College-Going Rates by High School

The Alabama Commission on Higher Education has produced a new set of data that gives a more complete picture of the college-going rate statewide and for individual high schools. According to the data, of the 45,760 students who graduated in the spring of 2014:

–     33 percent enrolled in two-year colleges

–     32 percent enrolled in four-year colleges and universities

–     35 percent of graduates did not enroll in higher education in the year after their graduation

Historically, ACHE, the state’s coordinating agency for higher education, has surveyed Alabama public colleges, both two-year and four-year, in order to determine the number of Alabama public high school graduates who enrolled in college the year following their high school graduation. In determining college-going rates, that data had limitations because it only tracked those students who enrolled in Alabama public colleges. Students who went to private schools or went out of state were not counted.

Now, drawing from data compiled by the National Student Clearinghouse, ACHE can follow the enrollment of all public high school graduates whether they go to public or private schools after graduation, both in-state and out of state. The new data that gives a more complete picture of college-going rates.

That data is presented in the interactive charts below.

Plan 2020, Alabama’s strategic plan for public education, sets a goal of having 90 percent of students graduate on time and that those students who do graduate are ready for college and/or career. To some extent, this college-going rate is a reflection of how well schools are doing at producing graduates who are ready to go into higher education. However, it is very important to realize that college-going is highly correlated with a student’s socio-economic status. High schools that have a more affluent student population will see a much higher percentage of their students proceed directly into college. Schools that work with more low-income students will have a lower college-going rate.

Regardless of their demographic makeup, all schools and systems should be looking for ways to promote college access for their graduates. A study published this month by the Pew Research Center found that the middle class is shrinking as a percentage of the population. According to Pew’s analysis of government data, education levels are a key factor in an individual’s economic prosperity. Individuals with a bachelor’s degree or higher are experiencing economic gains, with and increasing share of them moving into upper-income brackets. On the other hand, those without a college degree are slipping farther behind.

Along with the broad effort by public schools to improve students’ preparation for college, there are also targeted efforts underway to increase college-going rates by better connecting students with the resources they need to pay for college. To access financial aid available to help pay for college, students must fill out a Free Application for Federal Student Aid (FAFSA). The FAFSA form is notoriously difficult to complete, but successful completion of the form greatly increases the chances a student will enter college. According to the U.S. Department of Education, 90 percent of students who complete a FAFSA form attend college the following fall. Cash For College is a statewide FAFSA completion campaign coordinated by Alabama Possible, a non-profit working to combat poverty. Alabama Possible is working with the Alabama State Department of Education, local schools, and higher education institutions to boost FAFSA completion. The organization provides tools, data, and strategic approaches that schools can use to boost FAFSA completion rates, with an end goal of helping more students enter and pay for college.

Cash For College is a statewide FAFSA completion campaign coordinated by Alabama Possible, a non-profit working to combat poverty. Alabama Possible is working with the Alabama State Department of Education, local schools, and higher education institutions to boost FAFSA completion. The organization provides tools, data, and strategic approaches that schools can use to boost FAFSA completion rates, with an end goal of helping more students enter and pay for college. Information on how to participate is available on the Alabama Possible website.

The charts below allow you to examine the rate of college-going by county, by system, and by individual school. The charts allow you to look at the percentage of students who enroll in four-year schools, two-year schools, and the percentage of graduates who haven’t enrolled. This set of data looks at the high school students who graduated in the spring of 2014. The National Student Clearinghouse database was then checked in July of 2015 to determine whether those high school graduates had enrolled in higher education the year following their graduation.


Lowest Per Capita Tax Collections in the Nation

Alabama once again ranks last in per capita state and local tax collections, according to new data released by the U.S. Census Bureau. Alabama has consistently maintained its No. 50 ranking since the early 1990s.

As a result, Alabama state and local governments have less to spend than governments in other states when providing services to the public. This lack of revenue is an underlying factor in the state’s recurring budget problems. The Governor and Legislature struggle to find enough money to adequately support the functions of state government. In the past several years, the government has made cuts to programs, borrowed from the state savings account, and applied one-time sources of money to balance the budget.

In 2015, the Legislature couldn’t agree on a General Fund budget until September, putting in place a budget just before October, the beginning of the 2016 fiscal year. Again, agencies’ budgets were cut, funds were shuffled between accounts, and modest tax increases were passed to balance a bare bones budget. The most recent comparative data available from the Census is from 2013, so the effects of the tax changes made in 2015 won’t show up for several years. However, the minor changes are unlikely to affect Alabama’s No. 50 ranking.

Low taxes per capita don’t necessarily mean low tax burdens for everyone. A mix of different taxes make up total tax collections, and each state structures its taxes differently. There are three principal types of state and local taxes: property, income, and sales. A tax system that is balanced among these three sources promotes fairness and stability. Alabama’s tax system is not balanced. Alabama has the lowest property tax collections in the country. To make up the difference, Alabama relies more heavily on sales taxes.

The rules governing how taxes are applied also makes a difference in who pays them. In Alabama, property taxes are structured in a way that benefits homeowners, and owners of land in use for agriculture or timber. Commercial and utility property owners pay more than those protected classes.

Meanwhile, Alabama’s average combined state and local sales tax rates are 4th highest in the country, according to the Tax Foundation. Those taxes fall most heavily on low-income Alabamians since they spend a greater share of income on goods that are taxed. Many states attempt to lighten the burden by exempting groceries from the sales tax or giving an income tax rebate to low-income families. According to the Center for Budget and Policy Priorities, only two states, Alabama and Mississippi, allow the full weight of the sales tax to apply to groceries.

Concerning the income tax, most states employ measures to minimize the income tax that low-income households have to pay. Alabama, by contrast, begins taxing income at one of the lowest thresholds in the U.S. Alabama is one of only three states that allows taxpayers to fully deduct federal income tax paid, when calculating their tax bill. That tax break provides a larger benefit for more affluent families, who pay more in federal taxes.

Here’s how Alabama tax revenues per capita rank in the various categories of taxation.

Alabama has low tax collections per capita for two reasons: low tax rates and a relatively small tax base. One way to measure a state’s tax base is to look at gross domestic product, the value of all goods and services produced in a state. Alabama ranks 45th among U.S. states on GDP per capita. In the Southeast, Louisiana, North Carolina, Georgia, Tennessee, Kentucky, and Florida have higher per capita GDP than Alabama. Arkansas, South Carolina, and Mississippi have lower per capita GDP. Alabama applies low tax rates to a smaller taxable base to produce the lowest taxes per capita, not only in the region, but also in the nation at large.

In the interactive presentation below, Alabama’s tax collections are compared to other Southeastern states. In general, these states have similar demographics and similar attitudes toward taxes and the size of government. Using the geography menu, you can change the comparison states.