The 2022-23 Budget: College and Career Proposals

The 2022-23 Budget: College and Career Proposals FEBRUARY 2022 Summary. In his January budget, the Governor College and Career Indicator Part of State’s proposes $2 billion in one-time funding across Accountability System. As part of the state’s three programs to increase college and career accountability system, districts report various readiness among high school students. In this post, student outcome data to the state, which is then we provide background on the state’s programs, displayed on a public website known as the school describe and assess the Governor’s proposals, and dashboard. Under the state’s accountability system, provide our recommendations to the Legislature. school districts that have poor performance for one or more student subgroups based on these Background indicators must examine their root issues and Almost Two-Thirds of High School access support to help them improve. The school Graduates Attend a Postsecondary Institution. dashboard includes a variety of data, including California’s four-year high school graduation rate standardized test scores, graduation rates, and (86 percent) is similar to the national average. suspension rates. Another key indicator is the Of the state’s graduates, 64 percent enrolled in College and Career Indicator, which combines college after graduating high school. (This is based information about a student’s course completion on 2017-18, the most recent year for which data is and test scores. As Figure 1 on the next page available.) Of those enrolling in college, 55 percent shows, the indicator allows multiple ways for enrolled in a California community college (CCC), students to demonstrate they are “prepared” or 30 percent enrolled in the University of California “approaching prepared” for college and career. (UC) or California State University (CSU) systems, In 2018-19, 44 percent of the state’s high school and 15 percent enrolled either at private or graduates were deemed prepared, 17 percent out-of-state colleges and universities. were approaching prepared, and 39 percent About Half of Graduates Complete UC/CSU were not prepared. As Figure 2 on the next page College Preparatory Course Requirements. shows, rates of preparation can vary substantially Of the state’s high school graduates, about half by racial/ethnic subgroups. Additionally, rates of (49 percent in 2017-18) completed the college preparation are far below the state average for preparatory coursework required to be eligible for homeless students (26 percent prepared), foster freshman admission at UC/CSU (known as the youth (13 percent prepared), and students with “A through G” series). Certain subgroups have lower disabilities (11 percent prepared). rates of completion of these UC/CSU requirements. State Has Several Existing K-12 Programs For example, in 2017-18, 40 percent of graduates Focused on Career Readiness. Figure 3 on who were from low-income families, 16 percent page 3, shows the two major programs—the of graduates who were English learners, and Career Technical Education Incentive Grant (CTEIG) 12 percent of graduates who were foster youth had program, administered by CDE, and the K-12 Strong completed UC/CSU college preparatory course Workforce Program (SWP), administered by the CCC requirements at graduation. Chancellor’s Office. Whereas the CTEIG program is intended to cover a broader range of goals beyond workforce training—such as student engagement and career exploration—the K-12 SWP is primarily intended to address regional workforce needs. 2022-23 Budget Series 1 Figure 1 Description of College and Career Indicator Prepared High school diploma and any one of the following measures: •Completed a CTE pathway and (1) met standards on state tests in either English or math and nearly met standard in the other subject or (2) completed one semester of dual enrollment in college-level coursework (CTE or academic). •Met standards on state tests in both English and math. •Completed two semesters of dual enrollment in college-level coursework (CTE or academic). •Passed two Advanced Placement or two International Baccalaureate exams. •Completed all courses required for admission to UC and CSU and (1) completed a CTE pathway, (2) met standards on state tests in either English or math and nearly met standards in the other subject, (3) completed one semester of dual enrollment, or (4) passed one Advanced Placement or International Baccalaureate exam. Approaching Prepared High school diploma and any one of the following measures: •Completed a CTE pathway. •Nearly met standards on state tests in both English and math. •Completed one semester of dual enrollment in college-level coursework (CTE or academic). •Completed all courses required for admission to UC and CSU. Not Prepared No high school diploma or high school diploma but no measures met CTE = career technical education. Several Programs at the Community Figure 2 Colleges Support K-12 College and Career Readiness Efforts. Several key Student College and Career Readiness community college programs are aligned Varies by Racial/Ethnic Subgroup with or provide support to existing K-12 College and Career Indicator, Graduating Class of 2019 programs that promote college and career readiness. The state provides $290 million ongoing for the CCC SWP, which shares Asian the same regional structure with the K-12 SWP. Both programs are required to focus White on regional workforce needs, with the K-12 program intended to feed into CCC degree and certificate programs. In addition, the Latino state provides community colleges about $200 million annually in apportionment Pacific Islander funding for high school students dually enrolled in CCC courses (which we discuss American further below). The state also provides Indian Prepared $1.8 million ongoing in program support for African Approaching Prepared “middle college high schools.” These schools American are a partnership between a school district or charter school and a community college to 10 20 30 40 50 60 70 80 90 100% operate a high school on a community college campus, targeted to students who are at a risk of dropping out of high school. (A similar model, known as “early college high school,” is a partnership between public schools and 2022-23 Budget Series 2 a CCC, CSU, or UC campus that allows students to community college grantees collaborate with high earn a diploma and up to two years of college credit schools and industry partners to create a school in four years or less.) In addition to the programs spanning 9th through 14th grades (that is, through at community colleges, both UC and CSU have lower-division coursework at CCC). Participating programs that provide outreach and recruitment community colleges and schools first enter into a to high schools to support students to enroll at a CCAP agreement. Students in the program then university after graduation. take a mix of high school and community college Dual Enrollment Allows High School Students courses that lead both to a high school diploma to Take College Level Courses. Credit from these and a “no cost” associate degree in a designated college-level classes may count toward both a high science, technology, engineering, and math (STEM) school diploma and a college degree. By graduating field (including manufacturing and information high school having already earned college credits, technology). Though the program is structured as students can save money and accelerate progress a six-year model, students can progress at their toward a postsecondary degree or certificate. own pace and complete their associate degree in a Dual enrollment has various models. California’s somewhat faster or slower time period. In addition, two most widely used models are traditional students participate in work-based experiences, dual enrollment and College and Career Access such as internships and mentorships with local Pathways (CCAP). Traditional dual enrollment businesses. Upon graduation, students can typically consists of individual high school students choose to continue their education at a four-year taking college-level courses on a community college or obtain an entry-level job in the field colleges campus. CCAP, on the other hand, allows they studied. Industry partners commit to giving cohorts of high school students to take college-level program graduates first priority for relevant job classes on a high school campus. Under both dual openings. Statute requires the Chancellor’s Office enrollment models, the school district the student to prioritize grants to applicants serving students attends and the community college are typically from groups that have historically faced barriers to able to claim apportionment funding for the time that completing high school or college. The Chancellor’s students are taking the community college courses. Office also is required to report to the Legislature and Department of Finance by January 2025 on 2018-19 Budget Created Dual Enrollment the outcomes of students who participated in the Initiative Focused on College and Career program—including the number and percentage of Readiness. The Legislature provided CCC students who obtained an associate degree, gained $10 million one-time Proposition 98 General Fund full-time employment in the area they studied, or for the initiative, known as the “California STEM enrolled in a four-year college. Pathways Grant Program.” Under the initiative, Figure 3 State’s Two Major K-12 Career Technical Education (CTE) Programs Proposition 98 General Fund (In Millions) Ongoing Name Funding Description CTE Incentive Grants $300 Allocated on a competitive basis. Funds are disbursed based on a formula that considers the size of the CTE program. Priority given in eight different categories, including whether the program is in a rural area and whether it already uses other CTE funding, such as federal grants. Requires $2 local match for every $1 in state funding. K-12 Strong Workforce 150 Allocated to regional consortia based on a formula considering grades 7 through 12 Program attendance and regional workforce needs. Each consortium, in turn, awards grants to school districts, charter schools, and county offices of education on a competitive basis. Requires that grantees partner with a community college develop CTE opportunities and career pathways. Requires $2 local match for every $1 in state funding. 2022-23 Budget Series 3 Governor’s Proposals • Provide articulated pathways from high school to postsecondary education and training that Provides $1.5 Billion One Time for Golden are aligned with regional workforce needs. State Pathways. The proposal would create a new competitive grant program intended to improve • Collaborate with other entities—such college and career readiness. The program is as institutions of higher education and to be administered by CDE and would fund the employers—to increase the availability of development of specific types of high school college and career pathways that address pathways programs. Funding would be available regional workforce needs. over five years. As Figure 4 shows, funding would • Leverage available resources or in-kind be for three activities: implementation, regional contributions from public, private, and planning, and technical assistance. Funding could philanthropic sources to sustain the ongoing be provided to school districts, charter schools, operation of the pathways they develop. county offices of education, regional occupational Under the proposal, grant recipients would be centers, or programs operated by a joint powers required to annually report data disaggregated authority. (For the remainder of this post, we refer by student subgroups in several areas, including to these entities as local education agencies or academic performance, graduation rates, LEAs.) The proposal defines high-priority LEAs completion of UC/CSU course requirements, as those that have (1) a majority of their student postsecondary outcomes, and employment population consisting of English learners or outcomes. An evaluation of the program would be low-income students, or (2) higher than the state required to be completed between June 30, 2027 average rate of high school dropouts, suspensions and June 30, 2028. or expulsions, child homelessness, foster youth, Provides $500 Million One Time to Increase or justice-involved youth. The proposal would Dual Enrollment. The funding would be split give preference to high-priority LEAs that seek among three different grant types, as shown in to establish programs in education (including Figure 5. As with the Golden State Pathways early education), computer science, health care, proposal, funding would be administered by CDE or STEM pathways that also focus on climate and allocated through a competitive grant process. resilience. Grant recipients would be required to: Priority would be given to LEAs where at least • Provide high school students a program half of their student population consists of English that includes (1) an integrated program of learners or low-income students, as well as those study that incorporates all of the UC/CSU that have higher than the state average rate of high course requirements, and at least one of school dropouts, suspensions or expulsions, child the other criteria to be considered prepared homelessness, foster youth, or justice-involved under the College and Career Indicator; youth. Funding would be available over five years. (2) the opportunity to earn at least 12 college credits; (3) opportunities to participate in work-based learning experiences, and Figure 4 (4) integrated support services Golden State Pathways Funding to address a student’s Split Among Three Activities social, emotional, and Proposition 98 General Fund (In Millions) academic needs. • Develop and integrate Description Funding standards-based academics Implementation grants for local educational agencies (LEAs). $1,250 with a sequenced curriculum Grants to develop regional consortia and support collaborative $150 aligned to high-wage, planning. Technical assistance grants. The California Department of Education $75 high-demand jobs. can contract with up to ten LEAs for this purpose. 2022-23 Budget Series 4 Provides $20 Million One Time for Another elements that are similar to the existing CTEIG Round of California STEM Pathways Grants. and K-12 SWP. Most notably, it is intended to be The Governor’s proposal is very similar to aligned with regional workforce needs and include the initiative funded in the 2018-19 budget. partnerships with industry and institutions of higher One difference is that the 2022-23 proposal education. However, the program has a significant adds education (including early education) as number of additional program requirements, such an eligible field that students can study in the as having pathways be aligned with UC/CSU pathways program. In addition, the Governor’s course requirements and providing students proposal adds another reporting requirement with integrated support services. There could (January 2029) for the Chancellor’s Office. As in be benefits to encouraging LEAs to implement 2018-19, the Governor’s budget allows the programs of this type, as they can provide students Chancellor’s Office to decide on the number and with greater options after high school. However, size of the grants using the proposed funds. Also, enacting this proposal would leave LEAs often like the 2018-19 grants, grantees would have six operating programs with three different sources of years to spend their fund awards (aligned with the funding and three