Cal Grant Cuts: Impact on the

California Baptist University

Claremont McKenna College

Harvey Mudd College

La Sierra University

Loma Linda University

Pitzer College

Pomona College

Scripps College

University of La Verne

University of Redlands Cal Grant Cuts: Inland Empire Fact Sheet

Impact on students at our ten independent, non-profit universities: * 20% receive Cal Grants 57% are students of color

also receive Pell Grants 4,001 are Hispanic 28% students may drop out 23%

California Baptist University | Claremont McKenna College | | | | | | |

Gov. Jerry Brown has proposed a 44 percent cut to independent, nonprofit colleges and universities, that could affect both incoming and existing students beginning in fall 2012. This represents a decrease in assistance from $9,708 to $5,472 per student per year.

Here’s how the proposal impacts our region: 4. At the same time, Cal Grant allocation caps since 2011 have increased dramatically for public universities. 1. It hurts Cal Grant’s lowest-income families. • Up 208 percent for UC students to $12,192 per year • The average family income for a Cal Grant A student is • Up 173 percent to CSU students to $5,472 per year – $40,896 at independent, non-profit universities, – $41,442 at system schools, and 5. There are no Cal Grant cuts proposed for students at public – $59,568 at California State University campuses. universities.

2. It costs the state more to send Cal Grant students to public 6. The cuts, if approved, affect existing and incoming students. universities. • The state has never before cut assistance levels to existing students. • The state of California spends: • 78 percent of first-time undergraduate at the Inland Empire’s ten – $37,000 to send Cal Grant students through private college, independent, non-profit colleges and universities receive some kind – $47,000 to put them through the CSU system, and of financial aid, including Cal Grants (IPEDS). – $96,000 for them to complete their degrees at a UC campus. • Students at public institutions take longer to earn their degree. 7. The cuts will have devastating results for students in the – 71 percent of private, nonprofit students complete their degrees Inland Empire. in 4 years, while • More than 4,000 Inland Empire students at independent, nonprofit – Only 18 percent of CSU students graduate in 4 years, and colleges count on the Cal Grant to help pay for college. – 54 percent of UC students graduate in 4 years. • One result could be increased student loans for students. • Statewide, independent, non-profit universities educate 22 percent • Many students may delay or drop out of college. of California’s undergraduate students, but our students receive • The cuts would have a huge impact on minority students struggling only 15 percent of Cal Grant expenditures. to overcome a long-established achievement gap.

3. Cal Grant allocation caps have not increased at independent, 8. Cal Grants are an investment in California’s future. non-profit institutions for more than ten years. •  The payoff is a more educated workforce needed to build our • Adjusted for inflation, this represents a 30 percent decrease in the economy. value of the funding to students. •  The Inland Empire has the lowest college graduation rate in the – Private institutions make up the difference, with $4 in nation, according to CNN Money’s “Smartest Cities in America” scholarships and aid to every $1 in Cal Grant funds awarded. survey of U.S. metropolitan areas. – More than 80 percent of all private, nonprofit university students • This is reflected in low income, high unemployment and a struggling receive some type of financial assistance from their campuses. regional economy. The Public Policy Institute of California estimates that by 2025, California will be short one million needed college- educated workers.

* California Student Aid Commission, new and renewal Cal Grant recipients 2010-11. All other figures are provided by Integrative Post Secondary Education Data System (IPEDS) for 2010. At-a-glance: Cal Grants

Facts about Cal Grants at University of Redlands are San Bernardino and of Redlands’ students Riverside County residents 23% receive Cal Grants 283 are students of color are first-generation students 51% 358 556Cal Grant recipients in the 67% are female College of Arts & Sciences 438 also receive Pell Grants

State of California Doing Our Part Figure 1: Cal Grant cost to educate a student for one year. We do our part by contributing an average of $2 of institutional aid for every $1 contributed by California taxpayers.

Cal Grant University of Redlands Aid $1 $2

Average Redlands Financial Aid package $24,000 $11,750 $6,100 $9,200 Students who receive Cal Grants UC Cal State California Independent/ also receive an average of Community Non-Profit $19,915 in University of Redlands Colleges Grants.

