BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 38


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          Date of Hearing:  April 7, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                    Medina, Chair


          AB  
                        38 (Eggman) - As Amended March 23, 2015


          SUBJECT:  California State University:  Legislative Analyst's  
          Office: initial analysis to assess need for new campus


          SUMMARY:  Requires the Legislative Analyst's Office (LAO) to  
          conduct an initial analysis to assess the need for a new campus  
          of the California State University (CSU).  Specifically, this  
          bill:


          
          1)Declares the following findings of the Legislature:

             a)   The Master Plan for Higher Education in California  
               established the following criteria for determining the need  
               for a new public university campus:  i) the relative  
               numbers of high school graduates, the location of existing  
               institutions in the various areas of the state, and the  
               relation between their capacities and the estimate  
               enrollment in the area served by each institution; and, ii)  
               the relative numbers of potential students within  
               reasonable commuting distance of each of the proposed  
               sites;

             b)   The need to accommodate students in excess of the  
               physical capacities of existing California Community  
               Colleges (CCC), CSU and University of California (UC)  
               campuses; and,









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             c)   The Master Plan designates CSU to draw its freshman  
               class from the top third of the state's public high school  
               graduates and admit transfer-prepared applicants with a  
               minimum grade point average of 2.0.

          2)Requires the LAO to conduct an initial analysis to assess the  
            need for a new CSU campus, specifying the analysis shall  
            consist of the following elements:

             a)   An analysis of the need within certain regions for a CSU  
               campus, which shall include all of the following to the  
               extent applicable data is available:

               i)     Consideration of enrollment demand based on relative  
                 demographic levels and eligible students for each county,  
                 including all of the following:  (1) five to 10 year  
                 projections of the college-age population and public high  
                 school graduates, and (2) data for the most recent year  
                 available on college preparedness, including the number  
                 and share of high school graduates completing the "A-G"  
                 admissions requirements and the number and share of  
                 transfer-prepared community college students,

               ii)    For each county, data on CSU applicants, admissions,  
                 and enrollment for the most recent year available to  
                 estimate college-going rates to CSU, and,

               iii)   Data on adult educational attainment by county for  
                 the most recent year available.

             b)   An analysis of the physical capacities of existing CSU  
               campuses, as outlined in their master plans, relative to  
               current enrollment; specifying which CSU campuses are  
               already at maximum capacity and those with remaining  
               physical capacity; and, identifying which CSU campuses no  
               longer provide enrollment priority for local applicants.

          3)Requires the CSU to provide whatever data is needed in order  
            to meet the requirements, as specified, to the LAO upon the  
            LAO's request.

          4)Requires the LAO with submitting a report containing their  








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            analysis to the Legislature and the Department of Finance on  
            or before January 1, 2017.

          EXISTING LAW:  
          1)Declares the intent of the Legislature that sites for new  
            institutions or branches of the CSU shall not be authorized or  
            acquired unless recommended by the California Postsecondary  
            Education Commission (CPEC) and that CPEC should advise the  
            Legislature and the Governor regarding the need for, and  
            location of, new institutions and campuses of public higher  
            education (Education Code Sections 66900 and 66904).  

          2)Establishes the CSU administered by the Board of Trustees, and  
            provides that the Trustees shall have the full power over the  
            construction and development of any CSU campus and any  
            buildings or other facilities or improvements (EC Section  
            89030, et seq.).  

          FISCAL EFFECT:  Unknown


          COMMENTS:  California Postsecondary Education Commission (CPEC).  
           There is currently no coordinating entity for higher education  
          in California.  Existing law establishes CPEC to be responsible  
          for coordinating public, independent, and private postsecondary  
          education in California and to provide independent policy  
          analyses and recommendations to the Legislature and the Governor  
          on postsecondary education issues.  However, over time, CPEC's  
          budget was reduced, resulting in its inability to perform all of  
          its responsibilities, casting doubt on its effectiveness and  
          triggering calls for its restructuring.  As part of his 2011-12  
          Budget, Governor Brown proposed eliminating CPEC.  Both Houses  
          rejected this proposal, but the Governor exercised his line item  
          veto to remove all General Fund support for CPEC, describing the  
          commission as "ineffective." In his veto message, however, the  
          Governor acknowledged the need for coordinating and guiding  
          state higher education policy and requested that stakeholders  
          explore alternative ways these functions could be fulfilled.   
          CPEC shut down in Fall 2011, transferring its federal Teacher  
          Quality Improvement grant program to the California Department  
          of Education and extensive data resources to the CCC  
          Chancellor's Office. 








