BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 31
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 ACR 31 (Ruskin) - As Introduced:  February 23, 2009 

          Policy Committee:                              Higher  
          EducationVote:7-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This resolution expresses the Legislature's intent that  
          community college districts (CCDs) increase their proportion of  
          full-time faculty, consistent with the policy of the Board of  
          Governors, and provide comparable pay and benefits to part-time  
          faculty. Specifically, this resolution expresses legislative  
          intent that:

          1)Commencing in 2010-11, each campus with less than 75% of its  
            full-time equivalent faculty being tenured or tenure-track  
            should increase this percentage by at least 10% each year and  
            should reach 75% no later than 2017-18.

          2)Part-time and temporary faculty receive pay and benefits  
            proportionately equal to tenured faculty of comparable  
            qualifications and performing comparable work.

          3)Each CCD determine a minimum salary goal for part-time and  
            temporary faculty that is prorated to the salaries of  
            comparable full-time tenured faculty, to increase salaries of  
            part-time faculty to close any salary gap by at least 15%  
            annually starting in 2010-11, and to close the salary gap by  
            2017-18.

          4)A part-time or other non-tenure track faculty member teaching  
            at least 40% of the number of hours per week considered a  
            full-time assignment over a calendar year should be eligible  
            for the same health care benefits as a tenured or tenure track  
            faculty.

          5)The development of plans for increasing the percentage of  








                                                                  ACR 31
                                                                  Page  2

            full-time faculty and closing the salary gap should be subject  
            to a collective bargaining process involving representative of  
            full-time and part-time faculty.

           FISCAL EFFECT  

          No direct fiscal impact, as the resolution does not carry the  
          force of law. However, the implementation of the Legislature's  
          intent, as expressed in the resolution, would have the following  
          impacts, which are based on a similar measures, AB 1095 (Hill),  
          also before this committee today, and ACR 91 (Mendoza 2008) and  
          AB 1343 (Mendoza 2007), both of which were held by this  
          committee.

          1)The estimated cost to increase the full-time/part-time ratio  
            is $45 million for every 2% increase.  Based on the current  
            ratio of 61/39, implementation of the Legislature's intent, as  
            expressed in this bill, to reach 75/25 would cost $315 million  
            General Fund (Proposition 98), or annual increases of $40  
            million for eight years until 2017.  This would represent a  
            reallocation of resources within the budgets of those  
            community college districts which do not meet the 75/25  
            standard.  (The Chancellor's Office of the CCC estimates a  
            minimum cost of $32,000 to convert a part-time position to  
            full-time.)

          2)The total cost to achieve pay parity by 2017-18 for 9,000 FTE  
            part-time faculty (based on 25% of the total of 36,000 FTE) is  
            unknown, but would probably exceed $100 million over eight  
            years. (In its 2007-08 budget proposal, the Chancellor's  
            Office 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.)

          3)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.








                                                                  ACR 31
                                                                  Page  3


           CCC Facing Large Budget Reductions  .  The governor's recent May  
          Revision to the 2009-10 Budget Act proposes the following  
          reductions to the CCC's budget:  $85 million in 2008-09 and $400  
          million in 2009-10 plus reduced property tax revenues of $42  
          million in 2008-09 and $117 million in 2009-10.  In addition, if  
          the Propositions fail on the May 19 special election, an  
          additional reduction totaling $181 million is proposed for  
          2009-10.)

           COMMENTS  

           1)Purpose  . According to the author, an increasing percentage of  
            courses in the CCC are being taught by part-time and other  
            non-tenure track faculty. The author maintains that the  
            community college system 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.

           2)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  
            (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.

           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  








                                                                  ACR 31
                                                                  Page  4

            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 average part-time faculty  
            earned 50-60% of a comparable full-time faculty salary. CPEC  
            also noted that 41% of part-time faculty reported they  
            received no benefits.

           4)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.

           5)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. (This resolution does not mandate  
            such action, but expresses legislative intent that it be  
            accomplished through the collective bargaining process.)  
            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 focus on faculty makeup and compensation, or  
            should it leave those decisions to the CCDs, through the  
            collective bargaining process, and instead hold the districts  
            accountable for outcomes measuring student success? 









                                                                  ACR 31
                                                                  Page  5

           6)Related Legislation  .  AB 1095 (Hill), also on today's  
            committee agenda, states legislative intent for districts to  
            reach the 75/25 standard by 2014.

           7)Prior Legislation  . In 2008, ACR 91 (Mendoza), which was almost  
            identical to this resolution, was held on this committee's  
            Suspense file.  

            In 2007, AB 1343 (Mendoza), which mandated the policies  
            expressed in ACR 91, was held on this committee's Suspense  
            File.

          Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081