BILL ANALYSIS Ó
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(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
1602 (Committee on Budget)
As Amended June 13, 2016
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
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|ASSEMBLY: | | (April 28, |SENATE: |29-5 |(June 16, 2016) |
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(Vote not relevant)
Original Committee Reference: BUDGET
SUMMARY: This is the Higher Education Trailer Bill for 2016-17.
It contains necessary changes related to the Budget Act of
2016. This bill makes various statutory changes to implement
the 2016-17 Budget.
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The Senate amendments delete the Assembly version of this bill,
and instead:
1)Updates and modernizes the California Library Services Act to
reflect local libraries' increasing use of and sharing of
digital materials, and eliminates references to a
reimbursement program among libraries that is no longer
utilized. Provides $3 million one-time for libraries for this
purpose and requires the State Library to report on the use of
additional funds.
2)Implements the Innovation Awards for 2016-17, which will
provide grants to community college programs that reduce
students' time to degree or total cost of attendance in three
categories: programs that redesign curriculum and
instruction, such as implementation of three-year bachelor's
degrees; programs that allow students to make progress toward
degrees by allowing credit based on demonstration of knowledge
and competencies, such as military training or prior
experiences; and programs that make financial aid more
accessible or reduce other student costs. Grants will be
awarded by a committee, which will give preference to programs
that improve outcomes for students from groups that are
underrepresented in higher education.
3)Amends the Middle Class Scholarship program to reduce funding
in 2016-17 and beyond by $42 million. Funds available in
2016-17 will be $74 million; with the allocation growing to
$117 million in 2017-18 and beyond.
4)Allows San Francisco City College to earn enrollment funding
for five years, beginning in 2017-18, if the college exceeds
the system-wide enrollment target during this period.
5)Creates the Student Success for Basic Skills program and
eliminates the Basic Skills Initiative. The new program
provides categorical funding to help improve outcomes for
students in pre-collegiate level courses. Funding supports
the implementation of evidence-based practices and will be
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distributed, beginning in 2017-18, using a three-part formula:
50% will be based on colleges' ability to quickly move
students from remedial courses to college-level English and
math courses, 25% will be based on the percentage of
low-income students at a college, and 25% will be based on the
number of basic skills students at a college.
6)Requires the University of California and California State
University to provide information in bi-annual reports to the
Legislature and Department of Finance regarding the costs of
educating a student based on a cost of instruction model
developed by the National Association of College and
University Business Officers.
7)Amends the 2015 Budget Act to allow funding provided to
increase the number of full-time faculty at community colleges
to be distributed to all districts, including basic aid
districts.
8)Provides $31.7 million Proposition 98 of 1988 General Fund to
community colleges to backfill for local property tax revenue
that was less than anticipated in the 2015 Budget Act.
9)Provides $5 million Proposition 98 General Fund to support
technical assistance to adult education regional consortia.
Funding will allow a chosen community college district or
local education agency to provide statewide leadership
activities for consortia, including disseminating best
practices, providing professional development and evaluating
the adult education program.
10)Provides $4 million one-time General Fund to the University
of California to develop online classes and curriculum for at
least 45 middle school and high school courses that align with
state Board of Education standards and University of
California (UC) admissions standards satisfying the "a-g"
subject requirements.
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11)Provides $20 million one-time Proposition 98 general Fund to
expedite and enhance the development of online courses
available through the online course exchange of the Online
Education Initiative.
12)Provides $7 million one-time Proposition 98 General Fund to
enhance network infrastructure at community colleges.
13)Requires reporting from the Chancellor of the Community
Colleges and the Superintendent of Public Instruction no later
than August 1, 2017 on options for integrating the adult
education assessments into the common assessment system
developed by the community colleges. Extends the deadline for
annual reporting on adult education outcomes from Sept 30th to
a two-part report due in October 30th and January 1st of each
year.
14)Adjusts the interest rate on three Compton Community College
District emergency apportionments to 2.307%, which is
reflective of the rate recently provided to other K-12
agencies.
15)Establishes the Zero-Textbook-Cost Degree Grant Program,
which provides $5 million one-time Proposition 98 General Fund
to community colleges that implement these programs.
Zero-textbook-cost degrees are community college associate
degrees or career technical education certificates earned by
completing courses that eliminate conventional textbook costs
by using alternative instructional materials, such as open
educational resources. This bill provides a maximum grant of
$200,000 to community college districts for each degree
developed or implemented that eliminates textbook costs for
students.
16)Provides $35 million one-time General Fund to the California
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State University to increase graduation rates, funding is
contingent upon the adoption of a graduation rate improvement
plan. The plan must specify the time frame in which the
California State University (CSU) and each campus will
increase the four-year graduation rate for freshman students
and two-year graduation rate for transfer students above the
graduation rate of students at other postsecondary
institutions; and increase the four-year and two-year
graduation rates of low-income, students from underrepresented
minority groups, and first generation college students. CSU
will be required to report legislative recommendations to the
Legislature and the Director of Finance to improve graduation
rates as specified in the plan.
17)Provides $200 million ongoing Proposition 98 General Fund for
community colleges to expand quality career technical
education and workforce development courses, pathways, and
programs. Career Technical Education Regional Consortia will
collaborate with other public institutions, such local
education agencies, and relevant stakeholders to increase the
number of CTE offerings. Each consortium shall submit a
regional plan by January 31, once every four years, to the
Chancellor's Office, regarding the governance model of the
consortium, analysis of regional labor market needs, wage data
for each industry sector, measurable regional goals that align
with the performance measures of the federal Workforce
Innovation Opportunity Act, among others. Forty percent of
funds will be distributed to the CTE Regional Consortia, and
60% funds will be distributed directly to community college
districts. In 2016-17, funds shall be allocated based on
local unemployment rate, the regions proportion of CTE
full-time-equivalent students, and projected job openings.
Beginning in 2017-18, funds will also be allocated based on
the proportion of successful workforce outcomes.
18)Extends the sunset date for the Career Technical Education
Pathways Program from June 30, 2016, to July 1, 2017.
19)Establishes until January 1, 2020, the California Initiative
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to Advance Precision Medicine in the Office of Planning and
Research for the purpose of developing, implementing, awarding
funding to, and evaluating demonstration projects on precision
medicine in collaboration with public, nonprofit, and private
entities.
20)Specifies that as a condition of receiving funds in the
2016-17 Budget Act, the University of California approve a
plan and timeline, beginning in the 2016-17 academic year, to
increase the number of freshman admits, who meet admission
requirements, at each campus, including students who are
enrolled in high schools with 75% or more unduplicated pupils,
and expand services and resources to students who enroll at UC
from these schools.
21)Repeals the sunset date for UC Subject Matter Projects, which
is scheduled to sunset on June 30, 2017.
22)States legislative intent to establish a center for research
into firearm-related violence at the University of California.
Its research shall include, but not be limited to, the
effectiveness of existing laws and policies intended to reduce
firearm violence, including the criminal misuse of firearms,
and efforts to promote the responsible ownership and use of
firearms.
COMMENTS: This bill is a budget trailer bill within the overall
2016-17 budget package to implement actions taken affecting the
University of California, the California State University, the
California Community Colleges, the California Student Aid
Commission and the California State Library.
Analysis Prepared by:
Mark Martin / Budget / 916-319-2099 FN: 0003436
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