BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 173 (Liu) - Adult Education Courses
          
          Amended: April 24, 2013         Policy Vote: Education 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 13, 2013      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 173 reduces the categories of adult education  
          courses authorized to be offered by K-12 districts and the  
          California community colleges (CCCs) in order to receive state  
          funding. It furthers establishes processes and new authorities  
          to align student assessment policy, performance data and  
          accountability systems, teacher qualifications, and fee policy  
          for adult education courses offered by the CCC and K-12 local  
          educational agencies (LEAs). This bill also declares the  
          Legislature's intent that adult education funding be allocated  
          on the basis of enrollment and performance beginning in 2015-16.

          Fiscal Impact: Provisions of this bill create new costs and new  
          savings for the state. The realization of savings in certain  
          provisions does not depend upon incurring the costs in other  
          provisions of the bill.
              Prohibit apportionment for certain course types: Annual  
              state savings in excess of $26 million. Local cost pressure  
              on CCCs to continue to offer the courses.
              Coordinate and issue assessment policy guidelines:  
              Potentially significant up-front costs and ongoing workload  
              for the CCC Chancellor's Office and California Department of  
              Education (CDE) to meet the coordination and reporting  
              requirements. 
              Implement comprehensive accountability system: Potentially  
              substantial costs to implement the new system and monitor  
              compliance and progress. The CCC currently collects adult  
              education data for a portion of the programs through a $1  
              million contract. This bill would expand those costs, to an  
              extent to be determined by the accountability system that  
              the CDE and CCC Chancellor's office jointly develop.
              Reciprocity standards: Significant costs, likely in the low  
              hundreds of thousands, for the Commission on Teacher  








          SB 173 (Liu)
          Page 1


              Credentialing (CTC) and the Academic Senate for CCC to  
              jointly develop and submit recommendations for modifying or  
              establishing reciprocity standards for instructors of adult  
              education.
              Fee authority: Potentially significant revenue for  
              community college districts (CCDs) that choose to charge  
              allowable fees.

          Background: Existing law authorizes both the CCC and K-12  
          systems to offer and receive state funding for adult education  
          courses. (Education Code � 41976 and � 84757)

          Existing law prohibits the local governing board of CCD  
          maintaining a noncredit course from requiring an adult enrolled  
          in such a course to pay nonresident tuition or any fee or charge  
          of any kind for a class in English and citizenship for  
          foreigners, a class in an elementary subject, a class designated  
          as granting high school credit to an individual without a high  
          school diploma or other adult basic education programs and  
          courses, as specified. (EC � 76380)       

          Existing law authorizes a school district governing board to  
          require a fee of an adult enrolled in a class for adults and  
          prohibits the total of the fees required and revenues derived  
          from average daily attendance from exceeding the estimated cost  
          of maintaining such classes. (EC � 52612)
                     
           Existing law prohibits the CCC from requiring an adult enrolled  
          in a noncredit course to pay nonresident tuition or any fee or  
          charge of any kind for a class in English and citizenship for  
          foreigners, a class in an elementary subject, a class designated  
          by the governing board as a class for which high school credit  
          is granted when the class is taken by a person who does not hold  
          a high school diploma, or any class offered by a community  
          college district pursuant to Section 8531, 8532, 8533, or 8534.  
          (EC �76380)

          Proposed Law: SB 173 requires the CDE, in conjunction with the  
          CCC Chancellor's Office, to coordinate and issue assessment  
          policy guidelines regarding assessments to be used by LEAs and  
          CCDs for purposes of placement in adult education courses. This  
          bill also requires those entities to jointly establish and  
          implement a comprehensive performance accountability system for  
          adult education courses, in accordance with prescribed  








          SB 173 (Liu)
          Page 2


          requirements. Additionally, this bill would:

             1.   Prohibit LEAs from receiving apportionments from the  
               adult education fund for providing adult programs in  
               parenting, older adults, home economics, and health and  
               safety education, as specified.

             2.   Prohibit noncredit CCC parenting, older adults, home  
               economics, and health and safety education courses from  
               receiving program-based funding from the state. This bill  
               would authorize CCDs to charge a fee for adult education  
               courses, including classes in English and citizenship,  
               until July 1, 2015, in accordance with specified  
               regulations and procedures.

             3.   Require the CTC and the Academic Senate for CCC to  
               jointly submit recommendations to specified policy and  
               fiscal committees of the Legislature for modifying or  
               establishing reciprocity standards for instructors of adult  
               education courses by July 1, 2014.

          Staff Comments: This bill would require the CDE, in conjunction  
          with the CCC 
          Chancellor's Office to coordinate and issue assessment policy  
          guidelines regarding assessments to be used by school districts  
          and CCDs for purposes of placement in adult education courses  
          offered by those districts. Coordination with CDE, and expansion  
          of existing CCC assessment guidelines is likely to result in  
          minor one-time costs to both departments. The Chancellor's  
          Office estimates a cost of $50,000 for this activity. The CDE  
          would likely incur similar staffing costs.

          This bill would also require the CDE and the Chancellor's Office  
          to jointly establish and implement a comprehensive performance  
          accountability system for adult education courses, which will  
          likely incur substantial new costs. The current CCC assessment  
          contract, which serves only a portion of the adult education  
          courses, costs $1 million per year. Additionally, there would be  
          substantial ongoing costs to monitor the new assessment  
          contracts and expanded number of students affected.

          This bill would delete the existing authorization for adult  
          programs in parenting, home economics, and health and safety  
          education, and adult programs for older adults, to receive  








          SB 173 (Liu)
          Page 3


          apportionments from the adult education fund. Essentially, CCCs  
          could still offer the classes, but the state would not provide  
          funding to do so. The most recent available data from the  
          Chancellor's Office shows the following apportionments:  
          $1,368,910 for Health Safety courses, $1,746,342 for Parenting  
          courses, $510,013 for Home Economics courses, and $22,528,418  
          for Courses for Older Adults. Eliminating state apportionments  
          for these courses could result in savings in excess of $26  
          million.  

          The bill would require the CTC and the CCC Academic Senate to  
          jointly develop and submit recommendations to policy and fiscal  
          committees of the Legislature for modifying or establishing  
          reciprocity standards for instructors of adult education courses  
          by July 1, 2014. Intensive coordination over the 6-month period  
          will likely result in significant costs to develop and report  
          the required recommendations. Depending upon the nature of the  
          recommendations, they could create cost pressure or cost  
          efficiencies for the state.

          This bill would, notwithstanding the prohibition of the fee for  
          classes in English and citizenship for foreigners, authorize the  
          governing board of a CCD to charge a fee for adult education  
          courses, including classes in English and citizenship, until  
          July 1, 2015. This may result in significant revenue for a CCD  
          that chooses to institute fees as permitted. That revenue would  
          be somewhat mitigated, however, by increased reporting  
          requirements in order to charge fees.

          Staff notes that the Governor's 2013-14 Budget proposes a number  
          of changes to adult education beginning in 2013-14. These  
          changes include elements that: a) eliminate the K-12 adult  
          education categorical program and consolidate all associated  
          annual funding into a new K-12 "local control funding formula";  
          b) appropriate $300 million in new Proposition 98 General Fund  
          to reconstitute the adult education program within the CCC  
          system beginning in 2013-14 (the Governor's proposal currently  
          restricts community college apportionments to "credit"  
          instruction); and, c) shift $15.7 million from a K-12  
          apprenticeship program to a new community college program.












          SB 173 (Liu)
          Page 4