BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 412| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 412 Author: Glazer (D) and De León (D), et al. Amended: 8/19/16 Vote: 21 PRIOR VOTES NOT RELEVANT SENATE EDUCATION COMMITTEE: 9-0, 8/26/16 (Pursuant to Senate Rule 29.10) AYES: Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan, Vidak ASSEMBLY FLOOR: 78-0, 8/23/16 - See last page for vote SUBJECT: Public postsecondary education: The California Promise SOURCE: Author DIGEST: 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. Assembly Amendments replace the Senate version of the bill relative to the biotechnology industry with provisions dealing with student support for degree completion of a baccalaureate degree within four years. SB 412 Page 2 ANALYSIS: 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) 2) Requires the CSU and each 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) SB 412 Page 3 This bill: 1) Establishes the California Promise for the purposes of supporting 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 ADT from a CCC. 3) Requires the Trustees of the CSU to: a) Develop and implement a California Promise program that: 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. SB 412 Page 4 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, as specified. 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 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 a SB 412 Page 5 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 be a California resident for purposes of in-state tuition eligibility and 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 ADT 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: SB 412 Page 6 a) Completion of at least 30 semester units, or the quarter equivalent, in each prior academic year. 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. Comments 1) Need for the bill. According to the author, this bill is intended to address the CSU's 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, the Senate Education 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 SB 412 Page 7 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 CCC and required 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 ADT. In addition, this bill requires a greater number of programs (20) to be developed by the CSU. 3) Is there a problem? In its March 2016 report on State Performance Measures for the 2014-15 academic year, the 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 SB 412 Page 8 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 completion goals that include, among other things, increasing the four-year graduation rate for first-time freshmen to 24 percent and increasing the two-year graduation rate for transfer students to 35 percent. The strategies employed by the Chancellor's Office and campuses to achieve these goals include, among other things, reducing the number of units required to earn a BA/BS degree, hiring more tenure track faculty and academic advisors, and expanding the ADT program. 5) 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, CSU San Bernardino has one of the larger programs with 620 participants, but that number represents less than four percent of the undergraduate student population. The CSU reports that several campuses have discontinued similar types of programs because of low student SB 412 Page 9 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. 6) 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Appropriations Committee, this bill will impose the following costs: 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 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 SB 412 Page 10 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: (Verified8/26/16) None received OPPOSITION: (Verified8/26/16) None received ASSEMBLY FLOOR: 78-0, 8/23/16 AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Travis Allen, Gray Prepared by:Olgalilia Ramirez / ED. / (916) 651-4105 8/26/16 15:11:33 **** END **** SB 412 Page 11