BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Alan Lowenthal, Chair 2011-2012 Regular Session BILL NO: AB 515 AUTHOR: Brownley AMENDED: May 27, 2011 FISCAL COMM: Yes HEARING DATE: June 29, 2011 URGENCY: No CONSULTANT: Kathleen Chavira SUBJECT : Community College Extension Courses. SUMMARY This bill establishes the California Community Colleges Extension Pilot Program which, until July 1, 2016, authorizes community colleges that meet specified requirements to establish and maintain an extension program offering credit coursework to students at fee levels that cover the actual cost of maintaining these courses. BACKGROUND Current law establishes the California Community Colleges as a part of public higher education. Current law establishes and differentiates the goals, missions and functions of California's public segments of higher education. (Education Code § 66010) Current law provides that the primary missions of the community colleges are to offer academic and vocational education at the lower division level for both recent high school graduates and those returning to school. Another primary mission is to advance California's economic growth and global competitiveness through education, training, and services that contribute to continuous workforce improvement. In addition current law provides that essential and important functions of the colleges include: basic skills instruction, providing English as a second language, adult noncredit instruction, and providing support services that help students to succeed at the postsecondary level. Community colleges are also authorized to provide community service courses and programs so long as their provision is compatible with an institution's AB 515 Page 2 ability to meet its obligations in its primary missions. To the extent funding is provided the colleges are authorized to conduct institutional research concerning student learning and retention as is needed to facilitate their educational missions. (EC § 66010.4) Current law requires the governing board of a local community college district to admit any California resident, (and authorizes them to admit any nonresident) possessing a high school diploma or the equivalent and authorizes the board to admit anyone who is capable of profiting from the instruction offered, as specified. (EC § 76000) Current law requires that community college students be charged a per unit fee and statutorily prescribes the fee level through the annual Budget process. Current law exempts the student enrolled in noncredit courses and in credit contract education courses, as specified, from these fee requirements. Current law also exempts from these requirements CSU and UC students enrolled in CCC remedial classes, as specified, and provides for the waiver of these fees for students who have financial need or meet other specified criteria. (EC §76300) ANALYSIS This bill establishes, until July 1, 2016, the California Community Colleges Extension Pilot Program which authorizes any community college district that meets the outlined requirements to establish and maintain an extension program offering course credits. Program Features 1) Outlines the following requirements to be met by a community college district in order to maintain the authorized extension program: a) Requires the program to be self-supporting, and that all associated costs for the program be recovered. b) Requires that enrollment be open to the public. AB 515 Page 3 c) Requires the program be developed in conformance with Title 5 regulations for credit courses. d) Applies the following statutes relative to faculty and expenditures: : i) Requires a goal of 75:25 ratio of full-time to part-time faculty in extension program credit classes. ii) Requires conformance with the 50% law governing program revenues and expenditures (50% of current expense of education must be for payment of salaries of classroom instructors). iii) Subjects the extension program to collective bargaining agreements. e) Prohibits a governing board from expending any general fund moneys to establish and maintain these courses. f) Prohibits these courses from supplanting state funded courses and prohibits the reduction of state-funded course sections or the transfer to extension of course sections for basic skills, workforce training, or transfer goals. g) Prohibits a district that receives a stability adjustment to their apportionments from offering an extension program. h) Prohibits extension courses from being conducted in district instructional space in a manner that supplants the use of this space for state-fund courses. i) Limits students to applying no more than 24 semester units to an associate or transfer degree from a CCC and limits the number of units per semester to 12 credit units. j) Requires that degree credit AB 515 Page 4 courses offered meet all requirements, standards, and criteria for courses under Title 5 of the California Code of Regulations, as specified. Oversight 2) Requires the extension program be subject to annual review by the Chancellor and requires the Chancellor, as part of this review, to specifically monitor compliance with the non-supplanting requirements and to determine whether a district's extension program meets the outlined requirements. 3) Requires the district to submit a list of extension courses to be offered to the Chancellor's Office 30 days in advance of each session. 