Amended in Senate April 5, 2016

Senate Bill No. 1460

Introduced by Senator Leno

February 19, 2016

An act to amend Section 84750.6 of the Education Code, relating to community colleges.

LEGISLATIVE COUNSEL’S DIGEST

SB 1460, as amended, Leno. Community begin delete Colleges: end delete begin insert colleges: end insert funding: San Francisco Community College District.

Existing law requires the Board of Governors of the California Community Colleges to provide the San Francisco Community College District with certain revenues in the 2014-15, 2015-16, and 2016-17 fiscal years if the number of full-time equivalent students (FTES) of the community college district decreases from the 2012-13 fiscal year and certain conditions are satisfied, including that the board of governors finds the community college district or one of its campuses is in imminent jeopardy of losing its accreditation.

This bill would begin delete require the board of governors, for the 2017-18, 2018-19, and 2019-20 fiscal years to provide to the San Francisco Community College District a revenue adjustment for the restoration of the reduction in apportionments, as specified. end delete begin insert provide that for 3 fiscal years beginning with the 2017-18 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES if there is a subsequent increase in FTES. end insert

This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco Community College District.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 84750.6 of the Education Code is
amended to read:

84750.6.  

(a) Notwithstanding Section 84750.5, the board of
governors shall provide the San Francisco Community College
District with revenues, as specified in subdivision (b), if, on the
effective date of the act that adds this section, both of the following
conditions are satisfied:

(1) The board of governors finds that the community college
district or a campus of the community college district is in
imminent jeopardy of losing its accreditation.

(2) The board of governors has exercised its authority pursuant
to Section 84040 of this code and Section 58312 of Title 5 of the
California Code of Regulations as that regulation read on April
15, 2014.

(b) If the number of full-time equivalent students (FTES) of the
community college district decreases from the number in the
2012-13 fiscal year, the board of governors shall provide revenues
to the community college district, as follows:

(1) For the 2014-15 fiscal year, an amount not less than the
total amount that the community college district would receive if
the level of attendance of FTES was the same level of attendance
as in the 2012-13 fiscal year.

(2) For the 2015-16 fiscal year, an amount not less than 95
percent of the total amount that the community college district
would receive if the level of attendance of FTES was the same
level of attendance as in the 2012-13 fiscal year.

(3) (A)   For the 2016-17 fiscal year, an amount not less than 90
percent of the total amount that the community college district
would receive if the level of attendance of FTES was the same
level of attendance as in the 2012-13 fiscal year.

(B) Funds shall be provided under this paragraph only if the
Fiscal Crisis Management Assistance Team makes a finding no
sooner than April 1, 2016, that the San Francisco Community
College District is meeting or exceeding all of the following
benchmarks:

(i) Effective fiscal controls and systems are in place.

(ii) The City College of San Francisco has, and is adhering to,
prudent fiscal policies and practices, as corroborated by an analysis
of multiyear projections of no less than three fiscal years
commencing with the 2016-17 fiscal year.

(iii) The City College of San Francisco is applying resources
in accordance with a budget plan approved by the special trustee.

(iv) The City College of San Francisco is maintaining
appropriate fiscal reserves.

(v) The City College of San Francisco has, and is adhering to,
a viable plan to address long-term liabilities including, but not
necessarily limited to, “other postemployment benefits,” as that
term is used in accordance with generally accepted accounting
principles defined by the Governmental Accounting Standards
Board as of April 15, 2014.

(c) The amounts calculated in paragraphs (1) to (3), inclusive,
of subdivision (b) shall be adjusted by the chancellor to reflect
cost-of-living adjustments, deficits in apportionments, or both, as
appropriate for the applicable fiscal years.

(d) Subdivision (b) shall only be used to determine the
apportionment funding to be allocated to the San Francisco
Community College District. In computing statewide entitlements
to funding based upon the attendance of FTES, the San Francisco
Community College District shall not be credited with more FTES
than were actually enrolled and in attendance.

(e) Subdivision (b) shall only be operative for a fiscal year in
which the San Francisco Community College District is in
compliance with Section 51016 of Title 5 of the California Code
of Regulations as that regulation read on April 15, 2014.

(f)    It is the intent of the Legislature that any amounts necessary
to make the apportionments required pursuant to subdivision (b)
be drawn from the state general apportionment revenues for
community college districts.

(g) (1) The Chancellor of the City College of San Francisco
shall submit all of the following to the appropriate policy and fiscal
committees of the Legislature, the office of the Governor, the
Legislative Analyst’s Office, and the Department of Finance on
or before April 15, 2015:

(A) An overview of the college’s current accreditation status,
including a description of any identified accreditation deficiencies
and activities underway to address those deficiencies.

(B) Enrollment totals for the current and prior years.

(C) Updated enrollment projections for the two subsequent fiscal
years.

(D) The number of course sections offered in the current and
prior fiscal years.

(E) A thorough explanation of the district’s level of budgetary
reserves and sources of revenue.

(F) A thorough multiyear budget plan that explains, at a
minimum, both revenue sources and areas of expenditure.

(2) The Chancellor of the City College of San Francisco shall
submit updates to the report submitted under paragraph (1) on or
before the following dates:

(A) October 15, 2015.

(B) April 15, 2016.

(C) October 15, 2016, but only if funding is provided pursuant
to paragraph (3) of subdivision (b).

(D) April 15, 2017, but only if funding is provided pursuant to
paragraph (3) of subdivision (b).

begin delete

(h) Notwithstanding any other law, for the 2017-18, 2018-19,
and 2019-20 fiscal years, the board of governors shall provide the
San Francisco Community College District with a revenue
adjustment for restoration of apportionment revenue pursuant to
subparagraph (C) of paragraph (6) of subdivision (d) of Section
84750.5.

end delete begin insert

(h) For three fiscal years beginning in the 2017-18 fiscal year,
the San Francisco Community College District shall be entitled
to restoration of any reduction in apportionment revenue due to
decreases in FTES, up to the level of attendance of FTES funded
in the 2012-13 fiscal year, if there is a subsequent increase in
FTES.

end insert

SEC. 2.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique accreditation and fiscal
challenges facing the San Francisco Community College District.