BILL ANALYSIS Ó
SB 81
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(Without Reference to File)
SENATE THIRD READING
SB
81 (Committee on Budget and Fiscal Review)
As Amended June 16, 2015
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE: Vote not relevant
SUMMARY: Contains necessary statutory and technical changes to
implement the Budget Act of 2015 relating to higher education.
This bill makes the following statutory changes to implement the
budget:
1)Makes changes to California State University's capital outlay
program to better align its reporting to the Department of
Finance on proposed capital projects with the timing of Board
of Trustees' decisions.
2)Responds to new federal regulations by authorizing private
colleges and universities to operate in the state, and sets up
a complaint process for students through the Board of Private
Postsecondary Education.
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3)States that if the Commission on State Mandates determines
that acts in this bill are costs mandated by the state,
reimbursement would occur through the mandates process.
4)Provides $48 million one-time Proposition 98 (1988) General
Fund for deferred maintenance, instructional equipment and
drought resistance projects at community colleges. The
funding will be distributed on a per-student basis.
5)Shifts $23 million in 2014-15 funding from the Innovation in
Higher Education Awards program from the General Fund to
Proposition 98 General Fund, to reflect the amount of awards
distributed to community colleges.
6)Allows the University of California (UC) to use project
savings from the UC Merced Classroom and Academic Office
Building project to cover potential deficiencies in the
construction phase of the same project.
7)Amends the Middle Class Scholarship program to exclude
students with family assets over $150,000, sets a four- or
five-year time limit for the program similar to limits imposed
in the Cal Grant program, and allows income and asset limits
to increase with the Consumer Price Index. Also reduces
statutory appropriations for the program in the 2015-16,
2016-17, and 2018-19 years and states legislative intent that
those savings be redirected to other higher education
programs.
8)Expands the UC's capital outlay program by allowing it to use
its General Fund appropriation to make availability payments
on capital expenditures. Also requires the university to use
this funding structure for the UC Merced 2020 project as long
as work traditionally performed by UC employees continues to
be performed by UC employees.
9)Creates the Basic Skills Partnership Pilot Program, which will
provide five community college districts with $2-million
grants to develop partnerships among schools districts,
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community colleges and California State University campuses to
develop improved strategies to provide remedial education for
underprepared college students.
10)Authorizes the Superintendent of Public Instruction (SPI),
for purposes of participation in federal Higher Education Act
of 1965 Title IV, which authorizes federal student financial
assistance programs, to: a) certify by name, a regional
occupational center and program, or a county office of
education or an adult education program to legally authorize
the center, program or county office to provide an educational
program beyond secondary education, including an education
program that leads to a degree or certificate; b) adopt
regulations that authorize a complaint process under the
Uniform Complaint Procedures (UCPs) outlined in specified
regulations; and c) decertify any program no longer in
compliance with specified requirements consistent federal
regulations, among other provisions.
11)Requires the California Community Colleges or California
State University to exempt students from nonresident tuition
starting on July 1, 2015, if they the meet all of the
following requirements: a) student resides in California; b)
student meets the definition of "covered individual," as
defined under United States Code Title 38, federal statute; c)
student is eligible for education benefits under either the
federal Montgomery GI Bill or Post 9/11 GI Bill program, and
are continuously enrolled at the campus they attend.
12)Eliminates a reduction in the maximum amount of the Cal Grant
A and B awards for students attending private, non-profit
colleges or accredited for-profit colleges for two years.
Students will receive $9,084 annually for tuition expenses for
2015-16 and 2016-17. In 2017-18 and thereafter, the award
will be reduced to $8,056 annually.
13)Requires funds appropriated to the board of governors for the
Foster Care Education Program to be used for foster parent and
relative/kinship care provider education as specified by the
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chancellor, in consultation with an advisory committee.
Specifies that each college receiving funds for this program
shall have a plan for foster parent and relative/kinship care
provider education that includes provisions of training, and
comply with all reporting requirements, guidelines and other
conditions specified by the chancellor.