4) Requires a local governing board to annually certify compliance through board action at a regular board meeting. 5) Requires each district to annually collect student information, as specified, and conduct an analysis of the program effects on district workload and financial status, and to submit this information to the Chancellor's Office by October 1 annually. 6) Requires each district to submit a schedule of course fees to the Chancellor's Office by October 1 annually. 7) Requires the Chancellor to submit all district information to the LAO and the LAO to submit a report on the pilot program by January 1, 2015 that: a) Summarizes the information received from districts. b) Assesses the extent of compliance with legislative intent. c) Makes suggestions for statutory improvements. Fees 8) Authorizes a governing board to establish fees that do AB 515 Page 5 not exceed the actual cost of maintaining these courses. 9) Defines actual costs to include cost of instruction, cost of equipment and supplies, student services and institutional support and other costs. 10) Requires districts to minimize the costs of administration to the greatest extent possible. 11) Authorizes the Chancellor to establish a fee limit subsequent to the first annual review of programs conducted. 12) Declares legislative intent that surplus seats not filled by extension students be made available to all community college students at a cost no higher than state fees. 13) Authorizes campuses to set higher levels of fees for nonresident students participating in extension programs. Financial Aid 14) Declares legislative intent to maximize access to these courses regardless of ability to pay through use of financial aid and enrollment fee waivers. 15) Requires each participating campus to ensure that state and federal financial aid is available to eligible students. 16) Require that financial aid students receive same priority for enrollment as all other students. 17) Requires policies to be developed to waive fees. STAFF COMMENTS 1) Need for the bill . According to the author, we are at a time of unprecedented cuts and budget shortfalls. Access to the community colleges exists for any person as long as there is state funding. Permitting community colleges to offer extension courses would enable local boards to expand course offerings beyond the limitations of state funding. Authorizing CCCs to AB 515 Page 6 offer extension credit courses would allow students to complete coursework and degrees faster and enter the workforce sooner, at no additional cost to the State. 2) Related Budget activity . The Governor's proposed budget for 2011-12, among other things, implements $500 million in General Fund budget reductions to the UC and CSU budgets and a net reduction of $290 million for the CCC (after being offset by increased fee revenue). In addition, the Budget proposes fee increases from $26 to $36 per unit beginning in the fall 2011 semester. According to the Chancellor's Office, the $520 million in budget cuts sustained by the CCC in 2009-10 resulted in 38,000 fewer course sections and 140,000 fewer students compared to the prior academic year. The Chancellor's Office estimates that the 2011-12 budget will result in at least 140,000 additional students losing access due to further course reductions and the elimination of some career training programs, and, absent tax extensions or another source of funding, an "all-cuts" budget would result in denying access to more than 400,000 students. The Chancellor's Office has also noted that a statewide unemployment rate of 11.9%, as well as budget reductions at UC and CSU, have created even greater demand for the CCC as individuals turn to the community colleges to access the training they need to return to work or to begin their higher education. 3) Paradigm shift . This bill proposes a significant departure from the open access mission established for the community colleges by the Master Plan and by state statute. Although the UC and the CSU offer self-support extension programs, these segments serve a defined population whereas the community colleges have traditionally served as California's way of ensuring that affordable access to education is provided for all others who can benefit. Has the state reached a point where it can no longer meet the Master Plan's promise of low-cost, open access for all Californian's at the community colleges? Can the state maintain its commitment to open access at the community colleges and at the same time, endorse a parallel private-pay model for the system? Is this the first step toward privatizing educational opportunity at California's community colleges and to linking AB 515 Page 7 access to the ability to pay? 4) Other options ? This bill, in order to expand access to community college courses, proposes the creation of a statewide, parallel, self-supported extension program. Are there other ways to expand access and course offerings? a) Statewide fee increases ? In its April review of higher education budget options for the Senate Budget and Fiscal Review Committee the Legislative Analyst's Office suggested, among other things, a fee increase of $66 per unit in the event of an all-cuts budget. The LAO 2011-12 Budget Policy Brief: California Community College Fees reports that, at $36 a unit, fees at the CCC continue to be the lowest in the nation. According to the LAO the full tuition charge at the