BILL ANALYSIS AB 1343 Page 1 Date of Hearing: May 2, 2007 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mark Leno, Chair AB 1343 (Mendoza) - As Amended: April 9, 2007 Policy Committee: Higher EducationVote:4-1 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill requires the California Community Colleges (CCC) and the California State University (CSU) to achieve 75% full-time equivalent (FTE) faculty by 2014-15, to achieve certain standards in pro-rata salary and benefits, and provides preferential treatment for part-time faculty in the hiring process for new full-time faculty positions. Specifically, this bill: 1)Requires each CSU campus and CCC district to determine the number of undergraduate courses that will be taught by part-time, temporary, non-tenured, tenure-track, and tenured faculty in each campus of that institution. 2)Requires, beginning in Fall 2008, and for every term thereafter, any campus that does not have at least 75% FTE full-time tenured or tenure-track faculty to increase the percentage so the 75% minimum is accomplished no later than Fall 2014 by reducing the gap between 75% FTE full-time faculty and the current percent FTE full-time faculty by at least 10% each year. 3)Requires each CSU campus and CCC district to: a) Determine, subject to a collective bargaining process, a minimum salary goal for part-time and temporary faculty, which shall be prorated to the salaries of full-time, AB 1343 Page 2 tenured faculty who perform comparable work; and, b) Increase part-time and temporary faculty salaries every year, beginning in Fall 2008, by an amount sufficient to close the gap with full-time faculty salaries by 2014-15, with annual increases of not less than 15% of the gap. 4)Requires each CSU campus and CCC district to provide the same health care benefits as those received by full-time tenured faculty for any person who teaches at least 40% of the hours per week normally considered to be full-time in any calendar year. 5)Requires each CSU campus and CCC district to establish a process, subject to collective bargaining, by which part-time and non-tenure-track faculty may, after completion of a probationary period, receive: a) The accumulation of seniority. b) Timely notice, prior to notice given to persons outside the institution, for teaching assignments. c) Preferential consideration for tenure-track positions. 6)States legislative intent to appropriate, beginning in 2009-10 and in each year thereafter, sufficient funds to advance at least 20% toward meeting the five-year goal of increasing the percentage of full-time faculty to at least 75% on each campus and ensuring that part-time faculty and non-tenure-track faculty receive salaries and benefits that are fully comparable to those received by full-time, tenured and tenure-track faculty. FISCAL EFFECT CSU . According to its 2007-08 budget request, CSU estimates a AB 1343 Page 3 current cost of $153 million to achieve a 75/25 ratio. This estimate does not take into account the recent tentative agreement between CSU and the California Faculty Association. Based on this estimate, reaching 75/25 would require annual budget augmentations of about $30 million for five years starting in 2009-10. Additional costs for parity in pay and health care benefits for part-time faculty are unknown, but would be at least in the tens of millions of dollars. CCC . Based on the current full-time/part-time ratio of 57/43 for 36,000 FTE faculty, the system would need an additional 6,500 FTE full-time faculty to reach 75/25. Assuming an additional cost of $30,000 per full-time FTE, total GF costs (Proposition 98) would be about $200 million, which would require annual augmentations of about $40 million for five years starting in 2009-10. (In its 2007-08 budget proposal, the Chancellor's Office has requested $45 million to improve the full-time/part-time ratio by 2%.) The total cost to achieve pay parity by 2014-15 for 9,000 FTE part-time faculty (based on 25% of the current total of 36,000 FTE) is unknown, but would probably exceed $100 million over five years. (In its 2007-08 budget proposal, the Chancellor's Office has requested $50 million to move toward part-time faculty pay parity. A 2000 Bureau of State Audits study estimated the cost for eliminating all existing pay differences in the CCC to be $144 million annually. The 2001-02 budget included $57 million to address this issue.) Additional health insurance costs for part-time faculty would be in the tens of millions of dollars. Under the current part-time faculty health insurance program, participating districts paid $11 million for premiums in 2005-06. However, only 3,000 part-time faculty members participated in this program statewide. There were over 41,000 part-time faculty in the system in 2006, though not all would be covered under the bill, which is limited to those teaching at least 40% of a full-time teaching load. COMMENTS 1)Background . AB 1725 (Vasconcellos)/Chapter 973 of 1988, required CCC districts below a 75/25 standard to use a portion of their "program improvement" money to hire more full-time faculty for credit instruction. The CCC Board of Governors AB 1343 Page 4 (BOG) adopted regulations regarding program improvement funding, however, the State stopped providing this type of funding soon thereafter. In subsequent years, the BOG adopted regulations to require districts to provide a portion of their growth funds to hiring more full-time faculty and then sought and received statutory authority to continue this approach toward achieving a 75/25 standard. ACR 73 (Strom-Martin)/Resolution Chapter 121 of 2001, urged the CSU to jointly develop a plan with the California Faculty Association (CFA) to raise the percentage of tenured and tenure-track faculty to at least 75%, provide that no lecturers (CSU's terminology for part-time and temporary faculty) lose their jobs as a result of this effort, provide that qualified lecturers be seriously considered for tenure-track positions, and provide for the continued diversity of CSU faculty. 