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Rising Costs Make Higher Education Harder to Reach For Middle and Low Income Mississippians

October 27, 2011

A recent article and editorial point out the effects of a 7% increase in Mississippi’s university tuition last year. The increase adds to the amount Mississippi’s students take out in student loans or that individuals take out of pocket to cover costs. Tuition at the state’s historically black colleges and universities increased by a greater rate last year than tuition overall. Increases compensate for inadequate state support over the last few years.

Raising the cost of receiving a university education can have a particularly harsh effect on Mississippi’s middle and low income families. Pell grants are a key piece of providing support for students that might not otherwise have the means to attend college and pursue education that provides career opportunities for economic security after college.

In 2009, 24,593 students – or 42.3% of all university undergraduates- received the opportunity to attend and finance a portion of their education through Pell Grants. When tuition rises, Pell Grants cover a smaller portion of the cost for attending school, and calls for limiting the resources put towards funding Pell Grants would have a negative effect on the opportunity to access higher education for almost half of Mississippi’s university students.

Even slight increases in tuition are likely to have a substantial impact on Mississippi’s low income families. And data on Pell Grants for undergraduate students shows the Mississippi’s African American families are more likely than their classmates to access higher education through Pell support. Seventy-four percent (74%) of African American students in Mississippi’s universities required need-based financial aid to access higher education compared to 22% of white students. Of the 24,593 students receiving Pell Grants, 7,138 were white, 16,561 were African American and 894 were of another ethnicity (see chart).

Increases of tuition at Mississippi’s universities impact the cost of college and debt incurred by thousands of Mississippi students regardless of race. However, tuition increases and suggestions to reduce funding for Pell Grants will have a particularly adverse impact on Mississippi’s African American families.

With 42% of Mississippi’s university students receiving Pell support, increases in tuition and limits in Pell Grants limit access to opportunity and upward mobility to a large portion of the state’s youngest residents and future workforce. And when tuition increases at a faster rate than wages, higher education requires a larger portion of all families’ budgets.

It remains absolutely imperative that we restore investments in universities and protect Pell funding for the health of the state’s universities and for ensuring we keep pathways for economic mobility and economic security open for the all of Mississippi’s students.

Author: Sarah Welker, Policy Analyst

 

2011 Annual Policy Conference Recap

October 26, 2011

The 2011 Annual Policy Conference was a great success. Thank you to everyone who attended and the presenters who shared their knowledge and expertise. This year, MEPC expanded our break out session format to allow participants to attend two sessions.

Darrin Webb, opened the conference with an overview of Mississippi’s economy and Bobby Harrison, Capitol Correspondent for the North East Mississippi Daily Journal and Emily Wagster-Pettus, Associated Press political reporter served as respondents to the presentation, offer insight on how the changing political landscape will affect efforts to engage policy makers on issues affecting working families.

Our keynote luncheon address focused on the importance of the role of government in the lives of  all Americans and the need for various constituencies to work together for a more prosperous Mississippi. Video of our Keynote Speaker, Hodding Carter III, Professor of Leadership and Public Policy University of North Carolina at Chapel Hill will also be available soon on our website so check back!

Below are brief descriptions of our 2011 Breakout Sessions:

Taxes fund the public structures that make up the foundation of our economy and make job creation possible.

  • MEPC Senior Policy Analyst Sara Miller and Elaine Mejia Senior Program Associate with Public Works at Demos present tax reform options and how to talk about taxes effectively in the current political landscape.

Understanding the challenges and opportunities of health care reform implementation

  • Corey Wiggins with i-Think Group examine the ongoing efforts of health reform implementation in Mississippi and how those opportunities and challenges affect the lives of working Mississippians.

Measuring basic economic security in Mississippi and building pathways for working families to achieve it

  • Wider Opportunity for Women’s Delese Harvey explores the new benchmark for basic economic security and gives hands on guidance on how organizations can use the Basic Economic Security Tables to advocate for programs that support families in their community or to help adults budget and set goals as they re-enter the workforce.

Steps to help Mississippi’s working families protect and build assets

  • Mississippi Center for Justice Community Organizer, Alicia Netterville and Felicia Lyles, VP Regional Branch Administrator for Hope Credit Union explain the effects of payday lending and how working families can make responsible financial decisions and move toward economic security.

