The 2019-20 Budget: Student Food and Housing Insecurity at the University of California

The 2019-20 Budget: Student Food and Housing Insecurity at the University of California GABRIEL PETEK LEGISLATIVE ANALYST APRIL 2019 INTRODUCTION The Governor proposes to provide the University of aid or support specific food and housing initiatives. In California (UC) with ongoing funding to address student this brief, we provide background, then describe the food and housing insecurity. UC indicates it would use Governor’s proposal. Next, we offer issues to consider the proposed funds either to augment student financial and provide associated recommendations. BACKGROUND In this section, we first provide background on Financial Aid Helps Low-Income Students Cover financial aid available to UC students, then provide Their College Costs. Most of the state’s undergraduate background on food and housing insecurity among UC financial aid programs are need based, meaning that students and UC’s efforts to respond. students qualify for aid based on their household’s financial resources and the cost to attend school. Financial Aid Students in California who qualify for need-based aid To Attend College, Students Face Tuition and often receive a mix of federal and state grants to cover Nontuition Costs. To attend UC, all students are costs, including the federal Pell Grant and the state charged tuition and other fees. In addition, students Cal Grant. In addition, each public segment and many must cover the cost of books, supplies, food, housing, private schools offer their own aid programs that either transportation, and health care. To estimate the overall supplement federal and state programs or support cost of attendance (tuition and nontuition costs), UC additional students. periodically surveys its students. In 2018-19, UC Financial Need Is Determined by Cost of students living off campus spent on average $32,468, Attendance and Expected Family Contribution. Across with $14,015 spent on tuition and fees and the remaining the country, students from low-income households qualify $18,453 spent on living costs. Students living on campus for financial aid based on a federal formula. The formula pay on average more (a total of $35,283) and students estimates a family’s expected college contribution based living with their parents on average pay less ($26,504). primarily on family income and size. A student’s financial The difference is primarily due to housing costs, with need is then defined as the total cost of attendance less students living on campus typically facing higher housing a family’s expected contribution. Federal, state, and costs and students living with their parents typically campus financial aid programs each meet a portion of a facing lower housing costs. student’s financial need. analysis full gutter 2019-20 BUDGET UC’s Aid Focuses on Covering Cost UC Recently Completed Two Studies of of Attendance After Family and Student Food and Housing Insecurity Among Its Contribution. UC first determines students’ cost of Students. The first survey, administered in 2015, attendance based on the average cost by type of focused exclusively on food insecurity. Using the living arrangement (off campus, on campus, or with six questions developed by USDA, UC surveyed family). Then, UC expects households to contribute 66,000 of its undergraduate and graduate students. toward this cost based on their federal expected Of those surveyed, 14 percent responded. family contribution. In addition to expecting families Beginning in 2016, UC incorporated questions to contribute, UC expects all students to support regarding both food and housing insecurity into a portion of their costs through work and loans. its biennial undergraduate and graduate student This student expectation changes each year and is experience survey. This survey is administered to all intended to reflect a reasonable amount of working students and tends to have higher response rates and borrowing. In 2018-19, the student work (about one-third of students respond). and loan expectation is $10,000 per student. The Notable Proportion of UC Students Report remaining cost of attendance is covered through Food and Housing Insecurity. Based on the financial aid. 2016 survey, UC reports that 44 percent of UC Funds A Portion of Aid Primarily With undergraduate students and 26 percent of Tuition and Fee Revenue. State and federal aid graduate students experience food insecurity. programs, including the Cal Grant and Pell Grant, The results are roughly comparable to the 2015 do not provide enough aid to cover all student survey. According to UC, about half of students financial need at UC. To cover remaining financial reporting food insecurity experience reduced need, UC has its own aid program. It funds the quality or desirability of diet and the other half program using a portion of student tuition and fee report experiencing multiple eating disruptions. revenue. In years when the cost of the attendance About 5 percent of undergraduate and graduate grows faster than growth in aid programs, UC students report