BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       AB 955
          AUTHOR:        Williams
          AMENDED:       May 16, 2013
          FISCAL COMM:   Yes            HEARING DATE:  June 12, 2013
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  Intersession Extension Programs.
          
           SUMMARY  

          This bill, until January 1, 2020, authorizes any community  
          college district governing board to establish and maintain  
          an extension program offering credit courses during summer  
          and winter intersessions and to charge students a fee that  
          covers the actual cost of the course, without the approval  
          of the Board of Governors of the California Community  
          Colleges. 

           BACKGROUND  

          Current law establishes the California Community Colleges  
          (CCC) as a part of public higher education. Current law  
          establishes and differentiates the goals, missions and  
          functions of California's public segments of higher  
          education. 
          (Education Code � 66010)

          Current law requires the governing board of a local  
          community college district to admit any California  
          resident, (and authorizes them to admit any nonresident)  
          possessing a high school diploma or the equivalent and  
          authorizes the board to admit anyone who is capable of  
          profiting from the instruction offered, as specified. (EC �  
          76000) 

          Current law requires that community college students be  
          charged a per unit fee and statutorily prescribes the fee  
          level through the annual Budget process. Current law  
          exempts the student enrolled in noncredit courses and in  
          credit contract education courses, as specified, from these  
          fee requirements. Current law also exempts from these  




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          requirements California State University (CSU) and  
          University of California (UC) students enrolled in CCC  
          remedial classes, as specified, and provides for the waiver  
          of these fees for students who have financial need or meet  
          other specified criteria. (EC � 76300)

          Current law authorizes a community college district to  
          admit nonresident students and requires that these students  
          be charged a tuition fee, with certain specified  
          exemptions.  Current law requires that the tuition fee be  
          set by the governing board of each community college  
          district by February 1 of each year for the succeeding  
          fiscal year that specified notice of these fee changes be  
          provided, and that any increase in these fees be gradual,  
          moderate, and predictable. 
          Current law prescribes a formula for the calculation of the  
          nonresident fee which, generally, is based upon the amount  
          expended by the district for the "expense of education",  
          adjusted by the Consumer Price Index, and divided by the  
          total full-time equivalent students (FTES) (including  
          nonresident students) that attend the district in the  
          preceding fiscal year.  Current law also authorizes a  
          tuition fee amount not to exceed that established by any  
          contiguous district, and prohibits the fee from being less  
          than the statewide average fee for students.  Special  
          provision is made for the calculation of the fee by  
          districts that have greater than 10 percent FTES from  
          non-credit courses.  (Education Code � 76140)

           ANALYSIS

          This bill  authorizes the governing board of a community  
          college district, without the approval of the Board of  
          Governors, to establish and maintain an extension program  
          during summer and winter intercessions until January 2020  
          and establishes the following parameters for this  
          authority:

           Program Features
           
          1)   Requires that an extension program established under  
               this authority have the following characteristics:

                    a)             Be self-supporting with all  
                    associated costs being recovered.





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                    b)             Be open to the public.

                    c)             Be developed in conformance with  
                    existing regulations governing the development of  
                    credit course within the community colleges.

                    d)             Be subject to district collective  
                    bargaining agreements.

                    e)             Apply to all courses leading to  
                    certificates, degrees, or transfer preparation.

          2)   Requires that a district, in order to participate,  
               have served a number of students equal to or beyond  
               its cap for the prior two academic years, as reported  
               by the Office of the Chancellor of the California  
               Community Colleges.

          3)   Requires that a degree credit course offered through  
               extension meet specified regulatory requirements.

          4)   Restricts the offering of extension programs to summer  
               and winter intercessions.
           
          Oversight
           
          5)   Establishes the following requirements and  
               prohibitions to ensure that these courses do not  
               supplant state funded courses:
                    a)             Prohibits an extension credit  
                    courses from supplanting any course funded with  
                    state apportionments.

                    b)             Prohibits a community college  
                    district from reducing a state funded course  
                    section needed by students to achieve basic  
                    skills, workforce training, or transfer goals  
                    with the intent of reestablishing those course  
                    sections through extension.

                    c)             Requires the local governing board  
                    to annually certify compliance with these  
                    conditions through board action taken at a  
                    regular board session.

