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Increasing Family Wealth and College Enrollment

May 18, 2012

Filed under: Education,Income & Working Families — Tags: college degree, Community Development Financial Institutions, low-income, Mississippi, Pew Charitable Trusts, post-secondary education — admin @ 1:13 PM

Enrolling in college and receiving a college degree became increasingly necessary for moving up the economic ladder and reaching reliable employment and sufficient wages. A family’s income affects the likelihood a recent high school graduate will enroll in college. But what about a family’s household wealth or assets? Findings from the Pew Charitable Trusts indicate that increases in a family’s wealth during high school years, as measured by changes in the value of their home, raise a student’s likelihood of enrolling in college.

The chart shows college enrollment rates among students living in low- and middle-income families by the family’s home equity. For low-income families, having home equity at $35,000 (the 25^th percentile) increased the college attendance rate from 9% to 29%. Enrollment rates rise to 52% when a low-income family’s home equity is $75,000 (50^th percentile). Students from middle-income families also experience an increase in college enrollment as home equity rises.

Housing wealth could influence a student’s likelihood of enrolling in college for many reasons. The Pew report suggests that increases in housing wealth may affect college enrollment decisions because families use their wealth to directly finance education. Housing wealth could also indicate that a family has additional resources to set aside in a college savings account. It is also possible that families feel more economically secure, and open to helping their children navigate the path to applying for student loans to pay for a college education.

Low-wealth families may encounter more financial hurdles to supporting their children on the path to enrolling in post-secondary education. Efforts that promote wealth building among low and middle-income families and that support families in saving for a child’s education can lift more of Mississippi’s students to college enrollment and success.

Along with support for college savings, Community Development Financial Institutions (CDFIs) can connect underserved populations with a path to homeownership that builds wealth and home equity. Many CDFIs serve mortgage customers that are low- to moderate-income borrowers and first-time homeowners.

Supporting Mississippi’s families in accumulating college savings and broader wealth can lead to greater financial stability. Ultimately, these savings will result in an increased likelihood that more of Mississippi’s students pursue college courses and gain employment that allows them to save for their own families someday.

Read more on how home equity affects a student’s college decisions.

Author: Sarah Welker, Policy Analyst

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Part 2: WHAT ARE THE REAL RETURNS FROM POST-SECONDARY CREDENTIALS?

May 11, 2012

Filed under: Education,Income & Working Families,Workforce — Tags: Mississippi, The Center on Law and Social Policy — admin @ 9:12 AM

Yesterday, the MEPC blog looked at earnings gains that Mississippians experience from receiving a post-secondary degree. The post determined that persisting to a college degree can have real effects on wages for individuals and families.

In fact, the returns Mississippians experience from pursuing a community college certificate, 2-year degree or 4-year degree are above 23 other states. The Center on Law and Social Policy (CLASP) looked at the personal income gains in each state from students attaining an additional 100 certificates, 100 associate’s degrees and 100 bachelor’s degrees. Mississippi ranked 27^thin personal income growth associated with these credential additions (see chart).

Gains from increasing credential attainment don’t just affect the individual. Increasing credential attainment also benefits families, employers and the state’s revenue generation. Mississippi also ranks even higher (19^th) for state revenue increases from adding 100 certificates, associate’s degrees and bachelor’s degrees (see chart).

As a state, Mississippi stands to experience above average returns to contributions that increase post-secondary credential attainment among its citizens. The findings emphasize the need for steps that increase state revenue, so funding to higher education isn’t limited, tuitions don’t rise as rapidly as in recent years, and students aren’t faced with additional barriers in their desire for higher education. Unfortunately, Mississippi currently faces the opposite scenario.

Without a balanced approach that considers pathways to raising additional public revenue, the state is at risk of not reaping the full returns available to its residents and state resources from increasing post-secondary credential attainment.

Author: Sarah Welker, Policy Analyst
Source: Center on Law and Social Policy. The Credential Differential: The Public Return to Increasing Postsecondary Credential Attainment. Webinar on April 26, 2012.

