A for the current and future years to fully meet the NWCCU’s standards.2. The evaluation committee recommended that assessment of student learning outcomes besystematically accelerated such that continuous improvement from assessment can lead toenhancement of student achievement and to meaning evaluation of mission fulfillment.In March 2016, in response to the first recommendation, PSU submitted its Ad Hoc report to NWCCU,which included the completed externally audited financial statements and the MD&A letter. In July 2016,8
NWCCU confirmed that the university was in compliance. In response to the second recommendation, PSUindicates in its Year One Self-Evaluation (prepared in September 2016) that its Office of Academic Affairs, inconcert with its Office of Academic Innovation and Institutional Assessment Council, is drafting a plan toaddress this recommendation. The Year One Self-Evaluation Report is available Evaluation%20FINAL-%209.14.2016.pdfIndividual programs in PSU’s professional schools and colleges (listed below) are accredited by professionalorganizations. A specialized accredited program list is available at creditation Undergraduate and graduate business programsAccounting programTeacher Education programsCounseling programSocial work programs.Undergraduate programs in civil, computer, electrical, and mechanical engineeringComputer Science Program.Speech and Hearing Sciences programChemistry programMaster of Urban and Regional PlanningMaster of Public Administration degreeMaster of Public HealthMaster of Public Administration (Health Administration)Master of Public Health (Health Management & Policy)School of MusicTheater programsMaster of Architecture degreeBA/BS in Health Studies9
ECONOMIC AND COMMUNITY IMPACTUsing a nationally accepted methodology for calculating the economic impact of universities, PSU calculatedits economic impact in FY13 to be 1.44 billion dollars re 2: PSU Economic and Community ImpactPortland State University is a top choice for students attending Oregon's universities. In fall 2016, it enrolled27,229 students, about a 3.0 percent decrease from the previous year (28,076). In 2016, it graduated 5,736students, a decrease of about 2.3 percent from 2015 (5,871). PSU graduates have an enormous economicimpact on the region as around 66 percent of PSU resident graduates and 29 percent of non-resident graduatesfrom the 2008-2009 cohort remain in Oregon, investing their energy, skills, talents, and tax dollars in the state.Portland State University is a major purchaser of goods and services, spending 169 million in FY13. In thatsame year, half of this spending was from contracts with local vendors, providing a significant boost to theregional economy. PSU's impact on the workforce is felt in every sector of Oregon's economy. Most of thestate's largest businesses employ PSU alumni; Intel, for example, employs over 1,000 PSU graduates. Academicand professional programs also provide a broad range of continuing education and professional developmentopportunities for individuals who want to obtain new skills and credentials.Portland State University works closely with business and civic partners to move great ideas from theuniversity to the marketplace. The Portland State Business Accelerator (PSBA) plays a key role in Portland’sentrepreneurial eco-system by providing students and faculty with a range of opportunities to conceive,develop, and pitch new business ideas and commercialize new technology. In addition to high techentrepreneurship, PSU's Business Outreach Program (BOP) assists small, locally owned businesses withbusiness planning, product development, and market expansion.Since 1994, the BOP has helped local small businesses, including emerging, minority and women-ownedbusinesses, to achieve their potential while providing PSU business students the opportunity to work on realworld business challenges. BOP provides consulting and technical support in the form of business strategy,marketing, human resources, accounting, and other services. In 2012-2013, 80 companies participated in BOPworkshops, and another 50 companies were long-term clients receiving technical assistance from students andfaculty advisors.The PSBA is home to more than seven active start-up companies (https://www.pdx.edu/research/startupcompanies) in technology, bioscience, and clean-tech. Together, they have raised more private angel andventure capital in the last three years than any other accelerator in Oregon. The Business Accelerator speedsthe success of high-growth companies by providing resources, connections, expertise, university support, andcontrol of high-impact costs, all within an entrepreneurial community focused on growth. The PSBA impacts10
the regional economy in a variety of ways such as, jobs and employment; capital investment in PSBAcompanies; angel investing; and grants received.A generally accepted methodology tells the impact story of Accelerators. According to the National BusinessIncubation Association (NBIA), for every 1 of public investment made in NBIA member incubators, 30 intax revenue is generated in the local economy. Using this formula, we estimate the economic impact of thePSBA was 10.2 million in 2012-2013.Portland State University planning and development activities have a significant impact on the region’splanning, design, and architecture community. PSU partners with local firms on feasibility studies,environmental impact statements, architectural design, and construction. The University contributed 23million to the regional economy in FY13 through planning and real estate investments.Portland State University’s reputation as an engaged, urban-serving university continues to differentiate it fromits competition in the increasingly crowded higher education market. Key partnerships with public, privateand non-profit partners, including Intel, Daimler, PGE, City of Portland, Multnomah County, Oregon HealthSciences University (OHSU), Mercy Corps, and Oregon Museum of Science and Industry (OMSI), providestudents and faculty with outstanding opportunities to contribute to the physical, social, cultural, andeconomic development of the Portland metro region. In 2015-2016, PSU counted 570 local partnersproviding a broad range of community-based learning opportunities to PSU students through communitybased courses, senior Capstones, internships, and practicums.STUDENT ACCESS AND SUCCESSNationally, enrollment in higher education has generally declined since its peak around 2009. Oregon hasexperienced a similar pattern, with some variation across institutions, particularly in the enrollment andcompletion rates for low- income, minority, and rural students. This report is focused on trends in enrollmentand completion outcomes.As detailed by Figures 2 and 3 during the 2015-2016 academic year the majority of students (78.2 percent)were Oregon residents. The majority of PSU students (61.7 percent) also attended full-time.11
