Citizen’s Advisory Committee on Finance and Budget to the ACC Board of Trustees (ACFB)

1. Citizen’s Advisory Committee on Finance and Budget to the ACC Board of Trustees (ACFB) Committee Members: • Kathie Schwerdtfeger (chair) • Hunter Ellinger (vice-chair) • Richard Borchard • Kim Edwards • Dolores Gonzales • Toni Hunter • Pete Palazzari • Bob Rutishauser • Gilbert Zamora

2. Early College Start Issues What are the financial impacts of free ECS tuition on ACC? Net costs of ECS instruction Effect on citizen willingness (in and out of district) to provide tax support What would the effects be of charging tuition to ECS students? Enrollment (ECS and regular students) Financial Need of ECS students

3. ECS Activity Summary • Enrollment 6,266 courses; 19,154 credit-hours (3.3% of total ACC enrollment) • 30% in-district, 70% out-of-district • ECS-student distribution by average annual family income for residence ZIP code • 27% less than $50,000 • 34% between $50,000 and $70,000 • 39% more than $70,000 • Summer is largest semester for ECS students

4. ECS Department Distribution • 24% English • 22% Government • 14% History • 10% Economics • 18% other similar lecture courses • 12% other courses (e.g., computer sci)

5. Types of ECS Classes • Regular ACC classes(70% of overall ECS enrollment) • High-school class, teacher paid by ISD(8 of 43 Fall 2004 sections) • High-school class, teacher paid by ACC(35 of 43 Fall 2004 sections)

6. Lower Costs for ECS Students • No facilities & student-support costs for high-school-based students • Lecture courses are about half as expensive as ACC average • ECS student-services needs are lower, even for campus-based students • (Note: many non-ECS students have a similar usage of ACC, and similar costs)

7. Estimates of ECS Net Marginal Financial Effects (per credit-hour) After $55/credit-hour state reimbursement: • High School, ISD-paid: +$40/credit-hour • High School, ACC-paid: -$17/credit-hour • Campus-based classes: -$53/credit-hour

8. Estimates of ECS Financial Effect, Total Dollars • FY05 net marginal cost about $0.8 million • Including full overheads, about $1.3 million

9. Areas of Inadequate Information ECS-student financial need • Estimates range from 5% to 50% Effect of tuition on ECS enrollment • Some low-income families may drop out, even if financial aid offered to offset tuition • Some students may switch to AP courses • Any ECS drop may be partially balanced by non-ECS students now crowded out • Phase-in of tuition might reduce impact

10. Most Plausible Long-Term Policy Alternatives [1] Leave ECS free for all students [2] Adopt some combination of these • [a] Charge ECS students net marginal cost • [b] Waive charges for in-district ECS • [c] Waive charges for high-school ECS • [d] Offer financial aid or tuition waivers to students who demonstrate financial need

11. ACFB RecommendedECS Actions For Next Year • [1] Either: A. Leave ECS policy unchanged, or B. Charge $25/credit-hour for ECS unless [i] student is a resident of ACC taxing district [ii] student meets ECS financial-need criteria [iii] class is at student’s high school • [2] Collect more ECS financial-need info • [3] Investigate cost-sharing with ISDs