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The top 10 California colleges where students earn back their tuition within a year – and number one makes complete sense

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The top 10 California colleges where students earn back their tuition within a year – and number one makes complete sense


College costs a pretty penny these days, especially in California.

Instead of spending a King’s Ransom, prospective students should take a look at this list of colleges, carefully tabulated by a research conducted by a consulting agency that’s focused on college access, value and economic mobility.

Cost-effective, each of these Golden State-based colleges also offer a payoff within five months of graduation – providing not only a college degree, but an important economic foothold.

The analysis, from the HEA Group and the College Futures Foundation, essentially shows where a college degree pays off – quickly – in California. 

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A new analysis from the HEA Group and the College Futures Foundation shows where a college degree pays off – quickly – in California. Each of the school provide a payoff within six months of students’ receiving their degree. Pictured, Stanford University in Stanford, California

1. Stanford

Stanford stole the show in terms of HEA and College Futures’ study, taking home the top spot in dominant fashion.

That’s because it basically takes no time at all to recoup your college losses after walking, according to the nonprofit and research firm.

That’s largely due to the wage premium given to Stanford grads, who on average earn about $74,000 more a year than high school grads, because of the school’s prestige.  

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That’s around $110,000 annually, compared with $36,000 for people with only high school degrees.

Stanford stole the show in HEA and College Futures' study, taking home the top spot in terms of return on investment in dominant fashion

Stanford stole the show in HEA and College Futures’ study, taking home the top spot in terms of return on investment in dominant fashion

While pricey at $57,693 a year, the study found an undergrad degree at Stanford is unarguably useful. However, like other top-rated colleges, it’s tough to get into, with a slim acceptance rate of 3.91 percent. 

That comes in stark detriment to low- and moderate-income students, the study found – important due to the fact that both sample-sets were the focus of the firm’s analysis.

HEA Group founder Michael Itzkowitz cited state schools as a better alternative in most cases, and told CBS MoneyWatch how a school like Stanford may not be for everyone.

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‘There are many state schools that are often the best option for students to consider,’ HEA Group founder Michael Itzkowitz told CBS MoneyWatch this week of how a school like Stanford may not be as worth it for families making under $75,000.

He added, ‘[State school] oftentimes include in-state tuition, which is much less expensive than out-of-state tuition, and they can offer generous scholarships and provide strong economic opportunities.’

2. University of California, San Bernardino

Speaking of state schools, the runner-up on HEA and College Futures’ was none other than University of California, San Bernardino, which is nothing less than a bargain.

It costs $7,679 for students in-state and $14,311 for out-of-state attendees, and is on average about $4,000 cheaper than other Cali state schools. For students coming from out of state, the tuition is also cheaper than average by a whopping $13,000. 

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Neither include room and board, which will cost an additional $13,500 a year.

The runner-up on HEA and College Futures' list was none other than University of California, San Bernardino, which is truly a bargain

The runner-up on HEA and College Futures’ list was none other than University of California, San Bernardino, which is truly a bargain

While not as selective as some of the entries on this list, University of California, San Bernardino is still a respected school, boasting an abundance of programs and departments. 

More importantly, it will only take the average in-state student about two months to make their tuition back after graduating – with the average earnings for a post-grad pegged at around $27,644 higher than those with only a high school diploma.

That’s about $60,000 – a respectable take-home salary for your first year of work. 

3. California State University, Los Angeles

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A slightly more expensive state school, California State University, Los Angeles grads will make their tuition back in essentially the same as UC San Bernardino, give or take a few days.

Better known as UCLA, the school sports a year-to-recoup cost rate of 0.2, according to the just-released study – meaning it will take less than two-and-half months, on average, for grads to make their money back.

The school costs $11,564 to attend for attendees from California – roughly the average for most California schools – and a slightly more pronounced $18,685 for those hailing from out of state – almost $10,000 below the national average cost for a year of college.

A slightly more expensive state school, California State University, Los Angeles grads will make their tuition back in essentially the same as UC San Bernardino, give or take a few days

A slightly more expensive state school, California State University, Los Angeles grads will make their tuition back in essentially the same as UC San Bernardino, give or take a few days

The study found that grads on average make just a few dollars less than their California State counterparts north in San Bernardino, raking in $27,620 more a year than high school grads with their first post-college job.

