BILL ANALYSIS
AB 552
Page 1
Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 552 (Furutani) - As Introduced: February 25, 2009
Policy Committee: Higher
EducationVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Establishes a privately-funded, nine-member commission to
conduct a study regarding financing alternatives for career
technical education (CTE), vocational education, and high-cost
laboratory programs in the community colleges.
2)Requires the commission to make recommendations to the
Legislature and governor regarding the financing alternatives
by July 1, 2011.
FISCAL EFFECT
One-time costs of about $150,000 for 1.5 positions to staff the
commission and complete the required report and for commission
expenses related to travel and per diem. The bill specifies the
commission is to be funded from non-state sources.
COMMENTS
Purpose . The state funds the community colleges through a
funding formula based primarily on an allocation per full-time
equivalent student (FTES). This formula, which was simplified
by SB 362 (Scott)/Chapter 631 of 2006, generally does not differ
between general education and CTE courses. The author believes
that, while the simplification provides a stable environment for
the colleges to plan and administer programs, it may
disadvantage CTE programs, which generally have a higher
per-FTES cost due to enrollment limitations and greater
facilities, materials, and equipment costs. As a result, the
AB 552
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author is concerned that, if community colleges were to make
decisions about programs offering based solely on net revenues,
they would clearly choose to offer general education courses
rather than CTE programs.
The author believes a commission of policy experts and
practitioners can provide the Legislature with an independent
report of options and policy considerations to address the
funding of high-cost community college programs.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081