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California Governor’s Budget Includes Additional State Support for Higher Ed

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Last Thursday, California Governor Jerry Brown released a proposed 2013-14 budget that includes substantial increases for higher education—made possible by the passage of Prop 30. For the UC and CSU systems, the proposal provides an ongoing increase of $125.1 million each. This includes $10 million each to expand the delivery of courses through technology and is in addition to the $125 million that UC and CSU will each receive in 2013‑14 for not increasing tuition and fees in 2012‑13, as required by the 2012 Budget Act.  In sum, the proposal says “the state’s General Fund contribution to UC and CSU will increase by 5 percent per year in 2013-14 and 2014-15 and by 4 percent in each of the subsequent two years.”

Both higher ed systems had asked for more; but, according to The Chronicle, Gov. Brown said “the gap between what we’re going to give them and what they say they’re going to need” would have to be made up through efficiencies.  Cal State system’s chancellor that Mr. Brown’s proposal at least “heads us in the right direction.”

However, in exchange for new money, state institutions are expected to keep tuition and fee levels stable over the next four years.  The institutions are required to increase access to online courses and limit resident tuition rates to the first 150 percent of credits needed to graduate.  This limitation is an attempt to encourage timely degree completion, reduce student debt, and free up classroom space for other students.

At a news conference Thursday, Governor Brown stated that he would be attending UC and CSU board meetings in the hopes of encouraging both systems to keep tuition prices stable.

California’s Prop 30 Loses Ground in the Polls

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Last week, a Los Angeles Times/USC poll found that support for Proposition 30 is dwindling. Only 46 percent of registered voters now approve the California ballot initiative designed to deflect almost $1-billion in state higher-education cuts—a 9-point drop over last month’s poll by the same organizations. Meanwhile, 42 percent of respondents oppose the proposition.

If Prop 30 passes:

  • The state’s sales tax would increase by 0.25 percent through 2016;
  • Californians earning more than $250,000 would pay higher income taxes through 2018;
  • The resulting $6 to 8.5 billion in additional revenue generated each year would allow the state to continue its current level of higher education funding into, at least, the coming year; and
  • The University of California system would freeze undergraduate tuition rates.

If Prop 30 fails:

  • California community colleges would lose $338 million;
  • The California State system would lose $250 million—requiring the system to lay off (by their estimate) 1,500 faculty and staff, reduce next year’s Fall enrollment by about 20,000 students, and increase tuition and fees for in-state students by 5 percent; and
  • The University of California system would lose $375 million—resulting in, as System officials declared, a tuition increase of as much as 20 percent.

Proponents of Prop 30 face resistance from the state’s fiscal conservatives and competition from another ballot initiative, Proposition 38, which would raise income taxes through 2024 and direct most of the $10 billion per year in revenue toward K-12. If both bills pass, California’s constitution requires that the proposition with the most votes cancel out the other. This is because Prop 30 and Prop 38 both increase personal income tax rates and could, therefore, be seen as conflicting. However, Prop 38 appears to have little momentum, relative to Prop 30 and it is unlikely that both bills will pass.

Higher Ed News Roundup

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A few highlights amidst the higher education news this week:

  • The NYT ran a front-page feature on student debt this past Sunday. Many noted the misleading focus, common in popular press coverage of student loans, on individual students with abnormally high loan amounts, but more surprising was the claim that 94 percent of all students owe money at graduation. The correct figure is 2/3rds. The NYT has corrected the piece and explained that they misinterpreted Department of Education data, but the figure is happily bouncing around the internet and probably will be for some time.
  • With another growing budget gap in California, the Governor’s revised budget contains additional cuts to higher education if voters don’t pass a tax hike at the polls this November. The UC and CSU system will face $250m in new state funding cuts if the tax package is not approved.
  • Several top tier institutions are experimenting with creating humanities PhDs that feature shorter time to degree and prepare students for potential careers both inside and outside of the academy.
  • The College Board made an interesting choice in their next leader, 42 year old David Coleman. Coleman was the co-founder of the nonprofit Student Achievement Partners, which helped develop and promote the Common Core Standards, which define what a student should learn and know in english and math through the 12th grade.  
  • MIT Provost and longtime faculty member L. Rafael Rife will replace Susan Hockfield as MIT President when she steps down. Reif was a leader in the development of MIT’s open courseware and online education efforts including the development of both MITx and the new edX partnership with Harvard.

 

Fewer Californians Enrolling at UC/CSU

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The Public Policy Institute of California (PPIC) released a report addressing the effects of state disinvestment on enrollment rates in Californian higher education institutions. California high school graduates, despite applying and being eligible for enrollment, are less likely to enroll in the UC or CSU system today than five years ago. The report blames this decline on state cuts in higher education spending, which has led to skyrocketing tuition and enrollment limits at California schools. While California community colleges have absorbed some of this decrease, the report finds that students are increasingly going out-of-state or not enrolling in college at all.

