Skepticism over the value of a college degree has grown even as higher education remains a primary pathway to opportunity for many Californians. At a recent event in Sacramento celebrating the 10th anniversary of PPIC’s Higher Education Center, PPIC president and CEO Tani Cantil-Sakauye moderated a conversation with higher education leaders about the realities of pursuing a degree amid a volatile economic and technological landscape.

Setting the stage for the discussion, Olga Rodriguez, director of the PPIC Higher Education Center, offered insights from current research—notably, that Californians with a bachelor’s degree earn about 61% more than peers with a high school diploma. Yet Californians increasingly question whether a degree is worth the cost, a schism Cantil-Sakauye asked the panel to unpack.

Criticism of rising costs and degrees that misalign with workforce needs is legitimate, said Sonya Christian, chancellor of the California Community Colleges. Campuses have worked to contain costs, and while technical and workforce skills are essential, Christian cited a twofold responsibility for higher education: “to prepare a society that is economically vibrant and strong but also socially cohesive.”

The debate around the value of a degree centers on time to degree, return on investment, and making sure students are finding a career, said Mildred García, chancellor of the California State University. CSU is helping students realize their goals by connecting them with employers and by providing lifelong learning to help alumni reskill.

Alongside cost and affordability, Kristen Soares, president of the Association of Independent California Colleges and Universities, pointed to a disconnect between perception and outcomes.

James Milliken, president of the University of California, agreed that California’s colleges and universities have not promoted their own stories well—about tuition costs that are lower than the national average, or about world-class research produced by graduates. Milliken also recognized that universities must demonstrate how they are making improvements. Still, “American institutions of higher education are the greatest engine of economic and social mobility that the world has ever seen.”

California will be electing a new governor later in the year; Cantil-Sakauye prompted the speakers to outline higher education priorities for the new state executive. The panelists all emphasized improving access, affordability, and opportunity.

For Soares, affordability means funding CalGrant for independent colleges so that students who must stay near home can access the programs they need. García envisioned fully funding public higher education and a California that incentivizes business to take on more students as paid interns.

Along with broadening access to higher education in rural communities and offering credit for prior learning, Christian seconded the notion of bringing together industry and higher education, adding, “For those innovating on AI and technology, [higher education] needs to be at the table … higher education will be the conscience of innovation.”

The topic of AI raised questions about how technology is reshaping higher education. Faculty at CSU were eager to learn how to incorporate the technology appropriately, according to García, who indicated that students and faculty were receiving training in the ethical use of AI. Christian reiterated the need to create a safe space for innovation—with guardrails for data and privacy. And as AI transforms research and health care, Milliken underscored the responsibility of higher education to step into leadership roles.

“We know AI will replace and create new jobs,” Soares said. Beyond the technical knowledge that education can supply, communication and critical thinking skills will be invaluable. “That is the cornerstone of a higher education. We need to focus on that set of skills for our students.”

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PPIC’s Sutton Family Speaker Series invites thought leaders and changemakers with diverse perspectives to participate critically, constructively, and collaboratively in public conversations. The purpose is to give Californians a better understanding of how our leaders are addressing the challenges facing our state.

PPIC is a nonpartisan, nonprofit organization. PPIC does not take or support positions on any ballot measure or on any local, state, or federal legislation, nor does it support, endorse, or oppose any political parties or candidates for public office. Any opinions expressed by event participants are theirs alone and do not necessarily reflect any position of the Public Policy Institute of California.