BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 806
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 806 (Wilk) - As Amended:  April 29, 2013 

          Policy Committee:                              Higher  
          EducationVote:7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)For purposes of determining a community college district's  
            compliance with the 50% law, includes the salaries and  
            benefits of academic counselors and librarians, and faculty  
            salaries associated with instructional support and  
            professional development activities, as counting toward  
            compliance, commencing with the 2014-15 academic year.

          2)Authorizes the California Community Colleges (CCC) Board of  
            Governors (BOG) to establish a compliance committee to:

             a)   Review the auditing procedures to develop ways to ensure  
               compliance with the 50% law as revised by this bill. 

             b)   Review local district auditing procedures and recommend  
               to the BOG any necessary changes to procedures published in  
               the CCC Budget and Accounting Manual to achieve the  
               accounting requirements as revised by this bill.

           FISCAL EFFECT  

          No direct state costs. The bill changes how districts calculate  
          their compliance with the 50% law. Allowing more current campus  
          functions (counseling, etc.) to count toward compliance will  
          make compliance easier, and may change how districts allocate  
          their resources among the various campus functions and  
          activities. To the extent the BOG elected to establish a  
          compliance committee, it is assumed this would be accomplished  
          within existing resources.








                                                                  AB 806
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           COMMENTS  

           1)Background  . State law since 1961 has required each CCC  
            district to expend 50% of its "current expense of  
            education"-generally the district's unrestricted general fund  
            expenditures-for "salaries of classroom instructors"--salaries  
            paid to instructors for the actual portion of the salary spent  
            in the classroom, salaries of instructional aides performing  
            duties under the supervision of an instructor, and the cost of  
            all benefits provided to instructors. 


           2)Purpose  . According to the author, the 50% law was originally  
            enacted to promote class size reduction when junior colleges  
            and K-12 were one system, by allocating more funding to hire  
            instructors to reduce the number of students in each  
            classroom. Since that time, there have been considerable  
            changes to CCC instruction, authorizing more responsibility  
            for faculty members. Many of these activities, such as  
            counseling and librarian services, are not considered part of  
            "classroom instruction," thus falling on the "wrong" side of  
            the 50% calculation. This bill would count faculty who serve  
            in roles related to instruction but do not provide "classroom  
            instruction" on the same side of the 50% law as classroom  
            instructors, including counselors, librarians, faculty  
            coordinators, department chairs, and faculty directors of  
            programs (such as Extended Opportunity Programs and Services  
            and Disabled Support Programs and Services).
                
            3)In support  , the Association of California Community College  
            Administrators states this bill would make some small but  
            needed adjustments to keep the 50% rule in place, but  
            modernize the definition of true costs directly associated to  
            instruction and include them in the right side of the  
            equation.

           4)Opposition  . The California Teachers Association argues this  
            bill will dilute the funding spent on classroom instruction,  
            thereby providing a net gain to the amount of monies spent  
            outside the classroom on administration and other purposes. 

            The Faculty Association of California Community Colleges  
            (FACCC) states, "?Additionally, passage of this measure could  
            actually limit the hiring of this corps and/or decrease the  








                                                                  AB 806
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            percentage of full-time faculty in a district. This is because  
            unless a counselor or librarian is teaching a class, they do  
            not produce Full-Time Equivalent Students, a calculation used  
            by the state to determine funding levels per student." FACCC  
            suggests that instead of altering the 50% law, the Legislature  
            increase funding for counselors and librarians, both of which  
            are integral to student success.

           5)Recent reports  by the Legislative Analyst's Office and the  
            Institute for Higher Education Leadership and Policy have  
            highlighted the constraint that the 50% law puts on districts'  
            ability to determine the best mix of instructional and support  
            services resources for their particular student population.  
            Ultimately, the Legislature should consider to what extent it  
            is in the state's interest to maintain control on system  
            inputs, such as limiting local decision-making authority  
            regarding resource allocation, or to allow more local  
            discretion in this regard and instead hold districts more  
            accountable for student outcomes.

           6)Prior Legislation  . In 2007, AB 906 (Eng), which increased the  
            50% threshold to 53% and included the salaries of counselors  
            and librarians, failed in the Senate Education Committee.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081