Return on Investment Timeframe Figure 2: Time required for state income tax revenue to offset cost of Cal Grant investment. Independent non-profits provide the fastest ROI. $2,435 $4,537 $8,485 $9,708 $19,915 $5,078 UC 25 years Work Pell Student Cal U of R Unmet Study Grant Loans Grant Grants Need* Cal State 16.5 years College of Arts & Sciences Facts and Figures Independent/Non-Profit 15 years Student to Faculty Ratio 12:1 Cal Grant 1st to 3rd Semester Retention Rate 96% Total College Undergraduates 2,418 Figure 1: Figures from California Legislative Analyst’s Office for the Total University of Redlands Students 4,769 2011-12 academic year. Degrees Conferred 2010–2011 1,386 Figure 2: Figures based on graduate employment and earnings estimates calculated by the Association of Independent California Colleges and Universities. *Based on institutional budget of $50,158.

[email protected] | Redlands.edu/SaveStudentGrants 10-11 January 2012January AICCU.EDU 09-10 08-09 CSU 18% 07-08 33% African African American Latino 06-07 9% UC 54% 05-06 17% Asian 04-05 60% 1% AICCU 40% 03-04 Cal Grant Students Students Cal Grant Graduate On-time Caucasian Investing in Students AICCU Percentages Cal Grant 02-03 71% Native American Cal Grants Students Students Cal Grants Re#ect California’s population Cal Grant & Institutional Aid (in millions) Institutional & Cal Grant AICCU Cal Grant 01-02 Average Compared four-year Rates Graduation Cal Grants AICCU Aid Institutional 00-01 $0 AICCU Schools provide $4 in student aid for every $1 in Cal Grants every provide aid for $4 in student AICCU Schools $750 $1,500 UC AICCU CSU 1-12 - 11 CSU UC AICCU PCC CCC 10-11 10-11 09-10 08-09 K 09-10 K

CSU $47 07-08 06-07 K K 08-09 UC 05-06 $96 04-05 K K

07-08 03-04 $37 AICCU Saving the State Money the State Saving 02-03 Total Award in millions) Amounts (by Sector $e Cost Increases is in Cal Grants Not Caused by AICCU Students Independent, learning unique nonpro universities & offering t colleges ! success student for education higher environments individualized & 01-02 Does not include state subsidy all students at UC & CSU receive students all state subsidy not include Does 06-07 AICCU Students’ Cal Grant Maximum Award Not Has Increased in 10-years Cost to the State to educate one Cal Grant student for 4 years for student one Cal Grant to educate Cost to the State 00-01 $100 $383 $665 $7,250 $1,000 $13,500

10-11 74 09-10 3% 08-09 CSU $59,568 07-08 UC $41,442 06-07 05-06 California Higher Education Higher Education California AICCU $40,896 Annual Expenditures - FY 2010-11 Annual Expenditures Students at AICCU Schools at AICCU Schools Students Use Very Few Resources State Serving California Families California Serving 04-05 More Cal Grant Students are More Students Cal Grant Enrolling at AICCU Schools Average FamilyA students Cal Grant for Income 03-04 27,000 21,000 15,000 Sources: LAO, CSAC, AICCU Survey, Cal Grant & IPEDS

more savings for the state.

Universities like ours have consistently taken on more of the costs to keep the state's brightest and most promising students in college. For every $1 paid by the state, our institutions spend $4 on our deserving students, help in the form of scholarships, grants and other financial assistance.

More than 78 percent of all students at the Inland Empire's 10 independent nonprofit colleges and universities are in need of some kind of financial aid. They represent our region's demographic - the backbone of our communities - and it's in the state's best interest to help educate them so they can become engaged and productive citizens.

Gov. Brown's proposed Cal Grant cuts are short-sighted, too expensive and extremely risky. These cuts are simply too costly for our students, region and the state. We urge you to contact your legislators and ask them to reject the proposed Cal Grant cuts. The ability for students to earn a college degree and compete in - and contribute to - the local workforce is fundamental to the Inland Empire's and California's economic recovery and growth.

This commentary was submitted by the presidents of the 10 Inland Empire independent, nonprofit colleges and universities: Ronald L. Ellis of California Baptist University; Pamela Gann of Claremont McKenna College; Maria Klawe of Harvey Mudd College; Randal Wisbey of La Sierra University; Richard Hart of Loma Linda University; Laura Skandera Trombley of Pitzer College; David Oxtoby of Pomona College; Lori Bettison-Varga of Scripps College; Devorah Lieberman of University of La Verne, and James R. Appleton of University of Redlands.

