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California's Education System: a 2019 Guide

Legislative Analyst's Office · lao-3924 · Report · 2019-02-06

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analysis full gutter California’s Education System A 2 0 1 9 G U I D E Early Education K-12 Education Adult Precollegiate Education Undergraduate Graduate Education Education Facilities Education L e g i s l a t i v e A n a l y s t ’ s O f f i c e analysis full gutter analysis full gutter Table of Contents Introduction 1 Chapter 1 Early Education 2 Chapter 2 K-12 Education 8 Chapter 3 Adult Precollegiate Education 24 Chapter 4 Undergraduate Education 28 Chapter 5 Graduate Education 46 Chapter 6 Education Facilities 60 analysis full gutter analysis full gutter Introduction California has a vast and complex education system. It is filled with an array of educational entities—from preschool centers to high schools and law schools. The missions of these entities range from helping kindergarteners learn to read to providing adults instruction in English as a second language to supporting students as they train for their career aspirations. Funding for education is intricate too, with some costs covered by local, state, and federal governments and other costs supported by students and their families. Given California’s education system has so many facets, even those who have been immersed in it for years can at times feel daunted trying to understand it and keep apprised of all that is changing within it. For state policy makers who need to be familiar with this system and who make important decisions that shape and reshape it, this report is designed for you. It is intended to help you learn as much as possible about the system as quickly as possible. The report covers every major area of California’s education system, with chapters on early education, K-12 education, adult precollegiate education, undergraduate education, graduate education, and education facilities. Throughout the report, we rely almost entirely upon state and federal government data sources and cite the most readily available data. Within each chapter, we tend to focus on the students who are served, the state programs designed to serve them, the funds supporting those programs, how program funding is spent, and what is known about outcomes in that area. As you journey through the report, you will be exposed to information on everything from student diversity and achievement gaps, to student aid and borrowing, to faculty salaries and rising pension costs, to the requirements for becoming a teacher or doctor in California. We hope the report is a helpful reference guide for you. EARLY EDUCATION 1 analysis full gutter CHAPTER 1 EARLY EDUCATION EARLY EDUCATION 2 analysis full gutter State Provides Subsidized Care to a Small Portion of Eligible Children 2016 Unless Otherwise Specified All Children 2018 Ineligible 61% Eligible 39% One Parent Stays Home Parent(s) Work but Family Not Income Eligible Parent(s) Work and Family Is Income Eligible, but State Subsidy Is Unavailable Family Meets All Requirements and Receives State Subsidized Care 2018 1 2 3 4 5 6 7 Number of Children (In Millions) Half of Subsidized Children Receive Care in a Center Excludes Transitional Kindergarten and Part-Day State Preschool, 2016-17 for Most Programs Center Family Child Care Home Family or Friend Nearly Half of Children Receiving Subsidized Care Are School Age Excludes Transitional Kindergarten and Part-Day State Preschool, 2016-17 for Most Programs Infant Toddler Preschool School Age (Ages 6-12) EARLY EDUCATION 3 analysis full gutter California Subsidizes Many Child Care/Early Education Programs Number of Slots by Program, 478,000 Total Slots, 2018-19(cid:31) Families Move Through Three Stages of CalWORKs CalWORKs Child Care Stage 1 Part-Day State Preschool Alternative 39,000 103,000 Payment Stage 1 45,000 Child care is available when a family enters CalWORKs. CalWORKs Stage 2 Full-Day State Preschool 59,000 67,000 Stage 2 A Stage 1 family transfers to Stage 2 when the county deems it stable. General Transitional Kindergarten Child Care CalWORKs 90,000 28,000 Stage 3 44,000 Stage 3 Others A Stage 2 family transfers to Stage 3 two years after it stops receiving cash aid. Each Program Has Specific Eligibility Requirements For most subsidized child care programs, parents must be low income and working or in school. Currently, a family is eligible to enter the subsidized child care system if its income is at or below 70 percent of the state median income (SMI). In 2018-19, this equated to $54,027 for a family of three. Starting July 1, 2019, the entering income cap is set to increase to 85 percent of the SMI—equating to a roughly $10,000 increase in the cap. Program Key Eligibility Requirements CalWORKs Child Care • Family is low income. • Parent(s) work or are in school. • Child is under age 13. • Slots are available for all eligible children. Alternative Payment and General Child Care • Family is low income. • Parent(s) work or are in school. • Child is under age 13. • Slots are limited based on annual budget appropriation. State Preschool • Family is low income. • Child is age 3 or 4. • If parent(s) work or are in school, child is eligible for full-day program. • Slots are limited based on annual budget appropriation. Transitional Kindergarten • Child is age 4 with a birthday between September 2 and December 2. • Slots are available for all eligible children. • Program has no income or work requirement. EARLY EDUCATION 4 analysis full gutter Standards Vary by Program Current Standards for Licensed Centers, Infant Care CalWORKs Child Care Standard and Alternative Payment General Child Care and State Preschool Health and Safety Certain health and safety standards, such as cleaning equipment must be stored in a location inaccessible to children. Staffing Qualifications Child Development Associate Credential or Child Development Teacher Permit (24 units in 12 units in early childhood education/child early childhood education/child development plus development. 16 general education units). Staffing Ratios 1:12 teacher-to-child ratio and 1:18 teacher-to-child ratio and 1:4 adult-to-child ratio. 1:3 adult-to-child ratio. Developmental Activities None (but some providers offer such activities). Certain developmentally appropriate activities, such as using toys that develop fine motor skills. Oversight Unannounced visits by Community Care Licensing Same, but also onsite reviews by California (a division of the Department of Social Services) Department of Education every three years (or as every three years or more frequently under special resources allow) and annual self-assessments. circumstances. Standards are somewhat different for different settings and age groups. For example, staff at a family child care home need 15 hours of health and safety training instead of a credential or permit. All child care staff, including license-exempt providers, must pass a criminal background check. License-exempt providers do not need to meet any of the requirements listed above. These providers are limited to serving children from only one family at a time. Every Year, State Funds Efforts to Improve Program Quality Planning and Evaluation Parent Resources Federal law requires states to spend a certain amount each year on improving the quality of child care and preschool programs. In 2018-19, California spent $190 million on its Quality Rating improvement efforts. As the pie chart shows, about 40 percent Compliance Improvement System (QRIS) of expenditures were for supporting QRIS, which rates participating child care and preschool programs and helps them achieve and maintain high ratings. Workforce Training EARLY EDUCATION 5 analysis full gutter State Funds Programs in Different Ways CalWORKs Child Care General Child Care and Alternative Payment and State Preschool Transitional Kindergarten Vouchers Direct Contract Local Control Funding Formula • State gives a family a voucher. • State contracts with a provider • Families may send their children to • Families may send their children to serve a set number of children. a nearby public school. to voucher-based centers or family • Families may send their children to • School district reports attendance. child care homes or