Figure 3: PSU Student Enrollment by Residency, Fall 201522%78%Resident (Percent)Nonresident (Percent)Source: HECC (2016)Figure 4: PSU Student Enrollment by Full-Time/Part-Time Status, Fall 201538%62%Full-Time (Percent)Part-Time (Percent)Source: HECC (2016)Portland State University enrolled 28,076 students in fall 2015, and has experienced a slight decrease from28,241 in enrollment (down 0.6 percent) since fall 2014.Portland State University enrolled 27,229 students in fall 2016, a decline of three percent from the prior year.PSU’s overall enrollment decline was concentrated among resident students, which declined 5.2 percent. Non-12
resident enrollment increased 4.9 percent between 2015 and 2016. The year-to-year decline was particularlysharp for newly admitted undergraduates, which dropped nearly nine percent between 2015 and 2016.While single year enrollment changes do not constitute a trend on their own, they are generally consistent withlonger term enrollment patterns at PSU. After several years of significant resident enrollment increases, PSUexperienced resident enrollment declines beginning in 2012, even as non-resident enrollment continued togrow.Portland State University students come from diverse backgrounds and the University has seen significantgrowth in underrepresented minority students since 2011. In fall 2016, PSU enrolled 5,836 underrepresentedminority students, representing 21.4 percent of the total population. There has been an upward trend inenrollment among Hispanic students and those who identify as being two or more races who are underrepresented minorities. On the other hand, there has been a downward trend in enrollment among AmericanIndian/Alaska Native, Pacific Islander, and White Non-Hispanic students. There were 38 fewer AfricanAmerican students in fall 2016 than the previous year.In fall 2016, 38.7 percent of PSU’s students were Pell Grant recipients, compared to 28.1 percent in fall 2015.Table 2: PSU Headcount Enrollment by Ethnicity, Fall Terms 2014, 2015, and 2016Race/ EthnicityNon-Resident AlienAmerican Indian/ Alaska NativeAsianBlack Non-HispanicHispanicPacific IslanderTwo or more races,Underrepresented MinoritiesTwo or more races, notUnderrepresented MinoritiesWhite Non-HispanicUnknownFall 2014Fall 2015Fall 2016ChangeFall 2015 toFall (974)4Source: HECC (2016)Different student populations do not perform and graduate at similar rates. Underrepresented minoritystudents and Pell Grant recipients graduate at rates that are 5-7 percentage points less than the rate for theoverall student population. The four and six-year graduation rates* for PSU First Time Freshmen who enteredin the fall term of 2009 are as follows:13
Table 3: Four-Year and Six-Year Graduation Rate, First Time, Full Time FreshmenEntering PSU in Fall 2009All StudentsUnderrepresented MinoritiesPell Grant nRate20.3 %13.2 %15.5 %45.7 %37.9 %45.5 %Source: HECC (2016)*Fall 2009 cohort is the latest year of available data. Includes students who completed at any Oregon public university.Portland State University’s number of resident completions by award type remained relatively the same inevery category in the 2015-2016 academic year compared to the 2014-2015 academic year, except at thecertificate and master’s level; there were about 30.8 percent fewer certificates, 0.7 percent more bachelor’sdegrees, 8.3 percent fewer master’s degrees, and 2.6 percent fewer doctoral degrees. Bachelor’s degrees are byfar the greatest student completion by award type. PSU does not offer associate’s degrees. Compared to 20132014, PSU’s number of resident completions by award type decreased in every category.Table 4: PSU Resident Student Completions by Award urce: HECC (2016)14
Figure 5: PSU Resident Student Completions by Award Source: HECC (2016)Six-year graduation rates for all students at PSU has improved from 44.7 percent in 2015 to 45.7 percent in2016. While graduation rates for underrepresented minority students continue to lag the institutional rate byfive percentage points less than the overall population, PSU is making year over year increases in the numberof degrees awarded to underrepresented students overall.Table 5: PSU Completions by ent alien443469442American Indian/ Alaska Native918779Asian366406362Black Non-Hispanic150183171Hispanic518529614Pacific Islander433029Two or more races, Underrepresented Minorities138166157Two or more races, not Underrepresented Minorities851121064,4064,2363,950254239261White Non-HispanicUnknown15
Figure 6: PSU Completions by ,5001,000500-2013-142014-152015-16Source: HECC (2016)In order to be supportive and responsive to its diverse student population, PSU has established resourcecenters where students can seek academic or personal assistance. These centers include the Disability ResourceCenter, La Casa Latina, Multicultural Center, Native American Student and Community Center, QueerResource Center, Resource Center for Students with Children, Veterans Resource Center, Women’s ResourceCenter, a new Asian/Pacific Islander Student Center, and a new Black Student Resource Center.Portland State University also has a successful Last Mile initiative which seeks out students who have droppedout within a term or two of graduating primarily for financial reasons and provides them economic resourcesand scholarships to complete their degrees. To date the program has assisted over 500 students in earningdegrees ITYAmong the factors that the HECC is required to evaluate (under ORS 352.065 and 352.025(1) (d) for publicuniversities is whether universities remain affordable for Oregon residents. The following constitutes ourevaluation of Portland State University’s affordability.Many students and prospective students at PSU, like their counterparts at other universities around the stateand nationwide, continue to face significant challenges related to access and affordability. Public defunding ofhigher education is a national trend that is shifting a majority of the burden of paying for a college education tostudents and their families. That shift has been particularly acute in Oregon in recent years. Partly as a result ofstate funding cu
Portland State University occupies a unique position in Oregon and plays a crucial role in the metropolitan region that it serves. As the state's premier urban research and teaching university, PSU has a well-defined mission to positively impact Portland and the broader community through educational access, engagement
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