BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Tom Torlakson, Chairman
139 (Scott)
Hearing Date: 05/14/07 Amended: 05/02/07
Consultant: Dan Troy Policy Vote: ED 6-1, Health 10-0
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BILL SUMMARY: SB 139 would provide that the statutory
expansion of enrollment for specified nursing programs
administered by California State University (CSU) and the
University of California (UC) be funded within the general
enrollment growth funding provided for in the annual budget
process; would make various clarifications and adjustments
concerning eligibility to the terms of the State Nursing
Assumption Program of Loans for Education (SNAPLE) and the
Nurses in State Facilities Assumption Program of Loans for
Education (SNAPLE-SF); would require campuses of the CSU and the
California Community Colleges (CCC) that offer registered
nursing programs from authorizing students in those programs to
complete general education coursework if they have already
earned a baccalaureate degree. This bill would also require the
Office of Statewide Health Planning and Development to establish
a health care workforce data clearinghouse to be funded through
the California Health Data and Planning Fund.
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Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09 2009-10 Fund
Health workforce $2,200 startup and $1,500 ongoing
costSpecial
database
SNAPLE increased Minor, unknown cost pressure General
eligibility
SNAPLE-SF reduced Minor, unknown savings General
eligibility
UC/CSU reduced Minor, unknown savings General
general education
coursework
CSU absorbed $4,300 annually General
nursing FTE growth
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Staff notes that the enrollment growth for CSU and UC is a
controversial topic. Pursuant to an agreement (the "Compact")
reached by the Governor UC, and CSU, funding for enrollment
growth proposed by the Administration for the annual Budget Act
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SB 139 (Scott)
is limited to a fixed percentage through the 2010-11 fiscal
year. Further, recent
legislation has attempted to address a perceived shortage of
nurses by requiring the segments to increase FTEs enrolled in
nursing programs.
By requiring CSU and UC to meet required units of enrollment in
registered nursing programs within the amount of growth normally
appropriated in the Budget Act, this bill may put pressure on
these entities to reduce the provision or quality of services
provided for other instructional activities, unless the
Legislature, which is not a party to the Compact, chooses to
appropriate additional growth funding. CSU may have particular
difficulty absorbing the nursing FTEs, as its enrollment is
already oversubscribed by 6,000 FTEs, and nursing student FTEs
are more costly to educate than are average FTEs. CSU estimates
the cost of funding the required 340 nursing FTEs at $4.3
million, annually. It is also noted that clearer admission
deadlines in the past may have mitigated this problem.
Current law authorizes the SNAPLE program which provides for
postsecondary students to receive a conditional warrant for loan
assumption, to be redeemed upon obtaining employment as
full-time nursing faculty member at a California college or
university. Recipients may have up to $25,000 of the student
loans covered over 3 years if they meet certain requirements.
This bill would clarify that applicants that have already
completed a baccalaureate or graduate degree are eligible for
the program. This will result in pressure to expand the program
funding.
Current law also authorizes the SNAPLE-SF program which allows
the state to issue agreements for loan assumptions to persons
who fulfill agreements to work full-time for at least 4
consecutive years as a clinical registered nurse in a
state-operated 24-hour facility that employs registered nurses
and that has a clinical registered nurse vacancy rate of greater
than 10 percent. A participant can receive up to $5,000 annually
for 4 consecutive years towards outstanding student loans for a
total loan assumption of up to $20,000. This bill would provide
that a candidate may be eligible if they have already completed
a nursing program. This bill would provide that a person
currently employed in such a facility is not eligible for
SNAPLE-SF, but can be eligible for SNAPLE. By reducing
eligibility, this provision could result in potential savings.
This bill also provides that loans assumed through SNAPLE-SF
would be limited by appropriations through the annual Budget
Act.
Staff notes that the Office of Statewide Health Planning and
Development indicates that sufficient funds are available in the
specified fund to establish the data clearinghouse.
Prohibiting UC and CSU from requiring participants in nursing
programs who have already earned a baccalaureate to take general
education courses may result in minor savings.