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STATE: Legislators should reject Brown’s bid to trim college aid

BY PRESIDENTS OF THE INLAND AREA’S NONPROFIT UNIVERSITIES Published: 18 March 2012 01:00 AM

At a time when our region’s economy is already perilously off track, Gov. Jerry A Text Size Brown’s proposal to slash 44 percent of Cal Grant aid to students at independent nonprofit colleges and universities has the potential to send our Inland Empire hopes for the future packing.

Taxpayers in the Inland Empire, and throughout the state, have a vested interest in stopping the governor’s proposed cut to Cal Grants in its tracks.

The governor’s plan targets some of the state’s highest achieving, lowest-income students — many of whom are striving to be the first in their families to obtain a college degree. Brown’s proposal could deny more than 4,000 Inland Empire college students their dreams, and prevent this region from benefiting from the economic and intellectual contributions they could provide as skilled and educated wage earners.

More important, a college degree helps break the cycle of poverty for many families. The state’s cost of providing a leg up is recouped many times over when we keep the promise we made to help give them that opportunity.

At the Inland Empire’s 10 independent nonprofit colleges and universities, our Cal Grant students are more likely to graduate in four years than students at public universities. Cal Grant cuts could take away their only viable option for completing their degrees. The proposed Cal Grant cuts target current and returning students in unprecedented numbers, and only those in the independent nonprofit sector.

Cal Grants, ironically, were originally designed to send students to independent nonprofit colleges and universities as a means of ensuring an educated populace without the cost to the state of building and carrying an infrastructure to do so. Reducing Cal Grants erodes the principle upon which the program was established in 1955.

The state continues to benefit by honoring this principle. In our region, a sustained commitment to maintain Cal Grant funding at its current level should be a top priority for our policymakers. Parents and students agree.

We receive calls and letters almost daily from current students and their parents who are heartbroken over the state’s plans to pull their educational funding in the midst of getting their degree. With an average family income of $40,000 a year, an annual cut in funding of $4,236 is simply too much for them to bear. What may come as a surprise is that it actually costs more for California to send its students to the public schools: The state spends on average $37,000 to send a Cal Grant student through an independent nonprofit college or university, $47,000 to put one through the CSU system, and $96,000 for a student to complete a degree at a UC campus, according to the Association of Independent California Colleges and Universities.

Furthermore, for more than a decade, universities like ours have consistently taken on more of the costs to keep the state’s smartest and most promising students in college: More than 78 percent of students at the Inland Empire’s 10 independent nonprofit colleges and universities receive some kind of financial aid, including Cal Grants. We have given this region’s students more than a better chance to attend a school where their talents, interests and future aspirations can be met. We need the governor and the Legislature to do the same.

Universities like ours spend $4 for every $1 paid by the state to put our deserving students through college in the form of scholarships, grants, and other financial assistance. Public universities, meanwhile, have seen their Cal Grant allocations steadily rise by as much as 208 percent to meet their tuition increases. Adjusted for inflation, the Cal Grant aid to students attending private nonprofit colleges and universities today is just 30 percent of what it was 10 years ago when the state put a freeze on Cal Grant funding for these students.

According to the 2010 U.S. Census, only 18.4 percent of San Bernardino County and 20.5 percent of Riverside County residents hold a bachelor’s degree. That’s well below the state figure of 30.1 percent.

Add this negative statistic to the region’s 12 percent unemployment rate — one of the highest in the nation — as well as to one of the highest foreclosure rates in the state. Do we really want to potentially lose 4,000 qualified graduates from the work force who could contribute to improving our region’s economy?

According to the U.S. Census Bureau, a college graduate earns $1 million more in his or her lifetime compared to a high school graduate. Even the legislative analyst agrees that the governor’s financial aid proposal could unduly harm access and increase the state’s long-term costs.

Gov. Brown’s proposed Cal Grants cuts are shortsighted and expensive. This is not the time to cut funding for deserving students in our region who want to go to college. We urge you to contact our legislators and ask them to reject Brown’s proposed Cal Grants cuts. Our students depend on it, but most of all, our region’s future depends on it.

This op-ed conveys the opinion of the presidents of California Baptist University, Claremont McKenna College, Harvey Mudd College, La Sierra University, Loma Linda University, Pitzer College, Pomona College, Scripps College, University of La Verne and University of Redlands.