have family or direct-contract based centers or • State funds the school district for friends provide care. family child care homes. each enrolled child. • State relies on regional agencies • State reimburses provider for filled slots. to verify attendance and pay providers. Per-Child Subsidies Vary by Program, Setting, and Age Annual Full-Time Rates Unless Otherwise Noted, 2018-19 Regional Market Rate Averages Standard Reimbursement Rate Local Control Funding Formula Applies to Voucher-Funded Providers Applies to Contract-Funded Providers Applies to School Districts Based on Biennial Market Survey Set Annually by State Set Annually by State Center Family Child Center Family Child School Care Home Care Home $25,000 Infant Infant 20,000 Toddler Toddler Infant/Toddler 15,000 Preschool Infant/Toddler Full-Day State Preschool School Age/Preschool School Age/Preschool School Age Preschool 10,000 School-Year Program 180 days School Age Part-Day State Preschool 175 days 5,000 Full-time rates reflect a minimum 6.5 hour day for 250 days per year. EARLY EDUCATION 6 analysis full gutter Mix of Funds Support Child Care/Early Education Programs in California 2018-19 Temporary Assistance For Needy Families Child Care and Development Federal Fund Proposition 98 General Fund $4.7 Billion State Non-Proposition 98 General Fund The share of state funding has increased over the past 10 years—growing from 65 percent in 2008-09 to 74 percent today. The increase is attributable to the state creating the Transitional Kindergarten program and expanding its State Preschool program. Funding for Child Care/Early Education Is at All-Time High Total State and Federal Funding, 2018-19 Dollars (In Billions) $5 4 3 2 1 2002-03 2006-07 2010-11 2014-15 2018-19 EARLY EDUCATION 7 analysis full gutter CHAPTER 2 K-12 EDUCATION K-12 EDUCATION 8 analysis full gutter California’s K-12 Student Population Differs From Nation Fall 2015 Data, Unless Otherwise Noted U.S. CA Race/Ethnicity Latino 22% 54% White 24% 52% Asian 4% 11% Black 6% 17% Income 18% Below Federal Poverty Line (2017) 18% All Low Income 51% 59% Language Non-English Speaking Households (2017) 18% 45% English Learners 8% 21% Disability All Disabilities 12% 13% Autism 1% 2% Parental Education (2017) Less Than High School 12% 17% High School Only 21% 28% College Graduate 32% 34% K-12 EDUCATION 9 analysis full gutter Disabilities Affect About One in Ten K-12 Students Share of Enrollment by Disability Type and Grade, 2017-18 15% All Other Disabilities 10 5 Learning Disorder Speech Impairment K 1 2 3 4 5 6 7 8 9 10 11 12 Students With Disabilities Receive Individualized Education Programs Illustrative Goals and Actions Age: 6 Age: 12 Age: 18 Disability: Speech Impairment Disability: Dyslexia Disability: Autism Goal: Clearly Articulate Words Goal: Read at Grade Level Goal: Develop Job Skills Action: Weekly Speech Therapy Action: Weekly Work With Specialist Action: Subsidized Part-Time Work Growing Share of Students Has Relatively Severe Disabilities Share of Overall K-12 Student Enrollment 9.0% 8.7% Relatively Mild Disabilities 3.5% Relatively Severe Disabilities 2.1% 2002-03 2005-06 2008-09 2011-12 2014-15 2017-18 K-12 EDUCATION 10 analysis full gutter Although Many Districts Are Small, Most K-12 Students Attend Large Districts Number of Districts by Size, 2017-18 Student Attendance by District Size, 2017-18 350 3,000,000 300 2,500,000 250 2,000,000 200 1,500,000 150 1,000,000 100 50 500,000 3- 101- 1,001- 5,001- 10,001- 40,001+ 3- 101- 1,001- 5,001- 10,001- 40,001+ 100 1,000 5,000 10,000 40,000 100 1,000 5,000 10,000 40,000 District Attendance District Attendance California has 944 school districts, averaging 5,600 students each. The largest district is Los Angeles Unified with more than 400,000 students. K-12 Enrollment Trends Vary Greatly Across State Enrollment Change, 2008-09 to 2017-18 Statewide Student Enrollment 7,000,000 6,000,000 5,000,000 4,000,000 Statewide enrollment is 3,000,000 projected to decline by 4 percent over the next 2,000,000 ten years. 1,000,000 1977-78 1987-88 1997-98 2007-08 2017-18 2027-28 10,000 to 20,000 0 to 10,000 -10,000 to 0 -20,000 to -10,000 Los Angeles County had the largest decline. 137,000 students, 8 percent K-12 EDUCATION 11 analysis full gutter Charter Schools Follow Statutory Charter School Enrollment Process for Opening and Operating Has Been on Steady Climb Upward Charter Schools as Share of Overall Enrollment 12% Plan A group develops an educational plan for a charter school Charter schools are 10 nontraditional public schools. Group collects signatures from interested 8 teachers or parents 6 4 Group submits plan to local district for approval 2 Charter school opens and charter staff manage day-to-day operations 1993-94 2001-02 2009-10 2017-18 District provides oversight and decides whether to renew charter every five years On Average, Charter Schools Serve Students Similar to Other Public Schools Share of Overall Enrollment, 2017-18 59% Low Income 60% 16% English Learners 24% Students With 10% Disabilities 12% 49% Hispanic 55% 28% White 23% Charter Schools 8% Black 5% Traditional Public Schools K-12 EDUCATION 12 analysis full gutter California Schools Rely Heavily on State Funding Total Operational and Capital Funding by Source, 2015-16 California U.S. Average State Local Property Tax Other Local Federal Unlike most other states, the California Constitution limits local property tax rates. School Funding Is at an All-Time High State and Local Operational Funding Per K-12 Student, 2017-18 Dollars $12,000 11,000 10,000 9,000 8,000 7,000 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2017-18 California School Spending Ranks in the Middle of States Rank Among the 50 States and Washington D.C. 15 20 25 30 35 40 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2015-16 School spending in California is more sensitive to recessions and recoveries than other states. K-12 EDUCATION 13 analysis full gutter State Provides Schools Equal Base Funding Per Student Base Local Control Funding Formula (LCFF) Rates by Grade Span, 2018-19 Kindergarten - 3rd Grade $8,235 4th - 6th Grade $7,571 7th - 8th Grade $7,796 9th -12th Grade $9,270 State Provides Additional Funding for English Learners and Low-Income (EL/LI) Students LCFF Rates Per Student for Grades K-3 Based on District EL/LI Share, 2018-19 $8,235 Total Funding 0% EL/LI Share $0 Additional Funding $8,647 25% EL/LI Share $412 $9,059 50% EL/LI Share $824 $10,294 75% EL/LI Share $2,059 $11,735 100% EL/LI Share $3,500 Base Funding Additional Funding K-12 EDUCATION 14 analysis full gutter “Basic Aid” Districts Receive More Funding Per Student Most districts receive a combination of state and local funding at a level determined by the Local Control Funding Formula (LCFF). LCFF Funding Level State Funding Local Property Tax Revenue Non-Basic Aid Districts Basic Aid District Basic aid districts receive local property tax revenues above the LCFF funding level. Under the California Constitution, they still receive $120 per student in basic aid state funding. Basic Aid Districts Concentrated Basic Aid Districts by the Numbers in Certain Areas of the State Share of Students Attending Basic Aid Districts, 2017-18 11 % of all districts. 0% <10% 11-20% 21-30% 4 >30% % of all students. 30 more revenue ($3,600) per student % than other districts on average. 60 of students in basic aid districts attend % Bay Area schools. 50 are very small (serve fewer than % 500 students each). K-12 EDUCATION 15 analysis full gutter Staff Compensation Is Teachers Comprise Largest School Expenditure About Half of School Staff $85 Billion Total Expenditures, 2016-17 600,000 Total Employees, 2016-17 Administrators Books and Supplies Facilities Teachers Other School Services Employees Employee Salaries Employee Benefits Statewide Staffing Ratios 1 21 Teacher : Students 1 231 Administrator : Students 1 22 Other School Employee : Students Teacher Compensation Is on the Rise Salary and Health Benefits, 2016-17 Dollars $94,000 92,000 In inflation-adjusted terms, average statewide teacher compensation was $8,900 (11 percent) higher in 90,000 2016-17 than 2000-01. 88,000 Increases in health benefit expenditures accounted for 86,000 about two-thirds of compensation growth over the period, whereas salary increases accounted for about 84,000 one-third. (These figures exclude pension-related 82,000 increases.) 