OpportunityTexas™
Promoting Postsecondary
Access & Success
Texas College Access Network
Dallas, Texas
May 16, 2012
Don Baylor, Jr. (baylor@cppp.org)
Senior Policy Analyst, Economic Opportunity
Leslie Helmcamp (helmcamp@cppp.org)
Policy Analyst, Economic Opportunity
1
What CPPP Does
Improving public policies to better the economic and social
conditions of low- and moderate-income Texans.
Creating economic opportunity to strengthen
families and grow the middle class;
Increasing access to quality, affordable health
insurance;
Helping families meet basic needs;
Enhancing child well-being and child protection;
Ensuring effective public administration; and
Securing fair and adequate taxation to pay for critical
public investments in Texas.
What is OpportunityTexas?
CPPP Roles &
Strengths:
RAISE Texas
Roles & Strengths:
•
•
•
•
•
•
•
•
Advocate
Policy Innovation &
Development
Research & Data Analysis
Communications &
Coalition Building
RAISE
Texas
CPPP
Opportunity
Texas
Technical Assistance
Advisor
Grassroots Network
Convener-Collaborator
OpportunityTexas
• Creates an engaging platform for savings, financial education and financial
preparation for college
• Uses existing statewide delivery systems, such as the K-12 system and the
workplace, to increase the financial success of Texans
• Forges new partnerships between higher education, business, nonprofits, the
public sector, philanthropy, employers, and national intermediaries
OpportunityTexas Approach
 Engage local communities and stakeholders to evaluate






community needs and expand economic opportunity
Provide seed capital to scale innovative asset building
initiatives
Enable state policy input & advocacy from regional and
statewide organizations
Ensure proper implementation of state legislation
Establish Measures for Financial Stability & Economic Mobility
Build partnerships to address opportunity gaps
Share best practices and innovations
OT Areas of Focus
 Texas Saves at Tax Time
 Financial Preparation for Postsecondary Success
 K-12 Financial Education
 College Savings Accounts
 FAFSA Completion & Financing College
 Increasing Financial Inclusion
 Enhancing Community Capacity
 Increasing Financial Stability
 Building Consumer Credit
 Increasing Account Ownership
 Promoting Household Savings
 Economic Security & Opportunity Platforms
 Texas Regional Opportunity Index
 Family Budget Estimator
 Benefits Screening & Access
A college degree and household savings are key
indicators for increasing economic mobility
A College Degree Moves Children
Up Economic Ladder Percent Adult
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
5%
9%
18%
23%
45%
19%
22%
21%
22%
16%
Without a
With a College
College Degree
Degree
So does savings
Children with
Income in Top
Quintile
Percent Adult
Children with
Income in Fourth
Quintile
Percent Adult
Children with
Income in Middle
Quintile
Percent Adult
Children with
Income in Second
Quintile
Percent Adult
Children with
Income in Bottom
Quintile
Source: Brookings Tabulations of PSID Data, Isaacs, Sawhill& Haskings, February 2008, Children in the Bottom Income Quartile
College Savings Accounts Lift Aspirations &
Promote Postsecondary Access
 Elliott and Beverly, The Role of Savings and
Wealth in Reducing Wilt Between Expectations
And College Attendance (2010)
 Youth who have a savings account in their
names are nearly seven times more likely to
attend a four-year college than youth with
no accounts
 The account itself, regardless of savings
amounts, is associated with academic
achievement
Strategies to Enhance Financial
Preparation for College
FAFSA
Completion
Financial Screening
& EFC Estimate
College Savings
Financial Education
OpportunityTexas, 2011
College Access & Completion Areas
of Focus
Financial Aid
(Grants, Loans,
Work-Study)
Career & Skills
Development
College Savings
&
Financial Prep
Postsecondary
Access
& Success
Developmental
Education
Reform
K-16 Financial
Education &
Capability
2011 Policy
Accomplishments
New Laws Improve Texas’ financial capability and college
savings
 SB 290 (Watson)—expands mandatory financial literacy
into statewide K-8 curricula and assessment platforms
 HB 34 (Branch)—builds on current financial literacy
requirement (12th grade economics) to include:
 Instruction on paying for postsecondary education and
training
 Instruction on completing the FAFSA
 Curricula to be finalized for 2013-2014 academic year
Policy Accomplishments
(continued)
 HB 2594 (Truitt)—Payday and Auto Title Lending Reform Licensing
Bill creates Texas Financial Education Endowment to fund initiatives
such as:
