BILL ANALYSIS Ó AB 515 Page 1 ASSEMBLY THIRD READING AB 515 (Brownley) As Amended May 27, 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 : Establishes the California Community Colleges Extension Pilot Program to permit the governing board of a California Community College (CCC) district to implement an extension program, as specified, until July 1, 2016. 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), except those districts that receive a stability adjustment to their state apportionments, if the program meets the following requirements: a) Is self-supporting, with all costs recovered; b) Conforms with the "50% law" regarding minimum expenses allocated for instruction; c) Makes progress toward the 75/25 ratio for full-time/part-time faculty instruction; d) Is subject to collective bargaining agreements; and, e) Is developed in accordance with existing regulation governing credit courses, subject to annual review by the CCC AB 515 Page 2 Chancellor. 2)Requires the CCC Chancellor's Office to determine whether a CCC district's extension programs meet the requirements listed above and to annually review extension programs established by this bill. 3)Prohibits CCC districts from expending General Fund moneys to establish and maintain extension courses. 4)Prohibits credit extension courses from supplanting courses funded with state apportionments, from supplanting the use of district facilities that would otherwise be used for apportionment-funded courses, and requires the following oversight: a) CCC districts must annually certify compliance with the above requirement at a regular meeting of the governing board; b) CCC districts must submit to the Chancellor's office a list of extension courses they will be offering 30 days in advance of each session; and, c) The Chancellor must monitor compliance with this section as part of its annual review of extension programs. 5)Limits the number of semester units completed through a CCC district's extension programs that can be applied to an Associate or transfer degree to no more than 24 semester units and limits students to no more than 12 extension credit course units per semester, excluding Career Technical Education Courses. 6)Authorizes CCC districts to establish fees for extension programs, not to exceed the cost of maintaining those courses, as follows: a) Defines "actual costs" as the actual cost of construction, the cost of necessary equipment and supplies, student services and institutional support costs, and other costs of the district used in calculating the cost of education, consistent with those used to determine nonresident tuition; b) Requires districts to minimize the costs of administration AB 515 Page 3 to the extent possible; c) Requires districts to submit a schedule of course fees to the CCC Chancellor by October 1 of each year; d) Authorizes the Chancellor to establish a fee limit subsequent to the first annual review required by this bill; and, e) States legislative intent that surplus seats in extension courses that are not filled by the students participating in the extension program be made available to all CCC students at the fee charged for state-supported courses ($36 per unit) to the extent possible. 7)Requires CCC campuses that maintain an extension program offering credit courses to ensure that state and federal financial aid are available to eligible students, who shall receive the same priority for enrollment as students not receiving financial aid, and to develop policies through which tuition shall be waived in full or in part. 8)Requires any CCC 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. CCC districts are to submit this information to the Chancellor's Office by October 1 of each year for each participating college. 9)Requires the Chancellor's Office to submit all the information per 8) above 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. 10)Sunsets this program effective July 1, 2016. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Minor absorbable costs to the Chancellor's Office and the LAO AB 515 Page 4 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 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. Opponents express concerns that these extension programs create a two-tier system of courses within CCC, opening the door to privatization of the CCC and allowing different campuses to set different fees. Opponents state that it is incumbent upon the Legislature to develop new funding sources to maintain access. The University of California and the California State University currently offer extension programs, and CCC extension programs are AB 515 Page 5 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: 0000854