80,000 2000-01 2004-05 2008-09 2012-13 2016-17 District Pension Costs Are Growing Notably The California State Teachers’ Retirement System (CalSTRS) School District Contributions (In Billions) administers pensions for teachers, administrators, and other employees with a state credential. The California Public Projections Employees’ Retirement System (CalPERS) covers all other $10 types of school employees. 9 CalPERS 8 CalSTRS is in the midst of implementing a state plan that CalSTRS raises district contribution rates through 2020-21. The plan 7 is designed to address CalSTRS unfunded liabilities over the 6 next few decades. The governing board of CalPERS also is 5 increasing district rates. 4 3 Total district pension costs are expected to reach $9.5 billion 2 by 2020-21, an increase of $6.3 billion over the 2013-14 level. 1 2013-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 K-12 EDUCATION 16 analysis full gutter Student-to-Teacher California’s Ratio Is Consistently Ratio Has Been Declining Higher Than National Average Number of Students Per Teacher Number of Students Per Teacher 24 24 California 22 23 20 Low-Poverty Districts 18 22 16 Statewide 21 14 National Average High-Poverty Districts 12 2009-10 2011-12 2013-14 2015-16 2017-18 1997-98 2003-04 2009-10 2015-16 Certain Regions, Districts, and Subject Areas Tend to Have More Difficulty Recruiting Teachers • Permits and waivers allow districts to hire or assign teachers who are not fully credentialed in an applicable subject area. They provide one indicator of unmet demand for credentialed teachers. • Permits and waivers are typically valid only for one year. In 2016-17, the California Commission on Teacher Credentialing issued around 8,000 permits and waivers. • As the charts below show, certain parts of the state, high-poverty districts, and the special education subject area tend to have higher rates of teachers working on permits or waivers. Waivers and Permits by County Waivers and Permits by District Poverty Level Average Per 100 Teachers, 2016-17 Average Per 100 Teachers, 2016-17 4 0-2 3 2-4 4-6 2 6-8 1 8-10 High-Poverty Statewide Low-Poverty District District Waivers and Permits by Subject Area Average Per 100 Teachers, 2016-17 7 6 5 4 3 2 Data is not available for Alpine County. 1 Special Science Mathematics General English Education Subjects (Elementary) K-12 EDUCATION 17 analysis full gutter Most California Teachers Prepared Via a Five-Year Pathway 2016-17 Teacher Training Bachelor’s Degree 4 Years Program 1 Year Complete subject matter training and Complete pedagogical earn bachelor’s degree training and student teaching 200 programs 19,000 enrolled students Demonstrate Foundational District/University Pass Student Knowledge and Teaching Internship Program Skills and Subject Assessment Matter Expertise 1 or 2 Years Complete pedagogical Bachelor’s Degree training while serving From Accelerated as teacher of record Blended Program 4 Years 180 programs 4,700 enrolled students Earn bachelor’s degree and complete pedagogical training simultaneously 25 programs 240 enrolled stud ents Teacher Induction Earn Clear Earn Preliminary Program Credential 2 Years Teaching Credentials Fee must be paid Individualized support for new every 5 years to teachers provided by Valid for 5 years renew mentor teachers 170 programs 14,000 enrolled teachers K-12 EDUCATION 18 analysis full gutter Fewer Than Half of K-12 Students Meet State Standards Percentage Meeting Standards, Spring 2018 75% Reading Math 50 25 4th Grade 6th Grade 8th Grade 11th Grade California Students Score Below National Average Average Score on National Assessment of 4th Grade Reading 230 225 Nation 215 205 California 195 1992 1998 2005 2011 2017 In 2017, states’ average 4th grade reading score ranged from a high of 236 to a low of 207. Scores follow a similar pattern for other grade levels and subjects. Low Group Non-Low Achievement Gaps Exist Income Average Income Average Percentile Rank on State Tests, Spring 2017 Hispanic 36th 39th 54th White 45th 60th 70th Black 27th 32nd 46th Asian 62nd 77th 84th K-12 EDUCATION 19 analysis full gutter State Measures District Performance Performance Measured for in Four Key Areas 13 Student Groups Area State Measure English Learners Socioeconomically Disadvantaged Student Achievement Test Scores Foster Youth Chronic Absenteeism Homeless Youth Student Engagement Graduation Rate Students With Disabilities American Indian School Climate Suspension Rate Asian Postsecondary Transitions College and Career Indicator African American Filipino Hispanic In fall 2018, the state identified 374 districts as having poor Pacific Islander performance for at least one student group in two or more areas. Two or More Races (This count includes 31 county offices of education.) White Almost Half of Identified Districts Have Poor Student Engagement Most Performance With Only One Student Group Common Performance Problem Share of Identified Districts Share of Identified Student Groups by Performance Problem Three or More Student Groups Weak Performance 75% With One Student 63% 60% Group 38% Student School Student Post Two Student Groups Engagement Climate Achievement Secondary Transitions Students With Disabilities Most Common Districts identified with a performance Group With Poor District Performance problem may find a team of experts to Share of Identified Districts by Student Group help them improve, work with their With Performance Problem county office of education to find such a team, or seek support directly from Students With Disabilities 65% their county office of education. Homeless Students 39% Foster Youth 28% African-American 18% Socioeconomically 18% Disadvantaged K-12 EDUCATION 20 analysis full gutter State Has Process for Overseeing School Districts’ Budgets Ongoing Monitoring County offices of education (COEs) review the fiscal health of all their school districts at least two times per year. Based upon these reviews, each district receives one of the following ratings: Positive: The district will meet its obligations for the current and upcoming two years. Qualified: The district may be unable to meet its obligations for the current or upcoming two years. Negative: The district will be unable to meet its obligations for the current or upcoming year without corrective action. Technical Assistance and Intervention If a district receives a qualified or negative rating, its COE undertakes at least one first-level intervention. Second-level interventions follow if the district’s budget does not improve. Typical First-Level Interventions: Typical Second-Level Interventions: nt • Require district to provide additional g et • Directly assist the district in developing m e information or updated projections. B u d n s a plan for improving its fiscal health. I m pr P o l v a e n • Assign the district a fiscal expert. R e q uir e R d e vi si o • Impose revisions to district’s budget. • Require district to develop its own • Veto actions of district’s governing plan for improving its fiscal health. board. Emergency Loan Process If a district’s budget deteriorates to the point that it will run out of cash: Legislature Authorizes Emergency Loan. The Legislature authorizes a direct appropriation to the district from the state General Fund. District Loses Local Control. The district’s superintendent is fired and its local governing board loses all authority. An external administrator assumes control of the district and implements a fiscal recovery plan. A Trustee Remains Until Loan Is Repaid. The district’s governing board gradually regains authority from the administrator as it improves its management and fiscal condition. After the administrator departs, a trustee is appointed with the ongoing power to veto local board actions. K-12 EDUCATION 21 analysis full gutter School Districts in Fiscal Distress at Historically Low Levels Share of School Districts by Fiscal Status Qualified 4% Negative <1% 20% 15 2018-19 10 Qualified Positive 96% 5 Negative 2002-03 2006-07 2010-11 2014-15 2018-19 During the 12 years prior to 1991, 26 districts requested emergency loans spurring the state to create the current fiscal oversight process. Since 1991, Only Nine School Districts Have Requested Emergency Loans Year of