BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 412              
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          |Author:    |Glazer and De León                                   |
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          |Version:   |August 19, 2016                         Hearing      |
          |           |date:    August 26, 2016                             |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Olgalilia Ramirez                                    |
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          Subject:  Public postsecondary education:  The California  
          Promise


            SUMMARY
          
          This bill requires the California State University Board of  
          Trustees to develop and implement a program that authorizes a  
          campus to enter into a pledge with qualifying students, as  
          defined, to support completion of a baccalaureate degree within  
          four years or for transfer students within two years, and  
          outlines the requirements which may be included in such a  
          program. 

            BACKGROUND
          
          Existing law:

          1)   Establishes the Student Transfer Achievement Reform Act and  
               requires 
          California Community College (CCC) districts to develop and  
          grant an Associate Degree for Transfer (ADT) that deems the  
          student eligible for transfer into the California State  
          University (CSU), when the student meets specified course  
          requirements (Education Code (EC) Section 66746).  The CSU is  
          required to guarantee admission with junior status to any  
          community college student who meets specified requirements, but  
          provides that the student is not guaranteed admission for  
          specific majors or campuses.  (Education Code § 66747)








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          2)   Requires the CSU and each California Community College  
               (CCC) district, and requests the University of California  
               (UC) to give priority for registration for enrollment to  
               any member or former member of the Armed Forces, as  
               defined, who is a resident of California and who has  
               received an honorable discharge, a general discharge, or an  
               other than honorable discharge for any academic term  
               attended at one of these institutions within four years of  
               leaving state or federal active duty, if the institution  
               already administers a priority enrollment system. Current  
               law further requires that the veteran use this benefit  
               within 15 years of leaving state or federal active duty and  
               requires that these students comply with student  
               responsibilities established by the Student Success Act of  
               2012.  
          (EC § 66025.8)

          3)   Requires the CSU and each CCC district, and requests the  
               UC, to grant priority enrollment, if the institution  
               already administers a priority enrollment system for  
               registration, to any current or former foster youth, and  
               repeals these provisions on January 1, 2017.  (EC §  
               66025.9)

            ANALYSIS
          
          This bill:

          1)   Establishes the California Promise for the purposes of  
               supporting California State University (CSU) students in  
               earning a baccalaureate degree within four academic years  
               of the student's first year of enrollment or for transfer  
               students within two academic years of the student's first  
               year of enrollment to the campus. 

          2)   Defines various terms for the purpose of this bill  
               including, "transfer student," to mean a student who earned  
               an Associate Degree for Transfer from a California  
               Community College (CCC). 

          3)   Requires the Trustees of the CSU to:

               a)        Develop and implement a California Promise  
               program that:








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                    i)             Ensures, commencing with the 2017-18  
                  academic year, a minimum 
                         of eight campuses have established a California  
                    Promise program 
                         by which the campus enters into a pledge with a  
                    first-time freshman 
                         student to support the student in obtaining a  
                    baccalaureate degree 
                         within four academic years.

                    ii)            Ensures, commencing with the 2017-18  
                  academic year, a minimum 
                         of 15 campuses have established a California  
                         Promise program by which the campus enters into a  
                         pledge with a qualifying transfer student to  
                         support the student in obtaining a baccalaureate  
                         degree program within two academic years. 

                    iii)           Increases, commencing with the 2018-19  
                  academic year, to a total 
                         of 20 campuses, the number of transfer student  
                    Promise programs.

               b)        Develop application criteria, administrative  
               guidelines, and additional 
                    requirements, including how campuses will measure  
                    student success, for purposes of implementing and  
                    administering the California Promise program.

               c)        Make every effort to close the achievement gap  
               and encourage broad 
                    participation in a California Promise program that  
                    reflects the demographic populations served by the  
                    campus. 

               d)        Take into consideration the report on graduation  
               rates required pursuant 
               to the Budget Act of 2016.

               e)        Submit a report to Legislative policy and fiscal  
               committees by January 1, 
                    2021 that includes:









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                           i)                  The number of students  
                         participating in the program in 
                         total, by campus and disaggregated based on:  
                    whether the student 
                         entered as a first-time freshman or a transfer  
                    student; whether the 
                         student is a first-generation college student;  
                    whether the student is 
                         a recipient of financial aid under the Federal  
                    Pell Grant Program or 
                         the Cal Grant Program and; according to the  
                    student's ethnicity.

                    ii)            The total number of students who  
                  graduated in four academic years 
                         for students who entered as first-time freshman  
                         and two academic years, for California Community  
                         College (CCC) transfer students, in total, by  
                         campus, and disaggregated based on the  
                         aforementioned characteristics.

                    iii)           A summary description of significant  
                  differences in the 
                         implementation of the California Promise program  
                    at each campus. 

               f)        Submit recommendations to the appropriate policy  
               and fiscal committees 
                    of the Legislature, by March 15, 2017, regarding  
                    potential financial incentives that could benefit  
                    students who participate in the California Promise  
                    program.

