OpportunityTexas Promoting Postsecondary Access & Success
Texas College Access Network Dallas, Texas May 16, 2012 Don Baylor,
Jr. ([email protected]) Senior Policy Analyst, Economic Opportunity
Leslie Helmcamp ([email protected]) Policy Analyst, Economic
[email protected]@cppp.org 1
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Improving public policies to better the economic and social
conditions of low- and moderate-income Texans. Creating economic
opportunity to strengthen families and grow the middle class;
Increasing access to quality, affordable health insurance; Helping
families meet basic needs; Enhancing child well-being and child
protection; Ensuring effective public administration; and Securing
fair and adequate taxation to pay for critical public investments
in Texas. What CPPP Does
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What is OpportunityTexas? RAISE Texas Opportunity Texas CPPP
CPPP Roles & Strengths: Advocate Policy Innovation &
Development Research & Data Analysis Communications &
Coalition Building RAISE Texas Roles & Strengths: Technical
Assistance Advisor Grassroots Network Convener-Collaborator
OpportunityTexas Creates an engaging platform for savings,
financial education and financial preparation for college Uses
existing statewide delivery systems, such as the K-12 system and
the workplace, to increase the financial success of Texans Forges
new partnerships between higher education, business, nonprofits,
the public sector, philanthropy, employers, and national
intermediaries
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OpportunityTexas Approach Engage local communities and
stakeholders to evaluate community needs and expand economic
opportunity Provide seed capital to scale innovative asset building
initiatives Enable state policy input & advocacy from regional
and statewide organizations Ensure proper implementation of state
legislation Establish Measures for Financial Stability &
Economic Mobility Build partnerships to address opportunity gaps
Share best practices and innovations
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OT Areas of Focus Texas Saves at Tax Time Financial Preparation
for Postsecondary Success K-12 Financial Education College Savings
Accounts FAFSA Completion & Financing College Increasing
Financial Inclusion Enhancing Community Capacity Increasing
Financial Stability Building Consumer Credit Increasing Account
Ownership Promoting Household Savings Economic Security &
Opportunity Platforms Texas Regional Opportunity Index Family
Budget Estimator Benefits Screening & Access
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A college degree and household savings are key indicators for
increasing economic mobility So does savings Source: Brookings
Tabulations of PSID Data, Isaacs, Sawhill& Haskings, February
2008, Children in the Bottom Income Quartile
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College Savings Accounts Lift Aspirations & Promote
Postsecondary Access Elliott and Beverly, The Role of Savings and
Wealth in Reducing Wilt Between Expectations And College Attendance
(2010) Youth who have a savings account in their names are nearly
seven times more likely to attend a four-year college than youth
with no accounts The account itself, regardless of savings amounts,
is associated with academic achievement
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Strategies to Enhance Financial Preparation for College FAFSA
Completion Financial Screening & EFC Estimate College Savings
Financial Education OpportunityTexas, 2011
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College Access & Completion Areas of Focus Postsecondary
Access & Success College Savings & Financial Prep Career
& Skills Development Financial Aid (Grants, Loans, Work-Study)
Developmental Education Reform K-16 Financial Education &
Capability
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2011 Policy Accomplishments New Laws Improve Texas financial
capability and college savings SB 290 (Watson)expands mandatory
financial literacy into statewide K-8 curricula and assessment
platforms HB 34 (Branch)builds on current financial literacy
requirement (12 th grade economics) to include: Instruction on
paying for postsecondary education and training Instruction on
completing the FAFSA Curricula to be finalized for 2013-2014
academic year
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Policy Accomplishments (continued) HB 2594 (Truitt)Payday and
Auto Title Lending Reform Licensing Bill creates Texas Financial
Education Endowment to fund initiatives such as: school and
youth-based financial literacy and capability; advertising,
marketing, and public awareness campaigns to improve the credit
profiles and credit scores of consumers in this state; HB 399
(Castro)requires universities to make available training on
personal financial literacy (e.g. credit cards, loan repayment,
retirement planning, budgeting, saving) HB 3708 (Hochberg)improves