Current Loan Loan School District Legislation Oversight Amount Pay Off Inglewood Unified 2012 Administrator $29 million 2033 South Monterey County Joint Union High 2009 Trustee $13 million 2028 Vallejo City Unified 2004 Trustee $60 million 2024 Oakland Unified 2003 Trustee $100 million 2023 West Fresno Elementary 2003 __ $1.3 million 2010 Emery Unified 2001 __ $1.3 million 2011 Compton Unified 1993 __ $20 million 2001 Coachella Valley Unified 1992 __ $7.3 million 2001 West Contra Costa Unified 1991 __ $29 million 2012 The top four districts have active loans. Their loan pay-off dates reflect the life of their loans. Most districts with retired loans paid off their loans early. K-12 EDUCATION 22 analysis full gutter K-12 EDUCATION 23 analysis full gutter CHAPTER 3 ADULT PRECOLLEGIATE EDUCATION ADULT PRECOLLEGIATE EDUCATION 24 analysis full gutter California Uses Regional Consortia Adult Schools Have Notably to Plan Adult Education Offerings Higher Adult Education Enrollment Share of Headcount by Provider Type, 2016-17 In 2013-14, the state restructured its adult education program to improve regional coordination. Under the restructuring, 71 adult education consortia were created. A typical consortium includes 1 community college district and about 5 adult schools (operated by school districts). Each consortium develops a regional adult education plan every three years and updates it annually. Community Colleges 600,000+ Adults Served Adult Schools White lines indicate boundaries of each consortium. ESL Is Largest Adult Education Instructional Area Headcount by Instructional Area, 2016-17 400,000 Community Colleges 300,000 Adult Schools 200,000 100,000 English as a Adult Secondary Adult Basic Career Technical Other Second Language Education Education Education (ESL) ADULT PRECOLLEGIATE EDUCATION 25 analysis full gutter Adult Education Serves Broad Spectrum of Students Students by Age Group, 2016-17 Students by Ethnicity, 2016-17 Other Black Age 13-19 Age 55+ Asian Age 40-54 Age 20-29 Hispanic White Age 30-39 Compared to State Population, Adult Education Students Are Less Likely to... Have High School Diploma, 2016-17 Be Employed, 2016-17 94% 83% 49% 46% Incoming Adult State Population Incoming Adult State Population Education Students Age 25+ Education Students' Employment Rate Employment Rate ADULT PRECOLLEGIATE EDUCATION 26 analysis full gutter Several Major Funding Sources Support Adult Education Eligible Providers Fund Source Adult Schools Community Colleges Adult Education Program Allocated by formula to regional State consortia to support full array of adult education programs. Noncredit Apportionments Allocated by formula to community State college districts to support full array of adult education programs. Workforce Innovation and Opportunity Act (WIOA), Title II Allocated competitively to adult education Federal providers based on various factors,including student learning gains. Supports English as a Second Language, adult secondary education, and adult basic education. State Is Primary Source of Adult Education Funding Major Funding Sources, 2017-18 (In Millions) $1,000 WIOA, Title II Some Providers Receive 800 Funding From Additional Sources: Noncredit Some funding from the federal Carl D. Perkins Apportionments Career and Technical Education (CTE) Act 600 supports CTE courses for adult students. Some CCC credit apportionment funding supports courses similar in content to adult 400 education courses. Adult Adult schools may charge course fees for CTE Education courses. 200 Program Since the state restructured its adult education program in 2013-14, it has had no comprehensive data on program outcomes. The limited data that is available is insufficient to draw meaningful conclusions. State agencies report that data improvement efforts are underway. ADULT PRECOLLEGIATE EDUCATION 27 analysis full gutter CHAPTER 4 UNDERGRADUATE EDUCATION UNDERGRADUATE EDUCATION 28 analysis full gutter California Has an Extensive CCC Enrolls Nearly Higher Education System Two-Thirds of All Undergraduates Campuses by Segment, 2017-18 Share of Undergraduate Headcount, 2016-17 Private Nonprofit Private For-Profit UC CSU CCC UC University of California CSU California State University CCC California Community Colleges Each Segment Has Mix of Small and Large Campuses Percentage of Campuses by Undergraduate Headcount, 2016-17 Less than 15,000 15,000-29,999 30,000 or more UC undergraduates take an CCC average of 29 units per year, compared to 24 units at CSU CSU and 13 units at CCC. (A student taking 30 units per year could UC graduate in four years at UC and CSU and two years at CCC.) 20 40 60 80 100% UNDERGRADUATE EDUCATION 29 analysis full gutter Share of Young Adults in California Attending College Has Been Increasing Percent of Individuals Age 18-24 Enrolled in Degree-Granting Postsecondary Schools 50% In 2016, the share of young adults enrolled in postsecondary schools was 45 slightly smaller nationally (43 percent) than in California (48 percent). 40 35 30 25 20 15 10 5 1960 1980 2000 2016 Educational Attainment Also Has Been Increasing in California Educational Attainment of Individuals Age 25 Years or Older High School or Less Some College, No Degree Associate Degree Bachelor's Degree or Higher 100% 90 80 70 60 50 40 30 20 10 1960 1980 2000 2016 In 2016, a slightly larger share of adults had a high school diploma or less nationally (40 percent) than in California (38 percent), and a slightly smaller share had a bachelor’s or degree or higher nationally (31 percent ) than in California (33 percent). UNDERGRADUATE EDUCATION 30 analysis full gutter Almost One-Third of Undergraduates Are Age 25 and Older Undergraduate Headcount, Fall 2015 Under 25 25 and Over UC CSU Private Nonprofit CCC Private For-Profit Total 20 40 60 80 100% The Racial/Ethnic Composition of the Undergraduate Student Body Varies by Segment Undergraduate Headcount, Four Largest Groups, 2016-17 Hispanic White Asian Black UC Private Nonprofit Private For-Profit CSU CCC Total California Population 20 40 60 80 100% UNDERGRADUATE EDUCATION 31 analysis full gutter Health and Liberal Arts Are Most Common Fields for Certificates Certificates by Field, 2016-17 45,000 CCC issues a liberal arts certificate upon 40,000 completion of a certain set of transferable 35,000 lower-division coursework. Many students Nonprofit 30,000 receiving this certificate may also be receiving For-Profit 25,000 an associate degree. CCC 20,000 15,000 10,000 5,000 Health Liberal Arts Personal Business Mechanic Protective Family and Computer Other and Sciences and and Repair Services Consumer Culinary Sciences Services Humanities Is Most Common Field for Associate Degrees Associate Degrees by Field, 2016-17 45,000 40,000 Nonprofit 35,000 For-Profit 30,000 CCC 25,000 20,000 15,000 10,000 5,000 Humanities Social Math and Business Health Psychology Engineering Other Sciences Science Business and Social Sciences Are Most Common Fields for Bachelor’s Degree Bachelor’s Degree by Field, 2016-17 45,000 For-Profit 40,000 Nonprofit 35,000 UC 30,000 CSU 25,000 20,000 15,000 10,000 5,000 Business Social Humanities Math and Engineering Health Psychology Other Sciences Science UNDERGRADUATE EDUCATION 32 analysis full gutter California’s Freshman Eligibility Policy for High School Graduates Has Three Tiers 100% Eligible for CCC 12.5% Eligible for UC 33% Eligible for CSU For UC and CSU Admissions: • High school students must complete college preparatory coursework (known as “A through G”) with a minimum grade point average (GPA) of 3.0 and 2.0, respectively. • UC also requires all applicants to take the SAT or ACT. • CSU requires only those applicants with a GPA below 3.0 to take the SAT or ACT. • The lower the GPA, the higher the test score needed. Freshman Acceptance Rates Freshman Enrollment Rates Also Vary Notably Across Campuses Vary Notably Across Campuses California Applicants, Fall 2017 California Admits, Fall 2017 San Francisco Fresno Humboldt Northridge Stanislaus San Luis Obispo Sonoma Maritime East Bay San Bernardino Bakersfield Bakersfield Sacramento San Marcos Channel Islands Long Beach Maritime San Diego San Jose Sacramento Dominguez Hills Stanislaus CSU CSU San Bernardino Los Angeles Chico Fullerton San Marcos San Jose Pomona Pomona Some applicants to UC and CSU Fullerton Dominguez Hills do not meet minimum eligibility Fresno San Francisco requirements. In addition, certain Northridge campuses and academic Chico Monterey Bay programs have higher admission Sonoma Los Angeles requirements (due to high demand) Monterey Bay Long Beach that applicants do not meet. Humboldt San Luis Obispo East Bay San Diego Channel Islands Merced Berkeley Riverside Los Angeles Santa Cruz Irvine Davis San Diego UC Irvine UC Davis Santa Barbara Riverside San Diego Santa Barbara Berkeley Santa Cruz Los Angeles Merced 10 20 30 40 50 60 70 80 90 100% 10 20 30 40 50% UNDERGRADUATE EDUCATION 33 analysis full gutter Community College Students Must Meet Several Requirements to Be Eligible for Transfer to UC or CSU Transfer Requirements: CSU UC Complete 60 semester units of transferable coursework X X Within the 60 units, complete specified number of core courses 10 Courses 7 Courses Achieve minimum GPA in transferable coursework 2.0 2.4 Transfer Acceptance Rates Transfer Enrollment Rates Vary Across Campuses Also Vary Across Campuses California Applicants, Fall 2017 California Admits, Fall 2017 San Diego San Francisco San Marcos Humboldt Fresno Stanislaus Northridge East Bay San Luis Obispo Dominguez Hills Sonoma Channel Islands Maritime Academy Bakersfield San Bernardino Sacramento Maritime Academy Fullerton San Jose San Jose Sonoma Long Beach CSU Fresno CSU Pomona Monterey Bay Stanislaus Northridge Chico Los Angeles Sacramento Pomona Dominguez Hills San Bernardino East Bay San Marcos Monterey Bay Chico Los Angeles Fullerton If an eligible transfer applicant San Francisco Long Beach is denied admission to a first-choice Bakersfield campus, CSU automatically redirects San Diego Humboldt to another nearby campus with space. San Luis Obispo UC redirects to Merced or Riverside. Channel Islands Riverside Berkeley Davis Los Angeles Santa Cruz Davis San Diego San Diego UC Santa Barbara UC Irvine Irvine Santa Barbara Merced Santa Cruz Los Angeles Riverside Berkeley Merced 10 20 30 40 50 60 70 80 90 100% 10 20 30 40 50 60 70 80% UNDERGRADUATE EDUCATION 34 analysis full gutter Number of High School Graduates Expected to Peak Soon and Then Begin Dropping Public High School Graduates, Projections From the Department of Finance, 2018 Series 460,000 440,000 420,000 400,000 Actual Projected 380,000 360,000 340,000 320,000 300,000 2000-01 2009-10 2018-19 2027-28 Participation Fluctuating at CCC, Growing at CSU, Steady at UC Percent of California High School Graduates Enrolling at Each Segment 40% 35 30 CCC 25 20 15 CSU 10 UC 5 2000 2004 2008 2012 2016 CCC Enrollment Below Peak Levels University Enrollment at Peak Levels Resident Full-Time Equivalent Students Resident Full-Time Equivalent Students 1,280,000 350,000 1,260,000 330,000 CSU 1,240,000 310,000 290,000 1,220,000 270,000 1,200,000 250,000 1,180,000 230,000 1,160,000 210,000 1,140,000 190,000 UC 1,120,000 170,000 1,100,000 150,000 1,000,000 130,000 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 2006-07 2008-09 2010-11 2011-13 2014-15 2016-17 UNDERGRADUATE EDUCATION 35 analysis full gutter Amount of Core Funding Varies Notably by Segment Per Full-Time Equivalent Student, 2018-19 Dollars $40,000 35,000 UC 30,000 25,000 20,000 CSU 15,000 10,000 CCC 5,000 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19 At UC and CSU, core funds consist primarily of state General Fund and student tuition revenue. At CCC, core funds also include local property tax revenue. State Is Largest Source of Higher Education Funding Breakdown of Core Funding Per Full-Time Equivalent Student, 2018-19 Dollars Nonresident Student Tuition/Other Revenue $30,000 Resident Student Tuition Revenue State and Local Property Tax Revenue 25,000 20,000 15,000 10,000 5,000 2008 2018 2008 2018 2008 2018 UC CSU CCC At UC, “other” includes a portion of overhead on federal research grants and patent royalty income. UNDERGRADUATE EDUCATION 36 analysis full gutter Tuition Is Notably Higher Today Than 20 Years Ago Resident Tuition Charge, 2018-19 Dollars $14,000 12,000 $11,442 10,000 8,000 6,000 $5,742 UC 4,000 CSU 2,000 CCC $1,380 2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19 Students without financial need pay the rates shown. Across the three segments, about half of undergraduates receive gift aid that covers the full tuition charge. Tuition Still Is Relatively Low at CCC and CSU, Higher at UC Resident Tuition Charge, 2017-18 $12,000 8,000 4,000 CCC Other Public CSU Other Public UC Other Public Two-Year Master’s Universities Research Universities Colleges UNDERGRADUATE EDUCATION 37 analysis full gutter California Students Receive Over $8 Billion in Aid Annually Need-Based Gift Aid for Undergraduates, 2016-17 Cal Grants: Provide gift aid for $1.9 Billion students enrolled at public and private schools. State and Federal Aid Institutional $4.1 Billion Aid California College Promise $4.1 Billion $770 Million Grants: Cover tuition for CCC students. UC Grants: Cover tuition and some $746 Million living costs for UC students. State University Grants: $566 Million Cover tuition for CSU students. $108 Million Other State and Institutional Aid Net College Costs Are Lowest for Lowest-Income Students Cost of Attendance Less Gift Aid, Average Across CSU Campuses, 2015-16 Family Income Among CSU campuses, the average cost of attendance (tuition and living costs) for students living off campus was $0-30,000 about $23,800 in 2015-16. The trend is similar at the other public segments. $30,001-48,000 $48,001-75,000 $75,001-110,000 Over $110,000 5,000 10,000 15,000 $20,000 Net Price UNDERGRADUATE EDUCATION 38 For Most Students, Living Costs Are More Than Half of Overall Costs Cost of Attendance by Living Arrangement, Average Across Campuses, 2017-18 $40,000 30,000 20,000 10,000 CCC CSU UC UNDERGRADUATE EDUCATION 39 stsoC gniviL noitiuT analysis full gutter On Campus Off Campus With Family A Majority of Students Live Off Campus Undergraduates by Living Arrangement, 2017-18 10% 14% CCC does not collect comparable data for their Off Campus students. Most CCC students CSU 50% On Campus 35% UC live off campus or with family. 56% Few CCC campuses have 36% With Family on-campus housing. Living Costs Do Not Vary Notably Across the Segments Estimates for Students Living Off Campus as Reported by the Segments, 2017-18 San Diego San Diego University of City College State University California, San Diego Room and Board $13,293 $12,761 $12,652 Books and Supplies $1,854 $1,854 $1,198 Transportation $1,233 $1,919 $1,059 Other $3,006 $1,450 $3,462 Totals $19,386 $17,984 $18,371 analysis full gutter About Three-Quarters of Community College Funding Is Unrestricted Proposition 98 Funding, 2018-19, $9.2 Billion Workforce Development Programs Unrestricted The split between unrestricted and Student Support Programs restricted funding has remained about the same over the last ten years. Other State Recently Changed How Unrestricted Funding Is Allocated Enrollment Previous Formula Virtually all unrestricted funding was allocated based upon enrollment. Enrollment Low- About 60 percent of funding will Income Student New Formula be based upon enrollment at full Student Outcomes Created in 2018-19 Counts implementation (expected 2020-21). About 20 percent is based on the number of students who receive a federal Pell Grant or need-based fee waiver. About 20 percent will be based on performance at full implementation. Subset of Outcome Measures 2020-21, Awards by Student Type Additional Funding for Each: Pell Grant Need-Based Fee Outcome Measure All Students Recipient Waiver Recipient Associate degree $2,640 $1,000 $666 Transfer-level math $1,760 $666 $444 and English completed within first academic year 9 or more career technical $880 $333 $222 education units completed UNDERGRADUATE EDUCATION 40 analysis full gutter State Has No Consistent Approach to Budgeting for the Universities Example of Budgetary Action Years Action Taken Base Increase Provided state-funded base increase on the condition that segments did not raise student tuition. 2013-14 through 2016-17 Provided state-funded base increase while also allowing segments to raise student tuition. 2017-18 Did not provide state-funded base increase but allowed segments to raise student tuition. 2008-09 Enrollment Growth Did not provide enrollment growth funds or set an enrollment growth target. 