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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.

Report

Improving California Children’s Participation in Nutrition Programs

By Caroline Danielson, Sarah Bohn

Food and nutrition assistance programs help children gain access to adequate amounts of nutritious food—reducing child hunger and food insecurity as well as promoting healthy development. Yet in California, enrollment varies widely across counties and across the main nutrition programs that serve children: CalFresh, popularly known as food stamps; the WIC program, which serves infants and preschool-age children; and school meals, which include lunch and often other meals. Increasing children’s enrollment in CalFresh and achieving healthier outcomes for Californians are priorities for the state. The governor’s January 2016 budget set a goal of enrolling 400,000 more eligible children in CalFresh over two years.

This report assesses children’s eligibility for CalFresh and eligible children’s participation in the three main nutrition programs to explore opportunities for improving enrollment and the benefits of higher enrollment. Key findings include:

  • CalFresh has lower enrollment than free school meals and WIC. In 2015, 24 percent of all California children participated in CalFresh, while more than twice as many age-eligible children (51%) were enrolled in free school meals; 44 percent of infants and 34 percent of young children were enrolled in WIC.
  • There is substantial potential to expand the impact of nutrition programs. We estimate that if all CalFresh-eligible children were fully enrolled in both CalFresh and either free school meals or WIC, these programs would reach 1.6 million more children.
  • Infants and young children are better connected to nutrition programs. Among CalFresh-eligible children, we find that 12 percent of public school students participate in neither CalFresh nor free school meals—more than a quarter million school children (331,000). In contrast, only 4 percent of infants (21,000) and 9 percent of young children (87,000) are disconnected from both CalFresh and WIC.
  • Higher participation in nutrition programs would lower child poverty. Among public school students living in poverty, we project that full participation in nutrition programs would increase family resources by 15 percent. Among infants and young children living in poverty, we project that family resources would increase by 9 percent following full participation in nutrition programs.

To some extent, lower CalFresh enrollment reflects more restrictive eligibility requirements. However, there is good reason to believe that more children participating in free school meals and WIC could be connected to CalFresh. Currently, most policies designed to integrate nutrition programs run from CalFresh to school meals. Building robust, two-way connections could help counties and the state better achieve the goals of these programs so more children have access to adequate, nutritious food.

Report

College Readiness in California: A Look at Rigorous High School Course-Taking

By Niu Gao

Recognizing the educational and economic benefits of a college degree, education policymakers at the federal, state, and local levels have made college preparation a priority. There are many ways to measure college readiness, but one key component is rigorous high school coursework. California has not yet adopted a statewide college readiness requirement, but a growing number of school districts—including Los Angeles Unified, San Jose Unified, Oakland Unified, San Diego Unified, and San Francisco Unified—now require students to complete the rigorous coursework, called the "a–g courses,” that are necessary for admission to the University of California (UC) and the California State University (CSU) system.

In this report we look at participation and performance in rigorous high school courses among California high school students, both overall and across demographic and racial/ethnic groups. While enrollment in rigorous courses has been increasing, particularly among students who are traditionally underrepresented in higher education, a large majority of California high school students are not taking the courses that can prepare them for college. Forty-three percent of high school graduates in 2015 completed the a–g requirement, and 27 percent of high school graduates in 2013 passed an advanced placement (AP) exam. Participation in advanced math, biology, chemistry, and physics courses is also low. In particular, only 30 percent of high school juniors and seniors enrolled in Algebra II and smaller shares enrolled in chemistry (28%) and physics (10%).

As they monitor the progress of public high schools in preparing students for college, state policymakers and districts need to focus on indicators such as a–g completion, benchmark course-taking, and end-of-course exam (EOC) results. We also recommend tracking performance across student groups to help schools and districts address gaps in achievement and provide educational resources to students who need them most.

Report

Improving College Graduation Rates: A Closer Look at California State University

By Kevin Cook, Jacob Jackson

Low college graduation rates come at a high cost—lower salaries, lower tax revenue, and fewer college graduates in the workforce. At California State University (CSU), the nation's largest university system, graduation rates have an outsized financial and economic impact on students and the state.

CSU has made strides in improving graduation rates, but there is more work to be done. The system continues to struggle with graduation gaps—underrepresented students are much less likely to complete their degree compared to their peers, and these gaps have not narrowed over time. Also, CSU's on-time (four-year) graduation rates still lag behind those of similar universities nationwide.

By 2025, CSU aims to further increase graduation rates while cutting graduation gaps in half. To assist campus planning for this goal, we identify several promising programs and policies. More broadly, the CSU Chancellor's Office must work with campuses to evaluate and expand successful efforts, and the state must play a role in supporting new policies to move the needle on graduation gaps and on-time graduation.

blog post

Testimony: Closing California’s Degree Gap

By Hans Johnson

The most promising approach to closing the workforce skills gap is to concentrate on improving the educational attainment of California residents.

Report

Will California Run Out of College Graduates?

By Hans Johnson, Sarah Bohn, Marisol Cuellar Mejia

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.

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

What If California’s Drought Continues?

By Ellen Hanak, Jay Lund, Jeffrey Mount, Peter Moyle ...

California is in the fourth year of a severe, hot drought—the kind that is increasingly likely as the climate warms. Although no sector has been untouched, impacts so far have varied greatly, reflecting different levels of drought preparedness. Urban areas are in the best shape, thanks to sustained investments in diversified water portfolios and conservation. Farmers are more vulnerable, but they are also adapting. The greatest vulnerabilities are in some low-income rural communities where wells are running dry and in California’s wetlands, rivers, and forests, where the state’s iconic biodiversity is under extreme threat. Two to three more years of drought will increase challenges in all areas and require continued—and likely increasingly difficult—adaptations. Emergency programs will need to be significantly expanded to get drinking water to rural residents and to prevent major losses of waterbirds and extinctions of numerous native fish species, including most salmon runs. California also needs to start a longer-term effort to build drought resilience in the most vulnerable areas.

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