BILL ANALYSIS
AB 2297
Page 1
Date of Hearing: April 6, 2010
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 2297 (Brownley) - As Introduced: February 18, 2010
SUBJECT : Community colleges: nonresident fees.
SUMMARY : Would allow the governing board of a California
Community College (CCC) to use an alternative method for
calculating nonresident fee amounts. Specifically, this bill :
1)Allows a CCC governing board to adopt a nonresident fee that
is no greater than the average of the nonresident fees of
public community colleges of 12 states that are comparable to
California in cost of living. Provides that the determination
of comparable states must be based on a composite
cost-of-living index as determined by the United States (US)
Department of Labor (DOL) or cooperating government agency.
2)Allows a CCC governing board that calculates its nonresident
fees based on the statewide average expense of education to
set the nonresident fee at the greater of the current or any
of the four immediately preceding fiscal year amounts, if the
amount calculated for the succeeding fiscal year is less than
the amount calculated for the current fiscal year.
EXISTING LAW: Requires CCC district governing boards to adopt
nonresident student fees, with exceptions. Establishes a number
of requirements for CCC districts nonresident student fees
amounts, including that nonresident fee increases be gradual,
moderate, and predictable and that one of the following
calculation methods be used in establishing full-time
nonresident fee amounts:
1)The amount expended by the CCC district for the expense of
education in the preceding fiscal year increased by the US
Consumer Price Index (CPI), divided by the number of full-time
equivalent students (FTES) attending the CCC district in the
previous year;
2)The statewide expense of education for all CCC districts,
increased by the US CPI and divided by the statewide FTES;
3)An amount that does not exceed the fee established by the
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governing board of any contiguous CCC district; or,
4)An amount that does not exceed the amount expended by the CCC
district for the expense of education, but not less than the
statewide average set forth under paragraph 2) above.
FISCAL EFFECT : Unknown
COMMENTS : Background : The 1960 Master Plan for Higher
Education established California's commitment to an accessible
public higher education system. To ensure accessibility to
California residents, taxpayers significantly subsidize the cost
of higher education. California resident students pay fees to
help support the cost but not tuition. Nonresident students at
the University of California (UC), California State University
(CSU) and CCC pay both fees and tuition. All public colleges
and universities in the country have additional charges for
out-of-state students as a way to ensure residents do not assume
the financial burden of educating students whose presence in the
state is not intended to be permanent and who did not pay taxes
to support the public higher education systems. A determination
as to a California student's residency classification is done at
the campus level; however, the general definition of California
residency requires at least one year of physical presence in the
state, coupled with the capability and intent to make California
one's permanent home.
Purpose of this bill : The author believes this bill would give
CCCs greater authority to charge nonresidents a fee that could
be used to increase the quality of education, consistent with
the authority granted to UC, CSU and K-12 education. The author
notes that state law sets a floor (marginal cost of instruction)
for nonresident student tuition and fees at UC and CSU but
provides minimal guidance on a tuition ceiling. Additionally,
state law allows K-12 school districts to charge for the expense
of education, the use of buildings and equipment, repayment of
local bonds and interest, state building loans, capital outlay,
and transportation. Yet, CCC governing boards must follow one
of four specific formulas that ensure that the fee is
approximately the pro-rated expense of education.
CCC nonresident student fees compared to other states : In
2009-10, the statewide average CCC nonresident fee was $190 per
semester unit, with a range from $166 per semester unit at Santa
Clarita CCC district, to $226 per semester unit at Redwoods CCC
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district. Additionally, some CCC districts have a capital
outlay fee, ranging from $5 per unit to $50 per unit. For
2009-10, there are an estimated total of 45,260 nonresident FTES
enrolled in credit courses in the CCC system. The table below
is based on data published by the Missouri Economic Research &
Information Center and the Washington Higher Education
Coordinating Board. The table lists the 2008-09 community
college tuition and required fees in the 12 states that are most
comparable to California in cost-of-living:
-----------------------------------------------------------------
| | | |
| State | Cost of Living | Annual Nonresident |
| | Rank | Charges |
|-----------------------+-----------------+-----------------------|
|Oregon | 38 | $7,258 |
|-----------------------+-----------------+-----------------------|
|Maine | 39 | $5,613 |
|-----------------------+-----------------+-----------------------|
|New Hampshire | 40 | $13,153 |
|-----------------------+-----------------+-----------------------|
|Massachusetts | 41 | $10,298 |
|-----------------------+-----------------+-----------------------|
|Vermont | 42 | $9,168 |
|-----------------------+-----------------+-----------------------|
|Rhode Island | 43 | $8,216 |
|-----------------------+-----------------+-----------------------|
|Connecticut | 44 | $8,912 |
|-----------------------+-----------------+-----------------------|
|New York | 45 | $7,201 |
|-----------------------+-----------------+-----------------------|
|Maryland | 46 | $7,890 |
|-----------------------+-----------------+-----------------------|
|New Jersey | 47 | $6,705 |
|-----------------------+-----------------+-----------------------|
|Alaska | 48 | $13,709 |
|-----------------------+-----------------+-----------------------|
|Hawaii | 50 |$8,399 |
-----------------------------------------------------------------
UC and CSU nonresident fees/tuition : UC and CSU are required to
establish methodologies for annually determining the nonresident
tuition rate that take into consideration the total nonresident
charges imposed by each of their public comparison institutions,
as determined by the California Postsecondary Education
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Commission, and the full average cost of instruction of their
segment. Under no circumstances is the institution's level of
nonresident tuition and fees to fall below the marginal cost of
instruction of that segment. Annual undergraduate nonresident
student charges in 2009-10, average about $31,389 at UC and
$15,987 at CSU. According to 2008-09 data collected by the
Washington Higher Education Coordinating Board, national annual
nonresident undergraduate charges averaged $19,880 at flagship
universities, and $13,928 at all colleges and universities.
Recommended amendments : Committee staff worked with the
author's staff, the sponsors of this bill, and Legislative
Counsel on amendments to revise this bill's language and
clean-up this code section to make it more readable. The
revision does not alter the general content of this code section
or the changes proposed by this bill. Committee staff suggests
these amendments be adopted as committee amendments.
Prior legislation : AB 947 (Brownley), Chapter 377, Statutes of
2009, authorized a CCC district to charge capital outlay fees to
any nonresident student in addition to the nonresident tuition
fee.
REGISTERED SUPPORT / OPPOSITION :
Support
Santa Monica College
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960