BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:             SB 1450            
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          |Author:    |Glazer                                               |
          |-----------+-----------------------------------------------------|
          |Version:   |April 12, 2016                             Hearing   |
          |           |Date:     April 20, 2016                             |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Kathleen Chavira                                     |
          |           |                                                     |
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          Subject:  The California Promise


            SUMMARY
          
          This bill requires the California State University Board of  
          Trustees and the Community College Board of Governors to develop  
          and implement a program that authorizes a campus to enter into a  
          pledge with qualifying students, as defined, to support  
          completion of an associate degree within two years and a  
          baccalaureate degree within four years, and outlines the  
          requirements which may be included in such a program.
            
          BACKGROUND
          
          Current law established the Student Success Act, which applies  
          to all community college students, for the purpose of increasing  
          student access and success by providing effective core  
          matriculation services, including orientation, assessment and  
          placement, counseling and other education planning services and  
          academic interventions.  Community colleges have the  
          responsibility to provide student services and support,  
          including orientation, assessment, counseling and education  
          planning, referral to specialized support services, and  
          evaluation of each student's progress and referral to  
          appropriate interventions.  Students have the responsibility to  
          identify an academic and career goal, declare a specific course  
          of study, be diligent in class attendance and completion of  
          assigned coursework, and complete courses and maintain academic  
          progress toward an educational goal.  (Education Code §  







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          78210-78219; 5 California Code of Regulations § 55500-55534)

          Current law requires the California State University (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.  (Education Code § 66025.8)

          Current law also requires the CSU and each CCC district, and  
          requests of 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)
          Existing law establishes the Community College Extended  
          Opportunity Program & Services (EOPS) to extend opportunities  
          for community college education to all who may profit regardless  
          of economic, social and educational status, and to encourage  
          local community colleges to identify students affected by  
          economic, language, and social disadvantages and encourage their  
          enrollment and achievement of their educational objectives and  
          goals.  Existing law also authorizes local community college  
          governing boards to provide services that may include loans or  
          grants for living costs, student fees, and transportation costs  
          and also scholarships, work-experience and job placement  
          programs.  (EC § 69640 - § 69656)

          Current law requires each California Community College (CCC)  
          district that administers a priority enrollment system for  
          registration to grant priority registration for enrollment to  
          students in the EOPS program and to disabled students, as  
          specified, and repeals these provisions on January 1, 2017.  (EC  
          § 66025.91)

            ANALYSIS
          








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          This bill requires the California State University (CSU)  
          Trustees and the CCC Board of Governors (BOG) to develop and  
          implement a California Promise program at one or more of their  
          respective campuses and to authorize campuses to participate in  
          the program subject to compliance with the bill's provisions.   
          Specifically it:

          1)   Requires authorization of a campus to enter a pledge with a  
               "qualifying student" to support the student in obtaining an  
               associate degree within two academic years and a  
               baccalaureate degree within four academic years, as  
               specified, and outlines the following elements of the  
               program: 

                    a)             Requires a qualifying student to be a  
                    California resident for purposes of in-state tuition  
                    eligibility and to complete at least 30 semester units  
                    per academic year, including summer term units, as  
                    specified.

                    b)             Authorizes the participating campus to  
                    provide qualifying students with priority registration  
                    in coursework and academic advising that includes  
                    monitoring the student's academic progress.

                    c)             Requires the Trustees and the BOG to  
                    develop application criteria, administrative  
                    guidelines and additional requirements for purposes of  
                    implementing and administering the program and  
                    specifically authorizes the inclusion of a requirement  
                    that the student maintain a campus determined minimum  
                    grade point average.

          2)   Establishes various requirements regarding systemwide fees  
               for California Promise students at the CSU.  Specifically  
               it:

                    a)             Prohibits a participating CSU student  
                    from being charged systemwide tuition in excess of the  
                    tuition charged to the student as an entering freshman  
                    at the CSU.

                    b)             Prohibits a participating transfer  
                    student who successfully received an associate degree  








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                    within two academic years at the CCC from being  
                    charged systemwide tuition in excess of the tuition  
                    that would have been charged to the student at the  
                    California State University (CSU) at the time the  
                    student began the two year associate degree program. 

                    c)             Requires all other participating  
                    community college transfer students from being charged  
                    systemwide tuition in excess of the tuition charged to  
                    the student when admitted to the CSU as a transfer  
                    student.

                    d)             Declares the Legislature's intent to  
                    appropriate money from the General Fund to the  
                    Trustees for the purpose of compensating the CSU for  
                    the systemwide tuition not charged to these students. 

          3)   Requires that the CSU and the California Community College  
               (CCC) waive systemwide tuition or fees for a participating  
               student unable to complete their associate degree or their  
               baccalaureate degree, as applicable, within the required  
               time because courses for the degree program are not offered  
               or are full at the campus, once the course or a substitute  
               course becomes available.

