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,  








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               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  








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          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  








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            (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  








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            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?








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           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