BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2400
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          Date of Hearing:   May 4, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                    AB 2400 (Block) - As Amended:  March 23, 2010
           
          SUBJECT  :   Public postsecondary education: community colleges:  
          baccalaureate degree pilot program.

           SUMMARY  :   Authorizes three specified California Community  
          College (CCC) districts to offer baccalaureate degrees as part  
          of a pilot program.  Specifically,  this bill  :  

          1)Authorizes the Grossmont-Cuyamaca Community College District,  
            the San Diego Community College District, and the San Mateo  
            County Community College district to establish a pilot program  
            to offer a baccalaureate degree, and requires these CCC  
            districts do the following:

             a)   Seek accreditation as a baccalaureate degree-granting  
               college;

             b)   Maintain the primary mission of CCC as expressed in  
               existing law and have the additional mission to provide  
               high-quality undergraduate education at an affordable price  
               to students and the state;

             c)   Offer baccalaureate degrees in those subject areas  
               possessing unmet workforce needs in the local community, as  
               determined by the CCC district, and not unnecessarily  
               duplicate similar programs offered by nearby public  
               postsecondary educational institutions that have space  
               available to local students; and,

             d)   Maintain separate records for students who are enrolled  
               in courses classified in the upper-division and  
               lower-division of a baccalaureate program.

          2)Requires the CCC district governing board participating in  
            this pilot program to do the following:

             a)   Determine the appropriate governance system for the  
               baccalaureate degree pilot program;

             b)   Make decisions regarding the baccalaureate degree pilot  








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               program's curriculum, faculty, and facilities; and,

             c)   Establish the level of matriculation, tuition, and other  
               appropriate costs for students enrolled in a baccalaureate  
               degree program.

          3)Authorizes the CCC district governing board of the pilot  
            program to charge baccalaureate degree-seeking students a fee,  
            to be determined by the CCC district governing board, that  
            covers the additional costs imposed by providing a  
            baccalaureate degree pilot program, for enrollment in courses  
            that are not transfer core curriculum courses, as defined, and  
            requires all fees to be deposited and expended as specified.

          4)Allows the governing board of the district to enter into  
            agreements with local businesses and agencies to provide  
            educational services to students participating in a  
            baccalaureate degree pilot program.

          5)Requires the CCC district participating in the pilot program  
            to submit a report to the Legislature within one year prior to  
            the expiration of the baccalaureate degree pilot program, and  
            requires the report to evaluate the following factors:

             a)   The percentage of students who complete a baccalaureate  
               degree, calculated by dividing the number of students who  
               enroll in the baccalaureate degree pilot program by the  
               number of students who graduate from the program;

             b)   The extent to which the baccalaureate degree pilot  
               program is self-supporting, such that the student fees  
               charged cover the costs of the program;

             c)   Whether there is a problem with finding and paying  
               instructors for the baccalaureate degree pilot program;

             d)   Whether there was a decline in enrollment in the  
               California State University (CSU) and the University of  
               California (UC) as a result of the baccalaureate degree  
               pilot program;

             e)   The number of students who received jobs in the area in  
               the field of study of their baccalaureate degree; and,

             f)   The amount of student fees charged compared to the  








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               amount of student fees charged for courses at UC and CSU.

          6)Sunsets the pilot programs eight years after the establishment  
            of the program, which is deemed to be when the first class of  
            students is enrolled in a baccalaureate degree program.

           EXISTING LAW  :  Establishes the Master Plan for Higher Education,  
          differentiating the functions of the public postsecondary  
          segments to allow limited state resources to be focused on a few  
          key responsibilities as follows: 

          1)UC is designated as the state's primary academic research  
            institution and is to provide undergraduate, graduate, and  
            professional education.  

          2)CSU's primary mission is undergraduate education and graduate  
            education through the master's degree including professional  
            and teacher education, with the exception of the authority to  
            award the doctorate in education. 

          3)CCC has the primary mission of providing academic and  
            vocational instruction for older and younger students through  
            the first two years of undergraduate education.  In addition,  
            CCC is authorized to provide remedial instruction, English as  
            a Second Language courses, adult noncredit instruction,  
            community service courses, and workforce training services.
           
