BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 114| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 114 Author: Yee (D) Amended: 1/17/12 Vote: 21 SENATE EDUCATION COMMITTEE : 7-3, 3/16/11 AYES: Lowenthal, Alquist, Hancock, Liu, Price, Simitian, Vargas NOES: Runner, Blakeslee, Huff NO VOTE RECORDED: Vacancy SENATE APPROPRIATIONS COMMITTEE : 6-2, 1/19/12 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson NO VOTE RECORDED: Runner SUBJECT : Community colleges: academic salary schedules SOURCE : Author DIGEST : This bill (1) allows a community college district to calculate the salary of a part-time faculty member, and report that salary on payroll notices and to the State Teachers' Retirement System, as a percentage of salary for a full-time teaching load, and (2) authorizes the provisions of this bill to be subjects of negotiations for new or successor collective bargaining agreements. ANALYSIS : Existing law defines any person who is employed to teach for not more than 67 percent of the hours CONTINUED SB 114 Page 2 per week considered a full-time assignment to be a temporary (part-time) employee. Existing law specifies the minimum standard for full-time service in community colleges for purposes of calculating State Teachers' Retirement System (STRS) service credit and specifies 525 instructional hours per school year for all instructors employed on a part-time basis, except instructors employed in adult education programs. This minimum standard can be increased for part-time faculty who participate in an office hours program, as specified. This bill: 1.Allows a community college district to calculate the salary of a part-time faculty member, and report that salary on payroll notices and to STRS, as a percentage of salary for a full-time teaching load. 2.Provides that this bill shall not preclude the implementation of any agreement entered into that is in effect before January 1, 2012. Comments Part-Time Faculty . This bill attempts to deal with a persistent issues for part-time faculty in California community colleges: difficulties in accruing equitable benefits in the STRS Defined Benefits Program. As districts have increasingly turned to part-time faculty to provide instruction, this issue has become more significant for both part-time faculty and their employers. A 2000 report by the California State Auditor noted that overall, part-time faculty earn lower wages and receive fewer benefits for teaching activities than full-time faculty with similar education and experience. This report also found that none of the eight districts included in the study enhance the pay rate of part-time faculty who have more education and experience as attractively as they do for their full-time instructors. The State Auditor also found that it is more difficult for part-time faculty to obtain the retirement benefits CONTINUED SB 114 Page 3 provided to full-time faculty, in part because it takes longer for them to vest in STRS and because service credit is determined by dividing the amount earned by the member by the full-time compensation earnable. To vest in the system, a part-time member must accumulate the equivalent of at least five years of full-time service. If service credit was based on the percentage of a full-time assignment, an instructor working half-time would accumulate one-half year of service credit for each year worked. However, because a part-time faculty member earns service credit in proportion to the compensation of a full-time faculty member and because a full-time faculty member typically has a higher rate of pay, the actual service credit earned may be much lower. According to STRS, approximately 63 percent of Defined Benefits Program members who are employed by a community college are employed on a less-than-full-time basis. Need for the Bill . According to the author's office, STRS can give part-time community college faculty proper and accurate credit for service retirement if community college districts report part-time salaries more consistently. That would include calculating the salary of a part-time faculty member in terms of workload, and reporting that salary as a percentage of full-time salary to STRS. STRS Task Force . STRS is currently undertaking a comprehensive review of the Designed Benefit Program as it applies to community college faculty and has established a task force to help facilitate a solution. Over the next few months, this task force will be considering alternatives to address the problems that employers, members, and STRS experience with respect to community college employment on a less-than-full-time basis. Recommendations from this panel could result in new or more equitable methods of accruing retirement benefits from part-time community college faculty. Prior Legislation The Legislature has considered various measures addressing the use and compensation of part-time faculty in the CCCs: ACR 138 (Nava), Resolution Chapter 142, Statutes of 2010, CONTINUED SB 114 Page 4 stated the intent of the Legislature that (1) part-time and temporary community college faculty receive pay and benefits that are equal to those of specified tenured and tenure-track faculty to the extent funding is provided and (2) the CCCs increase the percentage of full-time tenure and tenure-track faculty. Adopted by the Senate on 8/23/10 with a vote of 24-11. AB 360 (Ma), 2009-10 Session, would have encouraged STRS to conduct a study that would examine the feasibility and cost-effectiveness of either creating a new program for part-time instructors or making appropriate modifications to the Defined Benefit Program to more appropriately reflect the career of a part-time instructor. (Held in Assembly Appropriations Committee) AB 591 (Dymally), Chapter 84, Statutes of 2008, increased, from 60 to 67 percent, the proportion of hours per week of a full-time instructional assignment that an individual may teach and still be considered a temporary employee. Passed by the Senate on 6/23/08 with a vote of 35-0. AB 1423 (Davis), 2007-08 Session, would have required CCC district academic salary scheduled to be uniform in application and effect. (Held in Assembly Appropriations Committee) SB 955 (Burton), Chapter 25, Statutes of 2003, exempts service in ancillary professional activities, including governance, staff development, grant writing, and advising student organizations, from counting toward the calculation of eligibility for contract or regular status for part-time employees at CCCs unless otherwise provided for in the relevant collective bargaining agreement. Passed by the Senate on 4/10/03 with a vote of 40-0. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund CONTINUED SB 114 Page 5 STRS reporting Likely minor costs, if community college Local districts choose to participate SUPPORT : (Verified 1/23/12) California Federation of Teachers (source) American Federation of State, County and Municipal Employees, AFL-CIO California Labor Federation California Teachers Association Faculty Association of California Community Colleges San Francisco Community College Federation of Teachers ARGUMENTS IN SUPPORT : Although part-time faculty must meet the same minimum qualifications as full-time faculty and perform the same teaching activities, the sponsor of this bill, the California Federation of Teachers, argue that many districts do not give part-time faculty salary placement credit for education or experience beyond the minimum qualifications, making it difficult for part-time faculty to understand how to achieve salary enhancements. Further, the sponsor indicates that pay rates based on classroom hours may not adequately account for teaching activities such as preparing for class or grading papers, resulting in inequalities in salary and service credit reported to STRS. This lack of clarify creates complexities in determining the STRS credit a member has earned and can make it more difficult for part-time faculty to obtain retirement benefits. CM:cpm 1/24/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED