BILL ANALYSIS AB 2297 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2297 (Brownley) As Amended July 1, 2010 Majority vote ----------------------------------------------------------------------- |ASSEMBLY: |68-8 |(May 3, 2010) |SENATE: |30-1 |(August 18, 2010) | ----------------------------------------------------------------------- Original Committee Reference: HIGHER ED. SUMMARY : Allows the governing board of a California Community College (CCC) to use an alternative method for calculating nonresident fee amounts that would allow nonresident fees to be set at an amount comparable to that of other states. The Senate amendments : 1)Provide that additional revenue generated by the increase in nonresident tuition shall be used to expand and enhance services to resident students and that the admission of nonresident students shall not come at the expense of resident enrollment. 2)Require the CCC Chancellor's Office (CCCCO) to make available to the Legislative Analyst's Office (LAO) specified data regarding nonresident student attendance and tuition rates. 3)Require the LAO to include, in the annual Governor's budget analysis, a summary of the data made available to the LAO by the CCCCO as well as an analysis of the degree to which CCCs have complied with the aforementioned requirements. EXISTING LAW requires CCC district governing boards to adopt nonresident student fees, with exceptions. Establishes a number of requirements for CCC districts nonresident student fees amounts including that nonresident fee increases be gradual, moderate, and predictable and that one of four outlined calculation methods be used in establishing nonresident fee amounts. AS PASSED BY THE ASSEMBLY , this bill allowed the governing board of a California Community College (CCC) to use an alternative method for calculating nonresident fee amounts that would allow nonresident fees to be set at an amount comparable to that of other states. FISCAL EFFECT : According to the Assembly Appropriations Committee, use of the alternative methodology provided in this bill would allow CCC AB 2297 Page 2 districts considerable flexibility to increase nonresident fees and could result in additional fee revenues in the tens of millions of dollars to CCC districts. COMMENTS : Public colleges and universities throughout the country have additional charges for out-of-state students as a way to ensure residents do not assume the financial burden of educating students whose presence in the state is not intended to be permanent and who did not pay taxes to support the public higher education systems. In 2009-10, the statewide average CCC nonresident fee was $190 per semester unit. According to data published by the Missouri Economic Research & Information Center and the Washington Higher Education Coordinating Board, community college nonresident student tuition and fees in the 12 states most comparable to California in cost-of-living averages about $310 per credit. According to the author, this bill would give CCCs greater authority to charge nonresidents a fee that could be used to increase the quality of education. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319- 3960FN: 0005395