           FISCAL EFFECT  :   This bill is keyed non-fiscal by Legislative  
          Counsel; however, the Assembly Appropriations Committee has  
          requested to hear this bill.

           COMMENTS  :    Background  :  In its report, California's Future  
          Workforce: Will There Be Enough College Graduates? (December  
          2008), the Public Policy Institute of California (PPIC) projects  
          that California will face a shortage of almost 1 million  
          college-educated workers by 2025.  In its follow up report,  
          Closing the Gap: Meeting California's Need for College Graduates  
          (April 2009),  PPIC finds that this education-skills gap could  
          be cut in half by modest investments in programs aimed at  
          expanding college attendance rates, increasing transfer rates  
          from CCC to four-year institutions, and boosting graduation  
          rates at four-year institutions.  Finally, PPIC's most recent  
          report, Higher Education in California: New Goals for the Master  
          Plan (April 2010), call for three modifications to the Master  
          Plan in order to close the education-skills gap:








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          1)Eligibility goals for the CSU and UC systems should be  
            gradually increased to new levels by 2025. The share of the  
            state's high school graduates eligible for UC should grow from  
            the top 12.5% to the top 15% of high school graduates. The  
            share eligible for CSU should grow from the top 33.3% to the  
            top 40%.

          2)The Master Plan should set explicit goals for transfer from  
            CCC to UC and CSU.  A target for larger shares of bachelor's  
            degrees awarded to transfer students at both systems should be  
            defined.

          3)A new component of higher education policy that focuses on  
            outcomes-specifically, completion rates-should be added to the  
            Master Plan

           Purpose of this bill  :  According to the author, "There are three  
          important considerations that must be addressed when looking at  
          California's university systems: quality, access, and  
          affordability. While the quality of our education is quite high,  
          the access to four-year degrees and the price of that education  
          are exceedingly slipping out of the grasp of our youngest  
          generations.   Allowing a select number of community colleges to  
          offer baccalaureate degrees could be one way to help improve  
          retention and graduation rates while providing  
          otherwise-placebound students an opportunity to get a  
          high-quality education close to home."

           Other states  :  According to the American Association of State  
          Colleges and Universities (AASCU), there has been a steady  
          growth in the number of community colleges offering  
          baccalaureate degrees.  In 2005, AASCU identified 11 states  
          where at least one two-year college offered baccalaureate  
          degrees, and three states in which similar baccalaureate  
          programs were being examined.  AASCU also found that most of  
          these community colleges offered bachelor's programs in  
          collaboration with four-year universities through university  
          centers or shared facilities-very few offered independent  
          baccalaureate degrees.  A recent analysis of states with  
          community college bachelor degree programs found the primary  
          reasons for offering these programs are to address workforce  
          needs, respond to economic pressures from employers, increase  
          access to populations underserved by traditional bachelor  
          degree-granting institutions, and maintain college  








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          affordability.

           Why these CCC districts  ?  Pilot programs are designed to test  
          and evaluate how a program will work in a variety of  
          circumstances before implementation on a statewide basis.  Thus,  
          pilots are usually selected by the CCC Chancellor in a  
          competitive process that seeks to ensure demographic and  
          geographic diversity.  This bill specifies three CCC districts  
          that will serve as the pilot programs without the benefit of a  
          competitive process or evaluation of the diversity of the  
          pilots.  Will this provide a suitable test of the viability of  
          the CCC baccalaureate degree and possible implementation  
          challenges for all CCCs?

           One mission too many  ?  This bill represents a significant  
          expansion of the CCC mission, with an unknown impact on the  
          ability of CCC to complete its existing missions.  As reported  
          by the Institute for Higher Education Leadership & Policy, of  
          the 60% of CCC students seeking a degree or certificate, only  
          about one-fourth succeed in transferring to a university and/or  
          earning an associate's degree or certificate within six years.   
          In the 2009-10 Budget Act, the Legislature and Administration  
          asked CCC to focus its resources on three key priorities: career  
          technical education, basic skills, and transfer.  Is this bill  
          consistent with that intent?
           