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          Purpose of this bill.  According to the author, "There is  
          currently no coordinating body that assesses the needs for a new  
          CSU or UC campuses. Instead, we have almost ad hoc expansion  
          that results in an unequal distribution of infrastructure and  
          educational services statewide.  For example, Stockton,  
          California, is the only city with 300,000 or more people in  
          California without a public university in its proximity."  To  
          note, the nearest CSU campuses - Sacramento State, CSU  
          Stanislaus, and CSU East Bay - are at least 45 miles away from  
          Stockton, without public transportation linkages for students  
          who do not own a vehicle.  The author contends that this is an  
          example of a regional inequality of services and infrastructure  
          that contributes to poor educational attainment and  
          unemployment.  


          The author contends this measure is a necessary first step in  
          establishing an objective process for evaluating California's  
          needs for a new public university campus - through a statewide  
          study that examines various factors in determining what areas  
          are the best locations for the establishment of a new CSU  
          campus.  


          Review process for new campus.  California Postsecondary  
          Education Commission's review process for a potential new campus  
          of the UC, CSU, and/or CCC was very layered and structured,  
          including the need for the asking segment to submit a  
          preliminary notice at the beginning of the segment's planning  
          process for a new campus or off-site center.  The preliminary  
          notice had to include information on the proposed institution's  
          general location, type of operations, time frame for  
          development, projected enrollment, and near-term capital outlay  
          plan.  


          The next step in CPEC's process was for the asking segment to  
          submit a letter of intent when they were within five years (two  
          for a CCC) of requesting state funds for capital outlay.  To  
          note, the letter of intent had to contain similar information as  








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          the preliminary notice but with greater specificity.  CPEC then  
          responded to the letter of intent within 60 days and would  
          include any concerns with the proposal and opined as to if the  
          segment should proceed with development plans.


          The last step in the review process was for the asking segment  
          to submit to CPEC a study that provided a justification for the  
          campus or center on the site identified.  The needs study  
          included nine different areas (enrollment, alternatives,  
          academic planning, student services, costs, accessibility,  
          effects on other institutions, environmental impact, and  
          economic efficiency) according to which the proposal was  
          evaluated.  CPEC responded to the needs study within one year  
          for the new campus and within six months for a new center; their  
          response included a formal recommendation to the Governor and  
          the Legislature as it if a new campus and/or center should be  
          created.


          Committee considerations.  Appropriate entity to fill the role  
          of CPEC?  With the state no longer having a coordinating body  
          for higher education, how is the state going to fulfill the  
          former CPEC functions?  This measure tasks the LAO, in  
          conjunction with the CSU to conduct a detailed analysis as to  
          the need for an additional CSU campus; is the LAO the correct  
          entity to conduct the analysis? 


          This Committee may want to consider whether or not it tasks  
          various entities with fulfilling the work of the former CPEC or  
          halting all projects that would otherwise be under the  
          jurisdiction of the former CPEC until the state creates a new  
          higher education coordinating body.


           Previous legislation.  AB 736 (Fox, 2013), which died in the  
          Senate Appropriations Committee, required the CSU to conduct a  
          study, as specified, regarding the feasibility of a CSU  
          satellite program, and ultimately, an independent CSU campus in  
          the Antelope Valley.  AB 24 (Block, 2009), which was vetoed by  
          Governor Schwarzenegger, proposed a study regarding the  








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          feasibility of establishing a CSU satellite program and campus  
          at Chula Vista.  AB 500 (Conway, 2009), which died in the Higher  
          Education Committee, was virtually identical to this measure  
          except it called for a CSU campus in the high desert.  SCR 92  
          (Peace), Resolution Chapter 104, Statutes of 1998, resolved that  
          the Legislature endorse a proposed City site for possible future  
          use as a UC campus.  


          REGISTERED SUPPORT / OPPOSITION:


          Support




          None on file.


          Opposition


          None on file.


          


          Analysis Prepared  
          by:              Jeanice Warden/HIGHER ED./(916) 319-3960



















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