BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           114 (Yee)
          
          Hearing Date:  05/02/2011           Amended: 04/04/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 7-3
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          ____
          BILL SUMMARY:  SB 114 requires California community college 
          (CCC) districts to place part-time faculty on a schedule of 
          comparable salary steps as full-time faculty with similar 
          academic preparation and years of experience; pay part-time 
          faculty in a manner that mirrors the same relationship to the 
          placement of full-time faculty on the schedule, and report the 
          salary on payroll notices and to the State Teachers' Retirement 
          System (STRS) as a percentage of full-time salary. This bill 
          makes legislative findings and declarations regarding the work 
          and compensation of part-time faculty in CCCs.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions              2011-12                2012-13   2013-14   
              Fund
                                                                  
          Pay Equity                  up to $87,000     up to $173,000     
           up to $173,000            General*

          Salary schedules           Potentially substantial, one-time 
          mandate costs            General 

          STRS reporting      Unknown; potentially significant one-time 
          mandate costs      General

          *Counts toward meeting the Proposition 98 minimum funding 
          guarantee
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          
          SB 114 finds and declares that: a) Part-time community college 
          faculty have the same qualifications and academic credentials as 
          full-time faculty; b) that they spend the same number of 










          non-classroom hours working as full-time faculty; c) that 
          part-time faculty pay should, and does not, reflect actual 
          workload; d) that STRS credit reporting for part-time faculty is 
          rife with problems which could be resolved by using a full-time 
          equivalent (FTE) percentage-based reporting system; and e) that 
          all part time faculty should receive pay and benefits that are 
          equal to those of tenure-track faculty on a pro rata basis.

          This bill's extensive findings and declarations strongly suggest 
          a legislative intent to increase CCC part-time faculty 
          compensation. This stated intent creates substantial cost 
          pressure to equalize the salaries and benefits of CCC full-time 
          and part-time faculty (on a pro rata basis), by increasing the 
          compensation and benefits of part-time faculty.

          Existing law allows CCC districts to locally bargain the rates 
          of pay for their faculty members, and full-time and part-time 
          faculty members are typically compensated at different rates. SB 
          114 mandates instead that CCC districts "determine the 
          compensation of part time community college faculty using a 
          salary schedule that places part-time faculty on comparable 
          salary steps as full-time faculty with similar 
          SB 114 (Yee)
          Page 2

          academic preparation and years of experience," and that 
          part-time faculty be "placed on a schedule that mirrors the same 
          relationship to placement of full-time faculty on the schedule".

          This bill requires that CCCs use salary steps and compensation 
          rates for part-time faculty that are comparable to full-time 
          rates (pro-rated), which will likely constitute a 
          state-reimbursable local mandate. The state would be responsible 
          for paying the difference between the existing part-time rates, 
          and the newly mandates salary increases. This bill further 
          requires that part-time faculty be placed in specific points on 
          the salary schedule, based on full-time faculty placement, which 
          will likely translate to an additional increase to the salaries 
          of at least some current part-time faculty members.

          According to the CCC Chancellor's Office, the statewide cost of 
          increasing part-time faculty rates up to the level of full-time 
          faculty pay would range from $154 million to $173 million 
          annually. Staff notes that this would also increase future STRS 
          benefits paid to those faculty members in retirement, 
          exacerbating the severity of the current unfunded liability in 










          STRS. Additionally, one-time reimbursable mandate costs would be 
          incurred to create new salary schedules, adjust faculty 
          compensation, and train staff to use new salary schedules. 

          SB 114 further requires that CCCs report the salary of part-time 
          faculty on payroll notices and to STRS as a percentage of 
          full-time salary. There would likely be one-time reimbursable 
          mandate costs for one-time workload to calculate credit hours as 
          a percentage of full-time salary for the CCCs that do not 
          currently report the information this way. This provision would 
          likely create some amount of off-setting savings to STRS, 
          because the agency would receive more streamlined and consistent 
          information.