BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2
                                                                  Page  1

          Date of Hearing:   April 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2 (Portantino) - As Amended:  March 30, 2011 

          Policy Committee:                              Higher 
          EducationVote:8-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill establishes an accountability framework, including the 
          biennial collection of specified data and subsequent assessment 
          of the state postsecondary education system's progress in 
          meeting specified educational and economic goals. Specifically, 
          this bill:


          1)Requires that the framework be used to measure progress toward 
            specified goals by collecting and reporting information that 
            answers six statewide policy questions:


             a)   Are enough Californians prepared for postsecondary 
               education? 


             b)   Are enough Californians going to college?


             c)   Is the state's postsecondary education system affordable 
               to all Californians?


             d)   Are enough Californians successfully completing 
               certificates and degrees?


             e)   Are college graduates prepared for life and work in 
               California?









                                                                  AB 2
                                                                  Page  2


             f)   Are California's people, communities, and economy 
               benefiting? 


          2)Requires that the questions in (1) be answered by collecting 
            data for up to 30 progress indicators, which may include any 
            or all of 25 indicators delineated in this bill.


          3)Requires the segments of higher education, as represented by 
            the governing boards of the University of California (UC), the 
            California State University (CSU), and the California 
            Community Colleges (CCC), and the Association of Independent 
            California Colleges and Universities (AICCU), to provide data 
            for the framework to the California Postsecondary Education 
            Commission (CPEC) by May 31 of each even-numbered year. The 
            segments are to (a) rely on existing data to the extent 
            possible, and (b) post this data on the Internet.


          4)Requires CPEC to make the collected data available on the 
            Internet and report the data-by August 1, 2012 and by August 1 
            or each even-numbered year-on an aggregate statewide level, by 
            segment, by region, and by race and ethnicity, gender, Cal 
            Grant recipient status, and socioeconomic status to the extent 
            these data are available, and requires the indicators to be 
            collected and maintained by each segment longitudinally where 
            appropriate and possible.


          5)Requires the Legislative Analyst's Office (LAO) and the 
            Department of Finance (DOF) to convene an advisory committee 
            to coordinate the technical specifications of the data 
            collection and indicators. 


          6)Requires the LAO, in consultation with DOF, to report to the 
            Legislature and governor by January 30, 2012 on the 
            recommended indicator data, including any data limitations in 
            responding to the suggested indicators. The bill expresses 
            Legislative intent that to the extent the Legislature and 
            governor with the LAO's recommendations, the indicators be 
            formally adopted by statute.









                                                                  AB 2
                                                                  Page  3


          7)Requires the LAO, within 120 days of receiving the CPEC report 
            per (4), to assess the extent to which the state is making 
            progress regarding the six questions in (1), and present its 
            analysis to a joint hearing of the appropriate legislative 
            policy and budget subcommittee by December 30 of each 
            even-numbered year.


          8)Authorizes the segments to provide reports, including 
            specified information regarding each segment's efforts toward 
            meeting the statewide goals, at the joint legislative hearing.


          9)Declares legislative intent that the governor (a) appoint and 
            convene a task force by January 1, 2012 to review the 
            accountability framework and recommend any modifications, and 
            (b) establish an advisory body to the task force for technical 
            expertise and guidance.


          10)Declares legislative intent that UC, CSU, CCC, and the 
            private and independent colleges and universities provide 
            information, as specified, for students and parents that 
            improves their understanding and comparison of postsecondary 
            educational institutions.


          11)Declares the following educational and economic goals for 
            California by 2020:


             a)   Improve the educational pipeline numbers so that 
               California is among the top 10 states in the nation in this 
               regard.


             b)   Increase California's per capita income to the average 
               of the top 10 new economy states, as defined.

             c)   To rank in the top 10 states nationally for the 
               percentages of its age groups with degrees and certificates 
               conferred.

