BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 955
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 955 (Williams)
          As Amended  September 5, 2013
          Majority vote
           
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          |ASSEMBLY:  |50-16|(May 20, 2013)  |SENATE: |26-12|(September 9,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    HIGHER ED.  

           SUMMARY  :  Requires the California Community Colleges  
          Chancellor's Office (CCCCO) to establish a voluntary pilot  
          program that authorizes a community college district (CCD) to  
          establish and maintain an extension program during summer and  
          winter intersessions, provided the CCD has been at enrollment  
          capacity for the prior two years; requires participating CCDs  
          use one-third of fee revenue they collect and supplemental funds  
          from campus foundations or any other nonstate funds to provide  
          financial assistance to students eligible for the Board of  
          Governors (BOG) fee waiver; requires the Legislative Analyst's  
          Office (LAO), by January 1, 2017, to submit a report on the  
          pilot program to the Legislature, as specified; states the  
          intent of the Legislature that at least one campus should begin  
          implementation of the pilot program by January 2014, and that an  
          additional five campuses should implement the pilot program by  
          July 1, 2014; and, sunsets the measure on January 1, 2018.
           
          The Senate amendments  :

          1)Create a pilot of six eligible community college campuses. 

          2)Define eligible community college campus to mean one of the  
            following campuses:

             a)   College of the Canyons (in Santa Clarita);

             b)   Crafton Hills College (in Yucaipa);

             c)   Long Beach City College;

             d)   Oxnard College;

             e)   Pasadena City College; and,








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             f)   Solano Community College (in Fairfield).

          3)Define eligible CCD to mean a CCD with an eligible community  
            college campus. 

          4)Require an extension program have all of following  
            characteristics:

             a)   The program shall be self-supporting and all costs  
               associated with the program shall be recovered;

             b)   Enrollment in the pilot program shall not be reported  
               for state apportionment funding, but program enrollment  
               shall be open to the public;

             c)   The program shall be developed in conformance with  
               existing law and regulation related to California Community  
               College (CCC) credit courses;

             d)   The program shall be subject to CCD collective  
               bargaining agreements; and,

             e)   The program shall apply to all courses leading to  
               certificates, degrees, or transfer preparation.

          5)Require the CCCCO establish a voluntary pilot program through  
            which an eligible community college campus may establish and  
            maintain extension programs offering credit courses during  
            summer and winter intersessions and, to the extent feasible,  
            determine whether an eligible CCD meets the criteria as  
            specified, prior to its participation in the pilot program. 

          6)Specify that the governing board of an eligible CCD may  
            request to participate in the pilot program. 

          7)Specify that eligible CCDs must prioritize enrollment in the  
            extension program courses with first priority given to current  
            CCC students who are eligible for resident tuition and second  
            priority given to students who are eligible for resident  
            tuition.

          8)Require, in addition to the one-third of the fee revenue  
            collected, an eligible CCD to supplement financial assistance  
            with funds from campus foundations or any other nonstate funds  








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            for students who would normally qualify for the BOG fee waiver  
            and require reporting on the expenditure of the funds, as  
            specified. 

          9)Require an eligible community college campus participating in  
            the pilot to collect and keep specified records related to the  
            program and report them to the CCCCO by October 1 of each year  
            and require the CCC BOG to, by March 31, 2014, adopt reporting  
            requirements for the pilot program; make ineligible for  
            participation a CCD that fails to comply with the BOG's  
            requirements.

          10)Require the CCCCO to accumulate information from the  
            participating CCDs reports and submit specified data to the  
            LAO by November 1 of each year.

          11)Require the LAO report to include the following:

             a)   Summary statistics relating to course offerings, student  
               enrollment, including demographic data on the students  
               enrolled in courses, if available, financing student use of  
               financial aid, funding, and course completion rates for the  
               pilot program;

             b)   A determination of the extent to which the pilot program  
               complies with statutory requirements and the extent to  
               which the pilot results in expanded access for students;  
               and,

             c)   Recommendation as to whether the pilot program should be  
               extended, expanded, or modified.

          12)Change the sunset from January 1, 2020, to January 1, 2018.
          13)State legislative intent that eligible CCDs with campuses  
            participating in the voluntary pilot conduct a review of the  
            data by race, ethnicity, and gender of students enrolled in  
            the pilot program and compare the data to data of students  
            enrolled in the regular academic term to determine if  
            low-income or minority students are not being served and take  
            affirmative steps, such as recruitment, financial assistance,  
            and other measures, to increase participation of low-income  
            and minority students in the pilot program if the review shows  
            significant disparities.
           
          14)State legislative intent that at least one participating  








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            campus should begin implementation of the pilot program by  
            January 2014, and that an additional five campuses should  
            implement the pilot program by July 1, 2014.

          15)Make clarifying and technical changes.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, the fiscal impact associated with this measure  
          entails the following:  1) Oversight:  Likely minor ongoing  
          workload for the CCCCO; 2) CCD participation:  Potentially  
          significant costs and revenue to CCDs that elect to participate,  
          to comply with reporting requirements.  Significant (elective)  
          costs to offer extension courses, expected to be fully recovered  
          by increased fees; and, 3) LAO report:  Minor and absorbable  
          costs to complete the required report. 

           COMMENTS  :  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 California Community College (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 near future.  This bill would  
          allow colleges to offer courses leading to transfer or a degree  
          or certificate during intersessions.  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.  Providing additional opportunities for students  
          to complete high-demand courses 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.  Participation in these programs  
          is completely voluntary-it is up to the districts to offer  
          extension programs, and it is the student's decision to take  
          them.

          Impact of budget cuts on CCC.  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), course offerings have declined from 420,000 to 334,000  
          since 2008-86,000 or 21% of course offerings-and most were  








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          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.  

          Reduced summer session offerings.  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.  PPIC notes that  
          reductions in summer offerings may slow the completion rates for  
          some students, as well as reduce the earnings for some faculty  
          and staff who previously relied on summer income.  

          Differential fee precedent and access.  CCC is 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).  Participating districts are required to use  
          one-third of fee revenue they collect to provide financial  
          assistance to students eligible for the BOG fee waiver.

          Who could benefit?  The author notes that the lack of courses  
          during intersessions impacts veterans, who must be enrolled in  
          courses to access benefits to which they are entitled through  
          the Post 9/11 GI Bill.  The GI Bill covers a student's tuition,  
          as well as housing and other expenses.  However, a student must  
          be enrolled in a course to access the housing benefit.  Thus,  
          when veterans attend a college that does not offer courses in  
          the summer or winter, they do not receive the housing stipend,  
          upon which many veterans depend.  The availability of extension  
          courses may also help students who wish to make progress toward  
          their goals during the intersession, particularly those students  
          who need only a course or two to complete but have been crowded  
          out of those courses.  The author notes that the lack of  
          community college course offerings in workforce preparation  
          fields has led many students to enroll in for-profit  
          institutions, which are much more expensive than community  
          colleges and often require students to incur significant loan  
          debt.  









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          If not this, then what?  In its March report, Public Policy  
          Institute of California (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 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 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.

          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.   

           
          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960 


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