PDF versions of all the PowerPoint presentations given in each break out session at the conference.

Exploring Basic Economic Security In Your County Online

October 19, 2011

The previous post focused on the release of a new report – Basic Economic Security Tables for Mississippi- that measures how much Mississippi’s families need to cover basic expenses and save for long-term economic security. Across Mississippi, 1 worker needs $26,664 per year to reach this benchmark and a family with 2 workers, 1 preschooler and 1 schoolchild needs $55,586 per year for their basic needs and modest savings for retirement and emergencies.

WHAT ABOUT BASIC ECONOMIC SECURITY IN MY COUNTY?

Families experience different costs for basic needs and different savings targets depending on where they live in the state.  To ensure residents, non-profits, schools, and public agencies have access to county-level information on the income families need for basic economic security, MEPC has printable fact sheets for each county.

To the right is an example of county-level basic economic security tables for Lauderdale County. In Lauderdale County, 1 worker needs $25,956 per year for basic economic security compared to the state average of $26,664. Each fact sheet shows basic expenses and savings for 6 different family types. County fact sheets are available for each of Mississippi’s 82 counties.

UPGRADES TO THE ONLINE CALCULATOR 

The Basic Economic Security Tables build on MEPC’s use of the Self-Sufficiency Standard, and MEPC’s online calculator has been upgraded to include basic needs and savings amounts from the new report.

The new Basic Economic Security Calculator allows individuals to pick their monthly savings targets for emergencies, retirement, homeownership and children’s post-secondary education. The savings are then included in the family’s monthly budget. After an individual gets their basic economic security wage, they can proceed down the page to compare it with the wages different occupations pay in their community. Occupational wages have been updated to 2010 with the help of the Mississippi Department of Employment Security.

The online calculator has been a valuable resource for Mississippi’s high school students, teachers, guidance counselors and adults returning to training. MEPC is excited to launch this upgraded online resource and looks forward to working with individuals and groups across the state to expand awareness of what families need to reach true economic security and advance beyond living pay check to pay check.

To learn about ways to use both the county fact sheets and online calculator in your community and across the state, attend MEPC’s 2011 Annual Policy Conference on October 21, 2011.

Author: Sarah Welker, Policy Analyst

 

INTRODUCING THE BASIC ECONOMIC SECURITY TABLES FOR MISSISSIPPI, 2011

October 18, 2011

In the wake of the 2007 recession, many Mississippi families are still struggling to reach financial stability in their households. A new report –Basic Economic Security Tables for Mississippi- from MEPC and Wider Opportunities for Women redefines how much Mississippi’s families need for true economic security in today’s economy by covering their basic needs but also saving for life-long economic security.

Basic Economic Security Tables for Mississippi determines how much families need for daily necessities and includes monthly savings targets for emergencies and retirement. These savings targets insulate families from poverty and increase economic security across generations. In Mississippi, a family with 2 workers, a preschooler and a school child needs each adult to work full time and earn $13.16 per hour to reach basic economic security.
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BASIC ECONOMIC SECURITY LINE BY LINE FOR 2 MISSISSIPPI FAMILY TYPES

The tables show monthly basic expenses and savings targets for 2 family types. The table on the left shows average monthly targets for 1 worker in Mississippi. The worker needs $443 for housing, $138 for utilities and $246 for food and so on. In total, a single working adult in Mississippi needs $26,664 per year or $12.63 per month to cover basics and have modest savings for emergencies and retirement.

The table on the right shows similar expenses and savings for family with 2 working adults, 1 preschooler and 1 schoolchild. For this family to reach basic economic security, each adult needs to earn $13.16 per hour for a combined income of $4,632 per month to cover their basic needs and save for retirement and emergencies like job loss or an unexpected medical bill.

The tables assume workers receive employment-based benefits like health insurance through their employer and unemployment insurance. Without these additional employment-based benefits families will need to save more for emergencies and increase their monthly healthcare budget substantially. For example, the average 2-adult, 2-child family which cannot participate in an employer-sponsored health insurance plan pays $634 more per month -$7,608 per year- more than those who do participate in employer health plans.

