BILL ANALYSIS
AB 581
Page 1
Date of Hearing: March 31, 2009
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Anthony Portantino, Chair
AB 581 (Torlakson) - As Introduced: February 25, 2009
SUBJECT : Community Colleges: salaries of classroom
instructors.
SUMMARY : Requires the California Community Colleges
Chancellor's Office (CCCCO) to conduct random audits of five CCC
districts each year to encourage and determine compliance with
existing law requiring CCC districts to expend 50% of their
expense of education on the salaries of classroom instructors,
and makes other technical changes.
EXISTING LAW: Requires each CCC district to expend 50% of its
current expense of education for payment of classroom
instructors (50% law); generally defines "current expense of
education" to include the unrestricted general fund expenditures
of a CCC district and excludes spending on student
transportation, food services and community services, leases for
plant equipment, and other costs specified in law and
regulation; establishes a process whereby a CCC district may
submit an application to the CCC Board of Governors (BOG) for an
exemption from the 50% law; and, requires the CCC BOG to report
annually to the Legislature on operation and compliance with the
50% law.
FISCAL EFFECT : Unknown
COMMENTS : Existing Process : The CCCCO currently requires a
review of compliance with the 50% law as part of the annual
independent audit submitted by each CCC district; the CCCCO
reviews the audit for findings and to confirm accurate
reporting. CCC districts out of compliance with the law must
set aside an amount equal to the apparent deficiency and may
submit an application to the CCC BOG for an exemption from the
50% law if the CCC district believes compliance would have
resulted in serious hardship to the district or the payment of
salaries in excess of salaries paid by other comparable
districts. The CCC BOG is required to grant the exemption if
the amount by which the CCC district is out of compliance with
the 50% law is less than $1,000. If the amount is $1,000 or
more, the CCC BOG may grant a full or partial exemption to the
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CCC district. If the CCC district fails to submit an
application for exemption, or if the CCC BOG denies the full or
only grants a partial exemption, the deficient amount is added
to the amounts to be expended for salaries by the CCC district
during the next fiscal year. According to the CCCCO, Copper
Mountain and College of the Redwoods CCC districts were granted
full exemptions in 2005-06, and Napa Valley CCC district was
granted a partial exemption. In 2006-07, Copper Mountain and
Lassen CCC districts applied for exemptions, Lassen CCC district
was granted an exemption while Copper Mountain CCC district was
not. In 2007-08, no CCC districts applied for exemptions.
Reports of Non-Compliance and Ineffective Oversight : In October
of 2000, the Bureau of State Audits (BSA) released an audit
"California Community Colleges: Poor Oversight by the
Chancellor's Office Allows Districts to Incorrectly Report Their
Level of Spending on Instructor Salaries". The BSA found that
CCC districts overstated their reported compliance rates and did
not correctly use the law's formula for calculating the
percentage they spent on instructor salaries. The BSA also
found that the CCCCO failed to ensure that CCC districts
understood the law's requirements or ensure that Certified
Public Accountants performing annual independent financial
audits of the CCC district used effective procedures for
catching errors. The BSA found, while the CCCCO reported all 71
CCC districts in compliance with the 50% law in 1998-99,
compliance rates for 6 of the 10 CCC districts investigated by
the BSA fell below the 50% mark. The BSA estimated that, in
total, the six CCC districts out of compliance spent $10 million
too little on instructor salaries. The CCCCO has reported that,
with the assistance of the Association of Chief Business
Officers, they have taken action to respond to the
recommendations made by the BSA.
Recommended Changes to the 50% Law : Since 1961, California has
required CCC districts to comply with the 50% law. By requiring
this specified level of spending on instructor salaries, the
Legislature aimed to make classes smaller and improve classroom
instruction. In recent years, however, several reports have
questioned whether changes to the 50% law are appropriate and
necessary in order to improve CCC student outcomes.
In the February 2007 Institute for Higher Education Leadership &
Policy (IHELP) report "Rules of the Game: How State Policy
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Creates Barriers to Degree Completion and Impedes Student
Success in the California Community Colleges," IHELP found that
the 50% law, among others, limited the ability of CCC districts
to dedicate funding to non-instructional staff such as academic
advisors, financial aid officers, information technology
consultants, health care staff, and orientation leaders, that
are often essential to the success of a student. The report
notes that, in combination with other such laws, the result is
hiring a mix of faculty and staff that may not be optimal to
ensure student success.
In the June 2008 report, "Back to Basics: Improving College
Readiness of Community College Students," the Legislative
Analysts Office (LAO) noted that a large number of new CCC
students who are directed to counseling and orientation do not
receive these services. This stems in part from the 50% law; by
limiting CCC district flexibility to respond to their students'
needs, the 50% law can impede the ability of CCC to provide
adequate support services that improve student performance. In
order to provide CCC with the flexibility they need to provide
the best mix of services for their students, the LAO recommended
amending statute to include expenditures on counseling services
as part of instructional costs.
Related Legislation : AB 1157 (Block), pending referral in the
Assembly Rules Committee, would define classroom instructors to
include counselors and would require that, commencing with the
2010-11 fiscal year, 52% of each district's current expense of
education be expended for salaries of classroom instructors.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
California Teachers Association
Opposition
California Community College League
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960