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WHAT ARE THE REAL RETURNS FROM POST-SECONDARY CREDENTIALS?

May 10, 2012

Filed under: Education,Income & Working Families,Workforce — Tags: Center on Law and Social Policy (CLASP), Economic Security, higher education, Mississippi, post-secondary degree, workers — admin @ 2:05 PM

Last week MEPC’s blog introduced a new tool that looks at the returns on investment adults and the state receive from increasing post-secondary degree and credential attainment among residents.

MEPC regularly recommends increasing resources for higher education, so adults have smoother, better supported pathways to success in higher education and the workforce. An analysis by the Center on Law and Social Policy (CLASP) affirms the importance of bolstering these investments and shows the value to Mississippians receiving the credentials and the state overall.

Let’s start on the individual level. The chart below compares the difference in earnings between adults with a high school degree, associate’s degree and bachelor’s degree. It is not surprising that Mississippi falls below average for earnings for adults with a bachelor’s degree. However, what the chart also shows is substantial space between Mississippi’s adults with a high school degree, associate’s degree and bachelor’s degree. The space between the earnings by educational attainment reveals that Mississippi workers experience notable wage increases through pursuing education.

Higher education continues to be a pathway for increasing economic security of individuals. However, gains from increasing credential attainment don’t just affect the individual. Increasing credential attainment also benefits families, employers and the state’s revenue generation.

Tomorrow’s post will compare the returns in personal and state income Mississippi experiences from increasing college credential attainment to the returns in other states across the U.S.

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Mississippi’s Graduation Rate Task Force Goals for Increasing Degree Attainment

May 2, 2012

Filed under: College,Education,Income & Working Families,Workforce — Tags: degree attainment, graduation rate, Graduation Rate Task Force, Mississippi, post-secondary, Workforce — admin @ 9:55 AM

In 2009 Mississippi’s Graduation Rate Task Force developed long-term goals for increasing the number of Mississippi adults with a postsecondary degree. The Task Force outlined that they wanted to reach the national rate for degree attainment by 2025 which means raising the portion of Mississippi’s residents with a post-secondary degree to 46.5%. Currently, 29.9% of working-age adults hold a post-secondary degree.

To reach the Task Force goal, Mississippi needs to connect close to 150,000 additional residents with a 2 or 4 –year degree beyond the current rate of degree attainment, equal to an additional 950 and 1,000 graduates each year.

What different levers can contribute to increasing the rate at which Mississippi’s students attain degrees?

A new tool from the Center on Law and Social Policy (CLASP) explores what factors can raise the portion of residents earning a credential. By setting a “2025 College Attainment Goal” at 46.5%, individuals can move “bars” for Mississippi’s high school graduation rate, the college-going rate and portion of adults enrolling in college to see how increasing each one contributes to more degrees earned.

Meeting the Graduation Task Force goal will also mean increasing the number of students that persist to graduation. Individuals can also explore how increasing the rate at which students earn credentials at two and four-year colleges will also be necessary to advance the state to its goal.

The tool also demonstrates the return on investment that comes from increasing college graduates including: increased per capita earnings, increased state revenue and decreased state spending.

While the data are estimates, CLASP’s tool provides a starting point for conversation about advancements still needed in Mississippi’s post-secondary education system. Ensuring the success of adult students will be a critical part of attaining the 2025 goal. Considering non-traditional student needs in program design, support services and curriculum development is critical for raising the number of prepared adults in Mississippi’s workforce and raising the state’s competitiveness and prosperity in the years ahead.

Read more on the returns of increasing credential attainment in Mississippi.
Author: Sarah Welker, Policy Analyst

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Cuts to Education Will Have Long Term Effects on Mississippi

March 21, 2012

Filed under: Education,Income & Working Families — Tags: education reform, global economy, Mississippi, school districts, State-level K-12 — admin @ 9:00 AM

A publication from the Center on Budget and Policy Priorities, entitled, “New School Year Brings Steep Cuts in Funding for Schools,” illustrates the continuing effects of budget cuts on state-funded services like education. On a national level, many elementary and high schools are receiving less state funding than last year and are now funded at below pre-recession levels.