          4)   Requires each College Promise program to be reviewed by a  
               graduation initiative advisory committee of the campus or a  
               committee with similar functions designated by the  
               president of the campus. 

          5)   Requires support provided by a California State University  
               (CSU) campus to a California Promise program student to  
               include, but not necessarily be limited to, both of the  
               following:

               a)        Priority registration in coursework provided that  








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               a student does not qualify 
                    for priority registration under another policy or  
                    program, as specified. The designated advisory  
                    committee is required to consider pre-existing  
                    priority registration policies upon implementing  
                    priority registration under the California Promise  
                    program. 

               b)        Academic advisement that includes monitoring  
               academic progress. 

          6)   Requires a student in order to qualify for the program to:

               a)        Be a California resident for purposes of in-state  
               tuition eligibility.

               b)        Commit to completing at least 30 semester units  
               or the quarter equivalent 
                    per academic year, including summer term units, as  
               specified.  

          7)   Requires a campus to guarantee participation in the program  
               to, at a minimum, any student who is a:

               a)        A low-income student, as defined. 


               b)        A student who has graduated from a high school  
               located in a community 
                    that is underrepresented in college attendance. 

               c)        A first-generation college student.

               d)        A transfer student who successfully completes his  
               or her associate degree 
                    for transfer at a community college.

          8)   Establishes as a condition of continued participation in a  
               California Promise program, as student may be required to  
               demonstrate both of the following:

               a)        Completion of at least 30 semester units, or the  
               quarter equivalent, in 
                    each prior academic year.








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               b)        Attainment of a grade point average in excess of  
               a standard established 
                    by the campus. 

          9)   Declares that it is the intent of Legislature to  
               accommodate as many students into the program as feasible  
               and in consideration of available funding. 

          10)  Sunsets the provisions of this bill on January 1, 2026.

          11)  Makes a number of related declarations and findings. 

          STAFF COMMENTS
          
          1)   Need for the bill.  According to the author, this bill is  
               intended to address the California State University's (CSU)  
               overall four-year graduation rate, which is well below the  
               national rate among similar public institutions. The  
               provisions of the bill are based on existing programs at  
               CSU campuses which the author asserts are effective in  
               improving four-year graduation rates and two-year  
               graduation rates for transfer students. This bill  
               establishes a program which, in exchange for a promise to  
               complete 30 units per year and maintain a grade point  
               average standard, would provide priority enrollment and  
               enhanced academic advising. 

          2)   Similar legislation.  On April 20, 2016 this Committee  
               heard a similar bill, SB 1450 (Glazer), which failed  
               passage, by a vote of 4-2.  Both SB 1450 and this bill  
               require the CSU to develop and implement a program that  
               authorizes a campus to enter into a pledge with qualifying  
               students to support completion of a baccalaureate degree  
               within four years and offer incentives to students in  
               exchange for participation in that program. 

               However, unlike this bill, SB 1450 established various  
               requirements regarding systemwide fees for California  
               Promise students at CSU, including freezing tuition and  
               granting tuition waivers if students were unable to  
               complete a degree within the required timeframe due to  
               unavailability of courses. SB 1450 also imposed these same  
               requirements on the community colleges (CCC) and required  








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               the CCC Board of Governors to establish the Promise program  
               as well. The CCC was removed from the scope of this bill  
               and instead requires CSU to ensure entry into a promise  
               program for any CCC student who transfers with an Associate  
               Degree for Transfer. In addition, this bill requires a  
               greater number of programs (20) to be developed by the  
               California State University (CSU). 

          3)   Is there a problem? In its March 2016 report on State  
               Performance Measures for the 2014-15 academic year, the  
               California State University (CSU) reports a cumulative  
               four-year graduation rate for all students of 19.1 percent  
               in 2011.  According to the 2015-16 Budget Analysis by the  
               Legislative Analyst's Office, CSU graduation rates have  
               been increasing, but while 6-year graduation rates are  
               similar to those of other large public masters  
               institutions, four-year rates are significantly lower, and  
               only 48 percent of first year students are on track to  
               graduate on time. 

