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Higher Education Finance in California

About the Program
As concerns have grown about access to and affordability of California’s higher education system, understanding costs has become more critical than ever. How are institutions—and students—faring? Can performance budgeting improve efficiency and outcomes? PPIC researcher Hans Johnson will provide an overview of these issues, and a panel of experts will discuss the future of higher education finance in California.

This research was supported with funding from the California Postsecondary Education Commission Foundation and the Donald Bren Foundation.

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Climate Change and California’s Future

About the Program
With California on track to achieve its climate change goals by the end of the decade, Governor Brown has set his sights even higher. What will it take to ensure that half of the state’s energy comes from renewable sources and to significantly increase efficiency for cars and buildings—all by 2030? A panel of state and local experts will discuss the challenges and the potential impact of these policies on life in California.

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

School Finance

By Margaret Weston

There is broad consensus that California's school finance system is inequitable, inadequate, and overly complex. In response to these critiques, this year Governor Jerry Brown proposed an overhaul of our school finance system. Also, two initiatives on the November ballot asked voters to increase education funding through tax increases: voters approved Proposition 30, which was integral to the governor's budget plan, and rejected Proposition 38, a citizens' initiative.

Despite the passage of Proposition 30, California faces many school finance challenges. This report provides an overview of the state's school finance system and outlines some longstanding school finance issues that may be in play next year.

Policy Brief

Policy Brief: Do Registration Reforms Add New Voters or Keep Californians Registered?

By Eric McGhee, Jennifer Paluch, Mindy Romero, Stephanie Barton

Automatic voter registration and streamlined address updates have brought new voters onto the rolls while helping those who move within the state stay registered—but these reforms have not improved representation. To bring more young and diverse Californians into the electorate, the state must broaden its efforts to register new voters.

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.

Report

California’s Care Workforce

By Shannon McConville, Daniel Payares-Montoya, Sarah Bohn

State master plans on the aging population and early learning and care have prioritized workforce expansion and career pathways for care workers who provide key services to young children, older residents, and people with disabilities. A new report outlines current realities and highlights challenges and opportunities in growing this critical workforce.

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