Overview
Many states have adopted strategies to recognize short-term credentials, however, there has been little coordinated information about these developments. HCM Strategists conducted a study (Stephanie M. Murphy, 2023) to develop a comprehensive classification system (typology) of direct and sustained state funding for short-term credential programs. The study’s scope focused on credentials granted by public and private postsecondary institutions upon the satisfactory completion of coursework and/or assessments, including both for-credit and not-for-credit programs.
The study defined “short-term credentials as educational achievements that require less than one year of full-time study, aligning with the definition commonly used in federal data systems.”
Five key research questions drove the investigation:
- What states are appropriating funds to support the creation, expansion, or durability of short-term credential programs and pathways?
- What are the various components of these existing investments?
- What are states funding — student aid to defray the costs of tuition and fees or institutions to build capacity to offer more and stronger programming?
- What funding sources are available and is there a consideration of sustainability?
- What are the elements of strong policy design on short-term credentials and how can existing policies be improved?
The methodology included:
- Examination of the 50 U.S. states to collect information from legislation, state budgets, existing research, and direct communication with state higher education leaders on state investments and policies around short-term sub-baccalaureate credentials, with a particular focus on quality and equity.
- Quantitative and qualitative research methods to provide a nuanced and evidence-based understanding of state investments and policies.
- Identification of trends or best practices from the scan.
- Analysis of dataset.
The classification system depicts state investments in short-term credential pathways by key benchmarks (these are specified in the report):
- Whether and how states clearly define short-term credentials to help establish a consistent understanding of these programs.
- Whether policies are equity-centered in design and delivery, ensuring that diverse populations have equal access to these valuable learning opportunities,
- Revenue sources and sustainability to understand how states allocate funds and maintain ongoing support.
- Whether states commit to an assurance of value or quality, demonstrating a dedication to providing impactful, high-quality programs to learners.
Findings
- The research identified 59 state-led initiatives across 28 states.
- Investments in these programs total no less than $3.81 billion.
- There is variation in how the states define short-term credentials in state policies (the report acknowledges deviations from the study’s definition when relevant).
- 27 of the initiatives provide financial aid directly to students to defray program costs.
- 15 state initiatives allocate funding to institutions with the aim of providing a means to offer student supports and/or tuition relief.
- 6 states within the dataset provide funding to institutions to promote capacity-building and foster the development of short-term credential programs that align with workforce needs.
- 5 states integrate funding for short-term credentials into their outcomes-based funding formula.
- Many programs (classified as “other” in the report) fund the development of a tool, framework, or further research on short-term credentials to help inform future policies.
- 25 initiatives are funded using the state’s general funds.
- 4 states (Florida, Tennessee, Texas, Utah) allocate state formula funding for short-term credentials through an outcomes-based funding model, which distributes money based on student performance.
- 11 initiatives made use of federal Covid-19 emergency relief dollars to pay for one-time or pilot programs.
Resources
https://static1.squarespace.com/static/62bdd1bbd6b48a2f0f75d310/t/648c972a23cb3714b750b74b/1686935342423/HCM+-+STC+paper+-+FINAL062023.pdf