               Aside from benefitting the state through increased access  
               and more efficient movement of students through the CSU  
               system, accelerating degree completion also reduces the  
               overall cost of higher education for students and families.  
                In The Real Cost of College: Time and Credits to Degree in  
               California,  the Campaign for College Opportunity reports  
               that every additional year of enrollment in college  
               increases the total cost by more than $26,000 in tuition,  
               fees, books, and living expenses, as well as more than  
               $22,000 in lost lifetime wages.  A CSU student who takes  
               six years to earn a bachelor's degree will spend an  
               additional $58,000 more on tuition, fees, books and other  
               expenses, and will earn $52,900 less, over his/her  
               lifetime, than someone who graduated in four years.  As a  
               result of these additional two years, this student would  
               incur $110,900 in extra expenses and lost wages.

          4)   Existing CSU goals/strategies.  In October 2014, the CSU  
               initiated "Graduation Initiative 2025", setting the  
               following completion goals:

                  a)        Increasing the 6-year graduation rate for  
                    first-time freshmen to 60 percent.









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                  b)        Increasing the four-year graduation rate for  
                    first-time freshmen to 24 percent.

                  c)        Increasing the four-year graduation rate for  
                    transfer students to 76 percent.

                  d)        Increasing the two-year graduation rate for  
                    transfer students to 35 percent.

                  e)        Closing the achievement gap for historically  
                    underrepresented students to seven percent and to five  
                    percent for low-income students

               The strategies employed by the Chancellor's Office and  
               campuses to achieve these goals include the following:

                  a)        Reducing the number of units required to earn  
                    a BA/BS degree (94 percent of BA/BS programs now  
                    require only 120 units).

                  b)        Expanding high impact practices including  
                    undergraduate research, service learning, internships  
                    and study abroad.

                  c)        Redesigning courses to incorporate technology  
                    to improve content retention.

                  d)        Expanding the Associate Degree for Transfer  
                    program.

                  e)        Expanding cohort-based learning communities.

                  f)        Expanding Summer Bridge and other transitional  
                    programs.

                  g)        Expanding the use of electronic academic  
                    advising tools to establish clear pathways to degrees  
                    and data analysis to improve student outcomes.

                  h)        Hiring more tenure track faculty and academic  
                    advisors.

                  i)        Expanding the number of CourseMatch course  
                    offerings to increase degree completion rates  








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                    (CourseMatch allows access to online courses offered  
                    at other California State University (CSU) campuses).

                  j)        Building relationships with community and  
                    business partners, community colleges and K-12 school  
                    districts to ensure students are prepared for college.

          1)   Existing programs?  According to the CSU, four of its  
               campuses currently have pledge programs (Fresno, San  
               Bernardino, Fullerton and Cal Poly Pomona) that are  
               generally consistent with what is proposed in the bill.   
               While the four-year graduation rates for program  
               participants are much higher than the undergraduate student  
               populations that do not participate in the programs,  
               attrition rates are also high (often times 50 percent or  
               more).  The Cal State Fullerton's Finish in Four Scholars  
               Program has had five cohorts of students that graduated  
               with four-year graduation rates that range from 30.4  
               percent to 45.5 percent.  The numbers of students in these  
               programs tend to be small.  For example, California State  
               University (CSU) San Bernardino has one of the larger  
               programs with 620 participants, but that number represents  
               less than 4 percent of the undergraduate student  
               population.  

               The CSU reports that several campuses have discontinued  
               similar types of programs because of low student  
               participation.  The CSU also noted that many students are  
               unable to participate in or continue with these programs  
               because they do no enter the CSU academically prepared, are  
               unable to maintain grade point average requirements, or  
               change their major.  

          2)   Priority registration.  This bill requires a CSU campus to  
               provide a California Promise program student with priority  
               registration in coursework provided that the student does  
               not qualify for priority registration under another policy  
               or program. In addition, the designated advisory committee  
               is required to consider pre-existing priority registration  
               policies upon implementing priority registration under the  
               California Promise program. It's unclear how these  
               provisions may be interrupted and applied considering the  
               number of students that are guaranteed participation in the  
               program under the provisions of the bill.  








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          3)   Fiscal impact.  According to the Assembly Committee on  
               Appropriations this bill would impose the following costs:

                           California State University (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 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]

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

            SUPPORT
          
          None received.

            OPPOSITION
           
           None received on this version.

                                      -- END --