That would cover the cost of tuition in no time at all, the study’s authors said – leaving the rest of the year’s salary for other expenses.

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4. Pitzer College

Fourth on HEA and College Futures’ college list was none other than Pitzer College, a private liberal arts college set in a scenic suburb of Los Angeles.

Located just 30 miles away in the idyllic foothills of the San Gabriel Mountains, the college costs around $64,000 to attend – a sum that’s the same for both in- and out-of-state students.

That’s not including room and board, making it one of the more pricey entries on this list.

Fourth on HEA and College Futures' college list was none other than Pitzer College, a private liberal arts college set in a scenic suburb of Los Angeles

Fourth on HEA and College Futures’ college list was none other than Pitzer College, a private liberal arts college set in a scenic suburb of Los Angeles

However it boasts the third-best return on investment among California schools, the research found, thanks to students making well more than their peers after graduation.

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That’s thanks to an average salary of around $64,000 more than high school grad after graduation – and a slew of grants and scholarships offered to low- and medium-income students, at a school known for its social justice culture and experimental approach.

One of the Claremont Colleges, the college also has a curricular emphasis on behavioral sciences, international programs and media studies.

5. California State University, Fullerton

Another state school located in LA, California State University, Fullerton offers graduates a complete return on their tuition investment within four months, according to the study.

That’s thanks in large part to in-state tuition only costing $5,742 – a third of the price of its room and board, which will run you about $16,700 per year.

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For Los Angeles, that’s not bad, and tuition for those coming from out-of-state is only $17,622 as well.

Another state school located in LA, California State University, Fullerton offers graduates a complete return on their tuition investment within four months, according to the study

Another state school located in LA, California State University, Fullerton offers graduates a complete return on their tuition investment within four months, according to the study

Moreover, grads immediately command a salary of nearly $32,000 higher than their high school graduate counterparts – making paying off any loans a walk in the park.

It’s also a top source of bachelor’s and master’s degrees for Hispanics in the state of California, and was awarded the Institutional Equity Award in 2022, for recruiting and retaining underrepresented racial groups into the historical discipline.

And academically, it’s no slouch either, with a selective 67 percent acceptance rate and plethora of programs.

6. Pomona College

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Like Pitzer, Pomona college is a private liberal arts school in Claremont, a half hour’s drive from LA.

The annual tuition to attend is $58,818 – a sum that, while expensive, is a small price to pay considering grads on average make that back in four months.

The school is highly respected, with a low 7 percent acceptance rate, and offers a slew of scholarships and opportunities for medium- and low-income students from families.

Like Pitzer, Pomona college is a private liberal arts school in Claremont, a half hour's drive from LA. The annual tuition to attend is $58,818 - a sum that, while expensive, is a small price to pay considering grads on average make that back in four months

Like Pitzer, Pomona college is a private liberal arts school in Claremont, a half hour’s drive from LA. The annual tuition to attend is $58,818 – a sum that, while expensive, is a small price to pay considering grads on average make that back in four months

This allows grads who make an average of $46,159 a year more than their high school diploma counterparts to pay off their four years of tuition also within four months.

The cost there is the same for both in-state and out-of-state students, and Room and board fees will run applicants an additional $19,358. 

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For educational purposes, it boasts one of the best bachelor’s programs in the state, with its most popular majors being social sciences, biological and biomedical sciences, and computer and information sciences.

7. California Institute of Technology

Perhaps the most prestigious schools to make the list, the California Institute of Technology, better known as Caltech, was founded in 1891 as Throop University, before receiving its current name in 1920 – and later its abbreviation. 

The annual tuition to attend is $58,479 – not much considering the salaries grads command upon entering the job market.

That stands at around $100,000, according to the study – a sum achieved thanks to the engineering and tech expertise people who study there typically possess.

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Perhaps the most prestigious schools to make the list, The California Institute of Technology, better known as Caltech, was founded in 1891 as Throop University, before receiving its current name in 1920 - and later its abbreviation

Perhaps the most prestigious schools to make the list, The California Institute of Technology, better known as Caltech, was founded in 1891 as Throop University, before receiving its current name in 1920 – and later its abbreviation

That said, the school has one of the lowest acceptance rates on this list, at 2.7 percent, and is definitely not cheap. 