Want to know more? Keep reading, tomorrow’s post will drill down and look at basic economic security in different counties and we’ll walk through updated online resources for members of communities across the state.

Author: Sarah Welker, Policy Analyst

 

Investments in Education and Research Critical to State’s Future Economic Progress

October 6, 2011

MEPC’s previous post focused on projections for job growth by sector presented in last week’s IHL Economic Outlook Conference. The conference also looked at projections for growth in Mississippi’s employment, personal income, inflation and output for next year.

As the chart below shows, growth rates in output, employment and inflation are all similar for the US and Mississippi with differences of only 0.1% for 2012. However, Mississippi’s personal income, already among the nation’s lowest, is projected to grow slower than the nation’s in 2012. In 2012, personal income is projected to grow 3.1% across the state.

Growth in personal income may be needed among many Mississippi households. As noted in a previous post, median household income across the state has fallen over the decade. Adjusting for inflation, median incomes declined $6,142 from $42,963 in 1999/2000 to $36,821 at the end of the decade

Dr. Marianne Hill with IHL noted that 2012 will likely have larger growth than 2011 assuming Mississippi and the nation avoid another economic recession. The nation and Mississippi are currently at a 40% probability of entering another recession.¹

In the longer term, investments in education and research were both listed as critical to the state’s future economic progress by state and national experts. Industry leaders regularly emphasized that innovation across sectors was key to future competitiveness.

They stated that this innovation could be fueled by investments in education that lead to the training of a more skilled workforce. However, budget hearings last week underscored that many of the needs across Mississippi’s education and training spectrum are at risk of being unmet without approaches that consider pathways to increasing state funding for K-12, community colleges and universities.

Author: Sarah Welker, Policy Analyst
¹Daco, Gregory. IHS Global Insight. Presentation on the U.S. Economic Outlook.

 

COMMUNITY COLLEGE BUDGET REQUEST INCLUDES FUNDS TARGETED AT LOW-SKILLED ADULTS

September 28, 2011

Mississippi’s community and junior colleges provide a wide variety of courses to students of all ages- academic, career tech, basic education and workforce courses.  In fall 2010 and 2011, headcount enrollment in academic and career tech classes surpassed 80,000 students. Dr. Clark and the MS Community College Board requested $88.4 million more for FY2013 than the $188 million received last year. In total, the board and 15 colleges are hoping for $267.7 million from the state general fund.

Student tuition represents a substantially larger portion of revenues for the community college system than they did 12 years ago. In 2000, student tuition made up 18% of the resources coming to colleges and in FY2012 35.4% of revenues come through tuition and fees (see chart). Increases in tuition and student enrollment and limited state resources have combined to create the shift.

Over the decade, tuitions have also increased markedly for students and families. In 2000, tuition and fees came in at $1,072 per year compared to $2,117 in 2010, a considerable increase even after adjusting for inflation.

DROPOUT RECOVERY FUNDS

One of the line items in the community college budget request was for $11.5 million in ‘Dropout Recovery Funds’ for adult basic education, GED preparation courses and supports for those adults without a high school degree to return to school. In previous years, the legislature has allocated $1.5 million to the efforts and many colleges have invested in supports for adults trying to gain basic skills such as transportation vouchers or scholarships for GED testing fees. Importantly, some colleges also use funds for an additional staff member who is dedicated to helping students balance their needs outside the classroom, increasing the likelihood they will persist in classes and successfully gain a GED.

Funds dedicated to increasing the success of adults that enter basic education and GED preparation courses make good sense in a state where 388,500 adults over age 25 lack a high school degree, particularly if those investments increase the number of adults transitioning on to career tech and associate’s degree programs at the colleges. Finding additional resources to dedicate to Dropout Recovery efforts should be a priority.

Author: Sarah Welker, Policy Analyst

DAY 4 OF BUDGET HEARINGS: Dept. of Education Asks for $300.3 Million Above Last Year For K-12 Students

September 23, 2011

Filed under: Budget Hearings FY 2013,Education — admin @ 4:11 PM

The Mississippi Department of Education made their FY2013 budget request on Thursday morning for an increase of 13% over their FY2012 allocation. In total, MDE is in need of $300.3 million beyond last year’s contributions from the state.

