The Value of a Dollar: A Survey ofState Financing and TuitionPoliciesMarcie Foster, CLASP and Lennox McLendon, NCSDAEAnnua...
CLASP and NCSDAE• The Center for Law and Social Policy develops and  advocates for policies that improve the lives of low-...
Perfect Storm of Adult Education            Financing         New Demands for Adult Education         • New Focus on Align...
Topics Covered in the Survey                    How                              GEDSources of                         Cos...
Methodology• This survey was administered in February 2012 through  an online survey instrument.• Distributed to State Dir...
Survey Limitations• 43 states responded to the survey.• The breadth and depth of local funding for adult education was not...
Survey States            Labor/Workforce            Community Colleges/Postsecondary            K-12/Education       7
Survey States     • Size*          Most Students: California (392,918 students), New York (122,833), and           North ...
Main Sources of Funding for              Adult Education                          •   Only requirement is federal 25%   Tu...
Local Funding for Adult Education Varies Widely• 17 states reported local funding contributions for adult education servic...
Percentage of State Contribution of Total       Adult Education Funding14                                               13...
How States Distribute Federal Funds to Local Providers – 34+ Distinct Formulas• 27 states use a formula that takes into ac...
How States Distribute State Funding to            Local Providers• 22 states distribute all state funding in the same way ...
Equity Considerations in Performance                Funding• At least one state awarded double performance points for  pro...
Access to Special Discretionary                  Resources•19 states indicated they used special discretionary resources t...
State Tuition Policies• Programs that receive federal WIA Title II funds are  allowed to charge tuition/fees to students p...
State Tuition and Fee Policies      States                                               Tuition and/or Fee Policy        ...
State Tuition and Fee Policies• Among states in which local programs determined funds, many states  generally still played...
A Balancing Act: Charging Tuition/Fees Pro       Charging students a modest       Too high tuition or lack of financial   ...
State GED Testing Fees• New GED is coming in 2014, with implications for testing  fees and administrative policies.    Co...
State GED Testing FeesStates                            GED® Testing Fees                    Charge students a flat, unifo...
Distribution of GED Testing Fees in States              with a Flat Fee       Georgia                                     ...
Locally-Determined GED Testing Fees       Vary, Still Relatively LowAverage   Median                  Cost of GED® to Stud...
New GED in 2014 Will Mean Higher Costs          for Most Students• Among states that charge a flat fee (27), only 2 charge...
Changes to State Policy to Keep the GED        Affordable to Students  Anticipate State Policy Changes to Help Keep the  G...
Q &A• Full report will be released in April/May 2012!                      Marcie Foster     Center for Law and Social Pol...
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The Value of a Dollar: A Survey of State Financing and Tuition Policies in Adult Education

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  • - Ask about audience mix.
  • New DemandsChanging demographic and economic realitiesWorkforce/Postsecondary/CTE Alignment: Overwhelmingly positive for student outcomes but may require additional funding to build and maintain partnerships and support student successSkills gap – 64 percent of workers will require a postsecondary degree, Obama’s goals to become the most educated nation by 2020Growing immigrant population - Nearly one in five Americans (19%) will be an immigrant in 2050, compared with one in eight (12%) in 2005. In the top ten states with the largest growth of LEP individuals, the growth has surpassed 80 percent in the last two decades.Declining or Unstable Resource AvailabilityFederal fiscal restraint, years of stagnant fundingState budget and revenue crises
  • Local Funding- Localities may not report all of their local or philanthropic dollars – some locals are required to provide a match and some are not.Skewed for states with no state funding.Causal AnalysisFor instance…Can’t say that a particular method of funding from the state legislature yields a smaller or larger allocationCan’t say that a particular method of funding is more vulnerable to funding cutsBeyond what we know from media reports, we can’t say that charging tuition hurts or harms students generally
  • - Add that these special discretionary resources can then become the normal way of doing business (IN, IL, WI)
  • Source: LINCS Survey, January 2012
  • The Value of a Dollar: A Survey of State Financing and Tuition Policies in Adult Education

    1. 1. The Value of a Dollar: A Survey ofState Financing and TuitionPoliciesMarcie Foster, CLASP and Lennox McLendon, NCSDAEAnnual Conference of the Commission on Adult BasicEducation and The Virginia Association for Adult &Continuing Education (VAACE) April 11, 2012
    2. 2. CLASP and NCSDAE• The Center for Law and Social Policy develops and advocates for policies that improve the lives of low- income people.• The National Council of State Directors of Adult Education (NCSDAE) establishes and maintains a nationwide communication network regarding national policy and legislative issues. 2
