BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 218
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          Date of Hearing:   March 17, 2009

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                AB 218 (Portantino) - As Introduced:  February 3, 2009
          
          SUBJECT  :  Postsecondary education: Educational and Economic  
          Goals for California Higher Education.

           SUMMARY  :  Establishes a state accountability framework for the  
          purpose of biennially assessing the collective progress of the  
          state's system of postsecondary education in meeting specified  
          educational and economic goals.   Specifically,  this bill  : 

          1)Establishes principles to guide the development of the  
            framework. 

          2)Requires the framework be used to measure progress towards  
            specified goals by collecting and reporting information that  
            answers the following six statewide policy questions:

             a)   Are enough Californians prepared for postsecondary  
               education?

             b)   Are enough Californians going to college?

             c)   Is the state's postsecondary education system affordable  
               to all Californians?

             d)   Are enough Californians successfully completing  
               certificates and degrees?

             e)   Are college graduates prepared for life and work in  
               California?

             f)   Are California's people, communities, and economy  
               benefiting?

          3)Requires that the questions delineated in (2) be answered by  
            collecting a select number of indicators of progress, not to  
            exceed 30, and authorizes the collection of information to  
            respond to the 25 indicators delineated in this bill, which  
            can be modified in any year through provisional budget  
            language in the annual Budget Act.









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          4)Establishes the California Postsecondary Education Commission  
            (CPEC) as the central repository for collecting and  
            maintaining all data for the framework, as follows:

             a)   Requires the segments of higher education in California  
               to provide CPEC data, as specified;

             b)   Requires the segments, to the extent possible, to rely  
               upon existing data, information systems, reports, and  
               processes in providing the required data;

             c)   Requires the collection of the indicators of progress by  
               race, ethnicity, gender, Cal Grant recipient status, and  
               socioeconomic status to the extent available and to be  
               collected and maintained longitudinally where appropriate;  
               and,

             d)   Requires CPEC to make data available in a statewide  
               aggregate format by higher education segment and geographic  
               region.

          5)Requires the Legislative Analyst's Office (LAO) to convene and  
            chair a Technical Advisory Committee (TAC) to coordinate the  
            technical specifications of the indicator data, as follows: 

             a)   Specifies the representation on TAC to include  
               representatives from each segment, LAO, the Department of  
               Finance (DOF), up to three individuals with expertise in  
               similar state accountability efforts, and representatives  
               from any state agency that maintains data helpful in  
               responding to the statewide policy questions delineated in  
               this bill;  

             b)   Requires TAC to report its written findings and  
               recommendations to the Governor, Legislature, and DOF  
               Director by January 30, 2010; and,

             c)   Authorizes LAO to convene TAC, as necessary and make  
               recommendations, as needed, regarding modifications to the  
               indicators and goals set forth in this bill.

          6)Establishes a reporting process for the information collected  
            under the framework, as follows:

             a)   Requires CPEC, beginning August 1, 2010, and biennially  








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               thereafter, to provide the Legislature and DOF with a  
               summary report of information collected under the framework  
               and requires a copy of the report be made available to the  
               segments of higher education;

             b)   Requires LAO to provide, within 120 days, an analysis of  
               the data in the report by assessing progress on the six  
               questions, identifying factors explaining the level of  
               progress, and identifying policy and funding issues for  
               legislative consideration; and,

             c)   Requires LAO to present its analysis at a joint hearing  
               of the legislative education policy committees and the  
               appropriate budget subcommittees, to be convened by  
               December 30, 2010, and each odd-numbered year thereafter.

          7)Authorizes the governing boards of the public segments of  
            higher education and the association representing private and  
            independent universities [the Association of Independent  
            California Colleges and Universities (AICCU)] to provide  
            biennial reports as part of the accountability record and  
            requires the reports to include:

             a)   Each segment's priorities for the state's goal areas;

             b)   Major activities underway to address each priority;

             c)   Performance indicators used to track progress toward  
               each goal;

             d)   Major highlights or issues from the data that have  
               state-level significance;

             e)   Each segment's institutional goals for student learning  
               outcomes and their assessment and use of assessments to  
               improve learning; and,

             f)   A summary of activities undertaken to address: special  
               state needs, programs to assist elementary and secondary  
               students to meet placement and admission standards at each  
               segment, remediation efforts and outcomes, and efforts to  
               expand capacity to effectively and efficiently serve  
               students.

          8)Declares legislative intent that the University of California  








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            (UC), the California State University (CSU), the California  
            Community Colleges (CCC), and the private and independent  
            colleges and universities provide information, as specified,  
            for students and parents that improve their understanding and  
            comparison of postsecondary educational institutions.  

          9)Declares the following educational and economic goals for  
            California by 2020:

             a)   Improve the educational pipeline numbers so that  
               California is among the top 10 states in the nation in this  
               regard;

             b)   Increase California's per capita income to the average  
               of the top 10 new economy states, as defined; and,

             c)   Rank in the top 10 states nationally for the percentages  
               of its age groups with degrees and certificates conferred.   
                

           EXISTING LAW  : 

          1)CCC is required to provide an annual evaluation of  
            district-level performance in meeting statewide educational  
            outcomes, known as the Accountability Reporting for the  
            Community Colleges (ARCC). The ARCC currently contains data  
            for a variety of indicators.     

          2)UC and CSU have entered into system-specific "compacts" and  
            then "partnerships" with several Governors to ensure stable  
            multi-year funding in exchange for a commitment to deliver on  
            specific performance measures.

          3)CPEC is required to prepare an annual report on performance  
            indicators for California higher education on a segmental  
            basis, focusing on demographics, fiscal context, student  
            preparation, student access, and student outcomes.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   Background  : There is a growing trend toward state  
          accountability systems for higher education, using different  
          approaches and indicators.  Nearly all states have some form of   

          mandated statewide accountability program for higher education.   








