The Power of Policy Ideas: Are California’s
Community Colleges Really Affordable?
If Not What Can a Strapped State Do?*
William Zumeta
Daniel J. Evans School of Public Affairs & College of Education
University of Washington
Presented at the Steinhardt Institute for Higher Education Policy
New York University
March 12, 2008
* Based on a study by Zumeta and Deborah Frankle, Strengthening California’s Community Colleges and
Affordable Access to Them, published by the National Center for Public Policy and Higher Education, Report #071, March 2007. Financial support from the William and Flora Hewlett Foundation is gratefully acknowledged.
1
Tuition/Fees in 50 States
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
2
Expenditures per FTES –
Selected WICHE States
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
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3
Many of California Community Colleges’ students are lower
income than in other states.
Community College Student Income Distribution by State, 2004
10th
Percentile
25th
Percentile
50th
Percentile
75th
Percentile
90th
Percentile
Dependent
Students
US excl. CA
California
Illinois
Texas
New York
$
15,554
9,084
19,065
15,432
13,535
$
30,362
23,896
35,444
26,561
27,326
$
53,120
49,805
57,167
51,902
46,551
$
82,968
81,403
80,076
80,082
76,736
$
121,400
123,589
103,203
116,064
126,796
Independent
Students
US excl. CA
California
Illinois
Texas
New York
4,358
2,990
5,163
3,632
3,419
12,576
11,516
14,582
11,538
10,877
27,291
29,013
31,914
25,603
24,294
50,927
57,048
56,697
47,871
46,272
78,135
87,968
86,740
75,378
68,780
Source: NPSAS:04
4
Hours Worked by CCC Students, by Student Category
A key consequence
of too little financial
aid is that students
work too many
hours, hindering
their academic
progress.
2004
Dependent, Full-time
Dependent, Part-time
Independent, Full-time
Independent, Part-time, <30
Independent, Part-time, 30+
All Categories
Average Weekly
Work Hours*
#
23
30
29
33
36
32
2000
Dependent, Full-time
Dependent, Part-time
Independent, Full-time
Independent, Part-time, <30
Independent, Part-time, 30+
All Categories
27
32
31
39
39
35
* Includes work-study. Does not include students who
do not work.
Source: NPSAS:04
5
CCC affordability is NOT mainly about fees.
Fee Percentage of Total
Cost of Full-Time Attendance,
2006-07 CSAC Budgets
9%
8%
7.6%
Almost 29% of CCC credit
enrollment receives BOG
Fee Waivers…
28.7%
7%
6%
4.8%
5%
4%
3%
…and over half of all
full-time CCC students
receive BOG Fee Waivers.
2%
1%
0%
Living with Parents
Living Off Campus
Sources: CSAC Nine-Month Student Expense Budgets,
Chancellor’s Office, August 2006 BFAP Report
51.6%
6
Non-fee costs of attendance are rising fast for CCC students.
Five-Year Increases in Selected Price Indices
Indexed to 2000-01 = 100
140
CPI, Educational Books
and Supplies
130
CSAC, Off Campus Budget
120
CCPI
110
US CPI
100
90
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Sources: Bureau of Labor Statistics, California Department of Finance, CSAC Nine-Month
Student Expense Budgets
7
Financial Aid Administrative Dollars
per Undergraduate Student, 2004-05
$180
$160
California underinvests
in financial aid capacity
in the community
colleges.
$152
$140
$120
$100
$79
$80
$60
$41
$40
$20
$0
UC
CSU
This capacity is key to
fully accessing federal
aid and Cal Grants.