CCC represents 15 percent of the average educational costs at the CCC. Before authorizing an extension program, should the Legislature consider increasing fees beyond that proposed in the current budget? b) Enrollment management ? In its 2011-12 Budget Policy Brief: Prioritizing Course Enrollment at the Community Colleges, the LAO recommends several changes to CCC enrollment management policies in order to ensure that state funds are targeted to meet the state's highest priorities for the CCC. These include assignment of highest priority for enrollment to continuing students who are fully matriculated, participate in assessment, orientation and counseling and who have an educational plan, as well as capping the number of taxpayer-subsidized units that a student can earn, and eliminating the ability of students to retake academic or vocational classes. These recommendations were also presented as options for the Senate Budget and Fiscal Review Committee in April 2011. Should an extension program be authorized before these options have been fully considered/implemented through the budget process? While it is reported that discussions around AB 515 Page 8 these options for expanding/prioritizing enrollment within the state-funded program are occurring within the CCC and on individual campuses, no statewide policies in this regard have been adopted by the system. 5) Is this the right model ? As drafted, this bill, essentially, mirrors the state-funded program, with the exception that it costs more. Arguably, a pilot program could offer an opportunity to explore a number of policy questions raised by national researchers as well as the Student Success Task Force established by SB 1143 (Liu, Chapter 409,Statutes of 2010). Is this model the best one for informing state public policy deliberations? In addition, its current form, the bill raises a number of questions: a) Can it work ? How workable is the structure created by this bill? How can programs limit fees charged to some students to the actual costs of maintaining the program, yet generate enough funding to waive or cap fees for other students? Does application of existing statutes regarding staffing, expenditures, and collective bargaining limit the flexibility of a private pay program to respond to the needs of those who are paying for the full cost of the program? b) Unintended consequences ? The ability of a district to successfully participate in an extension program will at least partly depend upon whether it has unmet demand from by individuals who, through personal means or financial aid programs, can afford to pay the higher fees. What would be the effect of a more well-funded neighboring campus/district implementing an extension program? Would a district with a high Board of Governor's waiver population be at a disadvantage? Would redirection of potential students to extension programs offered by other districts result in a reduction of resources/services at the less well-funded district? Would the resources/quality of what can be offered at campuses that only AB 515 Page 9 offer a state-funded program be undermined? Does this benefit, or harm, the overall community college system? c) Sufficient oversight ? This bill creates a number of oversight responsibilities for the Chancellor's Office. Given the generous parameters for participation in the "pilot" the number of districts that participate could be extensive. Does the Chancellor's Office have the staff and fiscal resources to engage in meaningful review and oversight of all these programs? Districts are required to "self-certify" compliance with the bills' provisions. Is this a meaningful oversight? Although the bill calls for an LAO report, this report is to summarize self-reported information and self-analyses submitted by participating districts. Can an independent, substantive analysis be assured? d) Supplanting . This bill prohibits the supplanting of basic skills, workforce training or transfer courses in the state funded program. How enforceable are these provisions? Could districts shift high cost workforce development programs to extension while still maintaining and expanding lower cost basic skills or transfer courses in the state funded program without technically "supplanting" existing courses? Could the bill result in a "maintenance-of-effort" in the state funded program while encouraging new or expanded programs for students who pay more in the extension program? 6) A step at a time ? Traditionally, pilot programs endorsed by this Committee have involved smaller scale preliminary implementations designed to evaluate the feasibility of a concept and to adjust and improve a program prior to its statewide implementation. While this bill purports to establish a pilot program, it authorizes extensive participation by community colleges throughout the state since any community college that certifies that it meets its requirements would be eligible to participate. The "pilot" nature appears to be based solely upon the sunset of the AB 515 Page 10 authority granted by the bill. Given the significance of the changes proposed, and the questions and concerns outlined in #5, if the Committee wishes to explore the concept of extension programs within the community colleges, would a much smaller "pilot program" be more prudent? 