 The cost is the same for both in-state and out-of-state students, and room and board costs demand an additional $18,606. 

With all these fees considered, the expected total cost to attend California Institute of Technology on a full-time basis is $83,598 – not bad considering grads will pay off just their tuition within four months. 

8. San Diego State University

Another school with great bang for your buck is San Diego State University, which costs just $5,742 a year to attend for students coming from The Golden State.

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Undergrad tuition at its sun-soaked campus will cost students a still-affordable $17,622 – small change considering they will make more than $60,000 after graduating, the study found.

Graduates in both categories typically command salaries $33,000 higher than their high school diploma-holding counterparts, with room and board running them an additional $19,714 per year.

Another school with great bang for your buck is San Diego State University, which costs just $5,742 a year to attend for students coming from The Golden State

Another school with great bang for your buck is San Diego State University, which costs just $5,742 a year to attend for students coming from The Golden State

It also sports a respectable 39.3 percent acceptance rate and is the third-oldest university and southernmost in the 23-strong California State University (CSU) system.

As its placement her indicates, it repeatedly ranks in lists charting colleges with the best value economically, and in 2021, tied for 143rd overall in a list of 389 national universities, compiled by the research publication US News & World Report.

9. Sonoma State University

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Nestled between the gentle sloping hills of Sonoma County and the rocky mountains of the Sierra Nevadas sits the next entry on HEA’s list, Sonoma State University.

With just 9,300 students, it is one of the smallest members of the California State University system, and asks a small sum when it comes to tuition as well. 

Undergraduate students residing in California will have to fork over $5,742 their first year, room and board not included.

nestled between the hills of Sonoma County and the rocky mountains of the Sierra Nevadas sits the next entry, Sonoma State University. With 9,300 students, it is one of the smallest members of the California State University system, and asks a small sum for tuition as well

nestled between the hills of Sonoma County and the rocky mountains of the Sierra Nevadas sits the next entry, Sonoma State University. With 9,300 students, it is one of the smallest members of the California State University system, and asks a small sum for tuition as well

Undergraduate tuition for out-of-state students, meanwhile, is around $17,622 – a number that equates to roughly a fourth of grads’ first-year salaries.

That compensation, researchers found, is on average $70,000, a take home allowing for a full tuition payoff within five months.

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It also one of the easiest schools on this list to get into, with a forgiving 94 percent acceptance rate.

10. Claremont McKenna University

Last and definitely not least was Claremont McKenna University, the third school to rank located in the quaint LA suburb for which it’s named.

It’s a private school, so it’s a great deal more expensive than other entries, but it makes up for it with the substantial salaries grads command right after the close of their college careers.

It costs about $60,480 a year to attend – a sum that’s the same for both in-state and out-of-state students.

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As was the case with Stanford and CalTech, grads on average make just over $70,000 more than those who graduate just high school – good for a six-figure salary in your first year post-school.

Last and definitely not least was Claremont McKenna University, the third school to rank located in the quaint LA suburb for which its named. It costs about $60,480 a year to attend - a sum that's the same for both in-state and out-of-state students

Last and definitely not least was Claremont McKenna University, the third school to rank located in the quaint LA suburb for which its named. It costs about $60,480 a year to attend – a sum that’s the same for both in-state and out-of-state students

This, study’s authors said, allows for a complete return on investment for tuition within five months – pretty good considering 20 percent of the US’s roughly 4,000 higher education programs offer no such return, authors found.

Instead, students at those school will work essentially endlessly to offset the cost of attendance, as their earnings are likely to stay lower than those of high school grads, the researchers concluded.

Their study examined families earning $75,000 or less, given that these students may be more likely to skip higher education in fear of resigning themselves to such a fate.



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Deadly snake bites are up in California. Here’s what to do if you see one.

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Deadly snake bites are up in California. Here’s what to do if you see one.


The sunny skies and warmer weather in California are increasing the chance of seeing snakes, and this year, there’s been a big spike in the number of fatal rattlesnake bites in the state.

