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  








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            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  








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            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  








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            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