BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
574 (Hancock)
Hearing Date: 05/28/2009 Amended: 04/21/09
Consultant: Dan Troy Policy Vote: ED 9-0
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BILL SUMMARY: SB 574 would waive "open course" provisions for
community college courses offered in state correctional
facilities and would allow attendance hours generated by credit
courses at all correctional facilities to be funded at the full
credit rate. This bill would also provide that community
college districts may not claim state apportionments for
instruction in correctional facilities if the district is fully
compensated by another entity for the costs of direct
instructional services. Also, the bill would require districts
to deduct any partial compensation for correctional facility
education from their apportionment.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Conversion to full credit $329 $329
$329General*
State correctional facilities $456, depending on CCC
response General*
to funding changes
*Counts toward meeting the Proposition 98 minimum funding
guarantee
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STAFF COMMENTS: SUSPENSE FILE.
Under current law, community colleges may not receive state
funding for courses that are not open to the public. This
provision is waived for courses offered at city, county and
federal correctional facilities, but not at state correctional
facilities. Further, current law only allows courses in
correctional facilities to be funded at the lower noncredit rate
even if the courses are for credit.
This bill would increase state costs by allowing community
colleges to claim funding for courses taught at state
correctional facilities and by funding credit courses provided
at these facilities at the full credit rate (noncredit courses
would still be funded at the lower noncredit rate). Currently,
for-credit courses are funded at the rate of $4,565 per
full-time equivalent (FTE) and noncredit courses at $2,745 per
FTE.
According to data provided by the Chancellor's office, community
college programs project serving credit courses for 1,769 FTEs
in the 2006-07 fiscal year. The majority of these FTEs (1,588)
would already receive full credit funding as courses are offered
through distance education courses open to the public. Under
this bill, the reminder (181) would now receive full credit
apportionments, generating a cost to the state of $329,000 (181
* $1,820).
Additional costs could arise depending on the number of FTEs
that would take classes
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SB 574 (Hancock)
at a state correctional facility. Staff notes that for every
100 for-credit FTEs authorized under this provision, state costs
would increase by $456,000. While community colleges are
limited to enrollment caps which some suggest would make this a
zero sum change, staff notes that not all colleges are at their
caps and that expanding access and funding rates clearly creates
pressure to increase funds.
Similar legislation, SB 413 (Scott, 2008) was vetoed by the
Governor last year, whose veto message indicated a concern that
the bill would supplant funding for education provided by the
Department of Corrections and Rehabilitation. A similar bill,
SB 1460 (Cox) was held in the Senate Appropriations Committee in
2006. SB 672 (Cox, 2005) was also vetoed by the Governor, who
noted in his message that courses offered at correctional
facilities should be not funded at full credit rates since these
offerings did not incur costs for facilities or student
services.