7) Under what conditions ? Arguably, the intent of this bill is to give districts that have clear and ongoing demand for credit courses and programs that cannot be met with limited state support an alternative source of funding to meet that demand. In addition, the Legislature, through budget action, has declared its intent that community colleges implement workload reductions in courses and programs outside of those needed by students to achieve their basic skills, workforce training, or transfer goals. The Committee may wish to consider whether it is reasonable to authorize a college's participation in an extension programs unless certain conditions are met: Has the district eliminated the use of state funding to offer courses or support students in programs or courses outside of transfer, basic skills, or career technical education? Has the district restricted the enrollment of students in classes for purposes of personal enrichment under the state funded program? Has the district implemented policies to ensure that enrollment is prioritized for continuing students who are making satisfactory progress toward their educational goals? Should districts considering an extension program first prioritize enrollment of students who receive financial aid in the state funded program? Should a district demonstrate that it has been serving students "over cap" for an extended period of time in order to participate (this bill only prohibits participation by a district if it receives a stability adjustment, which "holds harmless" for one year a district that AB 515 Page 11 experiences a drop in enrollment)? Should extension be an option if these or other enrollment management strategies for expanding and targeting access have not been adopted locally? 1) How does extension in other sectors work ? According to the CSU, their extended and continuing education programs offer baccalaureate and graduate degree programs, certificates, and many forms of specialized education and training for business, industry, and government. While the composition of these campus programs vary considerably, most maintain the following common instructional elements: Special session degree, certificate, and credential programs. Open university (permits nonmatriculated students to enroll in regular university courses on a space available basis, pay self-support fees and earn university academic credit). Contract and extension credit. Non-credit certificates, courses, and programs. Continuing education units. Many campus self-support units conduct programs during times when regular academic operations are recessed (early January and May). Current law authorizes the CSU to require and collect tuition fees for special sessions adequate to meet the cost of maintaining them, and declares legislative intent that these programs not supplant regular course offerings available on a state-supported basis during the regular academic year. (EC § 89708) By Executive Order these courses may only be offered to matriculated students on a self-support basis at times and in locations not supported by state general fund appropriations. The CSU reports that it enrolled over 266,000 students (over 16,000 FTES) in over 46,000 course sections through extended and continuing AB 515 Page 12 education programs in 2008-09. According to the UC, its extension programs provide continuing education for adults who have already obtained an undergraduate degree and are looking for additional credentials. All extension programs offered by the UC are self-supporting and receive no state funding. According to the UC, University Extension offers about 17,000 courses annually and enrolls some 500,000 Californians in its programs each year. Current law prohibits summer session fees at UC and CSU from exceeding the fees charged per credit unit for any other academic term, contingent upon the state's provision of funding to offset any revenue losses that may occur given the difference between state fees and self-support fees. (EC § 66057) SUPPORT Associated Student Government at College of the Canyons Board of Directors, Association of California Community College Administrators California Community College League Chancellor, College of the Canyons Chancellor, Contra Costa Community College District Chancellor, North Orange County Community College District College of the Desert Foothill-De Anza Community College District Glendale Community College Long Beach City College Peralta Community College District President, Cerritos Community College District President, MiraCosta Community College District President, Mt. San Antonio College San Bernardino Community College District Santa Monica College Superintendent/President, Copper Mountain College OPPOSITION Academic Senate for California Community Colleges AFT Guild, San Diego & Grossmont-Cuyamaca Community Colleges California Federation of Teachers California Labor Federation California Nurses Association AB 515 Page 13 California School Employees Association California Teachers Association Council of Faculty Organizations Executive Board of the Merced College Faculty Association Faculty Association of California Community Colleges Imperial Valley College CCA/CTA/NEA Faculty Association Kern Community College District Board of Trustees Los Angeles County Federation of Labor, AFL-CIO Los Rios Community College District Peralta Federation of Teachers San Francisco Community College Federation of Teachers San Jose-Evergreen Community College District Board of Trustees