BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Senator Mark Leno, Chair
2015 - 2016 Regular
Bill No: AB 108 Hearing Date: June 18,
2015
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|Author: |Committee on Budget |
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|Version: |January 9, 2015 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Anita Lee |
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Subject: Budget Act of 2015: Higher Education Trailer Bill
Summary: This bill provides for statutory changes necessary to enact
postsecondary education-related provisions of the Budget Act of
2015.
Background: This bill makes the following statutory changes to implement
the 2015-16 budget. Specifically, this bill:
1.State Authorization for Regional Occupational Programs.
Authorizes the Superintendent of Public Instruction (SPI), for
purposes of participation in Title IV of the federal Higher
Education Act of 1965, which authorizes federal student
financial assistance programs, to: (1) certify by name, a
regional occupational center and program, or a county office
of education or an adult education program to legally
authorize the center, program or county office to provide an
educational program beyond secondary education, including an
education program that leads to a degree or certificate; (2)
adopt regulations that authorize a complaint process under the
Uniform Complaint Procedures (UCPs) outlined in specified
regulations; and (3) decertify any program no longer in
compliance with specified requirements consistent with federal
regulations, among other provisions.
2.Community College Veterans Access, Choice and Accountability
Act. Requires the CCC and California State University to
exempt students from nonresident tuition starting on July 1,
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2015, if they the meet all of the following requirements: (1)
student resides in California; (2) student meets the
definition of "covered individual," as defined under Title 38
of the US Code, federal statute; and (3) student is eligible
for education benefits under either the federal Montgomery GI
Bill or Post 9/11 GI Bill program, and are continuously
enrolled at the campus they attend.
3.Cal Grant Maximum Award. Delays, by two years, a reduction in
the maximum amount of the Cal Grant A and B awards for
students attending private, non-profit colleges or accredited
for-profit colleges in 2015-16 and 2016-17. In 2015-16 and
2016-17, eligible students will receive $9,084 for tuition
expenses each year.
4.Community College Foster Care Education Program. Requires
funds appropriated to the board of governors for the Foster
Care Education Program to be used for foster parent and
relative/kinship care provider education as specified by the
chancellor, in consultation with an advisory committee.
Specifies that each college receiving funds for this program
shall have a plan for foster parent and relative/kinship care
provider education that includes provisions of training, and
complies with all reporting requirements, guidelines and other
conditions specified by the chancellor.
5.CCC Reporting Requirements. Codifies various reporting
requirements for the Student Success and Basic Skills Students
program, the Student Financial Aid Administration program,
technical assistance provided to community college districts
pursuant to the Student Success and Support Program, and the
Telecommunications and Technology program. Requires the
Chancellor to annually submit reports for the prior fiscal
year to the Department of Finance and the Legislature by
December 31.
6.CCC Adjust Base Allocation. Authorizes the Chancellor's Office
to adjust the general apportionment formula to recognize funds
appropriated to address increased operating costs and to
improve instruction. Authorizes the Chancellor's Office to
make conforming adjustments to the community college budgetary
standards and criteria, and requires the chancellor to notify
the Department of Finance and the Legislature of the specific
adjustments made.
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7.CCC Local Property Tax Revenues and Education Protection
Account. Provides the Department of Finance the authority to
modify and update Proposition 98 General Fund appropriations
to CCC based on updated revenue estimates for redevelopment
agencies and Education Protection Account (Proposition 30).
Proposition 98 General Funds would be used to offset any
difference between (1) estimated revenues for community
colleges from redevelopment agencies and the Education
Protection Account (Proposition 30) and (2) the amounts
distributed to colleges from these sources by June 30. This
change will allow districts to have more certainty when
preparing their fiscal plans.
8.Career Technical Education Pathways Program. Extends the
sunset date for the Career Technical Education Pathways
Program from June 30, 2015 to July 1, 2016, and appropriates
forty eight million dollars ($48,000,000) one-time Proposition
98 funds for the program.
9.CSU Capital Outlay Reporting Timeline. Makes changes to
California State University's capital outlay program to better
align its reporting to the Department of Finance on proposed
capital projects with the timing of Board of Trustees'
decisions.
10. State Authorization for Private Colleges and
Universities. Responds to new federal regulations by
authorizing private colleges and universities to operate in
the state, and sets up a complaint process for students
through the Board of Private Postsecondary Education.