2)Purpose . According to the author, an increasing percentage of courses in California public colleges and universities are being taught by part-time and other non-tenure track faculty. Our system of higher education has become dependent upon a contingent workforce that is poorly compensated and too often lacks basic supports such as health insurance and paid office hours. 3)CCC Teaching Load and Salaries . According to the CCC Chancellor's Office in its "Report on Staffing for Fall 2006," there are 59,821 faculty in the system. On a headcount basis, 18,196 are tenured or tenure-track faculty (30%) and 41,625 are academic temporaries (70%). When calculated on a FTE basis, there are 36,025 FTE faculty, with 57% tenured or tenure-track and 43% temporary. A June 2000 report by the Bureau of State Audits (BSA), "Part-time Faculty Are Compensated Less Than Full-time Faculty for Teaching Activities," found significantly lower wages and benefits provided to part-time faculty. The BSA estimated the cost for eliminating all existing pay differences to be about $144 million annually. At the time of the report, the headcount ratio of full-time to part-time faculty was 67% to 33%. A California Postsecondary Education Commission report produced pursuant to AB 420 (Wildman)/Chapter 738 of 1999, echoed the findings of the BSA, noting that on an average part-time faculty earned 50-60% of a comparable full-time faculty salary. CPEC also noted that 41% of part-time faculty reported AB 1343 Page 5 they received no benefits. 4)CSU Teaching Loads . October 2005 data show a split of 67/37 split between tenure-track and tenured faculty and lecturers. The situation is complicated by the fact that some tenured faculty are part-time (it is a retirement option) and some lecturers are full-time. 5)The Efficacy of Full-Time Faculty . The Academic Senate for the California Community Colleges (ASCCC) finds in its recent report, "Part-time Faculty, A Principled Perspective" that, "Maintaining a corps of full-time, tenured faculty is central to academic excellence, academic integrity, and academic freedom; it is key to serving our students well." Part-time faculty are less able to serve students through regular office hours and participation in other campus events and may be less able to meet the unique needs of the CCC student population. National research validates the importance of a sufficient complement of full-time faculty - particularly for the population served by the CCC. 6)On the Other Hand . The BSA report mentioned above states, "Depending on one's policy perspective, the unequal compensation of part-time faculty either creates problems that should be addressed or reflects an appropriate balance of market conditions at the local level that should not be tampered with." In noting that the existing pay disparity creates an incentive for districts to utilize part-time faculty, BSA points out such an incentive is not in keeping with standards that stress the importance of maintaining a balance, but on the other hand, mandating equal pay for equal work could interfere with the collective bargaining process and limit local flexibility. Districts interviewed for this report cited their dependence on the State for financial resources and indicated funds are not sufficient to meet all of their needs. Is the 75/25 standard too rigid? Is it the "right" ratio? Should the state even be focused on such "inputs" as faculty makeup and compensation, or should it leave those decisions to the CSU and CCC districts and instead hold the CSU and districts accountable for outcomes measuring student success? Since the requirements of this bill could be achieved through collective bargaining, should the Legislature prescribe such matters? AB 1343 Page 6 7)Related Legislation . The following three bills are pending in this committee: AB 591 (Dymally), requires CCC districts to achieve parity in salaries and benefits for temporary employees by closing the gap with full-time employees 50% each year. AB 1305 (Calderon), requires at least 75% of the hours of credit instruction in the CCC to be taught by full-time faculty by 2010, requires districts to allocate a portion of excess funds toward achieving this goal, and forbids the BOG from waiving these requirements. AB 1423 (Davis), on today's committee agenda, requires CCC districts to adopt academic salary schedules that are uniform in application and effect. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081