BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 42 (Liu) - Postsecondary education: California Commission on Higher Education Performance and Accountability. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 7, 2015 |Policy Vote: ED. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 11, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill reestablishes the California Commission on Higher Education Performance and Accountability (CCHEPA), as a successor agency to the former California Postsecondary Education Commission (CPEC), modifies the make-up of the prior commission, reduces and clarifies the Commission's functions and responsibilities, and deletes a number of obsolete reporting requirements. Fiscal Impact: This bill results in estimated costs in the low millions General Fund. (see staff comments) Additional significant administrative costs could be incurred for restoration of a database and related information as well as conducting required studies included in this bill. CSU indicates minor ongoing costs. SB 42 (Liu) Page 1 of ? Background: Existing law establishes the CPEC to be responsible for coordinating public, independent, and private postsecondary education in California and providing independent policy analysis and recommendations to the Legislature and the Governor on postsecondary education issues. Existing law also requires the CPEC to: (1) act as a clearinghouse for postsecondary education information and to serve as a primary source of information for the Legislature, Governor, and other agencies and, (2) develop and maintain a comprehensive database that supports longitudinal studies of individual students as they progressed through the state's postsecondary educational institutions through the use of a unique student identifier. Additionally, the CPEC was to provide each of the educational segments access to the data made available to the CPEC for purposes of the database in order to support statewide, segmental and individual campus educational research needs. (Education Code § 66900 et. seq.) In 2011, Governor Brown vetoed CPEC funding of about $2 million General Fund, resulting in its closure in November 2011. Although the Governor eliminated all General Fund support for CPEC, its statutory authority remains intact. Proposed Law: This bill reestablishes the California Commission on Higher Education Performance and Accountability (CCHEPA), as a successor agency to the former California Postsecondary Education Commission (CPEC), modifies the make-up of the prior commission, reduces and clarifies the Commission's functions and responsibilities, and deletes a number of obsolete reporting requirements. Specifically, this bill: Modifies the make-up of the prior commission. It provides for 17 members of the general public and eliminates representation from different segments and requires that the CCHEPA be a representative of civic, business, and public school leaders, and that members serve staggered six year terms. Modifies the make-up of the advisory committee to the CCHEPA to include one student representative enrolled SB 42 (Liu) Page 2 of ? during their time of service and an executive officer from among the independent California colleges and universities, as specified. This bill reduces and clarifies the CCHEPA's functions and responsibilities as follows: A. Deletes a number of functions previously assigned to the CPEC. B. Requires that it articulate and monitor state performance objectives for higher education. C. Requires that it advise the Legislature and the Governor regarding the need for, and location of, new institutions and campuses of public higher education as well as review of proposals by the public segments for new programs, as specified. D. Requires that it act as a clearinghouse for postsecondary education information and as a primary source of information for the Legislature, the Governor, and other agencies. E. Requires that it develop and maintain a comprehensive database that ensures data compatibility, supports longitudinal studies, is compatible with K-12 data systems, provides internet access to data for the sectors of higher education in order to support statewide, segmental and individual campus educational research needs. F. Requires that it review all proposals for changes in eligibility pools for admission to public institutions and segments of postsecondary education and that it periodically conduct eligibility studies. G. Requires, through its use of information and its analytic capacity, that it inform the identification and periodic revision of state goals and priorities for higher education, in a manner that is consistent with the goals of higher education and performance metrics as established in statute. In addition, this bill requires that it evaluate both statewide and institutional performance in relation to these goals and priorities. SB 42 (Liu) Page 3 of ? H. Requires that it 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. Related Legislation:1. AB 1348 (John A. Pérez, 2014) would have established the California Higher Education Authority, its governing board and 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 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. Staff Comments: This bill establishes a successor agency to the former CPEC. The reestablishment of a higher education coordinating agency is likely to result in annual costs in the low millions, based upon the historical funding level of CPEC ($2 million General Fund per year). Though many functions of the former CPEC are eliminated in this bill, its core coordinating, planning, analyzing, advising and reporting functions remain. Additional one-time funding of several hundreds of thousands may be needed to reconstruct missing data and reestablish the database described in the bill since the CPEC was eliminated. This bill requires CCHEPA to recommence conducting eligibility studies, as the CPEC did. These studies examine the extent to which UC and CSU draw enrollment from their eligibility pools as established in the Master Plan for Higher Education. UC is supposed to draw its incoming freshman class from the top 12.5 percent (one-eighth) of public high school graduates. CSU is supposed to draw its applicant pool from the top 33 percent SB 42 (Liu) Page 4 of ? (one-third) of public high school graduates. Each study is estimated to incur one-time costs of up to $2 million. UC estimates the cost for its participation in each study to be about $500,000 and CSU to be about $175,000. In addition, CSU indicates ongoing staffing costs of $60,000 to respond to data requests of the new entity. UC indicates that its ongoing costs would be absorbable. -- END --