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‘Tis the Season for College Applications

By Hans Johnson

Eight of the top 10 most popular colleges and universities in the US are in California—the state's colleges and universities also lead the nation in rejecting applicants.

Report

Higher Education in California: Institutional Costs

By Hans Johnson, Patrick Murphy, Margaret Weston, Kevin Cook

Over the past 20 years, in-state tuition at both the University of California (UC) and the California State University (CSU) has more than tripled. These tuition increases have led many to believe that spending in the state’s public higher education systems is out of control. However, a closer look reveals that institutional expenditures in the two systems—including faculty salaries and benefits, the largest budget category—have not increased significantly. Our evaluation of both revenues and expenditures shows that recent tuition increases have been driven by dramatic reductions in state subsidies to UC and CSU. In the past, General Fund contributions covered the majority of educational costs. Today, students (often with help from federal, state, institutional, and private grants) pay most of these costs through tuition and associated fees. Better budget data could help policymakers monitor costs and align higher education funding with state goals. But it is clear that tuition at California’s public universities has risen much more rapidly than the cost of providing higher education.

Report

Measuring Institutional Costs at California’s Public Universities

By Patrick Murphy, Kevin Cook, Talib Jabbar

California has recently increased its investment in higher education after many years of reducing state support. At the same time, the state’s four-year public systems, the University of California (UC) and California State University (CSU), are currently poised to raise tuition for the first time in several years. If the past is any indication, intense discussions lie ahead about the need for additional higher education resources.

We offer a constructive starting point for those discussions by introducing a straightforward and objective assessment of institutional costs. We rely on a measure that connects institutional costs to the number of degrees UC and CSU produce. This measure provides a clear understanding of trends in California’s institutional costs and allows comparisons with colleges and universities in other states. It also offers higher education institutions the opportunity to demonstrate progress toward their goals in an accessible, transparent way.

Applying this measure to California’s public four-year institutions, we find that:

  • Institutional costs per degree across UC and CSU fell significantly—17 percent—from 1987 to 2013. This is an important savings in a state that will need to amp up its number of college graduates to meet future economic demand.
  • At UC, the cost per degree fell 6 percent over the period—from $116,000 to $109,000. UC’s institutional costs in 2013 were lower than a comparison group that included both public and private institutions across the nation. But UC’s costs were higher than a national comparison group of public schools only.
  • At CSU, the cost fell 33 percent—from $67,000 to $45,000. CSU’s 2013 costs were lower than both types of comparison groups—one that included public schools only and one that included both public and private institutions.

We recommend that policymakers and higher education leaders use the cost per degree measure as a way to frame higher education finance discussions. It provides a consistent, reliable, and objective measure of institutional costs and performance. For the measure to be most effective, accurate data reporting will be essential. We also recommend the reintroduction of a state-level higher education authority to add validity to the process of gauging institutional performance. Using the measure within a larger framework of agreed-upon goals would go a long way toward improving higher education finance policy in California.

blog post

Testimony: Improving the Cal Grant Program

By Hans Johnson, Kevin Cook

Rapidly increasing costs to students, low completion rates, and lack of access to four-year colleges are key challenges facing the state and the Cal Grant program.

event

Strengthening California’s Transfer Pathway

Increasing the number of California community college students who transfer to four-year institutions is critical for creating a robust pipeline that can produce a diverse pool of college graduates. Despite progress in recent years, transfer rates remain far too low and racial disparities persist. PPIC researcher Cesar Alesi Perez will outline a new report and a panel of experts will discuss efforts to streamline the transfer process so that more students can reach their academic goals.

blog post

Tuition at CSU and UC Is Growing—but So Is Aid

By Jacob Jackson

Planned tuition increases at the state's public universities will mean higher college costs for many. But both CSU and UC are taking steps to minimize the financial impact, especially for the lowest-income families.

blog post

Video: A Conversation with California’s Public Higher Education Leaders

By Vicki Hsieh

PPIC president and CEO Tani Cantil-Sakauye talks with leaders from across the state's higher education systems—UC president Michael V. Drake, CSU chancellor Mildred García, and California Community Colleges executive vice chancellor Aisha Lowe—about their priorities for expanding educational opportunity.

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COVID-19 Alters College Admissions

By Jacob Jackson, Olga Rodriguez, Niu Gao

UC and CSU are allowing greater flexibility in requirements for fall 2021 admission, but disadvantaged students may still face unique barriers to access.

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Geography of College Enrollment in California

By Cesar Alesi Perez, Hans Johnson, Vicki Hsieh

While increases in state funding and initiatives to improve access have helped increase enrollment at the University of California and California State University, disparities in college access remain.

blog post

Video: Grading the Higher Education System

By Linda Strean

The PPIC Statewide Survey shows that Californians have big concerns about the affordability of public colleges and universities. The survey’s key findings were presented in Sacramento last week.

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