BILL ANALYSIS Ó
AB 1837
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Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
AB 1837
(Low) - As Amended March 17, 2016
SUBJECT: Postsecondary education: Office of Higher Education
Performance and Accountability
SUMMARY: Establishes the Office of Higher Education Performance
and Accountability (OHEPA) to provide statewide postsecondary
education planning and coordination. Specifically, this bill:
1)Establishes OHEPA as the statewide postsecondary education
coordination and planning entity within the Governor's office
and under the direct control of an Executive Director
(Director) appointed by the Governor and subject to Senate
confirmation.
2)Provides that the Director is responsible for all duties,
powers, and responsibilities vested in OHEPA, including
contracting for relevant professional or consultant services.
The Director is required to appoint any staff positions
authorized by the Governor.
3)Establishes an Advisory Board to OHEPA, subject to open
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meetings requirements and meeting at least quarterly, for the
purpose of reviewing and commenting on any recommendations
made by OHEPA to the Governor and the Legislature, developing
an annual report on the condition of California higher
education, issuing an annual performance review of the
Director. Provides that the Advisory Board members shall
serve without compensation, except reimbursement for expenses.
Establishes the Advisory Board membership as follows:
a) Three members with experience in postsecondary education
appointed by the Senate Committee on Rules;
b) Three members with experience in postsecondary education
appointed by the Speaker of the Assembly; and,
c) The chair of the Senate Committee on Education and the
chair of the Assembly Committee on Higher Education to
serve as ex officio members.
4)Requires OHEPA to actively seek input from and consult with
the advisory board and higher education segments and
stakeholders, as appropriate, in the conduct of its duties and
responsibilities.
5)Establishes OHEPA for the purpose of advising the Governor,
the Legislature and other appropriate government officials and
institutions of postsecondary education, and specifically
requires OHEPA to conduct all of the following:
a) Inform the identification and periodic revision of state
goals and priorities for higher education in a manner that
is consistent with the goals, and taking into consideration
the metrics, outlined in existing law. OHEPA is required to
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biennially interpret and evaluate both statewide and
institutional performance in relation to these goals and
priorities.
b) Review and make recommendations, as necessary, regarding
cross-segmental and interagency initiatives and programs in
areas that may include efficiencies and instructional
delivery, financial aid, transfer, and workforce
coordination;
c) Advise the Legislature and the Governor regarding the
need for, and location of, new institutions and campuses of
public higher education;
d) Review proposals by the public segments for new
programs, the priorities that guide them, and the degree of
coordination with nearby public, independent, and private
postsecondary educational institutions, and make
recommendations regarding those proposals to the
Legislature and the Governor;
e) Act as a clearinghouse for postsecondary education
information and as a primary source of information for the
Legislature, the Governor, and other agencies, and develop
and maintain a comprehensive database, as specified.
f) Review proposals for changes in eligibility pools for
admission to public institutions and segments of
postsecondary education, and make recommendations to the
Legislature, the Governor, and institutions of
postsecondary education. Provides that OHEPA shall
periodically study the percentages of California public
high school graduates estimated to be eligible for
admission to the California State University (CSU) and the
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University of California (UC);
g) Through its use of information and its analytic
capacity, inform the identification and periodic revision
of state goals and priorities for higher education in a
manner that is consistent with the goals and metrics
outlined in existing law. Requires OHEPA to biennially
interpret and evaluate both statewide and institutional
performance in relation to these goals and priorities;
h) Submit reports to the Legislature, as specified;
i) Manage data systems and maintain programmatic, policy,
and fiscal expertise to receive and aggregate information
reported by the institutions of higher education in this
state; and,
6)Provides that on or before December 31 of each year, OHEPA
shall report to the Legislature and the Governor regarding its
progress in achieving the aforementioned objectives and
responsibilities.
7)Provides that on or before January 1, 2020, the LAO shall
review and report to the Legislature regarding the performance
of the office in fulfilling its functions and
responsibilities.
8)Sunsets the law on January 1, 2021.
EXISTING LAW: Establishes the California Postsecondary
Education Commission (CPEC) composed of 17 members representing
the higher education segments, the State Board of Education, and
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nine representatives appointed by the Governor, Senate Rules
Committee, and Assembly Speaker to coordinate public,
independent, and private postsecondary education in California.
(Education Code Section 66900 et. seq.)
FISCAL EFFECT: Unknown. According to the Assembly
Appropriations Committee analysis of substantially similar
legislation from 2015:
1)In its last full year of operation, CPEC's General Fund
operating budget was $1.9 million for the equivalent of 18
positions. The new office established in this bill would
likely have a somewhat smaller budget. In addition, the office
would incur one-time information technology costs and other
start-up costs in the low hundreds of thousands of dollar.
2)The three public higher education segments will incur the
following costs to work with the new office and to respond to
data requests:
a) UC. Ongoing costs of $50,000 for one-half position.
b) CSU. Ongoing costs of $110,000 for one position.
c) CCC. Estimates ongoing costs of up to $440,000 for four
positions, based on prior workload demands involving CPEC.
