BILL ANALYSIS Ó
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1307 (McCarty) - As Amended April 23, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill:
1)Prohibits the California State University (CSU) Trustees and
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the University of California (UC) Regents from implementing
mandatory tuition increases to California resident students if
the Legislative Analyst determines that the Trustees or the
Regents, respectively, failed to comply with the notice and
consultation requirements of the Working Families Student Fee
and Accountability Act.
2)Authorizes the rescinding in the annual Budget Act of a
tuition increase to California resident students adopted by
the Trustees or the Regents.
3)Requires UC, as a condition of receiving state funds, to
comply with the Act.
FISCAL EFFECT:
Failure to comply with the Student Fee Act or rescission by the
Legislature of an enacted UC or CSU tuition increase will create
some combination of significant General Fund cost pressure, to
backfill the system's lost tuition revenue with state funds, and
requiring UC or CSU to raise other revenues, such as through
increases in nonresident fees and/or enrollment, and/or to
reduce operating costs, such as through reducing resident
enrollment or other cost elements.
COMMENTS:
1)Background. Student fees and state General Fund support work
interchangeably to fund the core instructional missions of the
segments. The state's portion essentially subsidizes the
amount paid by students in the form of fees. Because of this
link, fees have risen steeply during difficult budget
years-generally also years where a down-economy makes it more
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challenging for some students and families that do not receive
Cal Grants and thus have to pay for the increases-and then
declined when state support could be provided to the segments.
2)Student Fee Act. AB 970 (Fong)/Chapter 620, Statutes of 2012,
established the Student Fee Act to require UC and CSU follow
certain requirements when approving student fee increases for
resident students, specifically:
a) Follow prescribed public notice and student consultation
procedures before adopting an increase;
b) Develop a list of factors to consider when recommending
a fee increase;
c) Provide the Legislature annual reports on tuition and
fees, financial aid, and total cost of attendance.
d) The Legislative Analyst's Office (LAO) is required to
report on CSU and UC compliance with the Act.
On March 25, 2015, the LAO released its annual report
regarding UC and CSU compliance with the Act. LAO found that
CSU has not increased resident mandatory systemwide charges in
the past year and therefore was not required to follow any
consultation or notification procedures required by existing
law. UC, on the other hand, was deemed by LAO to be not in
compliance with most of the provisions of the law. According
to the LAO, UC reported it is not legally obligated to comply
with the law because of its constitutional autonomy.
3)Purpose. This bill requires compliance with the Student Fee
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Act as a condition to CSU or UC increasing resident tuition,
and provides for legislative rescission of a tuition increase
through the Budget Act. Given UC's claim of exemption from the
Act, the bill conditions their receipt of state funds on
compliance with the Act.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081