BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1702
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1702 (Swanson) - As Amended:  April 5, 2010 

          Policy Committee:                              Higher  
          EducationVote:8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:  

           SUMMARY  

          This bill allows California Community Colleges (CCCs) to receive  
          full funding for credit-course instruction offered in  
          correctional institutions.  Specifically, this bill:

          1)Waives "open course" provisions for community college courses  
            offered in state correctional facilities, thus conforming to  
            current allowances for such courses offered in local or  
            federal correctional facilities.

          2)Allows attendance hours generated by credit courses at  all   
            correctional facilities to be funded at the full credit rate  
            rather than the lower, non-credit rate.

          3)Prohibits districts from claiming state apportionments for  
            instruction in correctional facilities if the district is  
            fully compensated by another entity for the costs of direct  
            instructional services, and requires districts to deduct any  
            partial compensation for correctional facility education from  
            their apportionment.

           FISCAL EFFECT  

          1)Based on almost identical legislation in 2009, annual General  
            Fund (Prop. 98) costs for converting existing courses in to  
            the full credit rate at local and federal institutions, based  
            on the most recent data, is $329,000.

            (Credit funding per FTES is currently $4,565, and non-credit  
            funding per FTES is $2,745.  According to the CCC Chancellor's  
            Office, districts provided credit courses for 1,769 FTES in  








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            local and federal correctional facilities in 2006-07.  The  
            majority (1,588 FTES) already receive full credit funding as  
            distance education courses open to the public.  Under this  
            bill, the remaining FTES (181) would now receive full credit  
            apportionment. 

          2)Additional costs would depend on the number of FTEs taking  
            classes in state correctional facilities and thus eligible for  
            apportionment funding under this bill.  For every 100  
            for-credit FTEs, annual GF (Prop. 98) costs would increase by  
            $456,000.  Community colleges are limited to enrollment caps  
            that arguably would make this a zero sum change, but not all  
            colleges are at their caps, thus expanding access and funding  
            rates creates enrollment and funding pressure.


           
          COMMENTS
           
           1)Purpose  .  According to the author's office, this bill is  
            intended to "remove the current barriers and disincentives to  
            CCC coursework in correctional facilities to help address the  
            inadequate educational attainment that leads to the state's  
            high incarceration and recidivism rates." 

            The California Department of Corrections and Rehabilitation  
            (CDCR) is funded to provide inmate education in state  
            correctional facilities.  The 2009-10 Budget Act included a  
            $1.2 billion unallocated cut to CDCR's budget.  In response,  
            CDCR implemented a $250 million reduction in rehabilitative  
            programs, including academic, vocational, substance abuse and  
            other programs for inmates and parolees.

             Current law  prohibits CCCs from claiming state funding for  
            classes that are not open to the public, however, an exemption  
            is allowed for inmate education in city, county and federal  
            correctional facilities, with funding provided at non-credit  
            rates.  State funding under this exemption is not allowed for  
            CCC classes in state correctional facilities.

           2)Prior Legislation  .  In 2009, SB 574 (Hancock, 2009), which was  
            virtually identical to this bill, was held on Suspense in  
            Senate Appropriations. In 2008, SB 413 (Scott), also a  
            virtually identical bill, was vetoed, with the governor  
            arguing that the bill "appears to create inappropriate fiscal  








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            incentives for community colleges, state prisons, local  
            correctional agencies, and other contracting entities that may  
            lead to supplanting current funding provided through the  
            California Department of Corrections and Rehabilitation."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081