CCC
Source: Chancellor’s Office, August 2006 BFAP Report
8
Student Costs and Rates of Aid Application and Receipt
(NPSAS:04)
Dependent, Full-time
US excl. CA
California
Tuition/
Fees
$
$2,200
$584
Total Cost of
Attendance
$
$9,884
$9,224
Applied for Received Received
Federal Aid
Grants
Loans
%
%
%
59.2%
48.4%
24.9%
50.6%
31.2%
9.8%
Dependent, Part-time
US excl. CA
California
$1,013
$284
$4,879
$4,398
45.7%
41.8%
33.6%
23.8%
13.7%
3.2%
Independent, Full-time
US excl. CA
$2,070
California
$588
$11,198
$11,469
76.1%
69.1%
66.6%
53.9%
35.0%
22.4%
Independent, Part-time <30
US excl. CA
$847
California
$244
$5,176
$5,036
52.3%
41.8%
47.2%
32.6%
15.7%
6.6%
Independent, Part-time 30+
US excl. CA
$849
California
$220
$5,095
$5,269
38.9%
23.9%
45.2%
25.1%
11.8%
4.8%
9
Unmet Need After Financial Aid (NPSAS:04)
Need After Grants
% with
Average
Need
Need
Need After All Aid
% with
Average
Need
Need
Dependent, Full-time
US excl. CA
62.6%
California
60.3%
$4,717
$5,345
54.8%
57.8%
$4,389
$5,097
Dependent, Part-time
US excl. CA
37.9%
California
41.7%
$2,881
$2,920
32.3%
38.2%
$2,740
$2,942
Independent, Full-time
US excl. CA
90.9%
California
94.5%
$6,986
$7,493
76.5%
86.2%
$5,854
$6,739
Independent, Part-time <30
US excl. CA
64.6%
California
63.5%
$3,426
$3,693
54.5%
60.4%
$3,122
$3,553
Independent, Part-time 30+
US excl. CA
54.7%
California
51.2%
$3,337
$3,822
46.9%
48.5%
$3,035
$3,673
10
Receipt of Pell and State Grants (NPSAS:04)
Received Average
Received
Average
Pell Grant Pell Grant State Grant State Grant
Dependent, Full-time
%
$
%
$
US excl. CA
25.7%
$2,914
19.4%
$1,269
California
19.9%
$3,113
5.3%
low n
Dependent, Part-time
US excl. CA
California
18.7%
15.8%
$1,830
$2,357
11.1%
4.0%
$966
$1,135
Independent, Full-time
US excl. CA
California
53.6%
38.4%
$3,274
$3,484
22.8%
7.9%
$1,274
low n
Independent, Part-time <30
US excl. CA
30.0%
California
20.1%
$1,749
$2,152
12.9%
1.4%
$798
low n
Independent, Part-time 30+
US excl. CA
21.9%
California
11.8%
$1,706
$2,185
11.4%
1.1%
$750
low n
11
There are signs of improvement since the state's infusion of
BFAP-SFAA funds for capacity building and aid outreach.
Change in Percentage of CCC Students Receiving Major Types of Aid, 2000 and 2004
Applied for
Federal Aid
Received
Pell Grant
Received
State Grant
Received
Loans
2004
All Students
35.9%
15.5%
2.7%
5.8%
2000
All Students
21.1%
10.6%
1.7%
3.4%
Source: NPSAS:04
12
Pell Grant and BOG Fee Waivers and their share of credit
enrollment are increasing.
Credit
Headcount
BOG Fee
Waivers
% Receiving
Fee Waiver
Pell
Grants
% Receiving
Pell Grants
2004-05
2,439,443
700,618
28.7%
259,268
10.6%
2000-01
2,605,949
485,311
18.6%
193,628
7.4%
Source: Chancellor's Office Data Mart, accessed 8/14/06. Credit headcount comes from
a special CO tabulation.
13
Recommendation:
Expand Board Financial Assistance
Program Outreach and Capacity-Building
Why?
CCC student population is needier but receives fewer
financial aid resources than other segments
Signs of improvement in aid application and receipt rates
since major infusion of state BFAP funds in 2003-04
CCC students work too much, reducing persistence,
completion, and transfer
How?
Research and disseminate best practices
Increase incentives for FAFSA completion
Tie increased resources to performance improvements
14
Recommendation:
Enhance Cal Grant Programs
Why?
Increases to Cal Grant B Access Grants
have not kept pace with inflation,
much less costs of attendance
82% of eligible CCC applicants remained
unserved by Competitive Grants in
2005-06
How?
Increase value of Cal Grant B Access Grants
and link the value to inflation or target a
percentage of the originally legislated
value.
Provide more Competitive Grants to serve a
target percentage of eligible applicants
(e.g., 25% compared to current 18%).
Changes to
Cal Grant
programs
effective in
2001-02
have helped
more CCC
students.
15
Trend in Cal Grant B Access Grant Compared to Inflation
Indexed to 1969-70 = 100
Access Grant
CCPI
650
$5,190
550
450
Had the Cal Grant B
Access Grant’s value
kept pace with inflation,
it would be worth
$5,190 for 2006-07.
350
250
150
$900
$1,551
50
1969-70
Instead, the 2006-07
maximum Access Award
is $1,551.
2006-07
Notes: CCPI for 2006-07 is a Department of Finance estimate.
Sources: California Department of Finance, California Postsecondary Education
Commission
16
Recommendation:
Establish Rational Fee Policy (1 of 2)
Why?
CCC affordability is not mainly about fees!
Low-income students needn’t pay fees due to BOG Fee
Waivers
Impending fee rollbacks will cost the California treasury
$80 million and the neediest students $20 million in aid
(LAO estimates)
Low fees contribute to low rates of aid application
The system needs more revenues to improve financial aid
capacity and student persistence, completion, and
transfer rates
17
Recommendation:
Establish Rational Fee Policy (2 of 2)
How?
Create consistency and predictability for CCCs and
students by tying annual fee increases to an
affordability indicator such as state per capita personal
income (average annual growth was 4.36% over 19962005)
This implies annual fee increases ranging from $0.87 to
$1.23 per credit between 2007-08 and 2015-16.
Use additional fee revenues to invest in student services
designed to improve financial aid capacity and student
persistence, completion, and transfer
To reduce disincentives for fee increases, the state should
match revenue from increases to fund a Community
College Grants Program targeted at particular student
needs
18