COMMENTS: Background on CPEC. As previously outlined, CPEC was
established to coordinate postsecondary education in California
and to provide independent policy analyses and recommendations
to the Legislature and the Governor on postsecondary education
issues. However, CPEC's budget and responsibilities were
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reduced over time, casting doubt on its effectiveness and
triggering calls for its restructuring. In the 2011-12 Budget
Act, Governor Brown vetoed funding for CPEC citing the agency's
ineffectiveness in higher education oversight. In his veto
message, the Governor acknowledged the well-established 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 (CDE) and
extensive data resources to the California Community Colleges
(CCC) Chancellor's Office. There is currently no coordinating
entity for higher education in California.
Establishing goals and accountability in the absence of CPEC.
The National Commission on Accountability in Higher Education,
in a report published in 2005, concluded that "real improvement
in higher education will come when accountability in higher
education provides for explicit shared goals, progress in
achieving these goals is measured, and work to improve
performance is motivated and guided." Statewide higher
education goals and objectives have been considered by the
Legislature for over a decade; in recent years, despite the
absence of CPEC, some progress has been made on this front.
The 2013-14 Budget Act education trailer bill (AB 94, Chapter
50) required CSU and UC to report annually on specified
performance measures, in order to inform budget and policy
decisions and promote effective and efficient use of resources.
SB 195 (Liu), Chapter 367, Statutes of 2013, established general
statewide goals for higher education, and Legislative intent to
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identify specific metrics for measuring progress toward
statewide goals. The 2014-15 Budget Act (SB 852, Chapter 25)
required UC and CSU to approve three-year "sustainability plans"
that use funding projections to establish projections of
enrollment and the university's goals for the performance
measures that are required to be adopted pursuant to AB 94; this
requirement was continued in the 2015-16 Budget Act. CCCs were
required, pursuant to the 2014-15 Budget higher education
trailer bill (SB 860, Chapter 34), to adopt goals and targets
for student performance by June 30, 2015, and to establish and
report on Student Equity Plans designed to ensure equal
educational opportunities and to promote student success for all
students.
Purpose of this bill. According to the author, "this bill
represents the next necessary step in establishing greater
clarity and accountability for our higher education system's
performance in meeting the statewide goals outlined in the
Master Plan of equity, access, and success; alignment with
workforce needs; and the effective and efficient use of
resources. This bill establishes OHEPA as the statewide
postsecondary coordination and planning entity, outlines its
responsibilities, functions and authorities, and establishes an
advisory board to the office (comprised of legislative
appointees) to examine and make recommendations regarding its
functions and operations, and to review and comment on the
office's recommendations to the Governor and Legislature."
Recommendations to reestablish coordination. A number of
reports have been issued in recent years that recommend various
approaches to reestablishing higher education oversight and
coordination in California. In 2012, the Legislative Analyst's
Office (LAO) recommended, in Improving Higher Education
Oversight, the Legislature establish an oversight body and
increase the body's independence from the public higher
education segments, assign the body with limited and clear
responsibilities, and develop a more unified governing board
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appointment process. In 2014, California Competes, in
Chartering a Course for California's Colleges: State Leadership
in Higher Education, also highlighted the importance of
impartiality and independence from the higher education
segments. The Institute for Higher Education Leadership and
Policy, in March of 2014, issued A New Vision for California
Higher Education: A Model Public Agenda, which noted that policy
leadership could be best filled by regional consortia that set
goals and targets working in coordination with an executive
branch entity (such as a Higher Education Office) that reported
to the Governor with respect to finance and accountability.
Related legislation. AB 2434 (Bonta), which was approved by this
Committee on April 12, 2016, would establish a Blue Ribbon
Commission on Public Postsecondary Education to provide research
and recommendations regarding California higher education.
Prior legislation. Several bills have been introduced in an
effort to improve higher education performance and
accountability, and to re-establish CPEC's most important
functions. These include the following:
SB 42 (Liu, 2015) was substantially similar to this measure. SB
42 was vetoed by Governor Brown, who stated, in part "While
there is much work to be done to improve higher education, I am
not convinced we need a new office and an advisory board,
especially of the kind this bill proposes, to get the job done."
SB 1196 (Liu, 2014) would have established a process for setting
specific educational attainment goals for the State. SB 1196
was held in the Assembly Appropriations Committee.
AB 1348 (John A. Pérez, 2014) would have established the
California Higher Education Authority, its governing board and
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its responsibilities, as specified, phased-in over a three-year
period. AB 1348 was held in the Senate Appropriations Committee.
AB 2190 (John A. Pérez, 2012) would have established a new state
oversight and coordinating body for higher education. AB 2190
was held in the Assembly Appropriations Committee.
SB 721 (Lowenthal, 2012) would have established statewide goals
for guiding budget and policy decisions. SB 721 was ultimately
vetoed.
SB 1138 (Liu, 2011-12) would have established a central data
management system for the higher education segments. SB 1138
was held in the Senate Appropriations Committee.
AB 2 (Portantino, 2011) and AB 218 (Portantino, 2009)
essentially identical bills, required that the state to
establish an accountability framework to biennially assess and
report on the collective progress of the state's system of
postsecondary education in meeting specified educational and
economic goals. Both bills were heard and passed by this
Committee and were subsequently held in the Senate
Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Competes
California Faculty Association
The Campaign for College Opportunity
AB 1837
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Opposition
None on File
Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960