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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.

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

Are California’s Schools Ready for Online Testing and Learning?

By Niu Gao

In addition to the Common Core State Standards (CCSS), California is implementing a new, online assessment system: the California Assessment of Student Performance and Progress (CAASPP). Field tests were conducted last spring and the system is being rolled out this year, amid concerns about whether schools are technologically prepared. Using survey data from the California Educational Technology Professionals Association (CETPA), this report examines school districts’ technology infrastructure and assesses their readiness for online testing. Three findings emerge. First, school districts express confidence in the quantity and quality of their hardware and network capabilities but remain concerned about software and training of instructional and IT staff. Second, there is sizable variation in readiness across districts, linked mainly to student enrollment and district expenditure levels. Third, a clear majority of the state’s onetime CCSS Implementation Fund is going into non-technology spending such as instructional materials and teacher training. Regardless of their current readiness, districts will need targeted and ongoing support to upgrade and maintain their technology infrastructure. In the longer term, virtually all schools will need to upgrade their technology infrastructure in order to adopt and benefit from digital learning.

Report

Implementing California’s School Funding Formula: Will High-Need Students Benefit?

By Laura Hill, Iwunze Ugo

The Local Control Funding Formula (LCFF) reformed California’s K–12 school finance system. It replaced a patchwork of formulas and specific (or "categorical”) programs with a focus on local control, funding equity, and additional support for the large share of students (63%) who are "high needs"—that is, low-income, English Learner, and/or foster care youth. However, there are still concerns about whether the new funding will reach high-need students. Because districts have spending flexibility, and because some of the extra funding for high-need students is based on their districtwide enrollment levels, it is possible that high-need schools in districts with relatively low overall shares of high-need students will not get the funding they need. Our research indicates that county offices of education—which are charged with assisting districts in developing and achieving accountability plans—may have extra work to do in parts of Southern California, the Bay Area, and Sacramento to ensure that extra state funding improves outcomes of high-need students who are not evenly distributed across district schools.

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

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 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.

Report

California’s English Learner Students

By Laura Hill

English Learner (EL) students in California’s schools are numerous and diverse, and they lag behind their native-English-speaking peers. Closing the achievement gap for EL students has been a long-standing goal for California educators, and there are some signs of success. Now that EL funding and curriculum issues are receiving a fresh level of scrutiny from decisionmakers in Sacramento, it is important to assess our understanding of this diverse group, highlight the opportunities to improve policies around demonstrating mastery of English, calibrate funding formulas involving EL students, and implement new curriculum standards thoughtfully.

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