BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 2324 (Williams) - Trustees of the California State  
          University: Faculty Member
          
          Amended: June 4, 2014           Policy Vote: Education 6-1
          Urgency: No                     Mandate: No
          Hearing Date: June 30, 2014                                  
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill may meet the criteria for referral to the Suspense  
          File.

          Bill Summary: AB 2324 provides that when the two-year term of  
          office on the California State University (CSU) Board of  
          Trustees ends for the appointed faculty member, and the Governor  
          has not appointed a successor member, as specified, the faculty  
          member may remain in office after the term expires for one  
          additional year, or until a successor is appointed by the  
          Governor, whichever occurs first.

          Fiscal Impact: Potentially significant forgone savings to the  
          CSU, up to $118,000 (General Fund) in salary costs and up to  
          tens of thousands of dollars in benefits, in any fiscal year in  
          which the faculty member's term expires, and the Governor has  
          not yet appointed a successor. 

          Background: Existing law establishes the CSU Board of Trustees,  
          comprised of 25 members, as follows:

             1)   Five (5) ex-officio members: (a) the Governor, (b) the  
               Lieutenant Governor, (c) Speaker of the Assembly, (d) the  
               Superintendent of Public Instruction, and (e) the  
               Chancellor of the CSU.

             2)   Sixteen (16) Governor appointees confirmed by two-thirds  
               of the Senate, each serving an eight-year term.

             3)   One (1) alumni association representative, who cannot be  
               an employee of the CSU, appointed by the Governor serving a  
               two-year term.

             4)   One (1) tenured CSU faculty representative appointed by  
               the Governor, for a two-year term, from a list of names of  








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               at least two persons furnished by the CSU Academic Senate  
               to serve a two-year term which commences on July 1 and  
               expires on June 30 two years thereafter.

             5)   Two (2) CSU students appointed by the Governor for  
               staggered two-year terms from a list of nominees furnished  
               by the governing board of any statewide  student  
               organization that represents CSU students and the student  
               body organizations of the CSU campuses. These student  
               trustees serve staggered two-year terms. One has full  
               voting powers; the second, non-voting student trustee  
               succeeds to the voting position upon the expiration of the  
               term of the first. The terms commence on July 1, every  
               other year, and expire on June 30 two years thereafter.  
               Only one student is eligible to vote at any time.

          Proposed Law: This bill provides that when the two-year term of  
          office on the CSU Board of Trustees ends for the appointed  
          faculty member, and the Governor has not appointed a successor  
          member, as specified, the faculty member may remain in office  
          after the term expires for one additional year, or until a  
          successor is appointed by the Governor, whichever occurs first.

          Staff Comments: When a faculty member of a particular CSU campus  
          serves a two-year term on the CSU Board of Trustees, the CSU  
          "buys out" that faculty member's salary. The campus can then  
          staff appropriately to provide courses that would have otherwise  
          been taught by that faculty member. 

          Under existing law, when the CSU Board of Trustees faculty  
          member's term expires, and the Governor has not yet appointed a  
          successor, the seat remains vacant until the appointment is  
          made. During that time, there are salary savings to the CSU.  
          Tenured CSU professors' salaries vary, but the average full  
          professor salary for a 12-month employee is $118,069. As a point  
          of reference, if this bill allowed a faculty member paid at this  
          level to continue serving for 6 additional months, the CSU would  
          forego salary savings of approximately $59,000 (General Fund)  
          plus the cost of buying out the facult member's benefits. 

          Staff notes, however, that these costs would only be incurred in  
          years during which the Governor has not appointed a new faculty  
          member to serve on the Board of Trustees, as intended in  
          statute, and only for the amount of time the appointment is  








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          delayed up to one year.