Key findings from this study:

State-level K-12 cuts have large consequences for local school districts as they have little ability to replace lost state aid on their own. Cuts at the state-level mean that local school districts have to either scale back the educational services they provide, raise more revenue, or both.

Cuts in school funding undermine education reform and hinder the ability of school districts to deliver high quality education, further resulting in long term negative consequences for the nation’s economic competitiveness.

How does Mississippi Compare?

Mississippi falls on the lower end of the spectrum when looking at cuts across the states by the percentage cut with a 12.2% percent reduction in funding per student (see Figure 1). Continuing cuts to Mississippi’s education program will diminish the quality of education of elementary and high schools. At a time when the nation is trying to produce workers with the skills needed to master technologies in an ever-changing global economy, cuts in education funding threaten essential building blocks for future prosperity.

What this means for Mississippi:

In the figure above, many states have managed to increase their funding for education programs. This growth in spending reflects policymaker’s prioritization of education funding despite fiscal stress. While Mississippi is not as affluent as other states, there are still methods that our state can use to gain a greater capacity to invest in programs such as education. These methods include increasing the sales tax base, updating personal income and corporate taxes, and reducing certain tax expenditures.¹Without a balanced budgeting approach that includes raising revenues, Mississippi will be less competitive when prosperity returns.

Author: Francinia D. McKeithan, Policy Analyst/ SFAI Policy Fellow

¹Sara Miller, Revenue Options for Mississippi’s Fiscal Crisis, Updated August 2, 2011

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Dropout Recovery Funds 101

February 16, 2012

Filed under: Education,Income & Working Families — Tags: Dropout Recovery Funds — admin @ 9:09 AM

Previous posts have focused on the budget requests for Mississippi’s universities and colleges. MEPC is keeping a particularly close eye on the college’s request for Dropout Recovery Funds for the state’s Adult Basic Education (ABE) and GED programs and shares its perspective in a recent Letter to the Editor in the Sun Herald.

ABE and GED programs provide courses with instruction on basic math and literacy skills and advance adults to a GED and high school equivalency. In Mississippi over 350,000 working-age adults lack a high school diploma.

Simply put, increasing the appropriation for Dropout Recovery Funds provides an avenue to enhance the state’s basic skills instruction and move more adults to high school equivalency. Reaching high school equivalency is an important first step for thousands of Mississippi workers because of the close relationship between employment stability, earnings and educational attainment.

However, bolstering ABE/GED programs also needs to include an added emphasis on college-readiness.

Here is why: In 2010, the unemployment rate for Mississippi adults without a high school degree (20.2%) was more than double that of adults who had taken at least some college courses (9.6%). Educational attainment also raises potential earnings for Mississippi workers. In 2010, median wages for workers with some college or an associate’s degree ($28,255) were $11,848 more than adults without a high school degree.

See MEPC’s recently released fact sheet with recommendations for using Dropout Recovery Funds to advance job skills and transitions to college-level courses here.

Recommendations for advancing more low-skilled adults to college-readiness include:

Increasing the Dropout Recovery appropriation in FY 2013 beyond the previous appropriation of $100,000 per college.
Using Dropout Recovery Funds to strengthen comprehensive wrap around support services for adults in ABE/GED courses.
Allocating a portion of Dropout Recovery Funds to hire staff charged with increasing ABE student success and transitions to college.
Enhancing ABE curriculums so courses are imbedded with job skills and introductory content from career tech programs.

Author: Sarah Welker, Policy Analyst

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HOUSE COMMITTEE REPORT: Community College Appropriations

February 3, 2012

Filed under: College,Education — Tags: Adult Basic Education, community college, Community College Board, Dropout Recovery Funds, Eric Clark, GED, House Appropriations Committee, Mid-Level Funding, Mississippi, student — admin @ 9:41 AM

On February 1^st, the House Appropriations Committee heard testimony from the Mississippi Community College Board as they made funding requests for FY2013. Dr. Eric Clark, the Community College Board’s Executive Director, noted that the trend of growing enrollment and additional financial need continues for the colleges and across the education spectrum. Dr. Clark noted the colleges “can’t do more with less indefinitely.