Save & Match program by eliminating college savings penalties
(financial aid, public benefits)
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College Savings in Texas Texas Tuition Promise Fund (prepaid)
& Texas College Savings Plan Assets Exempt from Public Benefits
& State Financial Aid Texas Save & Match (HB 3708) Targeted
for Students in Free & Reduced Lunch (economically
disadvantaged) Texas Match the Promise Foundation Save & Match
Trust Fund Nonprofit Scholarship Organizations Can Now Purchase
Tuition Units for Unknown Beneficiaries
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Texas Match the Promise Foundation: Funding Sources Texas Match
the Promise Foundation Unclaimed Property Donations ~$190,000 State
Employee Charitable Campaign Total: $10,000 Private Donations
$8,000 Texas Legislature/Prepaid Tuition Board ($0)
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Race/Ethnicity: TTPF- Enrolled and Statewide In Texas, relative
to Caucasian children, Hispanic children are 6 times less likely to
enroll in TTPF and African American children are 5 times less
likely to enroll Source: CPPP Analysis, Texas Comptroller of Public
Accounts, 2011; Current Population Survey, 2010
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College Savings Gap by Income
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Texas College Savings Gap
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New Laws in Higher Education from the 82 nd Legislature SB 851
Uniform deadline for financial aid applications HB 2910 Establishes
grant program for higher education institutions to partner with
non-profit institutions to improve degree completion rates HB9 -
Outcomes-Based Funding bases a portion of higher education funding
on specific student success measures, including
graduation/completion rates HB 1244/SB1564 Developmental Education
Assessment and Curriculum Reforms SB 162 Developmental Education
Plan for Underprepared Students
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Financial Aid Primer Growing low-income population Most college
students attend part-time Half of undergraduates are enrolled at
community colleges One-third of college students are over age 24
Strong dependence on loans Working during school Source: CPPP
Analysis, Texas Education Agency, Enrollment Trends 2001-11
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Trends in Financial Aid 73% of Texas financial aid comes from
federal sources For every $1 in Pell, Texas invests 32 cents
Increased focus on merit criteria Increase in more costly loans-
Federal unsubsidized loans State financial aid programs cut by 15%
(TEXAS Grant 10%) Source: CPPP Analysis, Department of Education
Data, (Public, Private and Proprietary two- and four-year colleges
and universities)
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CPPP Financial Aid Recommendations Declare a statewide goal to
reduce student dependence on loans Financial aid incentives for
college success Increase financial aid investments (work-study,
community colleges, adult students) Early commitment financial aid
Promote and fund matched savings accounts for college Increase
student supports Promote and fund early financial preparation
strategies for college, including FAFSA preparation and financial
education Make college-access organizations a prominent and
integral partner in state college preparation activities Forward
fund state financial aid programs
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Source: CPPP Analysis of National Postsecondary Student Aid
Study of 2008, NCES Powerstats. Total Family Contribution Total
Costs = $15,009Total Costs = $17,708
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Source: CPPP Analysis of National Postsecondary Student Aid
Study of 2008, NCES Powerstats.
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DFW Metro Area City Applications Completed Senior Enrollment
Completion Rate Dallas2532905328.0% Fort Worth1515485031.2%
Arlington1344366736.7% Irving494236820.9% Duncanville23981029.5%
Source: CPPP Analysis, U.S. Department of Education, FAFSA
Submissions by High Schools 2012-13 Application Cycle, As of April
16, 2012
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Ten Largest Campuses in DFW Metro Area CampusCity Applications
Completed Senior Enrollment Completion Rate SKYLINE H
SDALLAS337101333.3% MARTIN H S ARLINGTONARLINGTON27576436.0%
DUNCANVILLE H SDUNCANVILLE23373331.8% TRINITY H S
EULESSEULESS20972029.0% BELL H SHURST17466226.3% COPPELL H
SCOPPELL26164440.5% ROWLETT H SROWLETT16662426.6% KELLER H
SKELLER22561736.5% NAAMAN FOREST H SGARLAND16761627.1% Source: CPPP
Analysis, U.S. Department of Education, FAFSA Submissions by High
Schools 2012-13 Application Cycle, As of April 16, 2012
Source: CPPP Analysis, Texas Higher Education Coordinating
Board, Student Financial Aid Database, FY2010 & Texas
Independent Colleges and Universities
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State Own Source Budget 2012-13 Own Source = Nonfederal.