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          California has relied upon segmental accountability, reflecting  
          the missions and functions outlined in the California Master  
          Plan for Higher Education.  None of these efforts combine to  
          measure how California's students perform as a whole nor does  
          California engage in a statewide approach to higher education  
          policy planning.  

           Purpose of this bill  :  According to the author, when it comes to  
          higher education policy, "California is data rich and  
          information poor."  This bill establishes a framework for  
          measuring the collective performance of California's system of  
          higher education in achieving state goals of access and  
          workforce preparation by:

          1)Articulating statewide public policy goals for California's  
            higher education segments;

          2)Identifying specific indicators and benchmarks to be reported  
            by higher education institutions in order to track progress  
            toward those goals; and,

          3)Establishing a process for collecting, reporting, and  
            analyzing the collective progress toward the articulated  
            goals.

           How were the indicators determined  ?  In 2002, the Senate Office  
          of Research commissioned a study of higher education  
          accountability models in other states in order to develop a  
          framework that could function well in California.  The  
          indicators included in this bill are the result of that study,  
          along with the input of a workgroup that included the higher  
          education segments, LAO, and other stakeholders.  It is  
          anticipated that much of the data are presently available.  Once  
          it is centralized and analyzed, it will provide the basis for  
          higher education policy decisions and priorities. 

           Indicators that will be used to measure progress toward state  
          goals  :

          1)Are enough Californians prepared for postsecondary education?

             a)   High school graduates who have completed the "A-G"  
               college preparatory curriculum;

             b)   High school juniors who are proficient in English and  








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               mathematics;

             c)   Adults with a high school diploma or the equivalent;  
               and,

             d)   Adult basic skills proficiency levels.

          2)Are enough Californians going to college?

             a)   High school graduates enrolling in college anywhere in  
               the United States within one year;

             b)   Adult population enrolled in postsecondary education;

             c)   Proportion of postsecondary enrollment served by  
               segment, including private institutions; and,

             d)   General Equivalency Diploma recipients enrolling in  
               postsecondary education.

          3)Is the state's postsecondary education system affordable to  
            all Californians?

             a)   Proportion of income needed to pay for college, by  
               segment, before and after financial aid;

             b)   Family income distribution of enrolled students; and,

             c)   Student loan burden.

          4)Are enough Californians successfully completing certificates  
            and degrees?

             a)   Certificates and degrees awarded;

             b)   Graduation rates;

             c)   Baccalaureate degree graduation rates for students  
               beginning at a CCC with transfer intent;

             d)   Number of units completed prior to earning a degree or  
               certificate or transferring; and,

             e)   Remedial students successfully earning degrees or  
               certificates.








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          5)Are college graduates prepared for life and work in  
            California?

             a)   Performance of college graduates on existing statewide  
               learning assessments;

             b)   Performance of college graduates on licensure and  
               graduate school entrance examinations; and,

             c)   Student and employer satisfaction with college  
               education.

          6)Are California's people, communities, and economy benefiting?

             a)   Median personal income by educational attainment;

             b)   Increase in total per capita personal income;

             c)   Degrees and certificates awarded in selected high demand  
               fields;

             d)   Federal research and development funding per capita;

             e)   Educational attainment levels of state population; and,

             f)   Public participation in community service and civic  
               affairs.

           What happens if the segments do or don't meet their goals  ?  The  
          author believes it is premature to include incentives or  
          consequences until it is determined that these are the  
          appropriate goals, that the necessary data collection systems  
          are in place, and funding for the segments has stabilized enough  
          to fairly evaluate their ability to meet the specified goals.   
          Last year, the Governor vetoed a nearly identical bill, SB 325  
          (Scott) of 2008, because it did not contain penalties as  
          articulated in the veto message below:

               "While I respect the author's intent to establish a  
               statewide system of accountability for postsecondary  
               education and a framework to assess the collective  
               contribution of California's institutions of higher  
               education toward meeting statewide economic and educational  
               goals, this bill falls short in providing any framework for  








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               incentives or consequences that would modify behavior to  
               meet any policy objectives.  I believe our public education  
               systems should be held accountable for achieving results,  
               including our higher education segments, and would consider  
               a measure in the future that provides adequate mechanisms  
               that will effectuate tangible gains in student outcomes and  
               operational efficiencies."
           
          Previous legislation  :  SB 325, mentioned above, was crafted to  
          respond to the Governor's concerns about a previous attempt to  
          create a statewide higher education accountability framework, SB  
          1331 (Alpert) of 2004, by authorizing specific outcome  
          indicators and convening TAC to coordinate the technical  
          specifications of the necessary data.  SB 1331, would have  
          established a California Postsecondary Education Accountability  
          structure to provide an annual assessment of how the state is  
          meeting identified statewide public policy goals in higher  
          education.  The Governor's veto message read in pertinent part: 

               "While I favor accountability for all levels of education,  
               this bill mainly establishes only a reporting structure for  
               four broad policy goals rather than providing for outcomes,  
               such as performance based measures, historically associated  
               with accountability systems."
                              
           Related legislation :  AB 1182 (Brownley), pending referral from  
          Assembly Rules Committee, would delete several reporting  
          requirements that can be subsumed by this bill or are no longer  
          necessary in order to allow the segments to use their resources  
          to comply with this bill.  SB 361 (Scott), Chapter 514, Statutes  
          of 2008, deleted several of CPEC's review and reporting  
          requirements that are obsolete or have not been recently  
          produced, in order to focus CPEC's resources on higher education  
          accountability and other priority functions. 
                    
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          California Community Colleges, Chancellor's Office
          California Postsecondary Education Commission

           Opposition 
           








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          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960