The Association is not surprise to learn what is happening in California State University System as recently discussed in the News.  In fact, the direction to only admit and enroll transferred and qualified students from Community Colleges is the new reality and is the future model for 4-year higher education system in the entire US, and not just in CA.  Short in funding is cited as the main reason that triggers the Cal-State system to admit more Community College transferred students in substitution of admitting freshmen.

Many months ago, AAEA has written in its blog on this new model, new direction and new reality that most if not all of 4-year higher education organizations in the US will have to chew and swallow in the near future.  The fact of the matter is that, this may be the most efficient model given the condition that the country is facing the reality where we are leaving in right now.  Repetition of offering the same services, general education (GenEd) courses or classes should be minimized decades ago, and not just now when the budget and resources got squeezed.  In fact, the inefficiency and over expansion (translated into higher college education cost) have finally reaped adverse consumers’ reaction. Potential students and their family are more cautious when making their future investment choices which result on declining first-time full-time (freshmen) student enrollment.  In addition of showing negative buyers’ reaction, reduction in freshmen enrollment and state budget may tell or confirm the following stories:

1. Current US higher education system is obsolete i.e., needs to adapt to the new realities.
2. The state’s legislators are more aware and may not just rubber-stamp on the school administrator’s requested budget.  Rather, and hopefully they studied it thoroughly.
3. Tax payers are getting tired to support school administrators’ reckless decisions i.e., who have abuse the public’s trust.
4. Declining resources to support public institutions with lack of financial accountability and integrity.
5. Future higher education in the US will be grouped just into 2 systems i.e., Community Colleges System (offer freshmen, sophomore and trade classes) and University System (offer upper level classes leading to Masters or PhD degree).
6. Finally, the market system and Adam Smith’s hypotheses are at work to correct the industry inefficiency.
7. The extra money generated from the new and more efficient system can further be channeled to reduce the tuition and fees at 2-year community colleges.  Meaning more economically disadvantaged and talented students can get their higher education at a reasonable price.  Therefore, larger proportion of the  working class family can increase their probability to achieve the Americans’ dream.
8. Performance based funding will be more popular in months to come.