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 




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          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.





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                    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 




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                    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 




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               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 




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               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 




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               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 




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                    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 




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                    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 




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               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 




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                    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 




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               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




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          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