BILL ANALYSIS Ó SB 850 Page 1 Date of Hearing: August 6, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 850 (Block) - As Amended: August 4, 2014 Policy Committee: Higher EducationVote:12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill establishes a pilot program authorizing community college districts to establish baccalaureate degree programs. Specifically, this bill: 1)Authorizes the California Community College (CCC) Board of Governors (BOG), in consultation with the California State University (CSU) and the University of California (UC), to approve a baccalaureate degree program in up to 15 districts. A program must enroll its first students by 2017-18 and participating students must complete their degrees by the 2022-23. Sunsets the pilot program on January 1, 2024. 2)Requires districts, as a condition for eligibility to participate in the pilot program, to have a written policy requiring all students seeking a BOG fee waiver to instead submit either a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application. 3)Stipulates that a district may offer only one baccalaureate degree program at one campus within the district and requires districts to identify and document unmet workforce needs and to not offer a program already offered by CSU or UC. 4)Requires a district seeking to participate in the pilot program to submit specified information for review by the CCC Chancellor and approval by the BOG. 5)Requires the BOG, by March 31, 2015, to adopt regulations establishing a funding model, for each full-time equivalent student in the program, which is not to exceed the CCC's SB 850 Page 2 marginal cost for credit instruction, as established in current law. 6)Stipulates that student fees for lower division coursework shall not exceed CCC student fee amounts and that fees for upper division coursework shall equal the CCC fee plus $84 per unit. 7)Requires the Department of Finance and Legislative Analyst's Office to jointly conduct interim and final evaluations of the pilot program, as specified, and report to the Legislature and the Governor. The interim evaluation is due July 1, 2018 and the final evaluation is due by July 1, 2022. FISCAL EFFECT 1)Ongoing General Fund costs to the Chancellor's Office in the range of $350,000 for three to four staff to establish and monitor district programs, including developing guidelines and reviewing, approving, and monitoring participating districts' baccalaureate degree programs. 2)Significant one-time and ongoing costs to participating districts for establishing and operating the programs, including any needed capital improvements and equipment purchases. Since participation by districts is voluntary, these costs are not reimbursable and will be offset by state apportionments and student fee revenues. To the extent that students who participate in the program would otherwise have attended a CSU campus, the state cost for the student's enrollment would likely be similar. 3)Minor absorbable costs for DOF and LAO to conduct statewide program evaluations. COMMENTS Purpose . According to the author, the state faces an urgent need to increase the number of Californians with four-year degrees by 2025, necessitating an additional 60,000 baccalaureate degrees per year. The author contends that this bill seeks to find new methods for addressing this skills gap by authorizing the SB 850 Page 3 offering of baccalaureate degrees at California's community colleges. According to the author, this bill is patterned after the applied baccalaureate degree model offered in community colleges of more than 20 other states. This bill prohibits a participating community college district from offering a baccalaureate degree that is offered by a CSU or a UC; with that in mind, the bill only allows for the awarding of what translates to very specific four-year degrees that are career technical in nature. According to several community college districts interested in participating in the pilot, the following is a brief list of the types of four-year degrees that might be offered in the pilot: a) dental hygiene; b) industrial technology; c) allied health technology; d) emergency medical technician; and e) data management for health care. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081