BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           218 (Portantino)
          
          Hearing Date:  08/27/2009           Amended: As Introduced
          Consultant:  Dan Troy           Policy Vote: ED 8-1
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          BILL SUMMARY:   AB 218 would require the state to establish a  
          postsecondary accountability framework to biennially assess and  
          report on the state's system of higher education in meeting  
          certain educational and economic goals.  The bill states the  
          intent that both the state's public and private and independent  
          institutions of higher education will report biennially to the  
          Legislature, the Governor, and to the California Postsecondary  
          Education Commission (CPEC) as part of the accountability  
          process.  CPEC will serve as the repository for the collection  
          of data for the framework and for making data broadly available,  
          as specified.  The Legislative Analyst's Office (LAO) would  
          convene a Technical Advisory Committee (TAC) that would  
          coordinate the technical specifications of the data needed to  
          address the key issues of accountability.  The LAO would also be  
          responsible for assessing the data compiled by CPEC and making  
          policy and budgetary recommendations.
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                            Fiscal Impact (in thousands)

          Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          HiED Accountability      $300 to $600, depending on   General
                                   data specifications
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          STAFF COMMENTS: SUSPENSE FILE.
          
          This bill addresses the issue of whether or not postsecondary  
          education in California is meeting the educational and economic  
          needs of the state. The system of accountability outlined is not  
          intended to make comparisons between institutions, but would  
          instead examine whether or not state policy on higher education  
          is accomplishing desired ends. The bill would require the  
          accountability framework to measure the postsecondary system's  
          collective performance in terms of progress measured by how well  










          the following key economic and educational questions are  
          addressed: 

          - Are enough Californians prepared for postsecondary education?
          - Are enough Californians going to college?
          - Is the state's postsecondary education affordable to all  
          Californians?
          - Are enough Californians successfully completing certificates  
          and degrees?
          - Are college graduates prepared for life and work in  
          California?
          - Are California's people, communities, and economy benefiting?

          These questions would be addressed through a series of key  
          indicators specified in the bill and subject to technical  
          refinement by the TAC.  The bill indicates that existing data  
          should be utilized to the extent possible.  To the extent  
          practical, the segments would submit specified data to CPEC by  
          May of 2010 and biennially thereafter. The bill also 
          Page 2
          AB 218 (Portantino)

          expresses Legislative intent that the Governor will convene a  
          task force in 2012 to review the framework proposed by this bill  
          and recommend changes, as needed.  

          While UC, CSU, the CCCs and CPEC all indicate a willingness to  
          comply with the provisions of the bill, it is likely that the  
          segments will incur costs, at least at the outset, to collect  
          and report the necessary data.  Staff assumes each segment will  
          require at least one position for this effort.  One-time costs  
          will likely also be incurred to align required data with  
          existing longitudinal education data systems (e.g., CALPADS).   
          Overall, total costs will likely range from $300,000 to  
          $600,000, though costs could be higher depending on the data  
          specifications ultimately required through the TAC process.  

          This bill is substantially similar to SB 325 (Scott, 2008),  
          which was vetoed by the Governor.  The Governor's veto message  
          expressed concern the bill did not provide a "framework for  
          incentives or consequences that would modify behavior to meet  
          any policy objectives."