In total, Mississippi has lost 2,059 teachers and staff in K-12 education over the last year- including 704 teachers and 792 assistants (see chart). Dr. Burnham, the state superintendent for education, highlighted that funding constraints continue to have a negative impact on staff, teachers and materials available to students. He noted that student teacher ratios have increased and that a rise in the number of students in a classroom does limit a teacher’s ability to allocate individual attention needed for each student.

Their additional request included to $250.2 million for the Mississippi Adequate Education Program, $3 million for the transition to new Common Core standards and $2.5 million for a superintendent’s academy as approximately 60 new superintendents assume their duties in the next year (see below for full request).

The loss of hundreds of teachers and teacher assistants across Mississippi is not a forward step for ensuring schools have adequate resources to strengthen academic achievement, increase high school graduation and build college-readiness. The Mississippi Adequate Education Program was underfunded by $237.4 million in FY2012. Without adequate revenue, Mississippi will not meet MAEP needs again in FY2013.

Resources for capacity building among state superintendents and implementing common core curriculums may also be difficult to find. Taking a step backward in K-12 education would be detrimental to the state’s children and generating revenue to advance toward funding the MAEP should be a priority.

Author: Sarah Welker, Policy Analyst

 

DAY 1 OF BUDGET HEARINGS: Concerns About University System Funding

September 20, 2011

Filed under: Budget & Tax,Budget Hearings FY 2013,Education,FY 2013 — admin @ 9:33 AM

The Joint Legislative Budget Committee (JLBC) held day 1 of FY2013 budget hearings on Monday. Monday’s presentations came from the State Personnel Board, Gaming Commission, Supreme Court and Institutions of Higher Learning.

This post details key findings about the state’s universities from the Institutions of Higher Learning.

HOW FUNDING LIMITS HAVE IMPACTED UNIVERSITIES

Across the university system, enrollment has reached an all-time high this year, with 7out of 8 universities experiencing the highest enrollment in their history. When increasing enrollment is not matched with proportional funding increases, universities must look for efficiencies to make ends meet. IHL Commissioner Hank Bounds noted that some of these ‘efficiencies’ hurt students.

At Mississippi State University, faculty to student ratios have increased from 15 or 16 students per faculty member to above 20 students per faculty member since the downturn began. It was also noted that vacant faculty positions remain unfilled across many universities as departments look for ways to reduce expenditures.

CHANGES IN THE MAKEUP OF UNIVERSITY FUNDING

Beyond students, the university system has adjusted to changes in state funding by increasing tuition and enrollment. To make up for gaps in state funding, tuition now constitutes a greater share of university revenue than it did 14 years ago. In FY98, 54% of the university system’s revenue came through state appropriations, while 33% came from tuition. By FY12, the two funding sources flipped, and universities now depend on tuition for 57% of their funding.

FEDERAL AND STATE FUNDING STREAMS MAY CONTINUE TO TIGHTEN

Commissioner Bounds underscored concerns that funding streams from both the federal and state level are tightening and have real implications for university faculty, students and research. Lower levels of funding through the National Science Foundation and National Institute of Health could substantially decrease research revenue for each campus. Scaling back Pell Grants could also substantially impact students that need additional financial support to attend pursue university courses. Cuts in Pell Grants would impact revenue coming into Mississippi’s universities all of which enroll many students that use Pell as a major source of funding to move through higher education.

Funding limits for the state’s 8 universities are having a substantial impact on students, faculty, and academic departments. Uncertainty around federal funding for research and tuition support for low and middle-income students places additional funding constraints to universities on the horizon. Investing in education provided through the state’s university system remains critical for economic development and workforce preparedness. This underscores how important it is that Mississippi pursues a path that supports higher education, job creation and economic security through a balanced approach that includes increasing revenue.

Author: Sarah Welker, Policy Analyst

 

 

The Economic Costs of Teen Births in Mississippi

September 8, 2011

Filed under: Education,Income & Working Families,Teen Births — admin @ 8:52 AM

In 2009, teen births across Mississippi cost tax payers an estimated $155 million. The following post provides a snapshot of the cost of teen births in Mississippi.