11. CCC Deferred Maintenance, Instructional Equipment
and Drought Resistance Projects. Provides $48 million
one-time Proposition 98 General Fund for deferred maintenance,
instructional equipment and drought resistance projects at
community colleges. The funding will be distributed on a
per-student basis.
12. Innovation Awards Funding Shift. Shifts $23 million
in 2014-15 funding from the Innovation in Higher Education
Awards program from the General Fund to Proposition 98 General
Fund, to reflect the amount of awards distributed to community
colleges.
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13. UC Merced Project Savings. Allows the University of
California to use project savings from the UC Merced Classroom
and Academic Office Building project to cover potential
deficiencies in the construction phase of the same project.
14. Competitive Cal Grants. Increases the number of
competitive Cal Grants by 3,250 awards for a total of 25,750
awards. Eligibility for Competitive Cal Grant awards is geared
toward nontraditional students who did not go to college right
after high school, do not depend on their family for financial
support or are returning to college for career training.
15. CCC Baccalaureate Degree Program. Provides $6
million to the Chancellor's Office to implement Baccalaureate
Pilot Program established pursuant to Senate Bill 850 (Block),
Chapter 747, Statutes of 2014. These funds may be used to
support professional development activities.
16. Eligibility study. Provides $1 million from the
General Fund to establish and implement a new freshman
eligibility study pursuant to legislation enacted in 2015-16
to determine if admission requirements at the University of
California and California State University are consistent with
the state's 1960 Master Plan for Higher Education.
17. Middle Class Scholarship. Amends the Middle Class
Scholarship program to exclude students with family assets
over $150,000, sets a four- or five-year time limit for the
program similar to limits imposed in the Cal Grant program,
and allows income and asset limits to increase with the
Consumer Price Index. Also, reduces statutory appropriations
for the program in the 2015-16, 2016-17, and 2018-19 fiscal
years and states legislative intent that those savings be
redirected to other higher education programs.
18. University of California Capital Outlay. Expands
the University of California's capital outlay program by
allowing it to use its General Fund appropriation to make
availability payments on capital expenditures. Also requires
the university to use this funding structure for the UC Merced
2020 project, as long as work traditionally performed by UC
employees continues to be performed by UC employees.
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19. Basic Skills Partnership Pilot Program. Creates the
Basic Skills Partnership Pilot Program, which will provide
five community college districts with $2 million grants each
to develop partnerships among schools districts, community
colleges and California State University campuses to develop
improved strategies to provide remedial education for
underprepared college students.
20. Basic Skills and Student Outcomes Transformation
Program. Creates the Basic Skills and Student Outcomes
Transformation Program, which will provide $60 million
Proposition 98 General Fund to assist community college
districts in improving the delivery of basic skills
instruction.
21. College Access Tax Credit. Amends the College Access
Tax Credit program to add a new College Access Tax Credit for
one year in tax year 2017 under the Insurance Gross Premiums
Tax and Corporation Tax; adds the College Access Tax Credit to
the list of tax credits that can reduce the Tentative Minimum
Tax under the Alternative Minimum Tax calculations for
Personal Income and Corporation Tax; and continuously
appropriates the fund to the California Student Aid Commission
to award supplemental Cal Grants; and other technical changes.
22. Apprenticeship Reporting. Requires the Community
College Chancellor's Office to report to the California
Apprenticeship Council within 30 days of each apportionment
period, information regarding the hourly rate paid to local
educational agencies and community colleges, and the number of
instruction hours allocated to, and reported by, each local
educational agency and community college.
23. Apprenticeship Allocation Deadline. Requires the
Community College Chancellor's Office to notify local
education agencies and community colleges of upcoming
allocation amounts within 30 days of the enactment of the
Budget Act.
24. Innovative Apprenticeship Program. Allows the
Community College Chancellor's Office to work with the
Division of Apprenticeship Standards to develop and implement
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innovative apprenticeship programs in high-growth industries.
25. New Campus Study. Requires the Legislative
Analyst's Office to study and report on whether there is a
long-term need for a new California State University or
University of California campus, and if there is a need, where
campuses would be needed.
26. State Mandates. Establishes that if the Commission
on State Mandates determines that acts in this bill are costs
mandated by the state, reimbursement would occur through the
mandates process.
Fiscal
Effect: Statutory changes contained in this bill, including
appropriations, are consistent with the 2015 budget package.
Support: Unknown
Opposed: Unknown
Comments: This bill provides the necessary statutory references to
enact the 2015-16 budget related to higher education.
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