BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 774| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 774 Author: Hancock (D) Amended: 4/6/11 Vote: 21 SENATE EDUCATION COMMITTEE : 8-1, 3/30/11 AYES: Lowenthal, Alquist, Blakeslee, Hancock, Huff, Price, Simitian, Vargas NOES: Runner NO VOTE RECORDED: Liu, Vacancy SUBJECT : California Community Colleges: parking fees SOURCE : Author DIGEST : This bill authorizes the governing board of a community college district to increase parking services fee limits charged to students and employees to a maximum of $50 per semester and provides for annual increases to the fee limit, as specified. ANALYSIS : Existing law authorizes the governing board of a California Community College (CCC) district to charge students and employees a maximum of $40 per semester and $20 per intercession for regular parking permits, not to exceed the actual cost of providing parking services. Current law also prohibits a district from charging more than $30 per semester and $15 per intercession for permits issued to students who regularly carpool and specifies that students who receive Board of Governors' (BOG) Fee Waivers CONTINUED SB 774 Page 2 are exempt from parking fees that exceed $20 per semester. Existing law authorizes the governing board of a CCC district to charge a fee in excess of the $40 limit if the number of full-time equivalent students per parking space exceeds the statewide average and if the price of land adjacent to the campus exceeds the statewide average cost of land adjacent to community college campuses. Existing law requires revenues from parking fees to be expended only for parking services or for purposes of reducing the costs to students and employees using public transportation to and from college. Existing law authorizes the governing board of a CCC district to require students and employees at a campus to pay a fee to partially or fully recover costs incurred by the district for providing reduced public transportation fares to students and employees, and specifies that the sum of the fee for transportation and the fee charged for parking services shall not exceed $70 per semester or $35 per intersession or the equivalent for part-time enrollment. This bill: 1.Raises the statutory limits for parking fees CCC districts are allowed to charge by authorizing governing boards to charge: A. Up to $50 per semester and $25 per intercession for parking services. B. Up to $35 per semester and $15 per intercession for students who certify that they regularly carpool with two or more passengers in the vehicle parked at the community college. 2.Specifies that the governing board of each community college district may increase the fee limits by the same percentage increase as the Implicit Price Deflator for State and Local Government Purchases of Goods and Services published by the United States Department of Commerce. CONTINUED SB 774 Page 3 3.Specifies that the fees may be increased annually up to the next whole dollar increment above the existing fee limit the produced by the calculation in #2 above. 3.Increases the amount students on a BOG fee waiver may pay for parking by specifying that students who receive these waivers shall be exempt from parking fees that exceed $30 per semester. Comments Need for the Bill . The current cap on CCC parking fees has been in place since 1988 when it was increased from $20 per semester. Parking fees are intended to cover the actual cost of providing parking services including security services, maintenance of parking lots and parking structures, site improvements, and equipment such as security cameras and parking machines. According to a recent survey conducted by the California Community College Chancellor's office, a few districts charge parking fees in excess of the $40 limit, while a few rural districts do not require students to pay a fee for parking. Most districts that responded to the survey, however, charge more than $30 per semester for regular parking, and several districts are at the statutory limit of $40. Several respondents indicated that the current fee limit does not generate sufficient revenue to pay for all their maintenance requirements causing them to supplement with general fund resources, which over time could erode programs and services. This bill gives districts greater flexibility to adjust parking fees to meet local needs while maintaining a level of affordability for students. Implicit Price Deflator . The Implicit Price Deflator for State and Local Government Purchases of Goods and Services is an index published by the U.S. Department of commerce that is a weighted average of the detailed price indexes used in estimating constant-dollar GDP. This measure of inflation is used to calculate increases to school district revenue limits and cost of living adjustments for California Community Colleges. It is also used by various state agencies as an objective metric for determining an annual rate of increase or decrease in fees. CONTINUED SB 774 Page 4 The proposal to tie the parking fee cap to the Implicit Price Deflator is consistent with the authorized fees for the community colleges, including health fees and transportation services. This method will allow for more gradual increases over time and enable governing boards to better ensure that funds generated from parking fees will cover the actual costs of providing parking services to students. Related and Prior Legislation SB 82 (Hancock), Chapter 619, Statutes of 2010, increased and established an annual inflationary adjustment to the statutory cap placed on California community college transportation fees. Passed the Senate with a vote of 32-3 on August 27, 2010. AB 774 (Cook), Chapter 253, Statutes of 2009, authorized the Riverside Community College District to charge a fee to fund transportation services, as specified. Passed the Senate with a vote of 38-0 on August 27, 2009. AB 1980 (Swanson), Chapter 145, Statutes of 2008, authorized the Peralta Community College District to charge a fee to fund transportation services, as specified. Passed the Senate with a vote of 36-2 on July 2, 2008. AB 1968 (Leslie), Chapter 560, Statutes of 2006, authorized the Los Rios Community College District and the Rio Hondo Community College District to charge a fee for using transportation services, as specified. Passed the Senate with a vote of 40-0 on August 31, 2006. AB 2812 (Assembly Higher Education Committee), Chapter 954, Statutes of 1998, reorganized community college parking fee provisions, authorized community college governing boards to levy fees to fund parking facility construction and transportation services, and established maximum fee amounts that districts are authorized to charge for parking and transportation services. Passed the Senate with a vote of 37-0 on August 19, 1998. FISCAL EFFECT : Appropriation: No Fiscal Com.: No CONTINUED SB 774 Page 5 Local: No SUPPORT : (Verified 4/12/11) Community College League Kern Community College District Los Angeles Community College District Mt. San Jacinto Community College District Peralta Community College District Rio Hondo Community College District San Jose-Evergreen Community College District West Kern Community College District CPM:cm 4/12/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED