USING A POLICY AUDIT TO ALIGN COMMUNITY COLLEGE FINANCE WITH STATE POLICY GOALS

1. USING A POLICY AUDIT TO ALIGN COMMUNITY COLLEGE FINANCE WITH STATE POLICY GOALS Nancy Shulock Making Opportunity Affordable (MOA) Academy Chapel Hill, North Carolina June 3, 2008 California State University, Sacramento

2. Overview Overview • What is a “policy audit”? • The California Community College context • Findings: using the policy audit California State University, Sacramento

3. Policy Audit Purpose: • Show the impact of policies on behaviors/goals • Are we buying the right thing? (de facto priorities) Premise: • Policies provide the “rules of the game” – whether or not explicit and intentional • Policies develop incrementally - different players • Collective impact rarely considered • Finance policy is especially powerful California State University, Sacramento

4. Context: California Community Colleges • Largest of three public systems • Over 70% of public undergraduates • Most part-time • 109 colleges in 72 districts • Mix of state and local governance • Local control but highly regulated • Low funding/lowest fees in the nation • High participation, low success • 46th among states in completion • State lacks explicit goals for higher education California State University, Sacramento

5. Incoming CCC Students 1999-2000 Policies to Promote Access 520,407 Students Non-Degree-Seekers: 40% Degree-Seekers: 60% 206,373 Students Basic Skills: 9% Job Skills: 49% 314,034 Students Policy Barriers to Completion Personal Enrichment: 42% Complete Certificate, Degree or Transfer within 6 Years: 24% 75,682 Students 238,352 Students Do Not Complete within 6 Years: 76% California State University, Sacramento

6. Policy Audit Methodology • Define “finance policy” broadly • Base appropriations • Categorical programs • Laws and regulations on college use of funds • Fee policy • Student aid policy • Derive goals • Analyze policies with respect to goals California State University, Sacramento

7. Policy Goals • Increase college readiness • Provide broad access – credential-seeking • Ensure affordability • Increase degree/certificate completion • Align degree/certificate production with workforce needs • Ensure efficient use of funds California State University, Sacramento

8. California State University, Sacramento

9. Key Finding: Policies Undermine Priorities • Favor access over success • Focus on fairness to institutions (not students) • Yield insufficient resources for missions • Inefficient use of resources California State University, Sacramento

10. Base Appropriations (Enrollment-Driven) California State University, Sacramento

11. Restrictions on Spending: 50% Law California State University, Sacramento

12. Policy of Low Fees for All Students California State University, Sacramento

13. Financial Aid Focus on Fees, Instead of Affordability California State University, Sacramento

14. Some Finance Policy Reform Priorities • Appropriations • Incentives for progress/success • Incentives for high-need programs • Categoricals • Reduce programs and lessen requirements • Restrictions on use of funds • Modify 50% and increase flexibility • Fees • Greater college access to fee revenue • Financial aid • Enriched funding for Pell recipients • Add academic progress incentive to fee waiver California State University, Sacramento

15. What Do We Do Now?The Challenge of Using the Policy Audit Key Messages to Stakeholders: • Policy matters! It’s not just about the money • Incentives are powerful – people are rational, not evil Strategies: • Identify better policies (Invest in Success, pp.50-52) • Consider levels of policy: institution/system/state • The grand bargain: reform and more $$ • Piecemeal or omnibus? California State University, Sacramento

16. Contact Information Email: nshulock@csus.edu Website (to download or order reports): www.csus.edu/ihe California State University, Sacramento