2008-09, 2009-10, 2013-14 Set an enrollment target and provided enrollment growth funds. 2017-18 Set an enrollment growth target but required segment to use base increase to cover associated cost. 2016-17 (CSU only) Set an enrollment target but required existing funds be redirected to cover associated cost. 2018-19 (UC only) Other Provided funding for specific programs or initiatives. 2015-16, 2018-19 Reduced or eliminated funding for specific programs or initiatives. 2009-10 (UC only) Allowed segments to repurpose former categorical funding as they wished. 2012-13 Universities Decide How to Allocate State Funds Office of the President: Central-office operations Chancellor’s Office: Central-office operations Systemwide Programs Systemwide Programs UCPath (payroll system) | System Initiatives (mostly specified System Initiatives (mostly specified instructional and research and outreach programs) | Debt Service on Capital student support programs) | Debt Service on Capital Outlay Bonds Outlay Bonds Campus Allocations Campus Allocations Most Campuses receive a uniform per-student amount. Campuses typically receive additional funding for Campus allocations, however, are weighted to reflect the higher negotiated compensation increases and planned instructional costs for graduate and health science students. enrollment growth. Recently, the state also has provided campuses with funding for the Graduation San Francisco and Merced receive more per student, reflecting Initiative. the former’s emphasis on health science instruction and the latter’s relatively small size. UNDERGRADUATE EDUCATION 41 analysis full gutter Nonresident Enrollment Has Been Nonresident Students Comprise Increasing at All Segments Increasingly Large Share of UC Enrollment Full-Time Equivalent (FTE) Undergraduate Students Nonresident Share of Undergraduate FTE Enrollment 50,000 16% 45,000 CCC 14 UC 40,000 12 35,000 30,000 10 UC 25,000 8 20,000 6 CSU 15,000 CSU 4 10,000 CCC 5,000 2 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 Including Supplemental Charges, Nonresidents Pay Higher Tuition Compared to Other States Nonresident Tuition Charges, 2017-18 $40,000 35,000 Nonresident students typically are expected to 30,000 pay their full education cost. At UC, nonresident students pay more than their full cost. 25,000 20,000 Nonresident Supplemental Tuition 15,000 10,000 5,000 Base Resident Tuition UC Other Public CSU Other Public CCC Other Public Research Universities Master’s Universities Two-Year Colleges Legislature Expects UC to Limit Nonresident Enrollment Nonresident Share of Undergraduate FTE Enrollment at Each UC Campus, 2017-18 25% UC’s Current Limit for Each Campus 20 (Adopted in response to 2016-17 legislative direction) UC must submit a plan to the 15 Legislature by April 1, 2019 to reduce nonresident enrollment Legislature’s New Limit for Each Campus to this new limit by 2029-30. (Adopted in 2018-19) 10 5 Berkeley Los Angeles San Diego Irvine Systemwide Davis Santa Barbara Santa Cruz Riverside Merced UNDERGRADUATE EDUCATION 42 analysis full gutter Compensation Makes Up Compared With CSU, UC Spends Large Share of Core Spending at CSU More on Student Aid Core Spending, 2016-17 Core Spending, 2016-17 Other Other Operating Operating Expenses Expenses Student Financial Aid Student $6 Billion Salaries Financial $8 Billion Salaries Aid Benefits Benefits CSU Faculty Salaries UC Faculty Salaries Are Higher Than Peer Institutions Are Higher Than Peer Institutions Too Average Annual Salary, 2016-17 Average Annual Salary, 2016-17 $120,000 CSU $180,000 UC Other Public 160,000 100,000 Master's Universities Other Public 140,000 Research Universities 80,000 120,000 100,000 60,000 80,000 40,000 60,000 20,000 40,000 20,000 Professor Associate Assistant Lecturer Professor Professor Professor Associate Assistant Lecturer Professor Professor Pension Costs Continue to Increase (In Millions) $800 CSU 700 UC 600 Pension costs are among the most quickly 500 growing costs the universities and other public 400 agencies face. 300 200 100 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 UNDERGRADUATE EDUCATION 43 analysis full gutter CSU Has Seen Greater Improvement in Graduation Rates Than UC and CCC Six-Year Rates 90% UC 70 CSU 50 CCC 30 10 2005 2006 2007 2008 2009 2010 2011 Entering Freshman Cohort Achievement Gaps Exist CCC Six-Year Graduation Rates, 2011 Freshman Cohort 70% 60 50 40 30 20 10 Asian White Latino African Low Not Low American Income Income Race/Ethnicity Aid Status Though UC and CSU graduation rates are higher than CCC, achievement gaps generally follow a similar pattern at all three segments. Graduates Accrue More Units Than Degrees Typically Require Freshman Entrants, 2016-17 Graduating Class Required Units Excess CCC CSU UC 20 40 60 80 100 120 140 160 Semester Units UNDERGRADUATE EDUCATION 44 analysis full gutter UNDERGRADUATE EDUCATION 45 analysis full gutter CHAPTER 5 GRADUATE EDUCATION GRADUATE EDUCATION 46 analysis full gutter Nonprofit Sector Consistently Enrolls the Most Graduate Students Fall Headcount by Sector 300,000 For-Profit 250,000 UC 200,000 The decline for CSU is primarily due to decreasing CSU 150,000 enrollment in its teacher credentialing programs. 100,000 Nonprofit 50,000 2000 2004 2008 2012 2016 About Four Master’s Degrees Are Earned for Every One Doctorate Earned Degrees Produced in California by Sector, 2016-17 For-profit Schools For-profit Schools Professional UC Doctorates Nonprofit 11,000 Degrees Schools UC Master’s Nonprofit CSU 77,000 Degrees Schools For-Profit Nonprofit Schools Schools Research Doctorates CSU 8,000 Degrees UC CSU GRADUATE EDUCATION 47 analysis full gutter Graduate Students Tend to Be Younger at UC Than Other Sectors Headcount by Sector and Age, Fall 2017 25 and Under 25-29 30-34 35-3940 and Over UC CSU Nonprofit For-profit 10 20 30 40 50 60 70 80 90 100% California Has a Diverse Graduate Student Body Headcount by Sector and Race/Ethnicity of U.S. Citizens, Fall 2017 Two Races or More White Hispanic Asian Black Other/Unknown UC CSU Nonprofit For-profit 10 20 30 40 50 60 70 80 90 100% GRADUATE EDUCATION 48 analysis full gutter More Than Half of UC Graduate Larger Share of CSU Graduate Students Come From Out of State Students Come From California First-Year Graduate Students, Fall 2017 Graduate Students, Fall 2017 International Other U.S. State International California Resident California Resident Other U.S. State Data for first-year graduate students at CSU was not readily available. At both UC and CSU, most out-of-state graduate students who are U.S. citizens gain California residency after their first year of study. China Is Largest Country of Origin for India Is Largest Country of Origin for International Graduate Students at UC International Graduate Students at CSU Top Five Countries of Origin, Fall 2017 Top Five Countries of Origin, Fall 2017 China India India China South Saudi Korea Arabia Taiwan Vietnam Iran Taiwan 10 20 30 40 50% 10 20 30 40 50 60 70% GRADUATE EDUCATION 49 analysis full gutter Master’s Degrees Are Concentrated in a Few Key Fields of Study 2016-17 Business Education Engineering Health Humanities Public Administration California Psychology Rest of U.S. Math and Science Social Sciences Other 5 10 15 20 25% Number of Master’s Degrees Continues to Grow Master’s Degrees Produced Each Year in California 90,000 80,000 Degrees in California over period shown 70,000 grew at an average annual rate of 3.4 percent. 60,000 50,000 40,000 California consistently produces around 30,000 10 percent of the nation’s master’s degrees each year. 20,000 10,000 1991-92 1996-97 2001-02 2006-07 2011-12 2016-17 GRADUATE EDUCATION 50 analysis full gutter Some Master’s Programs Have Higher Tuition Charges Annual Systemwide Tuition and Fees for Selected Programs, 2018-19 $60,000 UC charges supplemental tuition 50,000 Ranges Among for many master’s programs. Campuses Some charges vary among campus. 40,000 At CSU, business master’s 30,000 students are charged a higher amount. 