BILL ANALYSIS Ó AB 955 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 955 (Williams) - As Amended: April 22, 2013 Policy Committee: Higher EducationVote:10-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes California Community College (CCC) districts to offer self-supporting extension programs during summer and winter intersessions. Specifically, this bill: 1)Authorizes the governing board of any district, without approval of the CCC Board of Governors, to offer the extension programs, subject to the following requirements: a) For the two immediately prior academic years, a district must have served student enrollment equal to or greater than its funding limit. b) The program must be self-supporting and subject to collective bargaining agreements. c) Enrollment must be open to the public, and only courses leading to certificates, degrees, or transfer preparation shall be offered. d) Extension courses cannot supplant state-funded courses; compliance of which must be certified annually by board action. 2)Authorizes the board to charge extension fees sufficient to cover actual costs, as defined, based on the district's nonresident fee rate. 3)Requires participating districts to encourage broad participation and support access for student eligibility for CCC Board of Governors (BOG) fee waivers, including providing AB 955 Page 2 information about all available forms of financial assistance. 4)Requires that one-third of the revenue collected from extension course fees be used to provide financial assistance to students eligible for BOG fee waivers. 5)Requires participating districts to collect and keep records measuring student participation, demographics, and outcomes consistent with measures collected for regular credit programs supported through state apportionment, including an analysis of program effects, if any, on district workload and district financial status. Districts are to submit this information to the CCC Chancellor's Office by October 1 of each year for each participating college. 6)Requires the Chancellor's Office to submit all the information per (6) to the Legislative Analyst's Office (LAO) by November 1 of each year, and requires the LAO submit a report to the Legislature by January 1, 2017, summarizing this information, assessing the extent to which extension programs are operated in a manner consistent with the provisions of this bill, and suggesting any needed statutory improvements. FISCAL EFFECT 1)Minor absorbable costs to the Chancellor's Office and the LAO for the reporting requirements. 2)Any costs to districts would be the result of districts electing to offer extension courses and would be covered by fees and other non-state funds. COMMENTS 1)Background . Funding for CCC has been cut $809 million, or 12%, over the past three years. According to a March 2013 report by the Public Policy Institute of California (PPIC), since 2008, course offerings statewide have declined from 420,000 to 334,000 (21%), and most were credit courses necessary to AB 955 Page 3 transfer or to obtain a degree or certificate. The PPIC estimates that since 2008, 600,000 students have not been able to enroll in classes, and another 500,000 students were on waiting lists for Fall 2012 courses. The budget cuts resulted in reductions in a higher proportion of summer course sections than in either Fall or Spring terms, suggesting that many colleges tackled budget cuts by prioritizing course offerings in the primary Fall and Spring academic terms. 2)Purpose . AB 955 allows colleges to offer courses leading to transfer or a degree or certificate during intersessions. With the significant reduction in state-supported courses, extension offerings are intended to give students an opportunity to take the courses they are not able to get during the regular academic session in order to accelerate completion of their educational goals. Providing additional opportunities for students to complete high-demand courses should also free up space in companion state-supported courses, thus increasing all students' ability to complete their education in a timely manner. The community colleges are intended to provide open access to all Californians, offering low fees and generous aid. While this bill allows extension courses only during intersessions, when they will not compete with state-supported programs, it does create a precedent at CCC of providing courses for those willing to pay higher fees. These fees will be based on nonresident tuition, which varies by district but averages around $200 per unit (state-funded courses are $46 per unit). In order to broaden access to the extension courses, the author's most recent amendments require that one-third of fee revenue from the extension program be used to provide access to extension course for those students whose income makes them eligible for BOG fee waivers for state-supported courses. This approach is analogous to longstanding practice of the University of California and the California State University in setting aside a like portion of revenues derived from state tuition increases to provide institutional financial aid. 3)Opposition . Several community college districts argue that this bill will create a differential fee for community college AB 955 Page 4 students opening a pathway for certain students who can afford to take those courses while disenfranchising students who do not have the means to access these high cost courses. The California Teachers Association argues the bill goes against the philosophy that the community colleges exist to serve everyone. It should be noted that state-supported summer and intersession courses serve only a relatively small portion of CCC enrollment. In 2007-08, the year prior to the CCC experiencing several years of budget challenges, statewide enrollment in summer and intersession was about 170,000 FTES , or 13.7% of total enrollment for that year. By 2011-12, enrollment during summer and intersession had declined to about 80,000 FTES, or 6.9% of total enrollment. The extension courses offered through this bill would probably constitute a minute fraction of CCC enrollment, and are unlikely to change the character of the community colleges. 4)Prior Legislation . SB 1550 (Wright) of 2012, which authorized a narrow extension pilot program for career technical education courses, failed passage in the Assembly Higher Education Committee. AB 515 (Brownley) of 2011, which authorized an extension program similar to this bill, but one that could be offered concurrently with state-supported programs, died in the Senate Education Committee. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081