experiencing homelessness, but the increases the student work and loan expectation. university indicates its definition of homelessness UC believes its student work and loan expectation has not been validated as an accurate measure. has remained manageable over time. UC’s definition encompasses living situations ranging from couch surfing at a friend’s residence Student Food and Housing Insecurity to living on the street. Food Insecurity Defined by Federal University Has Implemented Several Government, but No Standard Definition of Initiatives to Address Food Insecurity. Since Housing Insecurity. The United States Department 2015-16, UC campuses have received $7.8 million of Agriculture (USDA) defines “low food security” in one-time funding to address student hunger, to mean an individual has a reduced quality or including $4 million from the state General Fund desirability of diet and “very low food security” and $3.8 million from discretionary university funds. to mean an individual that experiences multiple Campuses have used these funds to support a disruptions of eating patterns and food intake. variety of activities, including: (1) developing and To measure the incidence of food insecurity, expanding campus food pantries, (2) establishing the department has developed a six-question “basic needs centers” that provide students survey. In contrast to food insecurity, the federal information on supporting food and housing costs, government has no one methodology for measuring (3) creating programs for on-campus students to housing insecurity. The United States Department donate unused meal allowances to food pantries, of Housing and Urban Development, however, (4) providing financial literacy workshops for periodically surveys the incidence of individuals students, and (5) hiring on-campus coordinators to who experience homelessness. help enroll more students in CalFresh (the state’s food benefit program). 2 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2019-20 BUDGET PROPOSAL Proposes $15 Million Ongoing General from $10,000 in 2018-19 to $10,500 in 2019-20, Fund to Address Food and Housing Insecurity and that the proposed funding would reduce the at UC. The amount proposed by the Governor 2019-20 expectation to $10,350. Staff emphasized corresponds to a budget request made by the UC that these estimates are preliminary and subject to Regents. The budget bill specifies that the funds a number of factors that could change before the are to address student food and housing insecurity. start of the academic year. In discussions with our office, the Department UC Is Revisiting Its Initial Plan, May Use of Finance indicates UC would have flexibility to All or a Portion of Funds for Other Initiatives. determine how to use the proposed funds as well According to UC staff, student groups have as how to allocate the funds among its campuses. requested that the proposed funding be used to UC Indicates Initial Plan Was to Use Funds support specific food and housing initiatives. During Entirely for Financial Aid. According to UC, a March meeting of the UC Board of Regents, the its original $15 million request was intended to Office of the President indicated that campuses supplement student financial aid. Staff at the UC likely would have flexibility in how they could use Office of the President estimated that the student the funds. work and loan expectation would otherwise rise ISSUES FOR CONSIDERATION The Governor’s proposal raises at least three CCC students. Despite this notable caveat, these issues for the Legislature to consider: (1) the segments report that their food insecurity and underlying incidence and causes of food and homelessness rates are comparable to or higher housing insecurity, (2) the interaction between than the rates at UC (Figure 1, see next page). student financial aid and public assistance The reported rates among the three segments are programs that support food and housing costs, far greater than the incidence among California’s and (3) inequities in funding for student food population as a whole. According to recent federal and housing across the state’s higher education survey data, 11 percent of California households segments. We discuss each issue below. experience food insecurity and less than 1 percent of Californians are homeless. Understanding the Causes of Food Food Insecurity Rates at UC Defy and Housing Insecurity Expectations. Figure 2 (see next page) shows estimated food insecurity at UC by undergraduate Incidence of Food Insecurity and household income. With regard to lower-income Homelessness at UC Is Comparable to Other households, the high rates of reported food Higher Education Segments but Much Higher insecurity are surprising because UC offers Than California Households. The California State comprehensive student financial aid that factors University (CSU) and the California Community in food and other living costs. That one-quarter of Colleges (CCC) also have studied food insecurity students from higher-income households (earning and homelessness among their students. The CSU $150,000 or more) report food insecurity is also and CCC studies had much lower survey response surprising given the significant resources these rates—around 5 percent for each study—than households have to cover food and other living the UC studies. Such low rates could result in costs. responses not being representative of all CSU and www.lao.ca.gov 3 analysis full gutter 2019-20 BUDGET Studies Have Not Yet Pinpointed Key Causes to borrowing, difficulty finding a part-time job, or of Student Food and Housing Insecurity. unique circumstances (perhaps relating to family Students may experience food and housing or health) might contribute to food and housing insecurity for many possible reasons. Lack for insecurity. The largest contributors likely vary funds, lack of awareness of aid opportunities, poor depending upon student characteristics (including spending choices, a lack of familiarity or aversion family income). Understanding the root causes of food and housing insecurity for specific student groups is Figure 1 critical if the state is to respond Differences in Reported Food Insecurity cost-effectively and strategically. and Homelessness Rates Depending upon the key causes, Estimates as Reported by Each Segment the state could want to consider providing additional financial aid 60% Food Insecurity for living costs; hiring additional financial aid, financial literacy, 50 Homelessness or job counselors; or funding 40 on-campus food pantries and emergency housing options. 30 Addressing Living Costs 20 Through Financial Aid 10 and Public Assistance Certain College Students UC CSU CCC Can Qualify for CalFresh Benefits. Under the CalFresh program, eligible households receive an allotment of funds Figure 2 each month that they can use to purchase food. The monthly Even UC Students From Higher-Income Households benefit depends on a household’s Report Being Food Insecure and Homeless size. For example, the maximum Percent of Undergraduate Students by Reported Household Income monthly allotment begins at $192 for an individual and increases 60% to $642 for a household of four. Food Insecure 50 To qualify for CalFresh benefits, Homeless a household’s income cannot 40 exceed 130 percent of the federal poverty level, among other 30 requirements. According to USDA, 20 college students generally must be enrolled less than half time 10 to qualify for CalFresh benefits. Full-time students can still qualify Independent $0 - $50,000 - $100,000 - $150,000 for CalFresh if they work at least Students $49,000 $99,000 $149,000 and Higher 20 hours per week, have children, have a disability, or are already Dependent Students receiving other forms of public assistance. 4 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2019-20 BUDGET Some Eligible Students Likely Are Not Addressing Inequities in Receiving CalFresh Benefits. No data exist on Funding for Living Costs the number of students at each segment who are UC Students Have More of Their Living Costs eligible to receive CalFresh benefits. Some data Covered On Average Than Students at Other suggest, however, that a portion of eligible students Segments. In contrast to UC, CSU and CCC aid may not be receiving benefits. In a recent report, programs focus primarily on tuition costs and the Government Accountability Office estimated offer less for living costs. This difference creates that 57 percent of income-eligible students inequities among the state’s three higher education nationally did not receive federal food benefits. segments. A recent analysis conducted by The While no California-specific data exist, recent data Institute for College Access and Success found at UC suggest some UC students are eligible to that, holding family size and household income receive food benefits. According to UC, between constant, off-campus students attending UC face January and June 2018, campus staff helped lower costs after accounting for their aid packages enroll 10,376 additional students into the CalFresh than similar students at the nearest CSU and CCC program. campus. Students facing higher costs tend to rely State Has Sought to Increase Coordination more on their households for support, work more Between Higher Education and Human Services. hours, take on additional borrowing, or find ways to As part of the 2018-19 budget, trailer legislation reduce their spending (for example, by sharing an directed the California Department of Social apartment with more roommates). Services to convene a working group comprised Governor’s Proposals Would Exacerbate of representatives from each of the three public Inequities. Though UC students already receive higher education segments and local welfare more aid for living costs than CSU and CCC providers. The purpose of the group is to improve students, the Governor proposes an ongoing coordination and better deliver benefits to college augmentation only for UC students. By comparison, students. According to staff at the department, the Governor proposes one-time funding to CSU two stakeholder meetings are scheduled to occur ($15 million) and no funding to CCC for their food before June 30, 2019. At the time of this analysis, and housing initiatives. According to the Department no further information was available as to the of Finance, the different approaches reflect budget content or results of the meetings. requests made by each segment. They do not reflect a strategic statewide response to the issues at hand. RECOMMENDATIONS Gain Greater Understanding of Incidence and acute at certain segments or if root issues vary Causes of Student Hunger and Homelessness. among the segments. Additionally, the study could The studies to date on student food and housing entail several focus groups (differing by significant insecurity leave many important questions socioeconomic factors) to discuss students’ unanswered. To gain a better understanding of specific food and housing challenges, their existing underlying issues and potential policy responses, approaches to addressing those challenges, and we recommend the Legislature fund a one-time other feasible approaches that might be more study involving students across the higher effective. We believe such a study likely could be education segments. The study could examine undertaken for less than $500,000 in one-time why hunger and homelessness rates are so funding. much higher for college students than the overall Use Results of Study to Inform Fiscal and California population. It also could examine Policy Responses. We recommend requiring whether food and housing insecurity is more the results of this study to be released by www.lao.ca.gov 5 analysis full gutter 2019-20 BUDGET October 2020—in time to inform 2021-22 budget studies just mentioned would help the Legislature deliberations. The state could use the results to maximize the effectiveness of state funding. help it decide whether providing additional financial Nonetheless, were the Legislature interested aid, funding financial literacy or nutrition courses, in sustaining existing campus initiatives in the hiring more counselors, or supporting specific meantime, it could provide one-time funding for emergency food and housing initiatives would best these purposes in 2019-20. As context, the state target the identified causes of student food and provided $1.5 million in one-time funding last year housing insecurity. The study also could help the for food insecurity initiatives at UC. state decide how to allocate any additional funding Summary of Recommendations across the higher education segments. Further Examine Role of Public Assistance • Provide up to $500,000 in one-time funding Programs in Covering Students’ Living Costs. In for a study on the incidence and causes of addition to studying underlying food and housing student food and housing insecurity across insecurity issues, we recommend the Legislature the higher education segments. Require continue efforts to understand how CalFresh and results of the study to be released by October other public assistance programs could support 2020—in time to inform 2021-22 budget students’ living costs. To this end, we recommend deliberations. the Legislature direct the segments to continue • Direct the three public segments to working with the California Department of Social continue working with the Department of Services to estimate how many students are eligible Social Services to assess the effectiveness to receive CalFresh benefits; how many students of CalFresh in addressing student food already receive those benefits; and how best to reach insecurity. Require associated information eligible, unserved students. We recommend this be provided to the Legislature no later information be provided to the Legislature no later than November 1, 2019—in time to inform than November 1, 2019—in time to inform next year’s 2020-21 budget deliberations. budget deliberations. We recommend the Legislature • Direct the segments to share what they learned also direct the segments to report on the outcomes from their 2018-19 workgroup meetings. of their 2018-19 stakeholder meetings, also no later Require information be provided to the than November 1, 2019. On a parallel track, the state Legislature no later than November 1, 2019. could undertake a similar process of coordination • Consider directing the higher education and analysis relating to housing assistance programs segments to work with other state agencies to for which students might qualify. assess the extent to which housing assistance While Awaiting Results of Studies, One-Time programs are benefiting college students. Funding Could Help Sustain Existing Initiatives. • Consider providing one-time funding to help Given the uncertainty behind the underlying causes sustain existing food and housing initiatives of student food insecurity and homelessness, we at the segments in 2019-20. The Legislature believe funding associated ongoing initiatives is provided $1.5 million to UC in 2018-19 for premature. We believe waiting for the results of the such initiatives. LAO PUBLICATIONS This report was prepared by Jason Constantouros and reviewed by Jennifer Kuhn Pacella. 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. 6 LEGISLATIVE ANALYST’S OFFICE