BILL ANALYSIS Ó AB 515 Page 1 Date of Hearing: April 12, 2011 ASSEMBLY COMMITTEE ON HIGHER EDUCATION Marty Block, Chair AB 515 (Brownley) - As Amended: April 5, 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)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). 2)Requires an extension program to meet the following requirements: a) Self-supporting, and all costs associated with the program must be recovered; b) Open to the public; c) Developed in conformance with the Education Code and Title 5 of the California Code of Regulations governing CCC credit courses; and, d) Subject to collective bargaining agreements. 3)Prohibits CCC district governing boards from expending General Fund moneys to establish and maintain extension courses. 4)Prohibits credit extension courses from supplanting courses funded with state apportionments or reducing state-funded course sections needed by students to achieve basic skills, workforce training, or transfer goals, with the intent of reestablishing those course sections as part of the extension program, and requires CCC district governing boards to annually certify compliance with these requirements by board action taken at a regular session of the district governing board. AB 515 Page 2 5)Allows CCC district governing boards to charge students enrolled in extension classes a fee not to exceed the cost of maintaining extension courses, which shall include the actual cost of instruction, the cost of necessary equipment and supplies, student services and institutional support costs, and other costs of the district used in calculating the costs of education for nonresident students. 6)Requires degree credit courses offered as extension courses to meet all of the requirements in subdivision (a) of Section 55002 of Title 5 of the California Code of Regulations, as specified, which governs the development and approval of new curriculum for CCC credit courses. 7)Requires each CCC district maintaining an extension program to do the following: a) Collect and keep records that measure student participation, student demographics, and student outcomes in a manner consistent with measures collected by CCC districts in regular credit programs supported through state apportionment, including an analysis of program effects, if any, on district workload and district financial status. b) Submit this information to the CCC Chancellor's office by October 1 of each year for each participating college. 8)Requires the CCC Chancellor to submit all CCC district information to the Legislative Analyst by November 1 of each year. 9)Requires the Legislative Analyst to submit to the Legislature, by January 1, 2015, a written report that includes a summary of the information provided to the CCC Chancellor, an assessment of the extent to which CCC extension programs are operated in a manner consistent with the provisions of this bill, and suggestions to the Legislature for needed statutory improvements. 10)Sunsets and repeals these provisions on January 1, 2019, unless a later-enacted statute deletes or extends that date. EXISTING LAW : AB 515 Page 3 1)Authorizes CCC districts, without the approval of the CCC BOG, 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 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 provides 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, AB 515 Page 4 basic skills, and career technical education courses in implementing budget reductions. 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 available primarily at for-profit institutions at a higher cost than CCCs would charge. 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 the BOG Fee Waiver. The author may wish to consider explicitly authorizing Cal Grant eligibility for extension programs. Applicability of existing statutes, regulations, and collective bargaining agreements . Existing collective bargaining agreements and the 75/25 full-time to part-time faculty ratio should 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 extend by one year the sunset date on AB 1943 (Nava), Chapter 817, Statutes of 2006, which deleted the requirement that the CCC Board of Governors 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 Board of Governors. REGISTERED SUPPORT / OPPOSITION : Support College of the Canyons Santa Monica College AB 515 Page 5 Opposition California Federation of Teachers Faculty Association of the California Community Colleges Analysis Prepared by : Sandra Fried / HIGHER ED. / (916) 319-3960