Report Measuring Institutional Costs at California’s Public Universities By Patrick Murphy, Kevin Cook, Talib Jabbar Mar 15, 2017 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 College Costs Could Rise for Some Students By Jacob Jackson Jan 20, 2017 Middle- and upper-class students will likely pay more for their college degrees under proposals being considered by the legislature, UC, and CSU.
blog post The News on Student Debt Is Not All Bad By Hans Johnson Jan 12, 2017 There are some encouraging and newly emerging trends in student debt, especially in California.
blog post CSU and UC Are a Better Value Than Universities Nationwide By Jacob Jackson Nov 23, 2016 The federal government’s yearly scorecard shows that California’s public universities offer students good economic returns for a reasonable price.
blog post Free University Tuition: How Many California Students Would Benefit? By Jacob Jackson Sep 1, 2016 Hillary Clinton has proposed free university tuition for students whose families earn less than $85,000. How many California students might benefit from such a plan?
blog post Does Free Community College Grow Enrollment? By Kevin Cook Jun 2, 2016 Initial results from a Tennessee program suggest that free community college may shift enrollment, rather than increasing it.
blog post How the New FAFSA Can Help Californians By Jacob Jackson Oct 22, 2015 The revamped Free Application for Federal Financial Student Aid (FAFSA) can benefit Californians in multiple ways.
Report Will California Run Out of College Graduates? By Hans Johnson, Sarah Bohn, Marisol Cuellar Mejia Oct 12, 2015 California’s higher education system is a critical driver of the state’s economic progress. As the state’s economy continues to change, will its workforce be ready for the jobs of tomorrow? This report updates and extends projections of California’s workforce skills through 2030, focusing on the supply and demand for workers with a bachelor’s degree. We find that the state will fall about 1.1 million college graduates short of economic demand if current trends persist—a problem we call the workforce skills gap. Even the arrival of highly educated workers from elsewhere is unlikely to be large enough to fill this gap. Today’s college graduates have better economic outcomes than those who do not hold a bachelor’s degree. Over time, college graduates have seen lower rates of unemployment and higher wages than other workers—even through the Great Recession—suggesting that college degrees have become increasingly valuable in California’s labor market. The future workforce skills gap looms large. But California and its higher education institutions can take several practical steps to close it. The core of a new plan for higher education should include increasing access to the state’s four-year institutions, improving college completion rates, expanding transfer pathways from community colleges, and being smart about aid programs.
