If California Doesn't Invest in Higher Education, the State will Suffer in the Long Run

Continued cuts in California’s funding for higher education will cost the state more than disgruntled students and parents in the long run, a new study has found.

The study, authored by UC Berkeley and funded by the bipartisan Campaign for College Opportunity, found that the state – and taxpayers – will lose money in the future if they don’t invest in securing a college education for the state’s booming 18-24 year olds, which will be comprised primarily of minority students. The economic forecast is the first of its kind to examine the consequences that the state may face if it increases or decreases state funding for higher education.

“The state has to increase its investment in college opportunity annually for the next ten years,” in order to match its growing and changing demographics, said Abdi Soltani, executive director of the campaign.

If the state increases spending on ensuring that young people earn their college degrees, the study found, it could earn up to three dollars for every one dollar it invests over the long run. This estimate is based on the financial contributions – primarily through taxes -- that college graduates will make to the state’s economy in the future.

The state’s 18-24 year-old population is expected to grow 27 percent by 2015. The biggest growth will be among the state’s minority students, with the number of Asian and Pacific Islanders within that age group jumping to 20 percent and Latinos jumping to 42 percent. Non-Hispanic college bound whites are only expected to grow by 2 percent.

Most of California’s minority college-aged going students attend community colleges. Of the Latinos that graduate high school in California, 26 percent enroll in community college, and only 7 percent enroll in UC or Cal State universities. Although Asians have among the highest college attendance and completion rates, most (42 percent) attend community colleges before attending the state’s four-year institutions. African-Americans also attend community college in high numbers, with 34 percent enrolling in community college, and only 10 percent enrolling in UC or Cal State.

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