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In his endeavour to bring America back to its top position in the field of higher education, President Obama in his first year initiated a couple of strong initiatives. One was to declare that America will be a leader in college education by the year 2020. The other was the $787 billion Reinvestment and Recovery Act.

The stimulus act has pumped in a whopping $6.5 billion during the first year of his administration into the national universities and colleges. However, as we look back, there seems to be very little progress towards the goal in the past year.

This is due to various factors such as the inability of federal government to exert leverage. For instance, before handing over the stimulus funds, states could have been asked to produce a ready plan if implemented would increase college attainment levels. On the contrary, states have been reducing enrolments in colleges, especially those that are enjoying the funds.

The American education department would have done well to instruct states to control higher education costs by devising potent long term strategies. There must be a strong focus towards innovation and cost containment with new state and federal investments.

Reform expectations have been articulated with The Race to the Top program for K-12 funding.  A similar structure could have easily been followed for higher education. Portions of stimulus funds could have been utilized to drive reforms.

There are a few powerful examples of long term reform initiatives and improvements in higher education by a few states –

Montana saw an allocation of a part of the stimulus funds last year by the state legislature towards workforce training and enrolment in dual high schools and colleges in a bid to repackage existing programs and courses in virtual community colleges and also deliver to every part of the state online.

The most result oriented and aggressive performance based funding systems in the nation is now being implemented by Indiana. Based on low income students degree completion rate and overall degree completion of individual institutions, a major portion  of the base funding were awarded to them from the stimulus funds in a bid to expand the system.

Similarly in Texas, $80 million was allocated by the legislators in 2009. They rewarded public universities and colleges with a performance incentive fund in order to help students complete their degrees and certificates, especially students who are pursuing degree and certificate courses in high need areas and at-risk students.

These are a few of the states that have used the funds to make a move towards the goal. They have initiated significant reform and innovation in their system of higher education with the help of this unique opportunity.

There will definitely not be another stimulus of this magnitude and potential anywhere in the near future. State revenues continue to dwindle waiting for a turnaround in the employment scene. This is the only opportunity offered to them and they will do well to make maximum use of it.