BILL ANALYSIS
AB 2449
Page 1
Date of Hearing: April 20, 2010
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 2449 (Furutani) - As Amended: April 8, 2010
SUBJECT : California community colleges: course completion
rates: financial incentives.
SUMMARY : Declares Legislative intent to enact legislation to
establish a framework of financial incentives to reward
California Community Colleges (CCC) districts for improved
course completion rates; requires the CCC Chancellor to report
to the Legislature by July 1, 2011, on course completion rates
for the period of January 1, 1990 to December 31, 2010.
EXISTING LAW requires the CCC Board of Governors (BOG) to
allocate state general apportionment revenues to CCC districts;
designates a basic allocation for each CCC district, determined
by the size of the district and numbers of colleges and centers;
provides for equalized funding across CCC districts by providing
that all CCCs receive essentially the same funds for a full time
equivalent student (FTES), based on either the current or prior
year FTES, whichever is greater; and establishes a uniform
funding rate for all non-credit FTES.
FISCAL EFFECT : Unknown
COMMENTS : Background : Under existing California regulations,
CCC district calculations of FTES are based on student
enrollment numbers at a date early in the term, generally the
third week of instruction. This serves as an incentive for CCCs
to enroll students but not necessarily as an incentive for CCCs
to ensure students complete their courses and go on to obtain
degrees.
This financing system has been identified by the Institute for
Higher Education Leadership & Policy (IHELP) as one of several
CCC policies that does not encourage student success. According
to IHELP, only 24% of students who enroll in a CCC intending to
complete a degree program and/or transfer accomplish that goal
within six years. IHELP recommends funding CCC student
completions along with enrollments, with bonus funding for
completions by disadvantaged and under-prepared students.
In addition to funding changes, IHELP recommends the following
AB 2449
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policy changes, among others:
1)Increase flexibility in hiring in order to meet student
demand;
2)Provide CCC more flexibility in the use of its funds;
3)Allow CCC to keep fee revenues;
4)Remove restrictions on campus-based fees;
5)Develop an affordability policy based on the total cost of
college attendance;
6)Revise assessment and placement policies; and,
7)Revise campus matriculation policies to provide clear guidance
that students can follow to progress quickly toward completion
of their selected programs.
Other efforts : AB 2542 (Conway), pending in Assembly Higher
Education, creates a pilot program authorizing the Chancellor of
the CCC to select up to five CCCs to receive relief from
specified statutes, regulations, and funding methods in return
for meeting specified student success goals. Funding for
participating CCCs could be based on the number of students who
complete the academic term, and CCCs would receive an additional
$1,000 per student who has completed an associate's degree or
certification program.
Data currently available on the CCC Chancellor's Office (CCCCO)
website : Program retention and success rates for CCC districts,
from enrollment year 1993 and forward, are currently publicly
available on the CCCCO website. It does not appear that this
portion of the bill is necessary.
REGISTERED SUPPORT / OPPOSITION :
Support
None on File
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960