OpportunityTexas™ Promoting Postsecondary Access & Success Texas College Access Network Dallas, Texas May 16, 2012 Don Baylor, Jr. Senior Policy Analyst, Economic Opportunity Leslie Helmcamp Policy Analyst, Economic 1

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 CPPP Does

What is OpportunityTexas? RAISE Texas Opportunity Texas CPPP CPPP Roles & Strengths: Advocate Policy Innovation & Development Research & Data Analysis Communications & Coalition Building RAISE Texas Roles & Strengths: 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 So does savings 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 Postsecondary Access & Success College Savings & Financial Prep Career & Skills Development Financial Aid (Grants, Loans, Work-Study) 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 (12 th grade economics) to include: Instruction on paying for postsecondary education and training Instruction on completing the FAFSA Curricula to be finalized for 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 Texas Match the Promise Foundation Unclaimed Property Donations ~$190,000 State Employee Charitable Campaign Total: $10,000 Private Donations $8,000 Texas Legislature/Prepaid Tuition Board ($0)

Race/Ethnicity: TTPF- Enrolled and Statewide 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 Source: CPPP Analysis, Texas Comptroller of Public Accounts, 2011; Current Population Survey, 2010

College Savings Gap by Income

Texas College Savings Gap

New Laws in Higher Education from the 82 nd 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 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 Source: CPPP Analysis, Texas Education Agency, Enrollment Trends

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%) Source: CPPP Analysis, Department of Education Data, (Public, Private and Proprietary two- and four-year colleges and universities)

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

Source: CPPP Analysis of National Postsecondary Student Aid Study of 2008, NCES Powerstats. Total Family Contribution Total Costs = $15,009Total Costs = $17,708

Source: CPPP Analysis of National Postsecondary Student Aid Study of 2008, NCES Powerstats.

DFW Metro Area City Applications Completed Senior Enrollment Completion Rate Dallas % Fort Worth % Arlington % Irving % Duncanville % Source: CPPP Analysis, U.S. Department of Education, FAFSA Submissions by High Schools Application Cycle, As of April 16, 2012

Ten Largest Campuses in DFW Metro Area CampusCity Applications Completed Senior Enrollment Completion Rate SKYLINE H SDALLAS % MARTIN H S ARLINGTONARLINGTON % DUNCANVILLE H SDUNCANVILLE % TRINITY H S EULESSEULESS % BELL H SHURST % COPPELL H SCOPPELL % ROWLETT H SROWLETT % KELLER H SKELLER % NAAMAN FOREST H SGARLAND % Source: CPPP Analysis, U.S. Department of Education, FAFSA Submissions by High Schools Application Cycle, As of April 16, 2012

Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010 $18,634

Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010 $9,941 $10,481 $11,025 $11,448 $11,978 $12,178$12,058

Source: CPPP Analysis, Texas Higher Education Coordinating Board, Student Financial Aid Database, FY2010 & Texas Independent Colleges and Universities

State “Own Source” Budget “Own Source” = Nonfederal. Source: Legislative Budget Board, HB 1, HB 4, SB 2, Dec Includes $2.3 billion delayed Foundation School Program payment.

Budget Financial Aid & Post-Secondary Training -5.8% $0 Jobs and Education for Texans Grant Program Skills Development Fund State Financial Aid Programs -15%-40.1% $48.5M $81M$1B $879M Source: CPPP Analysis, Texas Association of Community Colleges 82 nd Legislature Session Summary, July 2011 $15M -100%

Doing More With Less Budget Texas Community Colleges -5.8% $3.56 $ % Annual Appropriations per Contact Hour & Number of Contact Hours & Instructional Formula Funds & % +20.4% 259M 312M $1.84M $1.74M Source: CPPP Analysis, Texas Association of Community Colleges 82 nd Legislature Session Summary, July 2011

Higher Ed Programs Zeroed out in 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. As with elementary/secondary schools: no state funding for enrollment growth

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 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.

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

 Payday and Auto Title Lending: Stop the Cycle of Debt (  State Revenue: Balanced Budget=Balanced Approach (  Savings, Asset Building, & Financial Success (  Issues Affecting Low- and Moderate- Income Texans (  Creating Good Jobs, Increasing Income, & Promoting Savings ( Ways to Get Involved, Be Informed

Higher Education Partners

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