20,000 10,000 Master's Business Master's Business Nursing Public Public Policy Health CSU UC Debt Rising for Some Master’s Students Average Debt of UC Borrowers at Graduation, 2016-17 Dollars $90,000 80,000 70,000 Business 60,000 50,000 In 2016-17, around 30 percent of business students and 60 percent of education students graduated with debt. 40,000 30,000 Education 20,000 10,000 2000-01 2004-05 2008-09 2012-13 2016-17 GRADUATE EDUCATION 51 analysis full gutter Over the Years, About Half of Research Doctorates Have Been in Science, Math, and Engineering Degrees Produced in California by Field of Study 7,000 6,000 Other Humanities and Arts 5,000 Social Sciences 4,000 and Psychology Physical Sciences 3,000 Life Sciences 2,000 Science, Math, and Engineering Degrees 1,000 Math and Engineering 1966 1976 1986 1996 2006 2016 Completion Varies UC Doctoral Students Tend to Take Notably by Field of Study At Least Five Years to Graduate Ten-Year Graduation Rates for Average Years Enrolled to Degree, 2005-07 Cohorts UC Doctoral Students, 2005-07 Cohorts 7 90% 6 80 5 70 60 4 50 3 40 30 2 20 1 10 Life Arts Social Other Humanities Life Health Other Sciences Sciences Sciences Health Physical Engineering Humanities Social Physical Arts Engineering Sciences Sciences Sciences GRADUATE EDUCATION 52 analysis full gutter Most Research Doctoral Students Receive Substantial Financial Support Average Annual Aid Provided Per Student, 2015-16 Average Net Stipend Provided Per Student, 2015-16 $50,000 Research Assistantship $30,000 45,000 Teaching Assistantship Gift Aid 25,000 40,000 35,000 20,000 30,000 15,000 25,000 10,000 20,000 15,000 5,000 10,000 5,000 Life Humanties Social Arts Sciences Sciences Physical Health Engineering Other Physical Engineering Social Health Sciences Sciences Sciences Sciences Sciences Life Humanties Arts Other “Net stipend” reflects the amount of financial support Sciences a student has remaining after covering tuition and fees. Research Doctoral Students in Certain Fields Have Higher Debt Levels Average Debt of UC Borrowers at Graduation, 2016-17 Dollars $60,000 Arts and Humanities 50,000 Social Sciences 40,000 Physical Sciences and Engineering 30,000 Life Sciences 20,000 In 2016-17, the proportion of graduates with debt ranged from around 40 percent in the arts and humanities to under 20 percent in the sciences. 10,000 2000-01 2004-05 2008-09 2012-13 2016-17 GRADUATE EDUCATION 53 analysis full gutter California Has 62 Law Schools Public Schools Private Schools UC Hastings Nationally Accredited State Accredited Unaccredited 4 schools 1 school 16 schools 20 schools 19 schools 2,995 students 932 students 8,607 students — — 756 first-time 260 first-time 2,448 first-time 400 first-time 151 first-time bar takers bar takers bar takers bar takers bar takers California’s five public schools are nationally accredited. Number of students at state accredited and unaccredited schools is not readily available. Law School Enrollment Is Declining Nationally… …And in California Juris Doctor Students at Nationally Juris Doctor Students at Nationally Accredited Schools Throughout the Country Accredited Schools in California 18,000 160,000 16,000 140,000 14,000 120,000 12,000 Public Schools 100,000 10,000 80,000 8,000 60,000 6,000 40,000 4,000 Private Schools 20,000 2,000 1967-68 1977-78 1987-88 1997-98 2007-08 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Since 2011-12, enrollment nationally and in California has declined 24 percent. Institution-level data for public and private schools is not readily available prior to 2011-12. GRADUATE EDUCATION 54 analysis full gutter California Law Schools Charge Higher Tuition Than National Average Annual Resident Tuition and Fees at Nationally Accredited Schools, 2017-18 Dollars $60,000 California Public California Private 50,000 Other Private 40,000 30,000 Other Public 20,000 Among public schools, California has some of the highest tuition charges in the country. Among private schools, California ranges from among the highest tuition charges in the nation (over 10,000 $60,000 at the University of Southern California and Stanford University) to among the lowest ($30,000 at the University of La Verne). 2011-12 2013-14 2015-16 2017-18 75 percent of students at public law schools and 46 percent of students at private law schools in California receive a tuition discount. Very few law students have their tuition fully waived. Average Debt of Law Students Has Not Most Law Students Increased Notably in Recent Years Graduate With Debt Average Debt of Borrowers at Graduation, 2017 Dollars Share of Graduates With Debt Private Schools Public Schools $180,000 Public Schools 100% 160,000 90 140,000 80 120,000 Private Schools 70 100,000 60 50 80,000 40 60,000 30 40,000 20 20,000 10 2011 2012 2013 2014 2015 2016 2017 2011 2013 2015 2017 GRADUATE EDUCATION 55 analysis full gutter Among Law Schools in California, Public Ones Tend to Have Better Exam Outcomes California Bar Examination First-Time Pass Rates, 2017 100% 90 80 70 Average for California Schools 60 50 40 30 20 10 Berkeley Los Angeles Irvine Davis Hastings Nationally State Unaccredited Accredited Accredited Public Private Public Law Schools Also Tend to Have Better Employment Outcomes Employment Field/Status Upon Graduating From Nationally Accredited Law Schools, 2014-2017 Legal Field Legal-Related Field Other Field Further Education Under/Unemployed 100% 90 80 70 60 50 40 30 20 10 Berkeley Los Angeles Davis Irvine Hastings Private Public Private California Rest of U.S. GRADUATE EDUCATION 56 analysis full gutter Physicians Have a Long Education and Training Pathway Typical Pathway to Become a Physician in California Obtain Undergraduate College Bachelor’s Typically four years with courses in biology, physics, chemistry, and other subjects Degree Medical School Two years of clinical experience Two years of courses in science and clinical care Stage 2 of Licensing Exam Stage 1 of Licensing Exam Depending on specialty, Post Graduate Training Obtain additional years of residency Three years of residency License and fellowships Obtain Certification Stage 3 of Licensing Exam Certification Exams Physicians Focus in One of the Following Areas Specialty Areas as Defined by Accreditation Council for Graduate Medical Education Primary Care Medicine-Based Specialties Surgical-Based Specialties Hospital-Based Specialties Family Medicine Allergy and Immunology General Surgery Anesthesiology Internal Medicine Dermatology Colon and Rectal Surgery Emergency Medicine Pediatrics Neurology Neurological Surgery Medical Genetics and Genomics Obstetrics/Gynecology Osteopathic Medicine Ophthalmology Nuclear Medicine Physical Medicine and Rehabilitation Orthopedic Surgery Pathology Psychiatry Otolaryngology Preventative Medicine Plastic Surgery Radiation Oncology Thoracic Surgery Radiology Urology GRADUATE EDUCATION 57 analysis full gutter A Few Medical Schools Are Experiencing Relatively High Rates of Enrollment Growth Number of Medical Students by School 8,000 California Northstate University 7,000 Stanford University Touro University 6,000 Loma Linda University Private 5,000 University of Southern California 4,000 Western University of Health Sciences UC Riverside 3,000 UC Davis UC Irvine 2,000 UC San Diego Public UC San Francisco 1,000 UC Los Angeles 2008-09 2011-12 2014-15 2017-18 Postgraduate Slots Have Grown Steadily Number of Active Residents and Fellows in California 14,000 Fellows typically have completed their residency and are pursuing further specialization. 