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
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            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
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          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