BILL ANALYSIS Ó AB 515 Page 1 Date of Hearing: March 29, 2011 ASSEMBLY COMMITTEE ON HIGHER EDUCATION Marty Block, Chair AB 515 (Brownley) - As Introduced: February 15, 2011 SUBJECT : Public postsecondary education: community colleges: extension program. SUMMARY : Authorizes California Community College (CCC) districts to implement extension programs offering credit courses without the approval of the CCC Board of Governors. Specifically, this bill : 1)Codifies Legislative intent to provide local communities with additional flexibility to meet community workforce needs in areas such as advanced technology and workforce development; to provide the public access to credit programs offered under contracted arrangements with other agencies and companies; to address existing limitations in access to extension programs due to geographic issues; to augment use of local CCC facilities; and to provide other benefits both tangible and intangible. 2)Authorizes the governing board of any CCC district to establish and maintain an extension program offering credit courses without the approval of the CCC Board of Governors (BOG). 3)Prohibits the CCC district governing boards from expending General Fund moneys to establish and maintain extension courses. 4)Allows CCC district governing boards to charge students enrolled in extension classes such fees as they deem appropriate. 5)Requires degree credit courses offered as extension courses to meet all of the requirements of Title 5 of the California Code of Regulations, as specified, which governs the development and approval of new curriculum for CCC credit courses. EXISTING LAW : 1)Authorizes CCC districts, without the approval of the CCC BOG, AB 515 Page 2 to operate fee-based community service not-for-credit classes in civic, vocational, literacy, health, homemaking, technical, and general education, as specified. CCC districts may not receive General Funds to support these programs. 2)Authorizes CCC districts to establish fee-based contract education programs by agreement with any public or private agency, corporation, association, or any other person or body, to provide specific educational programs or training to meet the specific needs of these bodies. CCC districts may not receive General Funds to support these programs, and the programs are not open to the public. FISCAL EFFECT : Unknown. This bill is tagged nonfiscal by Legislative Counsel. COMMENTS : Background . CCCs offer four basic types of instruction, including credit, noncredit, community service, and contract education. Noncredit, community service, and contract education courses do not generate maximum apportionment for CCC districts as do credit courses. Title 5 of the California Code of Regulations provide a framework for the development and approval of new curriculum at any CCC district or college, and no course can be offered without thorough local review. Need for the bill . According to the author, through extension programs CCC could expand course offerings to meet local workforce needs at no additional cost to the state, provide additional credit courses to meet student demand, more fully utilize facilities, and provide greater access to CCC courses because they could be offered closer to home and work. Budget cuts and course reductions . Ongoing budget shortfalls and the economic downturn have combined to increase CCC enrollment as the State has reduced CCC's budget, resulting in greater student demand for CCC courses than the system can accommodate. Consequently, according to CCC Chancellor Jack Scott, approximately 140,000 students have effectively been denied CCC access, over 95% of all classes are at capacity, and an estimated 10,000-15,000 students are on wait lists for courses. A proposed $400 million reduction in the Governor's 2011-12 Budget will likely result in more course reductions, closing the doors to an anticipated 350,000 students. In recent years the Legislature has directed CCC to prioritize transfer, basic skills, and career technical education courses in AB 515 Page 3 implementing budget reductions. Extension is not defined . This bill does not define "extension program" or the types of programs that an extension program may offer. While this bill includes language expressing legislative intent that these programs would extend contract education courses to the public, it also includes language that the extension programs provide "other benefits both tangible and intangible." Staff suggests the intent language be removed, and "extension program" be clearly defined and include greater specificity about the courses that may be offered and the requirement that the programs be open to the public. What courses will be offered ? According to sponsors, Santa Clarita Community College District and Santa Monica Community College District, CCC extension programs would typically operate in parallel with State-funded programs, either as separate sections offered during the spring or fall semester or quarter, or possibly as separate sessions during winter or summer. The sponsors also indicate that they would offer workforce training and degree programs that are currently only available primarily at for-profit institutions at a higher cost than CCCs would charge. Will extension courses supplant State-supported courses ? According to the author, students in CCC extension programs would not displace or compete with students enrolled in CCC State-funded classes. However, nothing in this bill would preclude extension courses from supplanting State-supported courses. Staff recommends an amendment that would mirror statute guiding the California State University's self-supporting special session courses, as follows: "The self-supporting extension courses shall not supplant regular course offerings available on a non-self-supporting basis during the regular academic year." Further, since CCC extension programs may be implemented without CCC BOG approval or oversight, the Committee may wish to consider whether this broad expansion of CCC district authority should be more closely monitored. Staff recommends an amendment to establish a sunset date of December 31, 2019, and require the Legislative Analyst's Office to report to the Legislature by January 1, 2019, on the programs approved under this act. Fee level . This bill allows CCC governing boards to charge AB 515 Page 4 students enrolled in extension courses "such fees as they deem appropriate." The Committee may wish to consider whether more specificity should be provided. For example, should fees be tied to the cost of the course? Financial aid . If the same programs were offered through extension as those offered through the State-supported program, students would likely be eligible for federal aid. According to the California Student Aid Commission, if the U.S. Department of Education deems extension courses eligible for federal aid, they would be eligible for Cal Grant awards, as well. However, extension courses would not be eligible for BOG Fee Waivers. Applicability of existing statutes, regulations, and collective bargaining agreements . Existing collective bargaining agreements and the 75/25 full-time to part-time faculty ratio would appear to apply to extension programs because faculty would be teaching credit courses. However, the 50% law, which requires at least 50% of state expenditures to be spent on instruction, would not. Related legislation . AB 1029 (Lara), pending in this Committee, would remove the sunset date on AB 1943 (Nava), Chapter 817, Statutes of 2006, which deleted the requirement that the CCC BOG approve stand-alone credit courses offered by CCCs and authorized CCC districts to offer stand-alone credit courses that are not part of an educational program without prior approval by the CCC BOG. REGISTERED SUPPORT / OPPOSITION : Support College of the Canyons Santa Monica College (sponsor) Opposition California Federation of Teachers Faculty Association of the California Community Colleges Analysis Prepared by : Sandra Fried / HIGHER ED. / (916) 319-3960 AB 515 Page 5