Education & how business can fill the gap left by government funding
In the past five months, we have seen our education systems face cuts that threaten our most vulnerable communities. To help contextualize their impact, here’s what we know about the current state of education funding for our region:
- The Governor is proposing a 7.95 percent cut to the CSU and UC systems. This equates to $128 million in cuts to San Diego alone and makes up nearly 40 percent of all state budget reductions.
- The House Education and Workforce Committee has proposed $351 billion in budget cuts, including adjusted requirements for Pell Grant eligibility that would impact more than 125,000 students in the CSU system alone.
- Federal agency research funding faces significant threats. This funding accounts for more than half of total research awards in the UC system, which produced 78 startups in FY23 alone.
- The state continues to cut funding to the California Strong Workforce Program, impacting its ability to support career education. These cuts could reduce access to direct workforce training and supportive services, limiting opportunities for both students and workers.
Now more than ever, we are challenged to come together, discuss, and ideate. As San Diego emerges from the shock and chaos that this year’s headlines have already caused, let’s pause to think about the opportunity ahead of us.
What is not news is that many of our systems, in their current forms, often struggle to serve the individuals and communities that need them most. While we know higher education to be an effective vehicle for socio-economic mobility, we continue to see a positive correlation between income and the test scores that determine college eligibility. Proposed reductions to Pell Grant availability, especially impacting individuals that must work full-time to make ends meet, will exacerbate these issues and make educational attainment even more challenging for low-income individuals.
In order to meet business needs for our future workforce and ensure all San Diegans have an opportunity to succeed—two goals that inextricably go hand in hand—we need creative and cross-functional solutions. Where the government divests, enterprise must invest to ensure its most critical asset, its people, remain available and prepared.
San Diego Regional EDC will continue to serve as a convener for the region, bringing the right people to the table for collaborative solutions. With changes in technology, an ever-increasing cost of living, and significant shifts in skills needs, EDC will advocate for a less linear and more intertwined relationship between industry and education. This comes in the form of:
- frequent exposure to the World of Work through experienceships and company tours;
- internships, like those available through Advancing San Diego and the K-16 Collaborative;
- and skills-first hiring practices like those available through apprenticeship models and advocated for by Opportunity @ Work.
EDC will also continue to explore new and innovative ways for businesses to help fill gaps, such as company-supported ScholarShare 529 plans or loan forgiveness programs for upskilling education.
Join us on May 21 for our Q2 Inclusive Growth Roundtable to learn more about this work and see how you can get involved. This small lunchtime event aims to bring together investors and partners engaged in the Inclusive Growth Initiative—especially the talent goal—to discuss where we stand as a region on doubling the number of skilled workers with just five years left in our timeline. If you are interested in joining that lunch, drop us a line!
Thank you,
Taylor Dunne
Director, Talent Initiatives