different program rules. Such a amount of time a 9th-through-14th grade cohort of fragmented approach can make implementing well students is to spend in the program). aligned and coordinated programs administratively and fiscally challenging for LEAs. Assessment Little Details Around Key Aspects of Golden All Proposals Provide One-Time Funding for State Pathways Proposal. The Governor’s Ongoing Activities. The administration indicates proposal sets clear expectations for the types of the one-time funding in these proposals is pathways programs grant recipients must develop intended to be used as start-up costs to create or and requires grantees to submit a robust set of expand pathways and dual enrollment programs. outcome data that will help inform the required However, the bulk of the costs associated with evaluation of the program. However, the proposal building and sustaining these programs—such as also lacks critical details, such as the amount of hiring staff, developing partnerships with industry, funding grantees would receive and the allowable and purchasing instructional materials and uses of the funds. These decisions are left to the equipment—are ongoing. Moreover, in the case of Superintendent of Public Instruction, in consultation the $500,000 dual enrollment grants for academic with the State Board of Education. Without these support and advising, the funding appears to be details, it is difficult for the Legislature to assess covering an ongoing cost that, if not continued, the program’s potential benefits. This is particularly would have no long-term benefits. Although the relevant given the robust requirements included expectation is that LEAs commit to sustaining in the proposal. the programs when grant funding expires, there is no guarantee that this would occur. Alternatively, the grantees Figure 5 that apply for and receive these Summary of Governor’s Proposed funds may be LEAs that already Dual Enrollment Grants were planning and committed to Proposition 98 General Fund (In Millions) implementing these programs, regardless of whether they were to Description Funding receive one-time state funding. Up to $500,000 for enhanced student advising and success support. $300.0 Golden State Pathways Can be spent over five years. Proposal Would Add More $250,000 for planning and starting up middle and early college high 137.5 schools on K-12 school sites. Complexity to State’s Approach $100,000 to establish CCAP agreements that allow students to take 62.5 to Funding College and Career some community college courses at their high school. Readiness. The Golden State CCAP = College and Career Access Pathways. Pathways proposal has several 2022-23 Budget Series 5 No Clear Fiscal Barriers to Implementing To better assess the merits of the Governor’s Dual Enrollment. Research suggests that proposal, the Legislature thus would benefit from dual enrollment can be an effective model for a basic status update on how the currently funded improving college preparation. Moreover, the state $10 million initiative is working (recognizing that supports an extensive amount of dual enrollment the report due in 2025 will have more complete through several program models. In proposing outcomes data). For example, our understanding additional funding for dual enrollment, however, is that the Chancellor’s Office awarded $10 million the administration fails to identify what problem in grants to a total of six community colleges in currently exists with dual enrollment. In particular, early 2019 and that programs generally began the administration does not specify what barriers enrolling 9th grade students in fall 2019 or fall LEAs currently face in implementing dual enrollment 2020. (The Chancellor’s Office originally offered programs and how additional funding might help seven grants but only six community colleges remove these barriers. For example, most of the met minimum application requirements.) It is proposed funding for dual enrollment is intended unclear, however, how many students began these to increase the level of student support services, programs, how many are still enrolled, and the such as tutoring. Yet, the administration does not progress they are making toward a high school specify how current funding to support students diploma and acquiring college credits. In addition, is inadequate at high schools and community since the program is designed to focus on colleges. Given that community colleges currently supporting underserved youth, the Legislature would are receiving funding from the state far in excess benefit from receiving data on the demographics of their enrollment levels, we question whether of students in these programs. Without the above students—including dually enrolled students—have information, it is difficult for the Legislature to know inadequate access to tutors, counselors, and other whether the Governor’s proposal to fund another support staff. In the case of CCAP, it is not clear round of grants would be an effective approach to that funding barriers exist at all. Full-time equivalent increasing college and career readiness. enrollment in CCAP programs has grown to almost Proposals Do Little to Target Funding to 