Association for Public Policy Analysis & Management

Policymakers continue to highlight the widening gap between employers’ demand for college-educated workers and the supply of sufficiently-qualified workers to fill open positions. For instance, to meet the near-term demands of the economy, the share of the workforce with a degree or credential must increase from 46% in 2017 to 60% by the year 2025, which translates to an additional 16.4 million degrees that must be earned beyond what is currently projected (Lumina Foundation, 2017). In response to this reality, 42 states have established ambitious attainment goals, yet few states have accompanied these goals with innovative policies or increased financial investments. One state that has bucked that trend is Tennessee, and its most recent policy innovation is the Tennessee Reconnect grant.

Tennessee Reconnect is a last-dollar scholarship program for adults (e.g., independent students as defined by federal financial aid standards) that covers tuition and fees at each of the 13 community colleges in Tennessee. The application for the program opened for the first time in February 2018, inviting current and prospective students to apply to begin receiving aid the following fall. To be eligible for the program, applicants must be a resident of Tennessee for at least one year, complete the FAFSA, create an individual success plan, enroll in at least 6 credit hours, and not have already earned an associate’s or bachelor’s degree. In this first cycle of statewide implementation, over 34,000 prospective students applied for Tennessee Reconnect with almost 15,000 applicants enrolling in fall 2018.

In this study we evaluate the early impacts of the program using student-level administrative data on postsecondary enrollment, course-taking, and employment. In order to quantify the effects of the program, we examine trends in potentially eligible and ineligible students over time within a difference-in-differences framework. Preliminary results suggest that the program reversed persistent downward trends in college-going among the adult population, despite unemployment rates that have declined to some of their lowest levels in the history of the state. Moreover, enrollment in online coursework increased significantly after the implementation of Reconnect. It is yet unclear whether this increase was primarily driven by institutional offerings or the preferences of students induced to enroll because of the program.