The chart below illustrates that both colleges and universities have seen growth in full-time enrollment since FY2000 and declines in per-student funding.

MID LEVEL FUNDING
The community college leadership outlined two critical priorities in the hearing. First, to advance toward the Legislature’s Mid-Level Funding formula that promises to fund community colleges at the mid-point between per student funding at universities and K-12 schools.

To advance in full to Mid-Level Funding the colleges would need an additional $154 million above prior year funding, but the colleges’ final request is to move to ½ that amount- equal to a request of an additional $77 million in FY2013. Neither the Legislative Budget Recommendation nor the Executive Budget Recommendation includes increases in funding for community colleges.

CRITICAL REQUEST: DROPOUT RECOVERY FUNDS
Importantly, the Community College Board also asked the committee to increase the annual appropriation for Dropout Recovery Funds. Dropout Recovery Funds are resources to enhance the delivery of Adult Basic Education and GED courses offered on the 15 community college campuses.

The goal of additional resources is to increase the number and success of students enrolled in GED preparation, increase support services –child care, tutoring, transportation, mentoring- and integrate job skills into GED curriculums.

In total, the Board is asking for $11.5 million to enhance the delivery of ABE/GED programs, promote more students to college-readiness and equip them with the skills they need to enter and succeed in the workforce.

Dropout Recovery Funds represents an opportunity for Mississippi to raise the job skills, college-readiness, and employment outcomes for the 350,000 adults over 25 years old in the state without a high school credential. In an environment where Mississippi still has unemployment above 10%, adults without a high school degree are disproportionately likely to enter periods of unemployment.

Finding the resources to support efforts such as those proposed through Dropout Recovery Funds should be a priority.

Author: Sarah Welker, Policy Analyst

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State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.

MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:

Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
Compares information in these areas with trends nationally and among Mid South states.
Examines each of these areas through the lens of race, gender and educational attainment.
Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.

SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE

In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES

Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT

Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.

Author: Sarah Welker, Policy Analyst

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What Can Data Do?

November 1, 2011

Filed under: Childhood Advisory Council,College,Data System,Department of Education,Department of Human Services,Education,Income & Working Families,Institutions of Higher Learning,Longitudinal Data System,State Board for Community and Junior Colleges,Training,Workforce — admin @ 8:56 AM

A recent MEPC post raises concerns that the state’s future economic prosperity may be limited by persistently disparate outcomes between residents by poverty status and race. Moving towards many of the goals outlined in the post –job creation, quality schools and strong post-secondary and workforce training- will require more in-depth knowledge of how our education systems connect and support students of all ages.

In an effort to build that knowledge, the state recently passed legislation that will eventually provide the state’s leaders and policymakers with data on student and workforce outcomes across all education systems- elementary school to employment. Through the recently passed Mississippi State Longitudinal Data System, Mississippi will now begin to build the capacity to link information together from key state entities and eventually make data driven decisions for investment in policies and programs that move the state forward.

The figure below shows the agencies that will potentially be included in the new state system:

In particular, the recent authorization could develop a system that provides a resource for looking at the wage and employment outcomes of adults that exit training programs across the state. The system can also help determine which programs are successfully preparing low-income, low-skill adults to move into jobs with advancement opportunities and higher wages.

Using the SLDS gives leaders a resource for strengthening the state’s education and training, so more adults are equipped with the skills they need to open the doors to higher wage employment. Opening these doors remains a key avenue for increasing the economic security of families and one solution for closing income and educational disparities across the state.

Want to learn more?

Read more on the State Workforce Investment Board’s goals for the State Longitudinal Data System.
Read more on how data systems can be used to strengthen Mississippi’s education and training systems.
Read the SLDS legislation passed by Mississippi during the last legislative session.

Author: Sarah Welker, Policy Analyst

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