BILL ANALYSIS Ó AB 515 Page 1 ASSEMBLY THIRD READING AB 515 (Brownley) As Amended May 10, 2011 Majority vote HIGHER EDUCATION 6-1 APPROPRIATIONS 16-1 ----------------------------------------------------------------- |Ayes:|Donnelly, Achadjian, |Ayes:|Fuentes, Harkey, | | |Brownley, Galgiani, Lara, | |Blumenfield, Bradford, | | |Miller | |Charles Calderon, Campos, | | | | |Davis, Donnelly, Hall, | | | | |Hill, Lara, Mitchell, | | | | |Nielsen, Norby, Solorio, | | | | |Wagner | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Fong |Nays:|Gatto | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes California Community College (CCC) districts to implement extension programs until January 1, 2019. 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, requiring districts to annually certify compliance with this requirement, and prohibits extension courses from supplanting the use of district facilities that would otherwise be used for apportionment-funded courses. AB 515 Page 2 5)Authorizes CCC 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 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 any needed statutory improvements. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Minor absorbable costs to the Chancellor's Office and the LAO for the reporting requirements. 2)Any costs to CCC 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 General Fund 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 : In recent years, demand for CCC courses has increased as its budget has been reduced. Consequently, according to CCC Chancellor Jack Scott, approximately 140,000 students have effectively been denied access, over 95% of all classes are at capacity, and an estimated 10,000-15,000 students are on wait AB 515 Page 3 lists for courses. The $400 million reduction to CCC's 2011-12 budget will likely result in more course reductions. The author states that, through extension programs, CCC could expand course offerings to meet local workforce needs, 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-at no additional cost to the state. According to the sponsors, Santa Clarita Community College District and Santa Monica Community College District, CCC extension programs would typically operate in tandem 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 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. The University of California and the California State University currently offer extension programs, and CCC extension programs are likely to be rather limited, particularly when compared to a state-supported enrollment exceeding two million students. 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 United States 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. Analysis Prepared by : Sandra Fried / HIGHER ED. / (916) 319-3960 FN: 0000479 AB 515 Page 4