Source: Legislative Budget Board, HB 1, HB 4, SB 2, Dec. 2011.
Includes $2.3 billion delayed Foundation School Program
payment.
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2012-13 Budget Financial Aid & Post-Secondary Training
-5.8% $0 Jobs and Education for Texans Grant Program Skills
Development Fund State Financial Aid Programs -15%-40.1% $48.5M
$81M$1B $879M Source: CPPP Analysis, Texas Association of Community
Colleges 82 nd Legislature Session Summary, July 2011 $15M
-100%
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Doing More With Less - 2012-13 Budget Texas Community Colleges
-5.8% $3.56 $2.78 -21.8% Annual Appropriations per Contact Hour
2010-11 & 2012-13 Number of Contact Hours 2010-11 & 2012-13
Instructional Formula Funds 2010-11 & 2012-13 -5.8% +20.4% 259M
312M $1.84M $1.74M Source: CPPP Analysis, Texas Association of
Community Colleges 82 nd Legislature Session Summary, July
2011
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Higher Ed Programs Zeroed out in 2012-13 Budget: College
Readiness Grants, Performance Incentive Fund, Early H.S. Graduation
and TANF Scholarships, Engineering Recruitment, Alternative
Teaching Certification, Combat Tuition Reimbursement, Texas Career
Opportunity Grants, Doctoral Incentives, Preceptorship Program,
Primary Care Residency Program, Graduate Medical Education,
Professional and Vocational Nursing Aid, Dental Education Loan
Repayment, Hospital-based Nursing Education, and Childrens Medicaid
Loan Repayment Program. As with elementary/secondary schools: no
state funding for enrollment growth
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Upcoming Work Engage New Stakeholders Raise Awareness about
Texas Match the Promise Foundation and Ways to Leverage HB 3708
(Texas Save & Match) Participate in rulemaking for HB 2594
(Texas Financial Education Endowment) @ Texas Finance Commission
Raise Awareness about HB 34/SB 290 that strengthen K-12 financial
education CPPP to release review of Texas Financial Aid programs
and policies Perform Analysis of Local-Level Student Loan Data
Acquire and analyze local-level FAFSA completion figures Develop
College Readiness Scorecard
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The Family Budget Estimator (FBE) Project provides a realistic
picture of how much it costs Texas families in different areas of
the state to meet their basic needs. www.cppp.org/fbe
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Texas Regional Opportunity Index (TROI) Identifies, develops,
and compares economic mobility indicators across regions in Texas:
County-Based Councils of Government (COG) Three-Tier County
Population Groupings Incorporates National (Survey/Census) Data
Federal & State Agency Data Proprietary Data Customized Sources
& Queries Updated Periodically Beginning in 2012 Local TROI
Assessments Final Product: Web-Based Platform with GIS
Capability
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Payday and Auto Title Lending: Stop the Cycle of Debt
(www.stoppaydayabuse.org)www.stoppaydayabuse.org State Revenue:
Balanced Budget=Balanced Approach
(www.texasforward.org)www.texasforward.org Savings, Asset Building,
& Financial Success (www.raisetexas.org)www.raisetexas.org
Issues Affecting Low- and Moderate- Income Texans
(www.cppp.org)www.cppp.org Creating Good Jobs, Increasing Income,
& Promoting Savings
(www.opportunitytexas.org)www.opportunitytexas.org Ways to Get
Involved, Be Informed
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Higher Education Partners
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