BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 412  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 412  
          (Glazer) - As Amended August 1, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill, until January 1, 2024, establishes a California  
          Promise program at the California State University (CSU) to  
          guarantee eligible students a baccalaureate degree within four  
          years of enrolling at CSU or within two years after transferring  
          to the CSU from a California Community College (CCC).  
          Specifically, this bill:










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          1)Requires, commencing in 2017-18, that at least 10 CSU campuses  
            establish a program to enter into a pledge with a qualifying  
            student, who is not a transfer student, to support the student  
            in obtaining a baccalaureate degree within four academic  
            years.


          2)Requires, commencing in 2017-18, that at least 15 CSU campuses  
            establish a program to enter into pledge with a qualifying  
            transfer student to support the student in obtaining a  
            baccalaureate degree within two academic years.


          3)Requires, commencing in 2018-19, that at least 20 campuses,  
            will have established the program per (2).


          4)States legislative intent that the Promise program at each  
            campus scale up gradually in order to accommodate as many  
            students as is feasible.


          5)Requires the support provided by a CSU campus to a student who  
            participates in the campus' California Promise program to  
            include, at least: 


             a)   Priority registration in coursework, as specified. 


             b)   Academic advisement that includes monitoring the  
               student's academic progress.


          6)Requires the CSU trustees to submit the following reports to  
            the Legislature:


             a)   By March 15, 2017, potential financial incentives to  








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               benefit students participating in the pledge programs.


             b)   By July 1, 2019, regarding outcomes for the first cohort  
               of students to participate in the two-year pledge program.


             c)   By July 1, 2021, regarding outcomes for the two-year and  
               four-year pledge programs.





          FISCAL EFFECT:


          CSU indicates that four campuses (Fresno, Fullerton, Cal Poly  
          Pomona, and San Bernardino) have four-year pledge programs  
          similar to what is proposed in this bill for incoming freshman.  
          Administrative costs to replicate this model at six additional  
          campuses would be in the range of $450,000 to $600,000 annually.  
          [General Fund]



          CSU also indicates that one of four campuses in the system that  
          has over 1,000 Associate Degree for Transfer (ADT) students (see  
          Comment #3, Prior Legislation) already has a two-year pledge  
          program serving these students. Costs for the two-year pledge  
          program at these four campuses will total $300,000 to $400,000  
          and for 16 additional campuses, with smaller numbers of ADT  
          students, will be between $300,000 and $800,000, for total costs  
          of $600,000 to $1.2 million for the two-year pledge programs.  
          [General Fund]












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          Costs for the legislative reports will be about $100,000.  
          [General Fund]





          COMMENTS:


          1)Purpose. According to the author, "despite the proven track  
            record as a leader in higher education, the CSU's four-year  
            graduation rate continues to lag behind the rest of the  
            nation.  According to the CSU, the most recent  
            nationally-comparable data shows their overall four-year  
            graduation rate was 16.2 percent for the Fall 2008 cohort of  
            first-time, full-time freshmen, well below the national rate  
            of 24.9 percent among similar public institutions.  The most  
            recent American Freshman Survey from the Higher Education  
            Research Institute at UCLA, which found that 84 percent of  
            freshmen entering public colleges expect to graduate in four  
            years, demonstrates the clear gap between expectation and  
            reality.  Finishing in four years saves students and their  
            families tens of thousands of dollars."


            The author believes the California Promise programs  
            established by this bill "will increase the CSU's four-year  
            graduation rate, lower cost and debt obligations of students  
            and their families, and will ensure the number of CSU degrees  
            is expanded to meet the needs of California employers."


          2)Recent Budget Action. The 2016 Budget Act appropriates $35  
            million in one-time funds to CSU, contingent on the system  
            setting targets for four-year and two-year graduation rates.  
            CSU is required to develop an action plan for the system and  
            for each campus by September 30, 2016.  The budget provides  








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            CSU with the flexibility to develop tailored plans for each  
            campus.


          3)Prior Legislation. SB 1440 (Padilla), Chapter 428, Statues of  
            2010, created the Student Transfer Achievement Reform Act, and  
            required the CCC to create two-year 60-unit ADTs that are  
            fully transferable to CSU. Though these students are not  
            guaranteed admission to a particular CSU campus or into a  
            particular degree program, SB 1440 gives them priority  
            admission to a CSU program that is "similar" to the student's  
            CCC major or area of emphasis, as determined by the CSU campus  
            to which the student is admitted. Once admitted, SB 1440  
            students need only complete two additional years (an  
            additional 60 units) of coursework to earn a bachelor's  
            degree.


            AB 2786 (Chavez) of 2016 and AB 2092 (Chávez) of 2014, which  
            mandated every CSU campus, and requested University of  
            California campuses, to establish four-year degree guarantees  
            with eligible students, were both held on this committee's  
            Suspense file.


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081