 “school and youth-based financial literacy and capability”;
 “advertising, marketing, and public awareness campaigns to
improve the credit profiles and credit scores of consumers in this
state”;
 HB 399 (Castro)—requires universities to make available training on
personal financial literacy (e.g. credit cards, loan repayment,
retirement planning, budgeting, saving)
 HB 3708 (Hochberg)—improves Save & Match program by
eliminating college savings penalties (financial aid, public benefits)
College Savings in Texas
 Texas Tuition Promise Fund (prepaid) & Texas
College Savings Plan
 Assets Exempt from Public Benefits & State
Financial Aid
 Texas Save & Match (HB 3708)
 Targeted for Students in Free & Reduced Lunch
(economically disadvantaged)
 Texas Match the Promise Foundation
 Save & Match Trust Fund
 Nonprofit Scholarship Organizations Can Now
Purchase Tuition Units for Unknown
Beneficiaries
Texas Match the Promise
Foundation: Funding Sources
State Employee
Charitable
Campaign
Private Donations
$8,000
Total: $10,000
Unclaimed Property
Donations
~$190,000
Texas
Match the
Promise
Foundation
Texas
Legislature/Prepaid
Tuition Board
($0)
Race/Ethnicity: TTPF- Enrolled and
Statewide
3%
1%
4%
1%
17%
 In Texas, relative to
Caucasian children,
Hispanic children
are 6 times less
likely to enroll in
TTPF and African
American children
are 5 times less
likely to enroll
51%
58%
28%
4%
15%
13%
5%
Race/ethnicity of TX Children Under 17 Race/ethnicity of Enrolled Children
African American
Asian
Caucasian/Anglo
Hispanic/Latino
Native American
Other
Source: CPPP Analysis, Texas Comptroller of Public Accounts, 2011; Current Population Survey, 2010
College Savings Gap by Income
TTPF Enrollment By Income, 2008-2011
Less than $50K,
1,080, 6%
$50k-$75k,
2,472, 13%
More than $100k,
11,073, 59%
$75k-$100k, 4,042,
22%
Texas College Savings Gap
New Laws in Higher Education
from the 82nd Legislature
 SB 851 – Uniform deadline for financial aid applications
 HB 2910 – Establishes grant program for higher education
institutions to partner with non-profit institutions to
improve degree completion rates
 HB9 - Outcomes-Based Funding bases a portion of higher
education funding on specific student success measures,
including graduation/completion rates
 HB 1244/SB1564 – Developmental Education Assessment
and Curriculum Reforms
 SB 162 – Developmental Education Plan for
Underprepared Students
Financial Aid Primer
 Growing low-income




4.9M
Pre-K-12 Student Enrollment

population
Most college students
attend part-time
Half of undergraduates
are enrolled at
community colleges
One-third of college
students are over age 24
Strong dependence on
loans
Working during school
Economically Disadvantaged Pre-K12 Enrollment Grows 46%
(2001-2011)
4.1M
2.0M
41%
2.1M
51%
2.9M
59%
2.0M
49%
2000-01
2010-11
Not Economically Disadvantaged
Economically Disadvantaged
Source: CPPP Analysis, Texas Education Agency, Enrollment Trends 2001-11
Trends in Financial Aid
 73% of Texas’ financial




aid comes from federal
sources
For every $1 in Pell,
Texas invests 32 cents
Increased focus on
merit criteria
Increase in more costly
loans- Federal
unsubsidized loans
State financial aid
programs cut by 15%
(TEXAS Grant 10%)
A Growing Share of Federal Loans are
Unsubsidized, More Costly to Texas
Students
75%
57.9%
50%
45.6%
25%
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
-25%
Source: CPPP Analysis, Department of Education Data, (Public, Private and
Proprietary two- and four-year colleges and universities)
2009
CPPP Financial Aid Recommendations
 Declare a statewide goal to reduce student dependence on








loans
Financial aid incentives for college success
Increase financial aid investments (work-study, community
colleges, adult students)
Early commitment financial aid
Promote and fund matched savings accounts for college
Increase student supports
Promote and fund early financial preparation strategies for
college, including FAFSA preparation and financial education
Make college-access organizations a prominent and integral
partner in state college preparation activities
Forward fund state financial aid programs
Low-income families cover a higher percentage of college
costs through financial aid, but…
100%
90%
80%
Total Costs = $15,009
Unmet Need,
32%
Total Costs = $17,708
Total Family
Contribution
70%
60%
50%
40%
EFC, 8%
Total Family
Contribution
EFC, 74%
Loans, 28%
30%
20%
10%
0%
Grants, 32%
Loans, 16%
Grants, 10%
0-200%
200% +
Income as Percent of Poverty Line
Source: CPPP Analysis of National Postsecondary Student Aid Study of 2008, NCES Powerstats
.