          4)   Requires that the trustees and board of governors make  
               every effort to close the achievement gap and encourage  
               broad participation that reflects a participating campus'  
               demographics. 

          STAFF COMMENTS
          
          1)   Need for the bill.  According to the author, this bill is  
               intended to address the 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.  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, enhanced academic advising, and tuition  
               freezes.  In addition, this bill would grant tuition  
               waivers if students were unable to complete a degree within  








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               the required time frame due to unavailability of courses.   
               The bill would impose these same requirements on the  
               community colleges as well. 

          2)   Student Success at the Community Colleges.  Pursuant to  
               Senate Bill 1143 (Liu, Chapter 409, Statutes of 2010), the  
               Board of Governors of the California Community Colleges  
               created the Student Success Task Force (SSTF); 20  
               individuals (community college chief executive officers,  
               faculty, students, researchers, staff and external stake  
               holders) who spent a year researching, studying and  
               debating the best methods to improve student outcomes at  
               the community colleges. 

               According to the SSTF report, which was unanimously adopted  
               by the Board of Governors in January 2012, it was their  
               goal to identify best practices for promoting student  
               success and to develop statewide strategies to take these  
               approaches to scale while ensuring that educational  
               opportunity for historically underrepresented students  
               would not just be maintained, but bolstered. 

               The Student Success Task Force (SSTF efforts resulted in 22  
               specific recommendations focused on the following eight  
               areas: 

               a)        Increasing college and career readiness.

               b)        Strengthening support for entering students.

               c)        Incentivizing successful student behaviors.

               d)        Aligning course offerings to meet student needs.

               e)        Improving education of basic skills students.

               f)        Revitalizing and re-envisioning professional  
                    development.

               g)        Enabling efficient statewide leadership and  
                    increase coordination among colleges.

               h)        Aligning resources with student success  
                    recommendations.








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               Implementation of these recommendations is being  
               accomplished by the Chancellor's Office of the California  
               Community Colleges via the "Student Success Initiative"  
               through regulatory changes, system-wide administrative  
               policies, local best practices and legislation. These  
               implementation efforts include the following:

               a)        SB 1456 (Lowenthal, Chapter 624, Statutes of  
                    2013) recast the Seymour-Campbell Matriculation Act of  
                    1986 in order to target funding to services such as  
                    orientation, assessment, and counseling and advising  
                    to assist students with the development of education  
                    plans.  It also required that students define goals,  
                    required that students declare a course of study and  
                    mandated student participation in assessment,  
                    orientation and education planning.

               b)        At a regulatory level, the Board of Governors  
                    approved regulations that provide enrollment priority  
                    to students who have participated in assessment,  
                    orientation, and who have developed an education plan.  
                     In addition, statutory priority enrollment extended  
                    to veterans, foster youth, Extended Opportunity  
                    Program & Services students, and disabled students  
                    requires participation in these Student Success  
                    Services and programs.  Students are now required to  
                    complete core services as well as to declare a course  
                    of study. In addition, districts are now required to  
                    notify students that accumulating 100 degree  
                    applicable units or being on academic or progress  
                    probation for two consecutive terms will result in the  
                    loss of enrollment priority.  

               c)        Since 2012, the State has increased ongoing  
                    funding for community college student success and  
                    support by nearly $600 Million. These funds have been  
                    designated to support the Student Services Support  
                    Program (SSSP) established by SB 1456 (Lowenthal) to  
                    provide targeted services such as orientation,  
                    assessment, and counseling and advising to assist  
                    students with the development of education plans.  In  
                    addition these funds support the creation of Student  
                    Equity Plans to improve access and outcomes for  








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                    disadvantaged groups, as well as a number of  
                    Chancellor's Office Initiatives to provide related  
                    support to districts.  

               In February 2016, this Committee held an informational  
               hearing, California's Community Colleges: Implementation of  
               Student Success where the committee received an update on  
               the use of these funds, the progress made in implementing  
               student success strategies both systemwide and at the  
               campus level, and heard preliminary reports on student  
               outcomes.  

               This bill would layer a new program of priority enrollment  
               and tuition freezes unrelated to the extensive efforts and  
               funding that have been provided to support the 6-year  
               effort to develop and fund statewide strategies to improve  
               completion at the community colleges and incentivize  
               successful student behaviors.  
               
               Staff recommends the bill be amended to eliminate the  
               community colleges from the provisions of the bill. 

          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  








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          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.

                  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.








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                  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  
                    (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  








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               change their major.  

               None of the existing programs offer a tuition freeze.  Only  
               Cal State San Bernardino waives fees for students who were  
               unable to graduate within four years due to class  
               availability.  