Highlights from the report include:

  • Enrollment rates of Californians at UC and CSU have fallen by one-fifth in the past five years, from 22 percent of CA high school graduates in 2005 to 18 percent in 2010.
  • UC and CSU have rationed enrollment and increased tuition in order to blunt the effect of decreasing state support on educational quality. Tuition rose by 50 percent between 2007 and 2011 at UC, and by 47 percent at CSU.  Tuition at CA community colleges has also almost doubled in that time.
  • UC has reduced its campus enrollment targets and places students not accepted to their campus of choice into a referral pool, which grants them admission to less popular campuses where they are less likely to enroll. CSU now requires a higher SAT/GPA combination for CA students that live further from their chosen campus in an effort to limit enrollment. Community colleges cannot officially deny enrollment, but they have increased class sizes and decreased program offerings which effectively limits slots.
  • Most students accepted to UC who decide not to enroll there, go to private institutions, usually out of state (34 percent).  30 percent enroll at CSU, 12 percent to community colleges in California, 8 percent to public schools out of state, and 10 percent do not enroll in college at all.

The report finds these trends troubling, since it represents a great loss of human capital to California. Estimates say that two out of five jobs in CA in 2025 will require a bachelor’s degree; if current trends continue, California will be short one million bachelor’s degree holders by that time. The report recommends locking in tuition for four years for each incoming class, offering deferred tuition payment plans, reinvesting in higher education and increasing the availability of financial aid to students in order to combat decreasing enrollment rates. The full report is available in this PDF link.

Report Promotes Autonomy for UC Campuses

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The Center for Studies in Higher Education (CSHE) at UC Berkeley has released a new report calling for a modernization of the UC system’s governance structure. Today, the UC system is run as one university with multiple campuses, and most decisions are made by a single, system-wide Board of Regents. The Center contends that the UC system has undergone huge changes in the past 50 years and that this centralized governance system is outdated. The campuses face individual challenges and opportunities: less funding from the state of California, increasing complexity, more diversity in the student body, and special programs, faculty and capital projects. The report contends that a more localized system of governance would be responsive to the needs of the campuses, would promote more efficient decision-making, and would allow the Regents to better capitalize on the unique opportunities of each campus.

The authors recommend that the UC system shift towards a hybrid system of governance, maintaining the Board of Regents while creating individual campus governing boards. The UC Board of Regents would continue to provide system-wide coordination and planning, preserve the UC-wide state budget, ensure access, and protect the reputation for academic excellence the UC system has cultivated. The local campus boards would approve campus budgets and allocate financial aid monies, set tuition for graduate and out-of-state students as well as for resident undergraduates (within Regental limits), set total enrollment capacity, decide on faculty cost-of-living adjustments, and approve campus construction projects.

The plan is controversial, and has received mixed reviews from UC authorities. While UC President Mark Yudof does not endorse the CSHE proposal, he concedes that the system should have further conversations about governance to make the system more flexible and efficient.  Robert Birgeneau, one of the report authors and the current UC Berkeley Chancellor, defended the proposal, claiming it provides the necessary autonomy for campuses to address their individual challenges and opportunities.

More about the proposed structure of the campus boards, and the specific responsibilities they would hold, is available in the full report.

New OPB Brief

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This week, UPenn’s Institute for Research on Higher Education (IRHE) released a report assessing the state of higher education policy in Washington State. While satisfactorily describing the key facts and long-term trends and potential future problems for higher education in Washington State, the report is somewhat unrealistic in its recommendations. It seems to assume that, absent any change in state funding trends, policymakers can dramatically alter educational attainment via structural changes in governance.

Read the latest OPB brief for more information.

Higher Ed News Roundup

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With the special legislative session wrapped up here in Washington, and regular session not set to begin until January 9th, here is some of what has been happening in higher education elsewhere.

Federal Budget Agreement Preserves but Alters Pell Grants: It appears that a last minute FY2012 budget agreement in Washington DC will avert a federal government shutdown. It is reported that this agreement, which cuts billions of dollars and increases NIH funding by a modest one percent, preserves the maximum Pell Grant amount of $5,500 (a priority for Democrats), but alters eligibility. Under this language, Pell grants could only be used for 12 total semesters, not 18. Additionally, the annual income threshold at which a student is automatically determined to have zero Expected Family Contribution (EFC) is lowered from $30,000 to $23,000. Stay tuned to the Office of Federal Relations  for frequent updates on these budget negotiations.

