BILL ANALYSIS Ó
AB 1837
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1837 (Low) - As Amended March 17, 2016
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|Policy |Higher Education |Vote:|11 - 2 |
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill, until January 1, 2021, establishes the Office of
Higher Education Performance and Accountability (OHEPA), within
the Governor's office, as the statewide postsecondary education
planning and coordinating agency, and advisor to the Legislature
and the Governor. Specifically, this bill:
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1)Requires the Governor to appoint an Executive Director of
OHEPA, who shall be subject to confirmation by the Senate.
2)Establishes a six-member advisory board-with three members
each appointed by the Assembly Speaker and Senate Rules,
respectively-and requires OHEPA to consult with the board, as
well as with the higher education segments and stakeholders.
3)Delineates OHEPA's functions and responsibilities, including:
a) Reviewing and advising regarding state goals and
priorities for higher education.
b) Providing advice regarding the need for new institutions
and campuses.
c) Reviewing, as specified, proposals from public
institutions for new programs.
d) Acting as a clearinghouse for postsecondary education
information and developing and maintaining a database, as
specified.
e) Reviewing public segments' proposals to change
eligibility pools, and periodically studying the
percentages of California public high school graduates
eligible for admission to the University of California (UC)
and the California State University (CSU).
f) Reporting annually to the Legislature and the Governor
on its progress in meeting its responsibilities.
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4)Authorizes the office to require that the public segments of
higher education to submit data to the office as needed by the
office to perform its responsibilities.
5)Requires the Legislative Analyst's Office (LAO), by January 1,
2020, to report to the Legislature regarding OHEPA's
performance.
FISCAL EFFECT:
1)In its last full year of operation, California Postsecondary
Education Commission's (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.
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COMMENTS:
1)Background. AB 770 (Vasconcellos) of 1973 created the CPEC and
made it responsible for the planning and coordination of
postsecondary education. CPEC was charged with providing
analysis, advice, and recommendations to the Legislature and
the Governor on statewide policy and funding priorities. 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.
On November 18, 2011, CPEC closed its office and ceased
operations. Its federal Teacher Quality Improvement grant
program was transferred to the California Department of
Education (CDE) and its extensive data resources were
transferred to the California Community Colleges (CCC)
Chancellor's Office.
In a January 2013 report, "Improving Higher Education
Oversight," the LAO contended that the state needed higher
education oversight that enables policymakers and others to
monitor how efficiently and effectively the postsecondary
system is serving the state's needs, and to make changes to
improve its performance.
2)Subsequent Legislation. A 2013-14 Budget Act trailer bill (AB
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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 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.
3)Purpose. According to the author, "this bill represents the
next necessary step in establishing greater clarity and
accountability for our higher education systems' 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."
4)Related Legislation. AB 2434 (Bonta), pending on this
committee's Suspense file, establishes a Blue Ribbon
Commission on Public Postsecondary Education to provide
research and recommendations regarding California higher
education.
5)Prior Legislation. SB 42 (Liu, 2015), which was substantially
similar to this measure, was vetoed. The Governor 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
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advisory board, especially of the kind this bill proposes, to
get the job done."
SB 1196 (Liu, 2014), which would have established a process
for setting specific educational attainment goals for the
State, was held on this committee's Suspense file.
AB 1348 (John A. Pérez, 2014), which would have established
the California Higher Education Authority, its governing board
and its responsibilities, as specified, phased-in over a
three-year period, was held on Suspense in Senate
Appropriations.
AB 2190 (John A. Pérez, 2012), which would have established a
new state oversight and coordinating body for higher
education, was held on this committee's Suspense file.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081