TOO SIMPLE AN ANSWER FOR TOO CRAZY A PROBLEM CALIFORNIA COMPETES: HIGHER EDUCATION FOR A STRONG ECONOMY LANDE AJOSE Presentation at SHEEO Conference August 6, 2015 Free-ish community college in California

The Master Plan, 1960 Community college district system created in 1967 Plan banned tuition based on ideal that public higher education, like K- 12, ought to be free Severe budget deficits beginning after the enactment of Proposition 13 in 1978 leads to creation of “enrollment fees” at California community colleges beginning in 1984

California Community Colleges, Today On the one hand … Fees increased from $20/unit in academic year to $46/unit in summer 2012 – a 130 percent increase in a period of three academic years. …but on the other… At $46 a credit, it is the lowest tuition for community colleges in the nation With Pell and Cal grants and a need-based “fee waiver” program, about 46% of students don’t pay tuition at all

California’s “Free- ish ” Community College Distribution of aid to California Community College (CCC) students. Source: TICAS Recipients of each type of aid Total CCC Head Count Share of Total CCC Head Count receiving type of aid BOG Fee Waivers 1,036,6102,310,46045% Cal Grants92,0812,310,4604% Pell Grants498,3702,310,46022%

Total Cost of Attendance at Three Public California Institutions Sources : Figures from each school’s Net Price Calculator (NPC) for a dependent student with a family income under $30,000, and rounded to the nearest $100. NPCs accessed on November 10, 2014.

Comparison of Net Price at Three Public California Institutions Source : (TICAS) Figures from each school’s Net Price Calculator (NPC) for a dependent student with a family income under $30,000, and rounded to the nearest $100. NPCs accessed on November 10, Net price is what students and families have to save, earn, or borrow.

What is our main priority?

What about success? 65% of Latino college freshmen and 62% of Black freshmen enroll in community colleges. 47% of all students complete a degree/certificate or transfer to a four-year university within six years. For Latino students, that rate is 39% and for Black students, 37%. Free tuition will not increase success

Free tuition is good but it’s not a panacea Doesn’t address total cost of attendance, the largest share of college costs Doesn’t use state resources most efficiently Takes the focus off the success agenda Doesn’t give students “skin in the game” Last dollar tuition policies are a regressive benefit California’s “free-ish” model is a better deal because it directs limited dollars towards increasing access and student success for our most vulnerable students. (the definition of equity?)

What about the Long Beach College Promise? Partnership between public schools, community college district and state university. Provides a free semester of tuition at LBCC, guaranteed admission to CSULB, early outreach, intensive support, and much more along the way. Results? LBCC Course Completions - 500% increase in transfer-English success and 200% increase in transfer-math success.

Alternatives to Free Tuition Policies Expand need-based “fee waiver” programs and/or state sponsored means-tested aid (i.e. Cal Grants) Provide supplemental funding to help students cover non-tuition costs like textbooks, transportation, living expenses, etc. Consider the Long Beach College Promise model – combines multiple interventions, including strengthened pathways and some free tuition

L ANDE A JOSE, P H.D. E XECUTIVE D IRECTOR C ALIFORNIA C OMPETES : H IGHER E DUCATION FOR A S TRONG E CONOMY

Free Tuition – Access and Equity