BILL ANALYSIS AB 867 Page 1 Date of Hearing: May 13, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 867 (Nava) - As Amended: April 14, 2009 Policy Committee: Higher EducationVote:8-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the California State University (CSU) to award the Doctor of Nursing Practice (DNP) degree in order to train nurses for advanced nursing practice and to prepare clinical faculty to teach postsecondary nursing education. Specifically, this bill: 1.Specifies that the DNP is limited to the discipline of nursing practice and shall be distinguished from the doctor of philosophy (Ph.D) degree offered at, or in conjunction with, the University of California. 2.Stipulates that state funding for students in the program shall come within amounts allocated in the annual Budget Act to the CSU for enrollment growth, shall be at the marginal-cost CSU receives for graduate enrollment, shall not alter CSU's ratio of graduate instruction to total enrollment, and shall not diminish undergraduate enrollment growth. 3.Stipulates that CSU shall provide initial start-up funding from within existing budgets for academic program support and that funding shall not reduce undergraduate enrollments. 4.Requires CSU, if it establishes the DNP program, to report the status to the California Postsecondary Education Commission (CPEC), the Legislative Analyst's Office, and the appropriate budget subcommittees. FISCAL EFFECT CSU staff indicate that two to three campuses would be selected AB 867 Page 2 to implement DNP programs, with initial enrollments not expected for around three years. Assuming 10 students in each entering class, first-year GF costs for three programs would be $246,000 and second-year costs would be $492,000. The bill specifies that these costs will come from CSU 's budget allocation for enrollment growth. COMMENTS 1.Purpose . This bill resulted from a study by the CSU Nursing Doctorate Advisory Committee, comprised of CSU representatives and a research consultant, to determine how best to address California's nursing faculty shortage. CSU asserts this bill is necessary for training future CSU and CCC nursing faculty. CSU's 18 pre-licensure nursing programs are full and unable to expand, in part because there are not enough faculty available to meet the low student-to-faculty ratios required by accreditors and licensing boards for these programs. In addition, CSU points out the new program will allow it to train more advance practice nurses, which may be the educational level necessary for certification in the future. According to a June 2008 study by the California Institute for Nursing & Health Care (CINHC), more baccalaureate- and graduate-prepared nurses will be needed as California strives to fill a forecasted shortage of 116,000 nurses by 2020. Currently, 70% of graduating nurses have two-year Associate of Arts degrees, and only 26% of these go on to secure a Bachelor of Science in Nursing or graduate-level degree. 2.CSU Budget Constraints . CSU has sustained significant budget cuts in recent years, including $97.6 million in 2008-09 and $66.3 million in 2009-10. CSU is reducing enrollments by 10,000 undergraduate students for the 2009-10 academic year because of the lack of adequate funding for current enrollment levels. Given these constraints, should a portion of future enrollment growth funds be allocated for new DNP programs, or for other system needs, such as increased baccalaureate degree production, increased financial aid, decreased time-to-degree, and more slots for undergraduate students? 3.CPEC Concerns . The commission is concerned with CSU's approach of seeking a new degree program in statute prior to CPEC, pursuant to its statutory charge, reviewing the need for such a program. CPEC indicates that it is currently examining AB 867 Page 3 the need for nursing faculty and how the state public and private colleges can meet these needs. 4.Prior Legislation . SB 1288 (Scott) of 2008, which was substantially similar to this bill, was held on Suspense in Senate Appropriations. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081