14)Codifies various reporting requirements for the Student
Success and Basic Skills Students program, the Student
Financial Aid Administration program, technical assistance
provided to community college districts pursuant the Student
Success and Support Program, and the Telecommunications and
Technology program. Requires the Chancellor to annually
submit reports for the prior fiscal year to the Department of
Finance and the Legislature by December 31.
15)Authorizes the chancellor's office to adjust the general
apportionment formula to recognize funds appropriated to
address increased operating costs and to improve instruction.
Further, this section authorizes the Chancellor's Office to
make conforming adjustments to the community college budgetary
standards and criteria, and requires the chancellor to notify
the Department of Finance and the Legislature of the specific
adjustments made.
16)Provides the Department of Finance the authority to modify
and update Proposition 98 General Fund appropriations to
California Community Colleges based on updated revenue
estimates for redevelopment agencies and Education Protection
Account (Proposition 30 of 2012). Proposition 98 General
Funds would be used to offset any difference between a)
estimated revenues for community colleges from redevelopment
agencies and the Education Protection Account (Proposition 30)
and b) the amounts distributed to colleges from these sources
by June 30. This change will allow districts to have more
certainty when preparing their fiscal plans.
17)Extends the sunset date for the Career Technical Education
Pathways Program from June 30, 2015, to July 1, 2016, and
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appropriates $48 million one-time Proposition 98 funds for the
program.
18)Increases the number of competitive Cal Grants by 3,250
awards for a total of 25,750 awards. Eligibility for
Competitive Cal Grant awards is geared toward nontraditional
students who did not go to college right after high school, do
not depend on their family for financial support or are
returning to college for career training.
19)Provides $6 million to the Chancellor's Office to implement
Baccalaureate Pilot Program established pursuant to SB 850
(Block), Chapter 747, Statutes of 2014. These funds may be
used to support professional development activities.
20)Provides $1 million from the General Fund to establish and
implement a new freshman eligibility study pursuant to
legislation enacted in 2015-16 to determine if admission
requirements at the University of California and California
State University are consistent with the state's 1960 Master
Plan for Higher Education.
21)Requires the Community College Chancellor's Office to report
to the California Apprenticeship Council within 30 days of
each apportionment period information regarding the hourly
rate paid to local educational agencies and community
colleges, and the number of instruction hours allocated to and
reported by each local educational agency and community
college.
22)Requires the Community College Chancellor's Office to notify
local education agencies and community colleges of upcoming
allocation amounts within 30 days of the enactment of the
Budget Act.
23)Allows the Community College Chancellor's Office to work with
the Division of Apprenticeship Standards to develop and
implement innovative apprenticeship programs in high-growth
industries.
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24)Creates the Basic Skills and Student Outcomes Transformation
Program, which will provide $60 million Proposition 98 General
Fund to assist community college districts in improving the
delivery of basic skills instruction.
25)Requires the Legislative Analyst's Office to study and report
on whether there is a long-term need for a new California
State University or UC campus, and if there is a need, where
campuses would be needed.
26)Amends SB 174 (De León), Chapter 363, Statutes of 2014, and
SB 798 (De León), Chapter 367, Statutes of 2014, which allows
taxpayers, upon receipt of the California Educational
Facilities Authority's certification, to receive an income or
franchise tax credit for a specified percentage of cash
contributions made to the College Access Tax Credit Fund
(Fund) for the purposes of increasing the Cal Grant B access
award. Amendments add a new College Access Tax Credit for one
year, tax year 2017 under the Insurance Gross Premiums Tax and
Corporation Tax, adds the College Access Tax Credit to the
list of tax credits that can reduce the Tentative Minimum Tax
under the Alternative Minimum Tax calculations for Personal
Income and Corporation Tax, continuously appropriates the Fund
to the California Student Aid Commission to award supplemental
Cal Grants, and other technical changes.
Analysis Prepared by:
Mark Martin / BUDGET / (916) 319-2099 FN:
0000971
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