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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

Geography of Child Poverty in California

By Caroline Danielson, Sarah Bohn

One-quarter of young children across the state live in poverty. In inland regions, reducing child poverty requires efforts to improve job opportunities. In many coastal regions, increasing access to affordable housing will help.

Report

High-Need Students and California’s New Assessments

By Laura Hill, Iwunze Ugo

The 2014–15 school year was the first in which the Smarter Balanced assessments (referred to here as the SBAC) were administered statewide. While educators and policymakers agree that multiple measures over multiple years are the best way to gauge student, school, and district performance, the first-year SBAC results provide an important baseline for assessing implementation of the Common Core State Standards and the Local Control and Accountability Plans (LCAPs).

These results may also have implications for the evolution of accountability measures at the district and state levels—especially in relation to high-need students. The California State Board of Education has not yet devised a replacement for the Academic Performance Index (API), which was suspended in the 2014–15 school year. Districts have developed goals and measures in their LCAPs but the rubrics that state and the county offices of education will use are not yet in place. In the meantime, a close look at the results of the first year of testing can help us track achievement gaps between student groups and identify districts and schools with the largest tasks ahead.

One of the major goals of the Local Control Funding Formula (LCFF) is to help districts address a long-standing achievement gap between high-need students—economically disadvantaged students and English Learners (ELs)—and other students. However, we find that the test score gap is larger for 4th-grade EL and economically disadvantaged students when measured with the SBAC than with the state’s prior assessment (the California Standards Test, or CST). Generally speaking, as the share of high-need students in a district or school increases, the proportion of students meeting the standards falls. However, when we compare results across demographically similar schools and districts, we find that some schools performed better than expected.

Results for English Learners are particularly useful for local and state policymakers as they implement new EL standards and consider how to revise reclassification standards. Notably, in a relatively large number of schools, no EL students scored at or above the standards for English language arts (ELA) and math. In the past, 30 percent of districts required ELs to meet the ELA standard on the CST to be reclassified.

Our main conclusion is that high-need students are far behind other student groups—indeed, they may be farther behind than we thought. Schools and districts can use this analysis to take stock of their implementation of the Common Core and their progress toward their LCAP goals for EL and economically disadvantaged students. And schools and districts with large gaps—especially those performing below expectations—can find examples of similar districts and schools that exceeded expectations.

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