Berkeley Unveils New Aid Program: UC Berkeley made big news this week for announcing a new financial aid program aimed at middle class Californians. Students from families making up to $80,000 per year already attend UC schools tuition-free in California. Under this new plan, UC Berkeley students from families making between $80,000 and $140,000 will have to contribute a maximum of 15 percent of annual income toweard the total cost of attendance at Berkeley (currently $32,000, including room and board). The student would also have to contribute about $8,000 per year via loans, work study or scholarships. According to the New York Times, based on current costs, this programs represents a discount ranging from 10 to 37.5 percent for families that fall within the specified income range. A number of private insitututions have similiar programs, but Berkeley is reported to be the first large public institution to follow suit.

Lariviere Out, Berdahl in at Oregon: After less than three years, Richard Lariviere has been fired by the Oregon State Board of Higher Education as President of the University of Oregon following a year in which he found himself at odds with the state System as he pushed for greater independence for the University of Oregon. The controversial move to oust a President who enjoyed student, faculty, and alumni support, was immediately followed by the appointment of Robert Berdahl as interim president. Berdahl is a former long-time University of Oregon professor and Dean, and has also served as the President of the University of Texas, and UC Berkeley Chancellor, among other roles. Berdahl recently ended his tenure as AAU President and took a highly publicized position as a part-time advisor to Lariviere at the University of Oregon.

More Higher Ed Cuts in CA: California Governor Jerry Brown announced another billion dollars in mid-year state  budget cuts this week as yet another growing budget deficit loomed. The mid-year cuts include another $300 million reduction for the state’s three higher education systems (UC, CSU, and community colleges), which comprise the largest public higher education system in nation. While UC hopes to use temporary funds to bridge this latest cut for a year, further capped enrollments and tuition increases may be likely throughout the system.

VA Announces New Investments in Higher Ed: Meanwhile, Virginia is one of the only states increasing higher education funding. Governor McDonnell announced a new $100 million in funding for higher education, alongside new capital funding for longer term growth. The money is intended to support the goals contained in legislation passed last year, including increasing college attainment in Virginia, increasing affordability, and increasing the number of STEM and health related degrees awarded.

Californians Concerned About the Future of Higher Ed

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A new telephone survey, conducted by the Public Policy Institute of California, suggests that although Californians appreciate the quality of their higher education system, they are concerned about the direction in which it is headed. In fact, only 28 percent of Californians think that the system is headed in the right direction, while 62 percent claim it is headed in the wrong direction. While respondents still believe higher education is integral to future success in the workplace, they are worried that affording higher education is becoming increasingly difficult.

Californians’ main concern for the future of higher education is affordability. 61 percent believe affordability is a big problem. Among parents of college students in California, 77 percent are very concerned about the increasing tuition. Fully 69 percent of Californians do not believe we should increase fees to fund higher education. Furthermore, only half of respondents agree that financial help is available for those who need it, and 75 percent believe that students must borrow too much for college.

Respondents mainly blame California’s government for the declining affordability of higher education. Only 29 percent think Governor Jerry Brown is handling higher education well, and only 14 percent think the legislature is doing a good job. 74 percent say the state does not fund higher education adequately. This assertion breaches the ideological divide, with 58 percent of Republicans agreeing that more funding is needed. However, respondents are split on their willingness to pay higher taxes to support higher education (52 percent unwilling, 45 percent willing).

More about the survey is available in the full report in this PDF document.

University of Washington 25th in World University Rankings

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The Times Higher Education/Thomson Reuters World University Rankings for 2011-12 were released today and the University of Washington ranked 25th, one of only five public US institutions to make the top 25 (UC Berkeley was the highest ranking US public at 10).

US News and World Report recently ranked the UW 42nd among all national universities in the US, while the Academic Ranking of World Universities ranked the UW at 16.

These rankings help to validate the world class teaching, research and service that take place here at the UW every day. However, it is good to cast a critical eye on the business of ranking universities in general, and this column published by Inside Higher Education does a great job of summarizing some of the questions we should always ask of such ranking endeavors.

UW Ranked 42nd in the Nation

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The controversial US News and World Report University Rankings have been released for 2012 and are freely available online for a limited period of time. The University of Washington slipped one spot to 42nd among National Universities in the US. The UW, however, comes in at the 10th best public institution in the nation.

Although the US News rankings have long been dominated by endowment-rich private institutions, it is notable that no public institution makes the top 20 anymore. A recent Washington Post article reported that, over the past 20 years, the five highest ranked public institutions have each dropped seven or more spots in the rankings.

In previous posts we have laid out the massive resource gap between public and private institutions that has widened over several decades and is reflected in these rankings:

Across the US, deep cuts in state funding for public higher education have accelerated this trend dramatically over the past three years. In response, the Seattle Times Company and several partners have formed to create the Greater Good Campaign to highlight the risks this trend poses to public higher education in Washington State and to the future of Washingtonians.