          Start up costs  :  CCCs have argued during budget debates that  
          they do not receive adequate funding for their existing  
          responsibilities and student enrollment levels.  While this bill  
          authorizes these pilot programs to charge fees to cover the cost  
          of providing the baccalaureate instruction, fees cannot be  
          charged until after the programs are in place, which requires  
          accreditation.   The accreditation process assesses finance,  
          governance, and integrity of educational programs. Each  
          institution applying for accreditation prepares a self  
          assessment document and undergoes evaluation and on-site  
          inspection by peer reviewers.  A report then provides  
          recommendations and suggested actions.  The accreditation  
          process takes three to six years.   These expenses are incurred  
          long before students are enrolled and paying fees.
           
           Would this bill be subject to existing statutes and regulations  
          governing CCC expenditures?  Numerous statutes and regulations  
          specify how CCC leaders can use their resources.  For example,  
          50% of a district's resources must be spent on instruction, and  








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          75% of faculty must be full-time.  Would the pilot programs  
          authorized under this bill be subject to these statutes and  
          regulations?
           
           What fee amount would be charged?  This bill allows the pilots  
          to charge fees to cover the additional costs imposed by  
          providing a baccalaureate degree pilot program, for enrollment  
          in courses that are not transfer core curriculum courses, as  
          defined.  What is included in "costs"?  Could the fee differ  
          among the pilots?  Would CCC seek funding from the state (CCC  
          receives approximately $4,000 per full-time equivalent student)?  
             
           
          Why not fund CSU to accept all eligible students?  CSU has  
          announced plans to decrease enrollment by 40,000 students over  
          two years, starting with the 2010-11 class.  Perhaps a simpler  
          and more cost effective option to increase the state's  
          baccalaureate degree production would be to fully fund or expand  
          the number of slots at CSU, as recommended by PPIC.

           Other alternatives  ?  Partnerships between a CCC and a CSU campus  
          have been established to deliver upper-division instruction at  
          community sites away from the main CSU campus.  The CCC  
          Baccalaureate Partnership Program, formed for the purpose of  
          offering baccalaureate degree programs on participating CCC  
          campuses, authorizes the CCC Chancellor's Office to award  
          annually two grants, not to exceed $50,000 each, to a  
          collaborative, consisting of at least one CCC and at least one  
          baccalaureate-degree granting institution, formed for the  
          purpose of offering a baccalaureate degree program at  
          participating CCCs.  Ca?ada College partners with SFSU and CSU  
          East Bay to provide bachelor's degrees at the University Center  
          located on the Ca?ada College campus in Child and Adolescent  
          Development, Nursing, and Health Sciences.  The city of Stockton  
          receives baccalaureate-level instruction provided by CSU  
          Stanislaus at an off-campus site in Stockton.  CSU Fullerton  
          maintains a branch campus in El Toro, serving approximately  
          1,140 full-time equivalent students annually.  
           
          California Postsecondary Education Commission (CPEC) review  :   
          Current law generally requires colleges to seek and receive  
          approval by CPEC prior to commencing new programs of study.  As  
          the process serves to improve the quality of programs, avoid  
          duplication, and ensure best use of state resources, staff  
          recommends that this bill be amended to clarify that although  








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          this bill authorizes CCC to offer baccalaureate degree programs,  
          such programs are not exempted from any existing review and  
          approval processes. 

           Previous efforts  :  AB 1455 (Hill) of 2009, pending in the Senate  
          Public Safety Committee, as introduced, would have required the  
          CCC Board of Governors (BOG) to establish a pilot program to  
          allow selected CCC districts to offer baccalaureate degrees.  AB  
          1280 (Maze), Chapter 515, Statutes of 2005, established the CCC  
          Baccalaureate Partnership Program.  AB 1932 (Maze) of 2004,  
          expressed legislative intent to authorize CCC to award  
          bachelor's degrees and establish an advisory committee to  
          examine the issue.  This bill was held without recommendation in  
          the Assembly Higher Education Committee.  The California  
          Performance Review issued by Governor Schwarzenegger in 2005  
          recommended that the Governor work with the Legislature to  
          create a pilot program allowing approved CCCs to offer  
          bachelor's degrees. Under the pilot program, individual  
          community colleges interested in offering a bachelor's degree  
          would submit a proposal for approval by the Secretary of  
          Education, or his or her successor.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          San Diego Community College District
          San Mateo Community College District

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960