          12)Repeals existing provisions requiring: 








                                                                  AB 2
                                                                  Page  4


             a)   CPEC to annually report on significant indicators of 
               performance at the state's public colleges and universities

             b)   UC, CSU, and the CCC to provide annual statistical 
               reports on transfer patterns, and CPEC to report biennially 
               on the effectiveness of the segments' transfer programs.

           FISCAL EFFECT  

          1)To the extent the bill does not add new reporting duties on 
            the segments, costs for UC, CSU, and the CCC will be minor 
            (less than $50,000) and absorbable.

          2)Data collection costs for CPEC will be absorbable as they 
            generally replace current commission data collection and 
            assessment activities being repealed by this bill.

          3)LAO costs to convene the advisory committee and analyze the 
            CPEC data biennially will be absorbable.

          4)Any costs for the governor's task force and advisory body will 
            be absorbable.

           COMMENTS  

           1)Purpose  . According to the author, when it comes to higher 
            education policy, "California is data rich and information 
            poor." This bill establishes a framework for measuring the 
            collective performance of California's system of higher 
            education in achieving state goals of access and workforce 
            preparation by: 

             a)   Articulating statewide public policy goals for 
               California's higher education segments. 

             b)   Identifying specific indicators and benchmarks to be 
               reported by higher education institutions in order to track 
               progress toward those goals. 

             c)   Establishing a process for collecting, reporting, and 
               analyzing the collective progress toward the articulated 
               goals.

           2)Background  . Nearly all states have some form of mandated 








                                                                  AB 2
                                                                  Page  5

            statewide accountability program for higher education. 
            California has relied upon segmental accountability, 
            reflecting the missions and functions outlined in the state's 
            Master Plan for Higher Education. However, none of these 
            efforts combine to measure how California's students perform 
            as a whole, nor does California engage in a statewide approach 
            to higher education policy planning. 

           3)Recent Actions by the Segments  . In December 2010, the UC 
            Regents adopted a report by its Commission on the Future 
            addressing how the system can best serve the state in the 
            years ahead and maintain access, quality and affordability in 
            a time of diminishing resources.  In February 2009, CSU 
            adopted a ten-year strategic plan-Access to 
            Excellence-identifying priorities for attention for 
            policy-makers and the broad public in order to meet 
            California's educational needs.  The Community College League 
            of California (comprised of the district trustees and 
            executive officers, issued a study in November 2010, outlining 
            effective policy and practice changes that could be 
            implemented by 2020 and would enable the system to increase 
            the number of students who have access to, and are able to 
            complete, high-quality degrees, certificates and transfer 
            pathways in our community colleges. The CCC Board of 
            Governors, pursuant to SB 1143 (Liu)/Chapter 409 of 2010, has 
            established a task force to examine best practices for 
            promoting student success and adopt a plan for improving CCC 
            student success. 


           4)Prior Legislation  . In 2010, an almost identical bill, AB 218 
            (Portantino), was held on Suspense in Senate Appropriations.  
            In 2008, another nearly identical bill, SB 325 (Scott), was 
            vetoed by Governor Schwarzenegger, who stated:

               "While I respect the author's intent to establish a 
               statewide system of accountability for postsecondary 
               education and a framework to assess the collective 
               contribution of California's institutions of higher 
               education toward meeting statewide economic and educational 
               goals, this bill falls short in providing any framework for 
               incentives or consequences that would modify behavior to 
               meet any policy objectives.  I believe our public education 
               systems should be held accountable for achieving results, 
               including our higher education segments, and would consider 








                                                                  AB 2
                                                                  Page  6

               a measure in the future that provides adequate mechanisms 
               that will effectuate tangible gains in student outcomes and 
               operational efficiencies."



          The author of AB 2 argues it is premature to incorporate 
          incentives or consequences until the goals are determined 
          appropriate, the necessary data collection systems are in place, 
          and funding for the segments has stabilized sufficiently to 
          evaluate their ability to meet the goals.

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