18,000 students in just a few years. In 2020-21, Schools and Students That Would Benefit CCAP enrollment grew by 22 percent from 2019-20 Most. For the Golden State Pathways and dual to 2020-21, even as overall community college enrollment proposals, the administration defines enrollment declined by 8 percent. Moreover, rather high-priority LEAs as those with at least half of than posing fiscal barriers, CCAP funding policies their student population consisting of English can work to the benefit of schools and colleges. learners or low-income students, as well as This is particularly the case when students take any LEA with a higher than the state average CCAP courses in place of their regular high school rate of high school dropouts, suspensions or coursework. In such cases, schools can receive expulsions, child homelessness, foster youth, attendance-based funding even though they or justice-involved youth. Such a broad definition may only be providing three hours (rather than of priority is unlikely to have much effect on the standard six hours) of instruction per day. targeting the proposals to LEAs with students (For more background on dual enrollment, please that have the greatest need. Based solely on one see our 2021-22 analysis of a proposal to fund dual priority measure—that more than half of students enrollment instructional materials.) be low income or English Learners—at least Little Information Available Regarding two-thirds of school districts would be designated Current STEM Pathways Grant Program. as meeting the high-priority characteristics. The program is based on a decade-old model (Using the other measures, additional districts aimed at combining education and workforce would also be eligible.) In addition, neither development through dual enrollment and the Golden State Pathways nor the dual industry partnerships. Though the model enrollment proposals require districts to target has been implemented in other states and programs to the schools or student populations countries, it is relatively new to California. in their district with the lowest outcomes. 2022-23 Budget Series 6 This could result, for example, in districts using Direct Chancellor’s Office to Report at funding to benefit programs at their Spring Hearings About Current STEM Pathways higher-performing high schools without Program. By obtaining a status update on the implementing similar programs at their six programs that received a grant in 2018-19, lower-performing high schools. the Legislature would be in a better position to make an informed decision about the Governor’s Recommendations proposal. In addition, given that only six grants were Request the Administration Provide awarded in 2018-19, the Legislature should request More Information on Golden State and Dual the administration to explain how it determined Enrollment Proposals. As the Legislature the amount proposed for 2022-23 and share any evaluates these proposals, we recommend it indications it has that enough interest and demand request more information from the administration exists from college, school, and industry partners prior to the May Revision, in order to fully assess to justify the requested amount. The Legislature their potential benefits and shortcomings. could use information to help weigh the Governor’s Specifically, we suggest requesting responses to proposal against other one-time legislative the following questions: spending priorities for 2022-23. • How does the administration expect LEAs Consider Ways to Target Schools and to coordinate funding from Golden State Students With Highest Need. If the Legislature Pathways and other CTE programs into a chooses to adopt the Golden State Pathways or coherent approach for serving students? dual enrollment proposals, it could modify the proposals to prioritize a smaller subset of districts. • What considerations is the administration For example, it could designate a high-priority taking to decide how to set grant amounts for LEA as one where at least 75 percent of the student the Golden State Pathways program? population is low income or an English learner. • What does the administration see as the key This would restrict priority to the top one-third of barriers to dual enrollment? Why does the school districts. To increase the likelihood that administration believe additional funding is grant funds ultimately benefit students with the necessary given the fiscal incentives that greatest needs, the Legislature could consider already exist? requiring that grantees demonstrate they will be • Why is the administration proposing implementing these programs equitably across one-time funding for programs that will need various school sites and in a way that is targeted to ongoing support? benefit student subgroups with lowest college and • How will the administration ensure that funding career outcomes. is being distributed in an equitable manner that targets the students that could benefit most from high-quality high school programs? 2022-23 Budget Series 7 LAO PUBLICATIONS This post was prepared by Michael Alferes with the assistance of Paul Steenhausen, and reviewed by Edgar Cabral and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 8