          6)   Establishes the following reporting requirements:




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                    a)             Requires a district that maintains  
                    an extension program to:

                            i)                  Collect and keep  
                          records that measure student participation,  
                          demographics, and outcomes in a manner  
                          consistent with information collected for  
                          credit courses in the state-supported  
                          program. 

                            ii)     Include an analysis of any  
                          program effects on district workload and  
                          financial status for each participating  
                          college in a district. 

                    b)             Requires the submission of the  
                    information outlined in (a) to the Chancellor's  
                    office by October 1 annually and requires the  
                    Chancellor to submit the information to the  
                    Legislative Analyst Office (LAO) by November 1  
                    annually.

                    c)             Requires the LAO to submit a  
                    summary of information provided, an assessment of  
                    the extent to which the programs are operated  
                    consistent with legislative intent, and  
                    suggestions for statutory improvements, by  
                    January 1, 2017. 
           
          Fees
           
          7)   Prohibits the governing board of a community college  
               district from expending general fund moneys to  
               establish and maintain the program.

          8)   Authorizes the governing board of a community college  
               district to charge students enrolling in these courses  
               a fee, and establishes the following parameters for  
               the fee:

                    a)             Requires that the fee be based  
                    upon the district's non-resident fee rate, that  
                    covers the "actual cost" of course in the year it  
                    is offered.





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                    b)             Defines "actual cost" to include  
                    the actual cost of instruction, necessary  
                    equipment and supplies, student services and  
                    institutional support, and other costs of the  
                    community college district used in calculating  
                    the costs of education for nonresident students.

           Financial Aid 
           
          9)   Requires that one third of the revenue collected for  
               these courses be used by the district to provide  
               financial assistance in order to ensure access to  
               these courses for students eligible for the Board of  
               Governors fee waiver program.

          10)  Requires a California Community Colleges (CCC)  
               district maintaining such a program to encourage  
               participation and access of students eligible for  
               Board of Governors fee waivers and requires that the  
               district:

                    a)             Provide students with information  
                    about financial aid programs, the American  
                    Opportunity Tax Credit, military benefits,  
                    scholarships, and other available student  
                    financial assistance.

                    b)             Work with campus foundations to  
                    provide financial assistance to students to  
                    attend extension programs.

          11)  Sunsets the bill's provisions on January 1, 2020.

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, numerous  
               researchers have raised concerns about California's  
               ability to meet its workforce needs to sustain its  
               economy.  Experts estimate that California will need  
               3.5 million additional degrees in the next decade just  
               to keep pace.  The CCC is the key to meeting this need  
               and providing opportunity for most Californians to  
               achieve their educational and professional goals.   
               Yet, recent budget shortfalls have resulted in the  
               worst cuts to the system in recent memory-reductions  
               that are unlikely to be completely restored in the  




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               near future.  This bill would allow colleges to offer  
               courses leading to transfer or a degree or certificate  
               during intersessions.  According to the author, since  
               most campuses have eliminated programs, extension  
               offerings give students an opportunity to take the  
               courses they are not able to get during the  
               state-supported regular session to accelerate the  
               completion of their goals.  And by providing  
               additional opportunities for students to complete  
               high-demand courses, this should free up space in the  
               companion state-supported courses offered during the  
               regular session, increasing all students' ability to  
               complete their education in a timely manner.  

           2)   Related budget impacts on the California Community  
               Colleges (CCC)  .  Funding for the 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), The Impact of Budget Cuts on  
               California's Community Colleges, course offerings have  
               declined from 420,000 to 334,000 since 2008-86,000 or  
               21% of course offerings-and most were credit courses  
               necessary to transfer or obtain a degree or  
               certificate.  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.  
                
                In addition, budget cuts have 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.  PPIC notes that reductions in summer offerings  
               may slow the completion rates for some students.   
               According to the CCC, from 2008-09 to 2011-12, the  
               system reduce summer and winter sections by nearly 50%  
               and in 2012-13, 82% of colleges responding to a CCC  
               survey did not offer winter classes for 
               2012-13.  

               Staff notes that the Chancellor's Office recently  
               reported that community colleges are beginning to  
               expand summer course offerings. It is unclear the  
               extent to which these increased offerings will relieve  
               the backlog of demand for community college courses  




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               which has occurred as a result of the pattern of  
               funding/reduced course offerings experienced since  
               2008.
                
            3)   Paradigm shift  ?  Notwithstanding the effect of recent  
               funding cuts, this bill proposes a departure from the  
               open access mission established for the community  
               colleges by the Master Plan and by state statute.  
               Although the University of California and the  
               California State University offer self-support  
               extension programs, these segments serve a defined  
               population whereas the community colleges have  
               traditionally served as California's way of ensuring  
               that affordable access to education is provided for  
               all others who can benefit. Has the state reached a  
               point where it can no longer meet the Master Plan's  
               promise of low-cost, open access for all Californian's  
               at the community colleges? Can the state maintain its  
               commitment to open access at the community colleges  
               and at the same time, endorse a parallel private-pay  
               model for the system? Is this the first step toward  
               privatizing educational opportunity at California's  
               community colleges and to linking access to the  
               ability to pay?  

          4)   Other options  ?  In its March 2013 report, the PPIC  
               notes that while the state's fiscal outlook has  
               improved, the additional funding is unlikely to make  
               up for years of significant cuts.  The report  
               concludes that if community colleges are to fulfill  
               their multiple missions, the state must consider  
               alternatives, including the following:

                1)         Pursue more local parcel taxes, although  
                     Public Policy Institute of California (PPIC)  
                     notes that only two of the four measures on the  
                     November 2012 ballot were approved by voters.

                2)         Increase student fees to bring more  
                     revenue into the system.
                3)         Reduce the income thresholds to qualify  
                     for a Board of Governors (BOG) fee waiver to  
                     bring more fee revenue into the system.

                4)         Require students to apply for federal  
                     financial aid in order to get a BOG fee waiver.




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                5)         Consider alternative fee models, including  
                     charging more to those who can afford to pay  
                     more accompanied by aid to hold low-income  
                     students harmless.   

           5)   Inconsistent with prior efforts  .  This committee has  
               considered similar legislation in the past (See staff  
               comment # 11). In both cases, the committee's  
               willingness to support the extension program concept  
               focused upon a pilot program only.  Consistent with  
               prior actions of this committee staff recommends the  
               bill be amended to: 

               a)        Require the Chancellor's Office of the  
                    California Community Colleges to establish a  
                    voluntary pilot program for purposes of allowing  
                    a community college district that meets the  
                    criteria outlined in the bill to establish and  
                    maintain an extension program offering credit  
                    courses during winter and summer intersession. 

               b)        Limit participation to 15 campuses from 15  
                    different districts.

               c)        Require the Chancellor, in selecting the  
                    campuses to consider, geographic, socio-economic  
                    and demographic diversity, labor-market demand,  
                    and the district's program and planning capacity.  


               d)        Require the Chancellor, in selecting  
                    campuses, to extend priority for selection to a  
                    campus with at least 50% of students currently  
                    utilizing the board of governor's fee waiver, a  
                    campus with a successful core career technology  
                    education program, and a campus that serves  
                    communities where the unemployment rate is higher  
                    than the state average.

               e)        Declare the intent of the Legislature that  
                    at least one participating campus should begin  
                    implementation of the pilot program by January 1,  
                    2014 and that an additional 5 participating  
                    campuses shall implement the program by July 1,  
                    2014.




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               f)        Delete the language that authorizes any  
                    district to establish and maintain an extension  
                    program without the approval of the Board of  
                    Governors.

               Additionally, in order to ensure sufficient oversight  
               of the pilot program, staff recommends the bill be  
               amended to:

               a)        Require the Chancellor to review pilot  
                    programs, monitor compliance with the  
                    requirements of the bill's provisions, and have  
                    the authority to rescind the authority to  
                    participate in the pilot program if the  
                    Chancellor determines that the campus or its  
                    district is out of compliance with the bill's  
                    provisions.

               b)        Authorize fees sufficient to cover the  
                    administrative costs incurred by the Chancellor's  
                    Office for providing oversight of the pilot  
                    program. 

           6)   Conditions to be met for participation  . Arguably, the  
               intent of this bill is to give districts that have  
               clear and ongoing demand for their credit courses and  
               programs that cannot be met with limited state support  
               an alternative source of funding to meet that demand.  
               The bill establishes some conditions to be met by  
               districts in order to participate, but these  
               provisions should be clarified and strengthened to  
               ensure that participating colleges; 1) have clear and  
               ongoing demand for credit courses and programs that  
               cannot be met with limited state support and 2) are  
               maximizing the use of state funds to meet the state's  
               objectives. 

               Questions which should be addressed before the  
               granting of the authority to increase fees include the  
               following:

               a)        Has the district restricted the enrollment  
                    of students in classes for purposes of personal  
                    enrichment under the state funded program?





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               b)        Is it reasonable to authorize the shifting  
                    of any student to a higher cost program if the  
                    state-funded program continues to enroll students  
                    in "activity" courses? 

               c)        Does the district prioritize the enrollment  
                    of students who are eligible for "in-state"  
                    tuition (California residents, military  
                    dependents, AB 540 students) to ensure that  
                    California's taxpayers, rather than foreign  
                    students, or non-residents are being served in  
                    the state-supported program? 

               Consistent with prior action of this committee, staff  
               recommends the bill be amended establish the following  
               requirements in order to be eligible to participate in  
               the program:

                  a)        A district must not have received a  
                    stability adjustment to state apportionment  
                    funding in the prior two academic years.

                  b)        All courses offered for credit that  
                    receive state apportionment funding must meet  
                    basic skills, transfer or workforce development  
                    objectives. 

                  c)        A district must prioritize enrollment of  
                    students in courses that receive state  
                    apportionment funding in conformance with the  
                    legal authority of the community college district  
                    governing board, Section 66025.8, and Section  
                    58108 of Title 5 of the California Code of  
                    Regulations, by promoting policies that  
                    prioritize enrollment of students in courses that  
                    receive state apportionment funding who are fully  
                    matriculated, as defined in Section 78212, and  
                    making satisfactory progress toward a basic  
                    skills, transfer, or workforce development goal. 

                  d)        The applicant district must have adopted  
                    policies that prioritize enrollment of students  
                    who are eligible for resident tuition.

                  e)        A district must limit the state-supported  
                    enrollment of students in "activity" courses, as  




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                    defined in Title 5, California Code of  
                    Regulations Section 55041. The applicant shall  
                    not claim state apportionment for students who  
                    repeat either credit or non-credit physical  
                    education or visual/performing arts course that  
                    are part of the same sequence of courses, unless  
                    the district is doing so to meet degree or other  
                    local community college district requirements.  
                    However, this condition should not apply to  
                    disabled students taking adaptive activity  
                    courses, students participating in  
                    intercollegiate athletics, or students with an  
                    approved educational plan majoring in physical  
                    education or the visual/performing arts."

           1)   Supplanting  .  The bill contains provisions that  
                                                                                         prohibit an extension credit course from supplanting  
               courses funded with state apportionments, and  
               prohibits the reduction of state-funded courses with  
               the intent of reestablishing them as part of the  
               extension program. 

               In addition, consistent with provisions in prior  
               versions of similar bills as well as the current  
               policies governing extension programs offered at other  
               public segments, staff recommends the bill be amended  
               to prohibit extension courses from being offered at  
               times or in locations that supplant or limit offerings  
               of state-supported programs or in conjunction with  
               courses funded with state apportionments.

           2)   Increased financial aid costs to the state  ?  The bill  
               currently requires that one-third of fee revenue be  
               collected and used to provide financial assistance to  
               students and also requires that the participant  
               district encourage broad participation in existing  
               financial aid programs. Shouldn't the district also be  
               required to ensure that students supported by state  
               financial aid programs be served primarily via the  
               lower cost state-funded program where possible in  
               order to ensure that costs to already strained state  
               financial aid programs are minimized? 
                
                Staff recommends the bill be amended to require that  
               an applicant district promote enrollment priority and  
               student support policies that ensure that students  




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               eligible for state financial aid programs are not  
               disproportionately shifted from the state-funded  
               program to courses offered under the pilot program.

           3)   Strengthened reporting requirements  .  Although the  
               bill calls for a Legislative Analyst Office report, it  
               appears that the report will merely summarize  
               self-reported information and self-analyses submitted  
               by participating districts. Shouldn't a more  
               independent, substantive, and informative analysis be  
               required? 

               Staff recommends the bill be amended to require the  
               Legislative Analyst Office (LAO) to report: 

               a)        Summary statistics on course offerings,  
                    enrollment, financing, and student utilization of  
                    financial aid, funding, and course completions  
                    and overall completion rates.

               b)        A determination of the extent of the pilot  
                    program's compliance with statutory requirements  
                    and the extent to which it expanded access for  
                    students.

               c)        An assessment of the program's effect on the  
                    availability of, and enrollment in  
                    state-supported courses, with particular  
                    attention to the demographic make-up and  
                    financial aid status of students enrolled in the  
                    state-supported courses.

               d)        Recommendations regarding the extension,  
                    expansion or modification of the program and  
                    consideration of alternative approaches that  
                    could achieve expanded access without increased  
                    state funding.

               Additionally, given that districts are granted the  
               discretion to independently determine actual costs and  
               set fee levels for extension program courses, staff  
               recommends the bill be amended to require that pilot  
               program districts report and submit a schedule of fees  
               established pursuant to subdivisions (g) to the  
               Chancellor by August 1 annually, and that the  
               Chancellor provide this information to the LAO as  




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               well.  

           4)   Prior Legislation   These have included:

               a)        SB 1550 (Wright, 2012) heard and passed by  
                    this committee in April 2012 by a vote of 8-0,  
                    would have required the Chancellor's Office of  
                    the California Community Colleges to establish a  
                    voluntary pilot program and select up to 8  
                    campuses from 8 different districts to establish  
                    and maintain an extension program offering career  
                    and workforce training courses for credit at fee  
                    levels covering the actual cost of these courses.  
                    SB 1550 subsequently failed passage in the  
                    Assembly Higher Education Committee by a vote of  
                    3-2.

               b)        AB 515 (Brownley, 2011), heard by this  
                    committee on June 29, 2011, would have  
                    established a California Community Colleges  
                    Extension Pilot Program.  That bill, like this  
                    one, authorized extensive participation by  
                    community colleges throughout the state since any  
                    community college that certified that it met the  
                    requirements of the program would be eligible to  
                    participate. Although the bill was heard by this  
                    committee, no vote was taken, and a subsequent  
                    hearing on the bill was cancelled at the request  
                    of the author. 
           
          SUPPORT  

          American Federation of State County and Municipal  
          Employees, AFL-CIO
          American Legion - Department of California
          AMVETS - Department of California
          Associated Student Council, Lake Tahoe Community College
          Associated Student Government of College of the Canyons
          California Competes
          California State Commanders Veterans Council
          Campaign for College Opportunity
          Chancellor, College of the Canyons
          Superintendent-President, Solano Community College 
          VFW - Department of California
          Vietnam Veterans of America - California State Council





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           OPPOSITION
           
          California Community College Chancellor's Office
          California Community College Independents
          California Federation of Teachers
          California School Employees Association
          California Teachers Association
          Coast Community College District Student Council
          Faculty Association of the California Community Colleges
          Los Angeles College Faculty
          Los Angeles Community College District
          Los Rios Community College District
          Peralta Community College District
          San Diego Community College District
          Student Senate for California Community Colleges
          Ventura County Federation of College Teachers
          Yosemite Community College District