    3. 3. Perfect Storm of Adult Education Financing New Demands for Adult Education • New Focus on Alignment with Workforce/CTE/Postsecondary • Meeting Credential Attainment Goals with Declining Traditional HS population • Growing immigrant population Declining or Unstable Resource Availability • Federal/State/Local • New attention on tuition/fee policies • Costs of new GED in 2014 3
    4. 4. Topics Covered in the Survey How GEDSources of Costs to Funds are Testing Funding Students Distributed Fees Federal State Typical Fees State Tuition Legislature State Policies State Agency Local State Policy on Charging Fees Tuition State Agency Typical Programs/ Tuition/Fee Anticipated Institutions Levels Changes in Discretionary Resources 2014 4
    5. 5. Methodology• This survey was administered in February 2012 through an online survey instrument.• Distributed to State Directors of Adult Education in all 50 states plus the District of Columbia.• In March 2012, CLASP followed up with respondents to clarify answers and, in some cases, to obtain detailed information on a particular tuition policy or financing structure. 5
    6. 6. Survey Limitations• 43 states responded to the survey.• The breadth and depth of local funding for adult education was not able to be captured, due to lack of adequate reporting of these types of funds.• States vary widely in terms of governance, state law, and policy; nearly impossible to uniformly compare.• Not a causal analysis. 6
    7. 7. Survey States Labor/Workforce Community Colleges/Postsecondary K-12/Education 7
    8. 8. Survey States • Size*  Most Students: California (392,918 students), New York (122,833), and North Carolina (115,312)  Fewest Students: North Dakota (1,581), Vermont (1,590), and South Dakota (2,423) • ESL Students*  Highest Proportion: Nevada (77 percent), California (66 percent), and Colorado (61 percent)  Lowest Proportion: Mississippi (1 percent), Montana (6 percent), and Louisiana (6 percent)*These figures are from 2010 National Reporting System Data and may not reflect the total number of adult education students in the state. 8
    9. 9. Main Sources of Funding for Adult Education • Only requirement is federal 25% Tuition matching requirement using 1% nonfederal funds. Local 9% • Availability of local data on funding varies as does the availability of local funding. (25 states reported Federal no local funding.) 45%State45% • Small revenue from tuition reflects the few number of states that charge tuition for courses. • $1.20 in nonfederal funds for every $1 of federal funding. 9
    10. 10. Local Funding for Adult Education Varies Widely• 17 states reported local funding contributions for adult education services. These states ranged from reporting that 44 percent to 4 percent of their funding comes from local sources. Connecticut 44 Wisconsin 43 Colorado 40 Montana 36 Kansas 28 Maryland 26 Nebraska 25 New Hampshire 23 Massachussetts 20 Virginia 15 Pennsylvania 15 Ohio 15 Indiana 11 Tennessee 10 Rhode Island 10 Georgia 7 Nevada 4 0 10 20 30 40 50 10
    11. 11. Percentage of State Contribution of Total Adult Education Funding14 13 121210 986 54 320 No state funding Contribute 25 Contribute 26 - 50 Contribute 51 -75 Contribute 76 percent or less percent percent percent and over 11
    12. 12. How States Distribute Federal Funds to Local Providers – 34+ Distinct Formulas• 27 states use a formula that takes into account a combination of enrollments, past performance, and eligible population.• 7 states use a formula that takes into account only one of the following: enrollments, past performance, or eligible population.• Common performance indicators:  Educational functioning level gains,  Number of GED’s/Adult High School Diplomas awarded, and  Number of contact hours.• NRS outcomes are a significant driver. 12
    13. 13. How States Distribute State Funding to Local Providers• 22 states distribute all state funding in the same way as federal funds; 18 do not.• Respondents commonly reported that state funds are distributed based on past performance, but sometimes given different “weights” than the federal funds.• Other states in this category use the funds in completely different ways:  providing funds to supplement what federal funds do not cover,  providing a portion of services solely on a specific population, such as young adults. 13
    14. 14. Equity Considerations in Performance Funding• At least one state awarded double performance points for programs that helped students at the lowest basic skill levels move to a higher educational functioning level.• Many states report using population data as a factor in the distribution of funds. This can be key to ensuring that all counties in the state have equitable access to funding.  These states then use a competitive grant process to distribute funds based on the state’s priorities, including the use of performance funding. 14
    15. 15. Access to Special Discretionary Resources•19 states indicated they used special discretionary resources to incent localinnovation, such as dual enrollment in postsecondary coursework, team teaching,contextualization, workplace literacy, or others.•States, institutions, and programs with existing partnerships are better positioned toapply for funding for competitive federal grants (e.g. TAACCCT, WIF) Federal State Local WIA Title II – State State Adult Education Community Colleges Leadership Funding (8) Funding (2) (1) WIA Title II – Grants to Special Funds from the Foundation and Local Providers (3) State Legislature (4) Business (1) WIA Incentive Funds (4) WIA Title I Discretionary Funds (2) Wagner-Peyser (1) 15