Total family contributions as a proportion of income are nearly
triple for low-income families compared to higher-income families
100%
90%
80%
70%
60%
50%
40%
30%
20%
Unmet Need
43% of
Income
47% of annual
income spent on
college costs
10%
0%
EFC 4.8%
EFC
14%
0-200%
201% +
14% of
annual
income
spent on
college
Income as a Percent of Poverty Line
Source: CPPP Analysis of National Postsecondary Student Aid Study of 2008, NCES Powerstats
.
DFW Metro Area
City
Applications
Completed
Senior
Enrollment
Completion
Rate
Dallas
2532
9053
28.0%
Fort Worth
1515
4850
31.2%
Arlington
1344
3667
36.7%
Irving
494
2368
20.9%
Duncanville
239
810
29.5%
Source: CPPP Analysis, U.S. Department of Education, FAFSA Submissions by High Schools
2012-13 Application Cycle, As of April 16, 2012
Ten Largest Campuses in DFW Metro Area
Campus
City
Applications
Senior
Completion
Completed Enrollment
Rate
SKYLINE H S
MARTIN H S
ARLINGTON
DALLAS
337
1013
33.3%
ARLINGTON
275
764
36.0%
DUNCANVILLE H S
DUNCANVILLE
233
733
31.8%
TRINITY H S EULESS
EULESS
209
720
29.0%
BELL H S
HURST
174
662
26.3%
COPPELL H S
COPPELL
261
644
40.5%
ROWLETT H S
ROWLETT
166
624
26.6%
KELLER H S
KELLER
225
617
36.5%
167
616
27.1%
NAAMAN FOREST H S GARLAND
Source: CPPP Analysis, U.S. Department of Education, FAFSA Submissions by High Schools 2012-13 Application
Cycle, As of April 16, 2012
Average Need-Based Grant Aid at North Texas
Public Four-Year Institutions
Total Cost of Attendance
$25,844
$1,807
$18,634
$14,751
$1,228
$16,304
$1,110
$3,762
$2,356
$1,328
$19,824
$2,337
$3,948
$4,158
$3,751
$5,110
$5,581
$5,700
$18,815
$895
$4,175
$4,020
$5,693
$19,690
$4,046
27%
$3,921
$6,671
36%
$8,862
47%
Other Sources
$8,624
44%
TEXAS Grant
$8,037
41%
Pell
$3,701
$4,645
$9,280
45%
$20,012
$1,494
$4,128
$5,727
$5,432
$5,457
$5,739
35%
$20,851
$1,923
$5,546
$15,691
61%
TPEG
Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010
$8,844
44%
Average Need-Based Grant Aid at North Texas
Community Colleges
Total Cost of Attendance
$11,448
$10,481
$9,941
$693
$894
$1,526
$1,572
$11,025
$509
$794
$1,576
$1,544
$11,978
$370
$1,676
$3,448
$3,212
$3,353
$5,728
52%
$5,757
50.3%
$12,178
$12,058
$1,074
$790
$1,658
$1,534
$3,210
$3,377
$6,236
51.2%
$6,357
52.7%
$3,156
$3,883
$3,840
38.6%
Navarro
College
$4,859
46.4%
$6,484
54.1%
Tarrant County Trinity Valley Dallas County
Grayson
Collin County
College Dist.
