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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.

blog post

Paying for Water’s “Fiscal Orphans”

By Lori Pottinger

Bonds don’t currently cover ongoing expenses for the projects they fund. We talked to Dean Misczynski about his proposal to change that.

Report

District Spending of One-Time Funds for Educational Recovery

By Julien Lafortune, Laura Hill, Niu Gao, Joseph Herrera ...

To address COVID-19 disruptions to education, federal and state programs directed billions in stimulus aid to K–12 schools. These programs allocated greater funding to lower-income and high-need districts—and California districts applied their early funds to health, safety, and technology. More recently, spending has prioritized learning recovery.

Report

Understanding the Effects of School Funding

By Julien Lafortune

Funding for California’s K–12 public schools has reached record highs, but gaps in student outcomes remain. Understanding the benefits of additional funds, and how to distribute those funds, are key concerns for policymakers. This report offers insights from a robust body of research on the extent to which higher spending improves outcomes.

blog post

Funding Increase for Community Colleges

By Kevin Cook

Community colleges get the bulk of higher education funds in the governor’s budget, which includes a new formula for dispersing the money.

blog post

Testimony: Funding to Promote Drought Resilience

By Ellen Hanak

PPIC senior fellow Ellen Hanak gave the Assembly Budget Subcommittee for Resources and Transportation an overview of state and federal emergency drought funding and suggested other fiscal measures that the legislature should consider to make California more drought resilient.

Report

Equitable State Funding for School Facilities

By Julien Lafortune, Niu Gao

Most funding for California’s K–12 facilities comes from local tax revenues, which depend on property wealth. State funding could potentially address wealth disparities, but it has disproportionately benefited more-affluent districts. Policymakers should prioritize equity in facility funding so that all students have access to safe and effective learning environments.

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