BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 440 (Padilla) - Student Transfer Achievement Reform Act Amended: April 25, 2013 Policy Vote: Education 9-0 Urgency: No Mandate: Yes Hearing Date: May 13, 2013 Consultant: Jacqueline Wong-Hernandez This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 440 expands the provisions of the Student Transfer Achievement Reform Act to require that the California Community Colleges (CCC) create associate transfer degrees in every major, and in areas of emphasis within majors before academic year 2014-15 and 2016-2017, respectively, and to require that the California State University (CSU) accept these degrees, and develop an admissions redirection process for students who complete these degrees but are denied admission to the CSU campus to which they have applied. This bill also requires the CCC and the CSU to establish a student-centered communication and marketing strategy to increase the visibility of the associate degree for transfer pathway, as specified. Fiscal Impact: Associate degree for transfer: Potentially substantial reimbursable mandate; one-time costs of $700,000 - $1 million to develop associate degrees for transfer for every major that has a Transfer Model Curriculum (TMC) and, subsequently, for every major and area of emphasis. Communication/Marketing strategy: Minor costs to develop the strategy, and substantial cost pressure to implement the strategy; a marketing campaign as described in this bill is likely to cost in excess of $1 million annually. CSU redirection process: No new costs; the CSU has recently developed a redirection process. Background: Existing law requires a CCC district to develop and grant a transfer associate degree that deems the student eligible for transfer into the CSU, when the student meets specified course requirements. (Education Code § 66746) Existing law also requires the CSU to guarantee admission with SB 440 (Padilla) Page 1 junior status to any CCC student who meets these requirements, but provides that the student is not guaranteed admission for specific majors or campuses. However, the CSU is required to grant a student priority admission to his or her local CSU campus and to a program or major that is similar to his or her CCC major or area of emphasis, as determined by the CSU campus to which the student is admitted. Students that utilize the associate transfer degree process are required to receive priority over all other CCC transfer students, except for CCC students who have entered into a transfer agreement between a CCC and the CSU prior to the fall term of the 2012-13 academic year. (EC § 66747) In an effort to address concerns about the need to ensure a transparent and more navigable transfer process between the CCC and the CSU, SB 1440 (Padilla) Ch. 428/2010 was enacted. This legislation required CCCs to create two-year, 60-unit associate degrees for transfer that are fully transferable to CSU. These degrees require completion of (1) a minimum of 18 units in a major or area of emphasis, as determined by each CCC, and (2) an approved set of general education requirements. Students who earn such a degree are automatically eligible to transfer to the CSU system as an upper-division student in a bachelor's degree program. Though these students are not guaranteed admission to a particular CSU campus or into a particular degree program, SB 1440 gives them priority admission to a CSU program that is "similar" to the student's CCC major or area of emphasis, as determined by the CSU campus to which the student is admitted. Once admitted, SB 1440 students need only complete two additional years (an additional 60 units) of coursework to earn a bachelor's degree. SB 1440 also required that the Legislative Analyst's Office (LAO) provide a status report to the Legislature on the segments' progress in implementing the bill's provisions. In May 2012, the LAO issued Reforming the State's Transfer Process: A Progress Report on Senate Bill SB 1440. According to the LAO, an average of just four associate degrees for transfer had been developed per CCC. In addition, a number of CCCs had expressed reluctance to create more than a handful of such degrees despite the CCC Chancellor's Office goal that, by 2014, each CCC would have a TMC-aligned associate degree for transfer in every major it offers. The LAO also reported that CSU campuses and academic programs vary significantly in terms of accepting the associate SB 440 (Padilla) Page 2 transfer degrees for their bachelor's degree programs. Although the CSU Chancellor's Office had set a goal for each CSU campus to offer at least one similar degree for each TMC-aligned associate degree for transfer, only six CSU campuses had achieved this goal. According to the CCC, as of April 2013, 616 associate degrees for transfer are being offered system wide, representing 37% of the system wide goal. Proposed Law: SB 440 requires that, prior to the 2014-15 academic year, the CCC create an associate degree for transfer in every major that has a TMC. It also requires, prior to the 2016-17 academic year, that the CCC create an associate degree for transfer in areas of emphasis for disciplines including, but not necessarily limited to, all of the following: applied sciences, formal sciences, humanities, natural sciences, and social sciences. This bill requires that the CSU accept TMC-aligned associate degrees for transfer in each of the CSU degree options within a major field, and to develop an admissions redirection process for students admitted under the Student Transfer Achievement Reform Act (STAR) program, but denied acceptance at the campuses to which they have applied, and requires that this process be aligned with the guarantee of admission into the CSU system under the STAR program. This bill also requires the CCC and the CSU, in consultation with specified entities, to develop a student centered marketing strategy, as specified. Staff Comments: This bill requires that, prior to the 2014-15 academic year, the CCC create an associate degree for transfer in every major that has a TMC, and that prior to the 2016-17 academic year, the CCC create and utilize an associate degree for transfer in areas of emphasis for disciplines. The CCC Chancellor's Office estimates that it could cost up to $1 million, to create the associate degrees for transfer and to implement them at each campus. These requirements are also likely to constitute a new reimbursable mandate on CCCs. This bill requires the CSU to develop an admissions redirection process for students admitted under the STAR program, but denied acceptance at all the campuses to which they have applied. The CSU indicated that it has recently completed an admissions redirection process for these students. This bill also requires the CCC and the CSU, in consultation SB 440 (Padilla) Page 3 with specified entities, to develop a student-centered marketing strategy to increase the visibility of the associate degree for transfer pathway that includes outreach to high schools, posters, banners, and marquees, radio advertisements, outreach to students considering CSU attendance, in CCC course catalogs, and information on campus websites and on the CaliforniaColleges.edu website. While the bill technically only requires that a strategy be "developed," it is clear that the intention is to implement the communication and marketing strategy. Current CCC communication and marketing efforts to promote the associate degrees for transfer have cost $1.1 million since October 2011, and have been paid for through grants, donations, and state funds. A new marketing campaign is likely to drive substantial new costs to the CCC and CSU; the party responsible for funding and implementing the campaign is unclear. It is likely that developing the marketing strategy will create cost pressure for the Legislature to provide additional funding for implementation. The "I Can Afford College" marketing campaign, which involves similar tactics to those named in the bill, has cost the state $2.8 million annually.