CC
CC
County College
CC
Other Sources
Pell
TEXAS Grant
Statewide
Average
TPEG
Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010
Average Grant Aid at North Texas Independent
Institutions
$47,001
$4,217
$40,294
$38,506
$4,238
Total Cost of Attendance
$4,058
$4,185
$15,014
$6,519
$37,785
$3,811
$3,886
$4,340
$4,065
$3,644
$6,854
$28,266
$3,294
$3,270
$2,683
$23,532
50%
$25,531
63%
SMU
TCU
Other Sources
$26,190
69%
$23,502
61%
University of Dallas
Institutiona Grant Aid
Austin College
TEG
$19,019
67%
Dallas Baptist University
Pell
Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010 & Texas
Independent Colleges and Universities
State “Own Source” Budget 2012-13
PreK-12 Schools,
$42.5 b, 35%
Higher Education,
$22 b, 18%
All Other,
$11 b, 9%
Medicaid,
$17 b, 14%
Busn/Econ Dev,
$15 b, 13%
Criminal Justice,
$6 b, 5.5%
Other Health
& Human
Svcs, $7 b, 6%
“Own Source” = Nonfederal. Source: Legislative Budget Board, HB 1, HB 4, SB 2, Dec. 2011.
Includes $2.3 billion delayed Foundation School Program payment.
2012-13 Budget
Financial Aid & Post-Secondary Training
State Financial
Aid Programs
$1B
Skills
Development
Fund
Jobs and Education
for Texans Grant
Program
$81M
$15M
-40.1%
-100%
-5.8%
-15%
$879M
$48.5M
$0
Source: CPPP Analysis, Texas Association of Community Colleges 82nd Legislature Session Summary, July 2011
Doing More With Less - 2012-13 Budget
Texas Community Colleges
Instructional Formula
Funds 2010-11 &
2012-13
$1.84M
Number of Contact
Hours
2010-11 & 2012-13
312M
Annual Appropriations
per Contact Hour
2010-11 & 2012-13
$3.56
-5.8%
-5.8%
+20.4%
$1.74M
259M
Source: CPPP Analysis, Texas Association of Community Colleges
-21.8%
$2.78
82nd
Legislature Session Summary, July 2011
As with elementary/secondary
schools: no state funding for
enrollment growth
Higher Ed Programs Zeroed out in 2012-13 Budget: College Readiness Grants, Performance
Incentive Fund, Early H.S. Graduation and TANF Scholarships, Engineering Recruitment,
Alternative Teaching Certification, Combat Tuition Reimbursement, Texas Career Opportunity
Grants, Doctoral Incentives, Preceptorship Program, Primary Care Residency Program, Graduate
Medical Education, Professional and Vocational Nursing Aid, Dental Education Loan Repayment,
Hospital-based Nursing Education, and Children’s Medicaid Loan Repayment Program.
Upcoming Work
 Engage New Stakeholders
 Raise Awareness about Texas Match the Promise
Foundation and Ways to Leverage HB 3708 (Texas
Save & Match)
 Participate in rulemaking for HB 2594 (Texas
Financial Education Endowment) @ Texas Finance
Commission
 Raise Awareness about HB 34/SB 290 that
strengthen K-12 financial education
 CPPP to release review of Texas Financial Aid
programs and policies
 Perform Analysis of Local-Level Student Loan Data
 Acquire and analyze local-level FAFSA completion
figures
 Develop College Readiness “Scorecard”
The Family Budget Estimator (FBE)
Project provides a realistic picture of
how much it costs Texas families in
different areas of the state to meet their
basic needs.
www.cppp.org/fbe
Texas Regional Opportunity Index
(TROI)
Identifies, develops, and compares
economic mobility indicators across
regions in Texas:
 County-Based
 Councils of Government (COG)
 Three-Tier County Population
Groupings
 Incorporates
 National (Survey/Census) Data
 Federal & State Agency Data
 Proprietary Data
 Customized Sources & Queries
 Updated Periodically Beginning in
2012
 Local TROI Assessments
 Final Product: Web-Based Platform
with GIS Capability
Ways to Get Involved, Be Informed
 Payday and Auto Title Lending: Stop
the Cycle of Debt
(www.stoppaydayabuse.org)
 State Revenue: Balanced
Budget=Balanced Approach
(www.texasforward.org)
 Savings, Asset Building, & Financial
Success (www.raisetexas.org)
 Issues Affecting Low- and ModerateIncome Texans (www.cppp.org)
 Creating Good Jobs, Increasing
Income, & Promoting Savings
(www.opportunitytexas.org)
Higher Education Partners
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