BILL ANALYSIS Ó SB 195 Page 1 Date of Hearing: August 30, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 195 (Liu) - As Amended: August 20, 2013 Policy Committee: Higher EducationVote:13-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires a working group to identify outcome, progress and effectiveness metrics for California's higher education segments. Specifically, this bill: 1)States legislative intent that budget and policy decisions regarding postsecondary education generally adhere to the goals of: (a) improving student access and success; (b) better aligning degrees and credentials with the state's economic, workforce, and civic needs; and (c) ensuring the effective and efficient use of resources. 2)Requires a designee of the Governor to convene a working group to develop performance metrics, as specified, for the purpose of monitoring progress toward meeting the above goals. The metrics are to be derived from publicly available data sources. 3)Specifies that the working group will consist of: a) One representative each from the University of California, the California State University, the California Community Colleges, the State Department of Education (DOE), the independent institutions of higher education, and the private postsecondary educational institutions. b) One representative of the Department of Finance (DOF). c) One to three members with similar expertise in state accountability efforts. d) One representative of the Legislative Analyst's Office (LAO). SB 195 Page 2 4)Requires the metrics to be submitted to the Legislature and the Governor by December 31, 2014. FISCAL EFFECT 1)Costs for the segments, DOE, DOF, and LAO to participate in the workgroup should be minor and absorbable. 2)To the extent the metrics are derived from current data sources as intended, the segments should not experience any significant additional reporting costs. COMMENTS 1) Purpose . According to the author, the goals established by this legislation will be the basis for establishing metrics and targets and for assessing progress in meeting California's educational and workforce needs. The author notes that the current fiscal climate makes it especially important that California be clear about priorities for the use of the public funding provided to our institutions, stating "If we are clear about the goals and the measures, we can then be clearer about the budget and policy decisions necessary to support our higher education system in meeting our goals." 2) Prior Legislation . This is the latest in a series of legislative proposal seeking to establish an accountability framework for higher education. a) In 2012, SB 721 (Lowenthal), which established statewide goals for guiding budget and policy decisions in higher education, required the Legislative Analyst's Office to convene a working group to develop and recommend specific metrics, and outlined an ongoing reporting process on the progress toward statewide goals, was vetoed, with the Governor stating, "Questions about who should measure, what to measure and how to measure what is learned in college are way too important to be delegated to the Legislative Analyst." b) In 2011, AB 2 (Portantino) was held on Suspense in SB 195 Page 3 Senate Appropriations. c) AB 1901 (Ruskin)/Chapter 201 of 2010, codified the findings and principles of the 2010 Review of the Master Plan for Higher Education, and declared the Legislature's intent to statutorily outline clear, concise, statewide goals and outcomes for effective implementation of the master plan and the expectation of the higher education system as a whole to be accountable for attaining those goals. d) AB 218 (Portantino) of 2009, which was almost identical to AB 2, was also held on Suspense in Senate Appropriations. e) SB 325 (Scott) of 2008, also similar to AB 2, was vetoed by Governor Schwarzenegger, who stated the bill lacked incentives and consequences related to meeting any state policy objectives that would be established. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081