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Higher Education in California: Student Costs

By Jacob Jackson

Increases in tuition across California’s public four-year universities have heightened concerns about the affordability of a college education, especially for those with the lowest incomes. In-state full tuition at the University of California (UC) and California State University (CSU) has risen more dramatically than at other public universities in other states over the past decade. During this same period, the federal, state, and institutional grant and scholarship programs that help make college affordable for students from lower- and middle-income families expanded. This helped lower-income families keep up with rising tuition, but the full price of college beyond tuition can still be a relatively large share of their income. Given the importance of higher education to California’s economic future, policymakers at the federal, state, and institutional levels need to make a continuing commitment to keep college affordable for students from low- and middle-income families. Also, given current tuition levels, it is more important than ever for the state to ensure that all students fill out financial aid forms and can easily access tools that can help them understand the financial aid packages they are offered.

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

California’s Changing K-12 Accountability Program

By Paul Warren

California recently joined a number of other states in adopting the Common Core State Standards, which establish new criteria for what students should learn in school. It also joined a consortium of states to develop new tests based on those standards. The new standards are ambitious, and some teachers are concerned they are not prepared to convey the higher-level skills and concepts they contain. The new tests will allow the state to measure gains in each student’s achievement, creating new options for how the state ranks schools. The change will also prompt the state to reassess the value of state tests in high school and its options for holding secondary schools accountable. More changes to the state’s accountability program are likely when Congress reauthorizes the federal education law, and the way the state addresses these current issues will influence the shape of its future accountability program.

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.

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