California currently faces a $38 billion budget deficit, and a decade of expansion in state funding for public higher education may be nearing an end. The budget crises of 2001 and 2009 sharply reduced funding to the University of California (UC) and California State University (CSU) systems, resulting in decreased access to college and increased access to middle- and high-income students. Student tuition fees have increased. There is some good news this time. The state currently has a $23 billion budget, and some spending could be deferred. However, policymakers will want to prioritize funding for higher education that furthers the state's goals. In this regard, we have identified several key opportunities and areas of concern.
Changes in federal financial aid may impact admissions and enrollment. The U.S. Department of Education “soft-launched” a new, shorter Free Application for Federal Student Aid (FAFSA) on December 30th. The new FAFSA automatically imports household financial data from the IRS, reducing the amount of information needed by students and their families. The department also expanded access to Pell Grants by implementing changes to the formula that determines how much students and their families must contribute.
In theory, these changes should benefit not only students but also universities. For an admitted student to create a financial aid package for her by March, the university must have her financial information by the end of January. However, rolling out the new FAFSA has been difficult. Few students have access to the forms, and the Department of Education is struggling to handle the large number of applications that need to be processed. Unless the situation improves soon, students and colleges may be left scrambling to understand the cost of college when deciding which school to attend.
Dual enrollment is a key area of growth. Studies in California and other states show that dual enrollment, which gives high school students the opportunity to take college courses for credit, improves a variety of educational outcomes, including high school graduation, college admission, and college graduation. It has been shown that In the year ahead, we look forward to continued efforts by higher education institutions and legislative leaders to ensure equitable access and success to dual enrollment.
Our research recommends that community colleges prioritize growth among courses that meet critical requirements for high school graduation and college completion. We also recommend strengthening policies that promote equity. For example, you can leverage the College and Career Access Pathway (CCAP) to expand access to transfer-level math and English courses that are key to graduating from college.
Rationalization The transfer process remains an important goal. Community colleges are the primary access point to higher education for California high school graduates. Although most community college students aim to transfer to a four-year university, relatively few students are able to achieve that goal. Notably, our recent research shows that at both the University of California and California State University, Latino and Black students are underrepresented among transfer enrollees compared to the proportion of community college students who seek to transfer. It turns out that it is still undervalued. There are also some important regional differences by segment, with regions well-represented among CSU transfer students, but students in the Inland Empire and San Joaquin Valleys are particularly less likely to transfer to her UC campus. is.
However, our research also highlights the impact of recent reforms, including increased dual enrollment, AB 705, which expanded access to transfer-level courses in the community college system, and associate degree transfer (ADT) programs. . It helped streamline the transfer process. Since these reforms were enacted, the percentage of students who transfer within two years of enrolling at a community college has increased. Our research suggests that coordination between these and other efforts is key to further progress.
Universities need support to address students' basic needs and mental health issues. While learning loss during the pandemic remains a concern, mental health issues and basic needs also impact student outcomes. In the 2020-2021 academic year, more than 60% of students met criteria for one or more mental health issues, such as major depression or anxiety disorders, an increase of 50% from 2013. The National Institutes of Health has pointed out a link to poor mental health. Dropout rates in vocational and higher education. Food and housing insecurity is also on the rise. A recent survey conducted by the California Student Aid Commission found that 53% of college students reported having housing problems and 63% reported struggling with food insecurity.
Over the past few years, college campuses have launched or expanded basic needs centers and mental health programs to address these challenges. Ensuring continued state and federal support for these efforts is critical to improving student outcomes.
New longitudinal data systems may provide important insights. In October 2023, California's Cradle to Career Data System (C2C) received more than 1 billion data points from the state's public education system, Department of Health Services, Department of Human Services, and Teacher Credentialing Commission. By unifying previously siled data systems, practitioners, parents, and students can make more informed education and career choices. Once available, independent researchers will be able to assess the effectiveness of policies and interventions, examine labor market returns to educational programs, and identify barriers to student success along the educational and career pipeline. It may be possible to use it to identify. Finally, this data could help state policymakers prioritize successful policies and investments.
To build on the progress made in higher education over the past few years, policies and efforts must be closely aligned and focused on equity and efficiency. PPIC's Higher Education Center continues to highlight opportunities and challenges with the goal of informing and improving policy and practice.