    16. 16. State Tuition Policies• Programs that receive federal WIA Title II funds are allowed to charge tuition/fees to students provided that they are “necessary and reasonable and do not impose a barrier to the participation of disadvantages persons that the program was designed to serve.” However, states can further define tuition and fee policies.• In the survey, tuition/fees were defined as costs beyond those for materials, which are often charged to students to cover the expenses related to course materials or textbooks. 16
    17. 17. State Tuition and Fee Policies States Tuition and/or Fee Policy Require local programs to charge fees and set the tuition/fee level 2 (HI, WA) Allow programs to charge tuition/fees 21 (AZ, CA, CO, IL*, IN, IA, KS, MD*,MI, MN, MO, NE, NV, NH*, OK, RI, SC, TX*, UT, VA, WY) Prohibit local programs from charging tuition/fees 20 (AL, AR, CT, DE, GA, ID, KY, LA, MA, MS, MT, NY, NC, ND, OH, PA, SD, TN, VT, WI)*State only allows tuition to be charged to students with 9th grade level skills or above. 17
    18. 18. State Tuition and Fee Policies• Among states in which local programs determined funds, many states generally still played a significant role.  Must be approved by the state  Maximum tuition determined by state statute• Did not collect data on the “average” tuition/fees charged by local programs in the state that allowed this practice.• Tuition levels low even if required by the state:  $10 per student per course  $25 per student/quarter (can be waived by institutions in the case of financial hardship)• Does not include Florida, which has new statewide tuition policies that differ based on in-state and out-of-state residency. 18
    19. 19. A Balancing Act: Charging Tuition/Fees Pro Charging students a modest Too high tuition or lack of financial tuition level helps them feel waivers can lead to drops in more engaged in their enrollment, despite increased demand. education. High tuition/fees can exhaust a Can lead to shift to managed student’s savings (if any) that they enrollment, which leads to need for postsecondary education better persistence and or training. improved student attendance. Easier to monitor with managed Tuition can represent a modest enrollment systems. revenue stream for programs. Charging fees without additional student supports may not change persistence, engagement that much. Con Cost of collection and enforcement could be higher than revenue collected. 19
    20. 20. State GED Testing Fees• New GED is coming in 2014, with implications for testing fees and administrative policies.  Computer-based;  More rigorous; Two cut scores indicate two different levels of proficiency;  Flat fee per content area test; and  Re-testing fees for non-passers.• Little information on the financial burden this will cause students, but widespread concern from practitioners and states. 20
    21. 21. State GED Testing FeesStates GED® Testing Fees Charge students a flat, uniform testing fee 27 (AL, CT, DE, GA, HI, ID, IL, IN, IA, KS, KY, MD, MA, MS, MT, NV, NH, NC, OH, RI, SC, SD, UT, VT, VA, WA, WI) Allow local programs to determine the testing fee 13 (AZ, CA, CO, LA, MI, MN, NE, ND, OK, PA, TN, TX, WY) Do not charge a testing fee 3 (AR, MO, NY) 21
    22. 22. Distribution of GED Testing Fees in States with a Flat Fee Georgia $128 Wisconsin $120 Iowa $100 Idaho $100 South Dakota $95 Indiana $95 Hawaii $95 Utah $85 Kansas $85 South Carolina $80 Median Value $75 Washington $75 Vermont $75 Mississippi $75 Delaware $75New Hampshire $65Massachussetts $65 Nevada $60 Kentucky $60 Virginia $58 Rhode Island $55 Montana $55 Illinois $50 Alabama $50 Maryland $45 Ohio $40 North Carolina $25 Connecticut $13 $- $20 $40 $60 $80 $100 $120 $140 22
    23. 23. Locally-Determined GED Testing Fees Vary, Still Relatively LowAverage Median Cost of GED® to Students $71 $75 Cost in States that Charge a Flat Fee $59 $55 Low-End of the Cost Range in States that Allow local(Low) (Low) programs to determine the cost for students $112 $100 High-End of the Cost Range in States that Allow local(High) (High) programs to determine the cost for students 23
    24. 24. New GED in 2014 Will Mean Higher Costs for Most Students• Among states that charge a flat fee (27), only 2 charge at least $120, and one is a CBT pilot state.• Among states that allow programs to locally determine GED testing fees (13), only 5 states reported the maximum fee that some of their local programs charge can be above $120. For the vast majority of students, a GED testing feeof $120 for the full battery of tests will represent a starkcost increase. 24
    25. 25. Changes to State Policy to Keep the GED Affordable to Students Anticipate State Policy Changes to Help Keep the GED Affordable for Students (21 States) • Allocating more funding at the agency level to help offset the cost of the test to students, • Pursuing changes in state law that prohibit funds being used to subsidize the test, or • Working with other state systems, such as workforce development or social services, to identify new resources for GED test-takers. • 9 states are seeking an alternative assessment. Do Not Anticipate State Policy Changes to Help Keep the GED Affordable for Students (22 States) • Cannot afford to do this and continue to offer instructional services in light of declining resources. • Difficult to do with a new for-profit structure. • Corporations/Employers may play a role. 25
    26. 26. Q &A• Full report will be released in April/May 2012! Marcie Foster Center for Law and Social Policy (www.clasp.org) Lennox McLendon National Council of State Directors of Adult Education (www.ncsdae.org) 26

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