From: Scott Lay

August 23, 2011

Dear Steven:

[this is a relatively long message about unemployment, social equity and the economy...if you're just looking for budget or legislative news, feel free to skip!]

I ruffled a few feathers when I wrote in my June 29 message that the tax revenue growth expected in California was largely expected to come from "a mostly white and already wealthy segment of our population," citing the reliance on Silicon Valley as our economic savior.

I certainly could have used different language, but I think it's essential that we, as community college leaders, pay particular attention to the growing economic inequities in our state and country and the impact on our colleges and students.

It's been an issue I've been thinking a lot about this summer and on which I have been doing some writing. As I have traveled the state this summer visiting new CEOs and for fun, I have seen the dramatic economic differences between Mountain View and Marysville and San Francisco and Stockton. We have microeconomies where money is freeflowing not far from areas with economic devastation. In some areas, IPO is the acronym de jour, while others it is EDD. And, unfortunately, there is a strong separation among races and educational classes, and our fastest growing population--Latino Californians--appear to be paying the biggest price.

Beyond the economic impacts of the Great Recession on racial demographics, there is also a huge impact on our nation's young people, who are emerging with record levels of student debt and few job prospects. And, as you know, the longer someone is unemployed or underemployed, the less likely they are to ever get into the job for which they have trained. Let's consider nursing, one of the biggest community college focuses of recent years.

Responding to demand studies, we dramatically scaled up our nursing programs. Meanwhile, three factors--economic downturn, fewer retirements and the uncertainty related to health care reform--have dramatically reduced the demand for nurses. A large portion of our nursing graduates are no longer finding jobs. The husband of a friend of mine has a bachelor's in science, went back to get an RN with allegedly "guaranteed placement," and is now volunteering at an adult day health facility to maintain his skills. And, when you're told you have to show up certain days for a certain number of hours, "volunteering" really means "working for free."

We continue to graduate nurses, and there's a real question as to who will be hired when the job market returns. Will it be the people that graduated last year and are working at Starbucks, or the new graduates fresh out of school?

What is our responsibility in helping these students?

Finally, there's a recent report form the Pew Hispanic Center that paints a shocking picture of the impact of the Great Recession. Using Census Bureau data, Pew finds that median Hispanic household wealth dropped 66% and black household wealth dropped 53% between 2005 and 2009. Meanwhile, median household wealth among whites dropped only 16%.

This leads to the median household wealth ratios among whites-to-blacks and whites-to-Hispanics reaching their most disparate gaps in 25 years. The median wealth among white households is now $113,149, Hispanics is $6,325 and blacks is $5,677.

The large drop among Hispanic families can be attributed to first-generation home ownership in housing markets that saw the greatest climb, and fall, over the last ten years--California, Florida, the Southwest. This loss of wealth, however, will affect choices related to higher educational enrollment and further economic empowerment.

Obviously, as community college leaders, we can't "solve" these problems. However, make no doubt that they affect our colleges and the students we serve. Education, and community colleges in particular, will continue to be the great economic ladder, although the rungs are getting rusty and fragile.

As I continue to write on this topic, I would love your thoughts. What is our role as community college leaders in addressing these issues? What are you doing on your campus to have a discussion and take action to ensure that the economic ladder is accessible, sturdy and providing the same hope as previous generations?

Sincerely,

Community College League of California
2017 O Street, Sacramento, California 95811
916.444.8641 . www.ccleague.org