          2)   Non-need based financial aid.  This bill imposes tuition  
               freezes for California Promise program participants, as  
               specified. Since the Cal Grant and State University Grants  
               would cover any increase in CSU systemwide fees for a  
               student that meets income and asset requirements, tuition  
               freezes would primarily benefit students ineligible for  
               these tuition aid programs.  

               Traditionally, this Committee has supported need-based  
               financial aid.  Aside from the complexity of administering  
               tuition freezes across multiple program years, this bill  
               could result in subsidizing tuition costs for students  
               regardless of their financial need.  Absent funding from  
               other sources, it could result in even greater increases in  
               tuition costs for students with greater financial need who  
               are unable to meet the requirements of the program due to  
               work requirements, academic preparedness issues, or other  
               mitigating circumstances.     

               Staff recommends the tuition freeze provisions be deleted  
               from the bill.  

          3)   Unintended consequences?   This bill was recently amended  
               to require the governing bodies of the two systems to make  
               every effort to close the achievement gap and encourage  
               broad participation in the program that reflects a  
               participating campus' demographics.  

               According to the CSU, 59 percent of entering freshmen in  
               Fall 2015 needed remediation.  Only 50 percent of  
               Hispanic/Latino admits entered academically prepared and 22  
               percent of these students needed additional preparation in  
               both English and Math.  For Black/African American  
               students, only 42 percent were prepared in math and  
               English, while 29 percent required additional preparation  
               in both.  For white students, 82 percent of students  
                                      entered prepared in both subjects and only 5 percent of  








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               these students required additional preparation in English  
               and math. 

               This bill requires a California Promise program student to  
               complete 30 units per academic year and maintain minimum  
               grade point average requirements.  In exchange the campus  
               would provide priority registration and enhanced academic  
               advising.  



               The Committee may wish to consider:

                           Could the large population of ethnically  
                    diverse students needing remediation successfully  
                    participate in such a program? 

                           Could this bill result in the redirection of  
                    advising and support services away from the students  
                    who arguably need it most? 

                           Notwithstanding the intent, could this bill  
                    have the unintended effect of exacerbating the  
                    achievement gap between academically prepared students  
                    and underrepresented students? 

          1)   Backfill?  This bill declares the intent of the Legislature  
               to appropriate monies from the General Fund to compensate  
               for systemwide tuition not charged to students in the  
               program created by the bill's provisions.  Current law  
               provides for a number of mandatory fee waivers, including,  
               fee waivers for dependent survivors of law enforcement or  
               fire suppression officers killed in the line of duty,  
               dependents of deceased or disabled veteran, survivors of  
               persons killed in the September 11, 2001 terrorist attacks,  
               and certain non-resident fees are waived for AB 540  
               students, students who are victims of trafficking, or other  
               serious crimes, and certain veterans.  The Legislature does  
               not currently appropriate monies to compensate the  
               California State University (CSU) for the loss of fee  
               revenue from any of these waivers.  According to the CSU's  
               most recent report on institutional financial aid awarded  
               (2016), the aggregate cost of these fee waivers was more  
               than $68 million.   








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               Is backfilling the loss of tuition revenue for the program  
               proposed by this bill a higher priority than backfilling  
               for other tuition waiver programs?  Would backfilling for  
               this program create pressure to backfill for revenue loss  
               from other waiver programs?  What would be the cumulative  
               fiscal effect?

          2)   Similar legislation.  This bill is intended to incentivize  
               completion of a degree program within four years.  Similar  
               legislation to improve completion has been considered by  
               this Committee, including: 

               SB 15 (Block), among other things, establishes a Graduation  
          Incentive Grant 
               (GIG) program for CSU undergraduate students to incentivize  
               timely degree completion.  The GIG would provide up to  
               $4,500 in grant award for students who meet annual unit  
               completion requirements and demonstrate financial need, as  
               specified, as they move to complete their degree programs  
               within four years. SB 15 was heard and unanimously passed  
               by this Committee in May 2015, and is currently awaiting  
               action in the Assembly Higher Education Committee. 

               SB 1417 (Galgiani) requires the CSU, and requests the  
               University of California, to develop and implement a $2500  
               loan forgiveness grant for students who are California  
               residents, and for students eligible for resident tuition  
               under the provisions of AB 540, if they complete their  
               degree within four years.  SB 1417 was heard and passed in  
               this Committee by a vote of 6-1, and is currently awaiting  
               action in the Senate Appropriations Committee. 

            SUPPORT
          
          African American Farmers of California
          California Citrus Mutual
          California Cotton Ginners and Growers Association
          California Dairies, Inc.
          California Fresh Fruit Association
          California Rice Commission
          California Tomato Growers Association
          Nisei Farmers League
          Western Agricultural Processors Association








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          Western Plant Health Association

            OPPOSITION
           
           None received on this version.


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