BILL ANALYSIS Ó AB 515 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 515 (Brownley) - As Amended: April 27, 2011 Policy Committee: Higher EducationVote:6-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill, until January 1, 2019, authorizes California Community College (CCC) districts to implement extension programs. Specifically, this bill: 1)Authorizes the governing board of any CCC district to establish an extension program offering credit courses without the approval of the CCC Board of Governors (BOG). 2)Requires an extension program to meet several requirements, including being self-supporting, with all costs recovered; conforming with the "50% law" regarding minimum expenses allocated for instruction and the 75/25 split for full-time/part-time faculty instruction; and being subject to collective bargaining agreements. 3)Prohibits districts from expending moneys to establish and maintain extension courses. 4)Prohibits credit extension courses from supplanting courses funded with state apportionments, and requires districts to annually certify compliance with this requirement. 5)Authorizes districts to charge students enrolled in extension classes a fee not to exceed the cost of maintaining those courses. 6)Requires any district maintaining an extension program to collect and keep records measuring student participation, demographics, and outcomes consistent with measures collected for regular credit programs supported through state AB 515 Page 2 apportionment, including an analysis of program effects, if any, on district workload and district financial status. Districts are to submit this information to the CCC Chancellor's Office by October 1 of each year for each participating college. 7)Requires the Chancellor's Office to submit all the information per (6) to the Legislative Analyst's Office (LAO) by November 1 of each year, and requires the LAO submit a report to the Legislature by January 1, 2015, summarizing this information, assessing the extent to which extension programs are operated in a manner consistent with the provisions of this bill, and suggesting and needed statutory improvements. FISCAL EFFECT 1)Minor absorbable costs to the Chancellor's Office and the LAO for the reporting requirements. 2)Any costs to districts would be the result of districts electing to offer extension courses and would be covered by fees and other non-state funds. 3)Potential minor increase in GF Cal Grant costs for those likely limited instances where an otherwise qualifying CCC student, by adding an extension course, is able to meet the part-time or full-time minimum unit-load requirement for Cal Grant eligibility and thus receives an award. COMMENTS 1)Purpose . According to the author, through extension programs, the 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. According to the sponsors, Santa Clarita Community College District and Santa Monica Community College District, CCC extension programs would typically operate in tandem with AB 515 Page 3 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 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. 2)Suggested Amendment . In addition to prohibiting extension courses from supplanting courses funded through state apportionments, the bill should also stipulate that extension courses shall not supplant the use of district facilities that would otherwise be used for apportionment-funded courses. 3)Opposition . The Faculty Association of the CCC is concerned the bill will lead districts to offer the same courses through extension, but at a higher cost, thus setting up "a confusing two-tier structure that does not follow the colleges' mission." The other faculty organizations have expressed similar concerns. The California Labor Federation (Cal-Fed) argues that the bill is "a step towards the privatization of public education" and "would trade real access to courses for all students for access for those students who can afford to pay." In addition, Cal-Fed argues that, "Since this bill sets no limit whatsoever on the fees for enrollment in extension classes, students would be subject to the decisions of the school where they want to enroll." It should be noted that UC and CSU already offer extension programs and that community college extension programs are likely to be rather limited, particularly when compared to a state-supported enrollment exceeding two million students. Moreover, the bill's provisions prohibiting the supplanting of state-supported courses and limiting student charges to the cost of providing the courses would seem to address some of Cal-Fed's concerns. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081