BILL ANALYSIS Ó SB 412 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 412 (Glazer) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Rules |Vote:|11 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Higher Education | |13 - 0 | | | | | | | | | | | ----------------------------------------------------------------- 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: SB 412 Page 2 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 SB 412 Page 3 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] SB 412 Page 4 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 SB 412 Page 5 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