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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: Closing California’s Workforce Skills Gap

By Hans Johnson

Hans Johnson, PPIC Higher Education Center director, testifies before a legislative subcommittee and identifies specific goals that together could close California’s workforce skills gap.

Report

High-Need Students and California’s New Assessments

By Laura Hill, Iwunze Ugo

The 2014–15 school year was the first in which the Smarter Balanced assessments (referred to here as the SBAC) were administered statewide. While educators and policymakers agree that multiple measures over multiple years are the best way to gauge student, school, and district performance, the first-year SBAC results provide an important baseline for assessing implementation of the Common Core State Standards and the Local Control and Accountability Plans (LCAPs).

These results may also have implications for the evolution of accountability measures at the district and state levels—especially in relation to high-need students. The California State Board of Education has not yet devised a replacement for the Academic Performance Index (API), which was suspended in the 2014–15 school year. Districts have developed goals and measures in their LCAPs but the rubrics that state and the county offices of education will use are not yet in place. In the meantime, a close look at the results of the first year of testing can help us track achievement gaps between student groups and identify districts and schools with the largest tasks ahead.

One of the major goals of the Local Control Funding Formula (LCFF) is to help districts address a long-standing achievement gap between high-need students—economically disadvantaged students and English Learners (ELs)—and other students. However, we find that the test score gap is larger for 4th-grade EL and economically disadvantaged students when measured with the SBAC than with the state’s prior assessment (the California Standards Test, or CST). Generally speaking, as the share of high-need students in a district or school increases, the proportion of students meeting the standards falls. However, when we compare results across demographically similar schools and districts, we find that some schools performed better than expected.

Results for English Learners are particularly useful for local and state policymakers as they implement new EL standards and consider how to revise reclassification standards. Notably, in a relatively large number of schools, no EL students scored at or above the standards for English language arts (ELA) and math. In the past, 30 percent of districts required ELs to meet the ELA standard on the CST to be reclassified.

Our main conclusion is that high-need students are far behind other student groups—indeed, they may be farther behind than we thought. Schools and districts can use this analysis to take stock of their implementation of the Common Core and their progress toward their LCAP goals for EL and economically disadvantaged students. And schools and districts with large gaps—especially those performing below expectations—can find examples of similar districts and schools that exceeded expectations.

Report

Public Safety Realignment: Impacts So Far

By Magnus Lofstrom, Brandon Martin

Prompted by a federal court order to reduce prison overcrowding, California’s 2011 historic public safety realignment shifted many correctional responsibilities for lower-level felons from the state to counties. The reform was premised on the idea that locals can do a better job, and it was hoped that incarceration rates and corrections costs would fall. At the same time, critics predicted crime would rise. Four years since its implementation, realignment has made several important impacts:

  • Realignment significantly reduced the prison population, but the state did not reach the court-mandated population target until after the passage of Proposition 47 in November 2014, which reduced penalties for many property and drug offenses.
  • The reform challenged county jails and probation departments by making them responsible for a greater number of offenders with a broader range of backgrounds and needs.
  • The county jail population did not rise nearly as much as the prison population fell, reducing the total number of people incarcerated in California.
  • Realignment did not increase violent crime, but auto thefts rose.
  • Research so far shows no dramatic change in recidivism rates.
  • State corrections spending remains high, but there is reason to believe expenditures could drop in the future.

Realignment has largely been successful, but the state and county correctional systems face significant challenges. The state needs to regain control of prison medical care, which is now in the hands of a federal receiver. And the state and counties together must make progress in reducing stubbornly high recidivism rates.

Report

Planning for California’s Growing Senior Population

By Hans Johnson, Laurel Beck

California’s senior population is entering a period of rapid growth. By 2030, as the Baby Boom generation reaches retirement age, the over-65 population will grow by four million people. It will also become much more racially and ethnically diverse, with the fastest growth among Latinos and Asians. Many more seniors are likely to be single and/or childless—suggesting an increased number of people living alone. All of these changes will have a significant impact on senior support services.

We project that by 2030 slightly more than one million seniors will require some assistance with self-care, and that the demand for nursing home care will begin to increase after decades of decline. These changes will have direct budget implications for the Medi-Cal and In-Home Supportive Services (IHSS) programs, both of which pay for care and services for low-income seniors. The state will need additional resources, including nursing care facilities and health care professionals, especially those who provide home- and community-based services. California’s community college system will be critical in training workers to meet the state’s health care workforce needs for the growing and changing senior population.

blog post

Are Enough Californians Attending UC?

By Jacob Jackson

Even with the influx of out-of-state students, the UC system is currently meeting the expectations of the Master Plan for admission. Is that good enough?

blog post

Paying for Higher Education

By Linda Strean

Understanding the cost of public higher education has become more critical than ever. At a panel discussion in Sacramento, experts critiqued the way California finances colleges now and offered their own solutions.

Report

Higher Education in California: Performance Budgeting

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

As California begins to reinvest in public higher education after several years of budget cuts, it could opt to tie funding more closely with outcomes—for example, the number of students educated or degrees awarded. This approach, known as performance-based funding, has the potential to incentivize investment by the state’s higher education systems in areas that further state priorities. Drawing on California’s minimal experience with performance-based funding and the approaches other states have pursued, this report raises four important questions for the state to consider if it wants to link funding for higher education with outcomes without compromising on either quality or equity.

Report

California’s Need for Skilled Workers

By Sarah Bohn

If recent trends continue, California is likely to face a shortage of workers with some college education but less than a bachelor’s degree by 2025. State and federal policymakers have increased their focus on boosting educational opportunities for this segment of the workforce. This report examines labor market outcomes among workers with some college training to shed light on the types of jobs that hold the most promise for future workers and the state economy.

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