BILL ANALYSIS Ó AB 216 Page 1 Date of Hearing: April 6, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 216 (Swanson) - As Introduced: January 31, 2011 Policy Committee: Higher EducationVote:8-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill allows California Community Colleges (CCCs) to receive full funding for credit-course instruction offered in correctional institutions. Specifically, this bill: 1)Waives "open course" provisions for community college courses offered in state correctional facilities, thus conforming to current allowances for CCC courses in local or federal correctional facilities, for which the college receive funding even though the courses are not open to the general public. 2)Allows attendance hours generated by credit and career development/college preparation courses, respectively, at all correctional facilities to be funded at the corresponding rates for those types of courses rather than at the lower, non-credit rate. 3)Prohibits districts from claiming state apportionments for instruction in correctional facilities if the district is fully compensated by another entity for the costs of direct instructional services, and requires districts to deduct any partial compensation for correctional facility education from their apportionment. FISCAL EFFECT 1)Ongoing General Fund (Prop. 98) cost pressure for converting qualified existing courses to the full credit rate at local and federal institutions. (Currently, credit funding per FTES is $4,565, career AB 216 Page 2 development and college preparation course funding is $3,232, and non-credit funding is $2,745. According to the CCC Chancellor's Office, in 2006-07 (most recent data available) districts provided credit courses for 1,769 FTES in local and federal correctional facilities. The majority (1,588 FTES) already received full credit funding as distance education courses open to the public. Under this bill, the remaining FTES (181) would have received full credit apportionment at a cost of $329,000.) In addition to the above costs for existing courses, the higher funding rates could result in increased course offerings at local and federal facilities, with resulting state costs. 2)Additional costs would depend on the number of FTEs taking classes in state correctional facilities and thus eligible for apportionment funding under this bill. For every 100 for-credit FTEs, annual GF (Prop. 98) costs would increase by $456,000. Community colleges are limited to enrollment caps that arguably would make this a zero sum change, but not all colleges are at their caps, thus expanding access and funding rates creates enrollment and funding pressure. 3)To the extent this bill leads to increased education programming for inmates, the state and local governments could realize unquantifiable savings associated with decreased recidivism. COMMENTS 1)Purpose . According to the author, this bill seeks to address difficulties that the formerly incarcerated face due to a lack of education and job skills. The author contends that existing law creates disincentives for CCCs to offer credit courses and career development courses in state prisons by not reimbursing them at the rate appropriate for the type of course offered. The author argues that research shows that inmates receiving educational opportunities are much less likely to recidivate, saving the state millions of dollars per year. The California Department of Corrections and Rehabilitation (CDCR) is funded to provide inmate education in state correctional facilities. As a result of an unallocated cut to the CDCR's budget for 2009-10, the department implemented a AB 216 Page 3 $250 million reduction in rehabilitative programs, including academic, vocational, substance abuse and other programs for inmates and parolees. An additional $150 million reduction is included as part of the 2011-12 budget. 2)Current law prohibits CCCs from claiming state funding for classes that are not open to the public, however, an exemption is allowed for inmate education in city, county and federal correctional facilities, with funding provided at non-credit rates. State funding under this exemption is not allowed for CCC classes in state correctional facilities. 3)Prior Legislation . In 2010, AB 1702 (Swanson) and in 2009, SB 574 (Hancock), which were virtually identical to this bill, were both held on Suspense in Senate Appropriations. In 2008, SB 413 (Scott), also substantially similar, was vetoed by Governor Schwarzenegger, who argued that the bill "appears to create inappropriate fiscal incentives for community colleges, state prisons, local correctional agencies, and other contracting entities that may lead to supplanting current funding provided through the California Department of Corrections and Rehabilitation." Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081