Rattlesnake deaths are so rare that in most years, there aren’t any in California. But so far this year, two people in southern California have been killed by rattlesnake bites, and a third victim was fatally bitten in Mendocino County.

Now, some snake experts are warning people about getting too close to these creatures.

Michael Starkey, executive director of the nonprofit group Save the Snakes, said the warmer weather is bringing rattlers, gopher snakes, and other native species out of their winter slumber, where they are coming in contact with people.

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“Around the Sacramento area, we can find them along the American River Parkway, El Dorado Hills, anywhere where there’s big patches of open land,” Starkey said. “A snake like a gopher snake, you could find them in some parks in the city of Sacramento.”

Peter Henry has had some close encounters with rattlesnakes while walking along the bike trail in Rancho Cordova. He said they came out a lot earlier than in past years.

“Mid-February is the first time I saw one out on the trail this year,” Henry said.

Other people, like Gary Johnston, who frequent the American River Parkway say snakes are a common sight.

“I’ve actually had one lunge at me,” Johnston said. “It was in some flora, a bush that I couldn’t see. It was coiled up.”

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What should you do if you come across a snake?

“Stopping and giving the snake space is the best thing you can do to make sure everyone is safe, you and the snake,” Starkey said.

Starkey said encounters are growing in places where new homes are being built on top of snake habitat areas. He said they’re an important part of the ecosystem, and he asks people to call a professional snake wrangler instead of killing them if they are found on people’s property.

“It’s just another reminder that we need to practice coexistence with wildlife, give snakes space and be aware when we enjoy nature,” Starkey said. “That’s their home too.”

If you have questions about snakes or want to see some in person, the 5th annual Sacramento Snake Festival is taking place this Saturday, beginning at 10 a.m. at Hagan Community Park in Rancho Cordova.

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California’s Rainy Day Fund and Other Budget Reserves Overview

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California’s Rainy Day Fund and Other Budget Reserves Overview




key takeaway

California’s state budget reserves, including the “rainy day fund” and other reserve accounts, serve as a financial safety net for services like education, health care, and child care during economic downturns. The rules for depositing and withdrawing funds are complex, and policymakers should consider reforms, such as excluding reserve deposits from the Gann Limit spending cap, to strengthen the state budget’s resilience during a recession.

Introduction

California has several state budget reserves. These reserves help to maintain essential public services — like education, health care, and child care — when revenues fall short, such as during recessions. Reserves aren’t for everyday spending, but rather a financial safety net for the state.

This report describes California’s state budget reserves, explains how funds can be accessed and used, and discusses proposals to reshape these reserves that have been floated in recent years. For more information about California’s reserve accounts, see the Budget Center’s companion resources, including this video — California’s State Budget Reserves Explained — and this fact sheet — 5 Key Questions About California’s State Budget Reserves.

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state budget Reserves in a nutshell

Budget Stabilization Account (BSA): California’s Largest Reserve

The BSA is California’s largest state budget reserve. Deposits into and withdrawals from this “rainy day fund” are based on complex rules that were added to the state Constitution by Proposition 2 of 2014. Key rules include the following:

An annual deposit is required. Prop. 2 requires that 1.5% of General Fund revenues be set aside every year. Until 2029-30 half of these revenues must be deposited into the BSA and the other half must be used to pay down certain state debts. Beginning in 2030-31, the entire amount must be deposited into the BSA, although state leaders will have the option of redirecting up to one-half of each year’s deposit to pay down debts.

In some years, the state must set aside additional General Fund revenues. This occurs in years when estimated General Fund revenues that come from personal income taxes on capital gains exceed 8% of total General Fund proceeds of taxes. The share of these “excess” capital gains revenues that is not owed to K-12 schools and community colleges under the state’s Prop. 98 funding guarantee must be used for BSA deposits and debt repayments, following the same requirements as the mandatory 1.5% deposit.  Since Prop. 2 was enacted, capital gains tax revenues have exceeded the 8% threshold in most years, but could fall below the threshold in years when there are downturns in the stock market.

State leaders may also make discretionary deposits. In addition to the mandatory annual deposits required by Prop. 2, policymakers have the option of saving additional, discretionary revenue in the BSA.

