Latino Success in Higher Education – Assuring California’s Future September 25, 2007

1. Latino Success in Higher Education – Assuring California’s FutureSeptember 25, 2007 Presented by Henry Mendoza, CPA Immediate Past Chairman of the Board California Hispanic Chambers of Commerce

2. The Pipeline • The California Aspire Achieve Lead Pipeline Project (CaAAL), is a creative statewide model which extends from pre-school through graduate-school. • Founding Partners: • California Public Employment Retirement System • California Public Utilities Commission • California Department of Insurance • State Bar of California

3. Overview • Critical Issues: • Economic competition • Necessity of a higher education degree • Projected population growth of Latino segment • Educational attainment levels • Increasing numbers of low-income potential college students

4. Demographics • Latinos makeup approximately 33% of the population • Latinos are projected to become the largest racial or ethnic group by 2011 and to constitute a majority by 2040 in California • 33% of all Latino high school students drop out of school. In some areas it is higher than 50% • Only 10% of Latinos graduate from 4 year colleges and universities • That is 6% - 10% (This has not changed in 25 years) • By 2020, the share of the California workforce this is Latino is expected to jump to 38% • The total college age population in California is projected to increase by 27% in 2014

5. College Enrollment • California is ranked 49th among the 50 states in the percentage of high school seniors who enroll in baccalaureate-granting colleges • In 2006-2007, Latino enrollment is 31% in California community colleges, 23% in the CSU system and 10% for the UC system

6. Financial Aid • 75% of young adults not enrolled in college would have been more likely to attend college had they been exposed to better information about financial aid, especially during K-12 • More than 50% of Latino parents and 43% of Latino college age students cannot name a single source of financial aid to pay for college • Latinos receive an average aid award of $4,945 compared to $5,450 awarded to all other ethnic groups • California Latinos are less likely to receive federal aid than Latinos from other states. Less than 1/3 of Latinos in California receive federal aid to pay for college. Nationally, 50% of Latinos received federal aid

7. Degree Attainment • California ranks 46th among the 50 states in college age population earning a bachelor’s degree • California ranks LAST among the 50 states in the percentage of Latinos and African Americans earning bachelor’s degrees • The percentage of the workforce with a college degree is projected to decline by 2020

8. Workforce Needs & Benefits • Today, 1 in 4 jobs in California requires an associate degree or higher, but in the near future 1 new job in 3 will require this level of education • Three million new highly educated workers will be needed in the near future due to retirement and demand • The income of California residents is projected to decline over the next 20 years unless the state can increase the number of Latinos earning college degrees • For every dollar invested to increase the number of students attending college and completing degrees, California gets $3 in net return

9. Conclusions • Major factors that negatively impact our ability to assure our diverse future workforce: • Demographics • Location of schools • Outreach • Cost of education • Outreach – financial aid • Major advantages of partnerships/coalitions to support the pipeline: • Schools • Expertise • Outreach – pipeline • Business • Funding/investment • Expertise/talent