BACKGROUND ON TEEN BIRTHS IN MISSISSIPPI

Across Mississippi a total of 7,078 infants were born to teens age 19 or younger in 2009.¹ Approximately 1/3 of those births were to women 17 years of age or younger. Teen childbearing impacts counties across Mississippi in both rural and urban areas. Additionally, Mississippi’s teen birth rate of 64.1 births per 1,000 teens age 15-19 exceeds that national rate for women of the same age. Teen birth rates for white and non-white teens both exceed the national rates for their demographic group.²

CALCULATING TAX PAYER COSTS OF TEEN BIRTHS IN 2009

In an effort to measure the broader economic impact of teen births in Mississippi, MEPC applied a model of tax payer costs developed by a nationally recognized team of researchers from across the country.³  The model analyzes costs associated with teen mothers, fathers and their children. These tax payer costs are conservative and cover three categories that combine for an overall tax payer cost in 2009.

In order from largest to smallest, the three categories of tax payer costs included in the calculation of $155 million are:

1) Lost tax revenue from lower wages and consumption of teen mothers and fathers, and lost tax revenue from lower wages of children of teen mothers as adults.

2) Costs of adverse consequences for children, which includes foster care costs and incarceration costs for children as adolescents and adults, and;

3) Costs of public assistance such as emergency food assistance and medical assistance.

 

The majority of tax payer costs are associated with negative outcomes for the children of teen mothers and fathers, including lost tax revenue from their lower wages and consumption as adults and higher costs for the foster care and criminal justice systems. Tax payer costs provided would be saved if all would-be teen parents delayed childbearing until age 20 or 21.†

For additional background on methods for calculating costs associated with teen births in Mississippi, please see MEPC’s fact sheet.

Author: Sarah Welker, Policy Analyst


¹MS Department of Health Teen Vital Statistics, 2009
²Centers for Disease Control and Prevention. National Center for Health Statistics. VitalStats: Birth Data Files. http://www.cdc.gov/nchs/vitalstats.htm
³Hoffman, S. D., & Maynard,R. A. (2008). Kids having kids (2nd edition). Washington, DC: Urban Institute Press.
†Hoffman, S. D., & Maynard,R. A. (2008). Kids having kids (2nd edition). Washington, DC: Urban Institute Press.

 

Do Mississippi Universities Have Enough Resources to Build Up the State’s Workforce?

August 26, 2011

Sid Salter’s column calls attention to a developing funding trend among the state’s public universities. Institutions of Higher Learning like Mississippi State University are increasingly looking to private giving to help address the financial strain that comes when limits in state funding and growing student attendance converge. The column notes that “The troubling part of that budget reality is that the cuts are coming at a time of increased enrollment as students head back to universities to get new skills in the new economy after the prolonged recession.”

More and more students return to university campuses with the hope of increasing skills, earning a degree, and moving into higher wage employment. As high school graduates and adults pursued courses, university enrollment experienced a particularly strong uptick between 2008 and 2010.  From the fall of 2008 to the fall of 2010, Mississippi’s public universities enrolled an additional 3,100 undergraduate students, the largest real increase in students among the years charted.

Enrolling more students puts increased demand on a university’s faculty, administrative staff, infrastructure and classroom, library, and dormitory space. Inadequate funding of universities can force schools to pass costs on to students through tuition, over half of which already need to take out student loans to finance their education.[i]

While a challenging funding environment for universities persists, leaders across Mississippi are seeking ways to increase the number of higher wage, higher skill employment opportunities in the state. Increasing such opportunities will mean that employers, workers, and community leaders will depend on the post-secondary education system to meet industry and workforce needs.

The increasing demands set on the state’s university system need to be met with adequate resources. The knowledge that public universities are increasingly turning to private giving to make ends meet underscores the importance of taking a balanced approach that includes raising revenue instead of a cuts only approach that constrains education systems in a time of growing need.

Author: Sarah Welker, Policy Analyst 


[i] National Center for Education Statistics. Integrated Postsecondary Education Data System. Financial Aid Data for FY2008-09.

 

 

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