The required annual deposit may be reduced or suspended in the event of a “budget emergency. If the governor declares a budget emergency, the state may reduce or suspend the required BSA deposit with a majority vote of each house of the Legislature. Prop. 2 defines a budget emergency as a situation where:

  • Conditions of disaster or extreme peril are present; or
  • The state has insufficient resources to maintain General Fund expenditures at the highest level of spending in the three most recent fiscal years, adjusted for state population growth and the change in the cost of living.

BSA funds may be withdrawn in the event of a budget emergency, but the entire balance cannot be removed at once. If the governor declares a budget emergency and the Legislature agrees with a majority vote of each house, funds may be taken out of the BSA. However, the entire balance cannot be removed immediately. Only the amount needed to address the budget emergency may be withdrawn, subject to the additional limitation that a withdrawal may not exceed 50% of the BSA balance in the first year of a budget emergency. In the second consecutive year of a budget emergency, all of the funds remaining in the BSA may be withdrawn.

Funds that are taken out of the BSA may go toward any purpose determined by the Legislature. For example, these dollars could be used for health care services, subsidized child care for working families, cash assistance for people with low incomes, K-12 schools, and any number of other public services and systems.

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Funds in the BSA cannot exceed 10% of General Fund tax revenues. Prop. 2 caps the balance of the BSA. Once the balance — excluding any discretionary deposits — reaches 10% of General Fund tax revenues, any revenue that would otherwise have been required to go into the reserve must be instead spent on infrastructure, which includes housing. Prior to 2026, the BSA balance reached the cap twice — in 2022-23 and 2023-24 — but then dropped below the cap as state leaders withdrew funds in some years to address budget shortfalls.

Prop. 2 of 2014 also established the PSSSA, the state’s budget reserve for California’s K-12 schools and community colleges. Prop. 2 does not require an annual deposit into this reserve. Moreover, Prop. 2 restricts the circumstances under which transfers to the PSSSA can occur. For a PSSSA deposit to be required, all of the following conditions must be met:

  • General Fund revenues that come from personal income taxes on capital gains are relatively strong;
  • Growth in General Fund revenues leads to relatively strong growth in the state’s annual minimum funding guarantee for K-12 schools and community colleges; and
  • The Legislature does not suspend the annual K-14 education minimum funding guarantee.

Even under these restricted circumstances, Prop. 2 limits the size of the deposit to the schools reserve when such a deposit is required.

Deposits to the PSSSA may be reduced or suspended in the event of a budget emergency under the same rules that govern reductions or suspensions of deposits to the BSA (see the prior section of this report). Similarly, funds may be withdrawn from the schools reserve if the governor declares a budget emergency and the Legislature agrees with a majority vote of each house.

In contrast to the rules governing the withdrawal of funds from the BSA, all of the PSSSA funds may be withdrawn in one year. Moreover, funds withdrawn from the PSSSA must be used to support K-12 schools and community colleges.

Safety Net Reserve: Funds to Protect the Medi-Cal and CalWORKs Programs

The Safety Net Reserve was created in 2018 to set aside funds to help cover the costs of two programs that often see increases in enrollment during recessions: Medi-Cal and California Work Opportunity and Responsibility to Kids (CalWORKs). Both of these programs serve Californians with low incomes — with Medi-Cal delivering health coverage, and CalWORKs providing modest cash assistance to families with children. During economic downturns, more people become unemployed and temporarily rely on these programs to cover their basic needs, increasing state costs.

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The Safety Net Reserve is not a constitutional reserve, so there are no binding requirements governing deposits or withdrawals. This means that funds can be transferred into and withdrawn from the reserve at the discretion of the Legislature. In fact, state policymakers voluntarily deposited $900 million in the Safety Net Reserve before draining all of those funds in 2024 to help address a $55 billion state budget problem.

Moreover, while state law specifies that the funds are to be used only for Medi-Cal and CalWORKs costs during economic downturns, state policymakers could decide to modify this language and use the funds for other purposes. However, in establishing this reserve, policymakers clearly recognized the need to protect critical services for Californians with low incomes from budget cuts — cuts that would undermine Medi-Cal and CalWORKs at the very time that these programs are needed most.