12,000 10,000 Fellows 8,000 6,000 Residents 4,000 2,000 2008-09 2011-12 2014-15 2017-18 GRADUATE EDUCATION 58 analysis full gutter Tuition Charges Steadily Rising for Medical Students Annual Resident Tuition and Fees of Doctor of Medicine Programs, 2017-18 Dollars $60,000 California Average Private Schools National Average 50,000 40,000 UC Average National Average 30,000 Public Schools 20,000 10,000 1997-98 2002-03 2007-08 2012-13 2017-18 Debt Also Rising for Medical Students Average Debt of Borrowers Upon Graduating From UC Medical Schools, 2016-17 Dollars $180,000 About 70 percent of graduates from UC 160,000 medical schools graduate with debt. 140,000 120,000 100,000 80,000 60,000 40,000 20,000 2000-01 2004-05 2008-09 2012-13 2016-17 GRADUATE EDUCATION 59 analysis full gutter CHAPTER 6 EDUCATION FACILITIES EDUCATION FACILITIES 60 analysis full gutter K-12 School Facility Program (SFP) CCC Facilities Also Typically Rely Is Based on Shared Responsibility on Both State and Local Funding Under SFP, the state and school districts share project The CCC Chancellor’s Office submits a list of costs. The district share is 50 percent of costs for proposed community college projects to the new construction and 40 percent for modernization. Legislature and Governor each budget cycle it Projects receive funding on a first come, first serve basis. (cid:31) prioritizes its requests in the following order: New construction grants are awarded to Projects to address life safety, seismic districts that lack sufficient space for their deficiencies, or building failure risks. current or anticipated student population. Projects to increase instructional capacity, Modernization grants are for renovating modernize instructional space, complete facilities 25 years or older. campus build-outs, and house support services. Projects with a local match receive greater consideration. Voters Have Approved Substantial State Funding for K-14 Facilities State General Obligation Bonds (In Billions) $14 CCC Proposition 47 12 Other Proposition 55 10 K-12 Modernization Proposition 1D Proposition 51 New Construction 8 6 Since 2002, voters have approved $41 billion in state 4 K-14 bonds. As of December 2018, $1 billion in state bond funding remains available. Annual debt service on 2 these bonds is approximately $2.5 billion per year. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Voters Also Have Approved Substantial Local Funding for K-14 Facilities Local General Obligation Bonds (In Billions) $35 Unsold Bonds (as of 2018) Since November 2002, voters have authorized 30 Sold Bonds $134 billion in local K-14 bonds. As of early 25 2018, $53 billion in local bond authority remained available. 20 15 10 5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EDUCATION FACILITIES 61 analysis full gutter Higher Education Segments Have Notable Footprints Number of Campuses, Acres of Land, and Building Square Footage at Each Segment, 2018-19 Number of Campuses Acres of Land Building Square Footage UC 127 Million CCC UC 24,500 Acres 29,000 Acres CCC 114 CSU 91 Million CSU 25,300 Acres CSU 23 CCC 87 Million Combined, California’s segments have more land than the city of Fresno. UC 10 Combined, California’s segments operate 47 times the amount of building space as the Pentagon in Washington, DC. UC’s research mission, agricultural programs, and five medical centers contribute to the segment’s large footprint relative to its number of campuses. The state funds core academic facilities—classrooms, laboratories, libraries, and faculty offices. Housing, bookstores, medical centers, athletic facilities, and other nonacademic facilities are supported by fees and other nonstate funds. About half of UC facilities and three-quarters of CSU facilities are academic. CCC does not have an estimate, but its share of academic facilities is likely higher than at CSU. Many Buildings Constructed Several Decades Ago Number of Buildings by Date Constructed, 2018-19 1,800 The average building is 43 years old at UC, 41 years old at CSU, and 30 years old at CCC. The age of a facility is not necessarily an indication of its condition. How well 1,600 the facility is maintained and when it was last renovated are better indicators of its UC 1,400 current condition and remaining useful life. CSU CCC 1,200 1,000 800 600 400 200 Before 1950 1950-59 1960-69 1970-79 1980-89 1990-99 2000-09 2010 to Present EDUCATION FACILITIES 62 analysis full gutter State Has Had a Hands-On Approach to Funding Higher Education Capital Outlay State Spending on Higher Education Capital Outlay, 2012-13 Dollars (In Millions) $2,000 1,800 1,600 Lease Revenue Bonds 1,400 1,200 Pay-As-You-Go Funds 1,000 800 600 400 200 General Obligation Bonds 1970-71 1976-77 1982-83 1988-89 1994-95 2000-01 2006-07 2012-13 Three Ways the State Has Supported Capital Projects Funds Used by State to Support Higher Education Projects Through 2012-13 General Obligation Bonds are backed by the state General Fund and approved by voters. Voters over the years have approved numerous higher education bonds. From 1986 to 2006, voters approved higher education bonds about every two years. Lease Revenue Bonds also are financed with state General Fund but do not require voter approval. Because repayment is not as secure, interest rates tend to be higher for these types of bonds. Pay-As-You-Go is when the state pays for the facilities with cash. After 2012-13, the state restructured how it supported UC and CSU facilities (described on next page). Debt Service Costs Have Increased Substantially Since 1990 Higher Education Debt Service, 2012-13 Dollars (In Millions) $1,200 1,000 800 600 Lease Revenue 400 200 General Obligation 1970-71 1976-77 1982-83 1988-89 1994-95 2000-01 2006-07 2012-13 EDUCATION FACILITIES 63 analysis full gutter State Recently Changed How It Finances University Facilities Beginning in 2013-14 for UC and 2014-15 for CSU: • State shifted funds for general obligation bond debt service into UC’s and CSU’s main budget appropriation. • Segments issue their own university bonds to fund projects. • Each segment pays all associated debt (on general obligation, lease revenue, and university bonds) using its main budget appropriation. State Also Changed UC and CSU Are Below How Projects Are Approved Statutory Limit on Their University Bonds Old and New Timeline to Approve University Projects Percent of Annual General Fund Spent on Debt Service as Reported by Segments In creating the new process, the Legislature ceded substantial project-approval authority to the administration. UC CSU Old Process New Process September UC submits proposals to Legislature and administration. 5% December 6% CSU submits proposals to Legislature and administration. January Governor submits proposed projects. 12% February Administration submits list of projects it intends 15% to approve. Legislature reviews projects. Debt service on approved Legislature university bonds reviews projects. April Administration submits Statutory limit final list of approved projects. Legislature can take further action if desired. When granting the segments the ability to finance their own bonds, the state adopted debt limits to ensure an adequate amount of funds were available June for the segments’ operating costs. General obligation and lease revenue bond debt is not included in the statutory limit. Including all bonds, debt service is Legislature approves 10 percent of each segment’s General Fund support. or rejects projects in annual budget act. EDUCATION FACILITIES 64 analysis full gutter Maintenance Is Essential for Campuses to Remain in Good Condition Examples of Maintenance Projects Replace Roof Replace Fire Alarms Replace Heating and Cooling Systems Upgrade Sewer Lines Repave Roadways and Walkways The state currently allows each segment to decide how much of its budget to set aside annually for maintenance. Backlogs Can Accumulate When Campuses Do Not Do Maintenance on Schedule Value of Maintenance Backlog as Estimated by Each Segment When maintenance is postponed, campuses increase the risk of more costly repairs and replacements in the future. CSU UC CCC $3.7 Billion $4.4 Billion $6.6 Billion Over Past Six Years, State Has Provided Funding to Address Backlogs One-Time State Funding for Deferred Maintenance (In Millions) $300 250 UC CSU 200 CCC 150 100 50 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 EDUCATION FACILITIES 65 analysis full gutter analysis full gutter Contributors Deputy Legislative Analyst, Education Jennifer Kuhn Pacella Early Education Sara Cortez - All Topics K-12 Education Ryan Anderson - Student Characteristics and Outcomes Sara Cortez - District Performance Kenneth Kapphahn - School Funding and Fiscal Health Amy Li - School Staffing and Expenditures Adult Precollegiate Education Lisa Qing - All Topics Undergraduate Education Edgar Cabral - Community College Funding Allocations Jason Constantouros - Educational Attainment, Enrollment, and Core Funding Lisa Qing - Student Characteristics, Tuition, and Financial Aid Paul Steenhausen - University Admissions, Budgeting, Expenditures, and Outcomes Graduate Education Jason Constantouros - All Topics Education Facilities Jason Constantouros - University Facilities Amy Li - K-12 Facilities Lisa Qing - Community College Facilities Graphic Designer Vu Chu LEGISLATIVE ANALYST’S OFFICE analysis full gutter LAO PUBLICATIONS The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.