Special Fund for Economic Uncertainties (SFEU): The Discretionary Reserve

The SFEU is the state’s discretionary General Fund budget reserve, meaning policymakers have a great deal of latitude in spending the funds in the reserve. The amount of money in the SFEU is equal to the difference between General Fund resources and General Fund spending in a given fiscal year.

The SFEU acts as a buffer against unanticipated revenue shortfalls or spending increases. Due to California’s constitutional balanced-budget requirement, which requires the state to enact a budget in which spending does not exceed available resources, the projected SFEU balance cannot be less than zero at the time the annual budget is adopted. However, if state revenues come in lower than projected and/or spending unexpectedly rises, the SFEU balance will decline, and may become negative as spending begins to exceed revenues.

The Legislature can appropriate funds from the SFEU at any time and for any purpose. Additionally, in the event of a disaster, the governor can allocate funds from the SFEU without the prior approval of the Legislature. Specifically, when the governor declares a state of emergency, the Department of Finance (DOF) can transfer funds from the SFEU into a subaccount called the Disaster Response-Emergency Operations Account (DREOA). These funds are allocated to state agencies for costs that are “immediate and necessary to deal with an ongoing or emerging crisis.”

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Projected Surplus Temporary Holding Account: A Place to Set Aside Anticipated Surplus Revenues

State leaders created the Projected Surplus Temporary Holding Account in 2024. This account gives policymakers a place to temporarily set aside anticipated surplus revenues, “ensuring that funds are only spent once they are realized.”

State leaders have broad authority to determine whether or how to use this holding account. The only requirement is that revenues that go into the account cannot remain there for longer than one year. If state revenues materialize as projected, the revenues in the account may be spent for any purpose or transferred back to the General Fund for future use.

This holding account is a “pilot budgeting project” that expires at the end of 2030, although state leaders could approve an extension as well as potentially modify the rules.

What’s Next for California’s State Budget Reserves?

The rules that govern California’s budget reserves can be amended by voters or state policymakers. Changing the reserve rules established by Prop. 2 (2014) would require voters to approve a constitutional amendment. Other reserve rules can be changed by state policymakers without the need for voter approval.

In recent years, state policymakers and others have advanced proposals to revise California’s reserve policies, although none have moved beyond the conceptual stage. Common proposals for changing state reserve policies include the following:

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Proposals to increase the share of state General Fund revenue deposited into the Budget Stabilization Account (BSA), or rainy day fund.

Proposals to allow the balance of the BSA to grow beyond 10% of annual state General Fund revenue.

Proposals to exclude reserve deposits from California’s spending cap, or “Gann Limit.”

Changes to the rainy day fund or the Gann Limit would require amending the state Constitution. This means that voters would have the last word on the most significant proposals to modify California’s state budget reserves.

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As e-bike popularity surges in Northern California, safety concerns grow

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As e-bike popularity surges in Northern California, safety concerns grow


An e-bike boom is sweeping across Northern California, with more young riders taking to the streets than ever before.

Inside California Ebikes in Fair Oaks, owner Erica Frith says business has taken off. 

What started as a small operation out of a local gym in 2020 quickly grew into a storefront by 2022, and demand hasn’t slowed.

“We’re getting about 100 out the door a month,” Frith said.

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But for her, it’s not just about sales, it’s about the experience.

“There’s only a few things in life that create a childlike smile and happiness, and bike riding is one of them,” she said.

With more bikes on the road, service demand is also climbing. Shop service manager Jesse Cristo says keeping up means relying on years of hands-on experience.

“You have an e-bike industry that’s fledgling, but it’s a five billion dollar a year industry,” Cristo said.

At a recent safety panel in El Dorado Hills, residents and leaders came together to address concerns about young riders on the road.

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“The safety around this area has been really scary,” said resident Liz Kmiec. “I have witnessed multiple scenes where these kids do not recognize the danger they’ve put themselves in.”

For law enforcement, the focus is on education, especially for parents.

“Education is huge,” said CHP Officer Andrew Brown. “We’ve been getting out to schools, community events, and sharing information to make sure parents know what they’re buying their kids.”

As the e-bike boom continues to grow, leaders say the challenge will be making sure safety keeps up.

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