BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 2 (Portantino)
          
          Hearing Date: 08/25/2011        Amended: 08/16/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 8-1
          _________________________________________________________________
          ____

          BILL SUMMARY: AB 2 requires the state to establish an 
          accountability framework for achieving prescribed educational 
          and economic goals. This bill would require the Governor to 
          convene a task force by July 1, 2012, to review the framework 
          and recommend a set of overarching goals for the state's higher 
          education institutions, as specified. This bill would urge the 
          task force to consider issues that include 6 statewide policy 
          questions, and require the task force to report to the 
          Legislature and Governor on the recommended goals and progress 
          indicators for higher education, as specified. This bill 
          codifies legislative findings and declarations regarding higher 
          education.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions           2011-12       2012-13       2013-14     Fund
           
          Accountability framework              Potentially substantial 
          cost pressure            General

          Task force                                   Likely minor, 
          potentially significant costs        General

          Report / Recommendations           Potentially substantial 
          future cost pressure     General  
          _________________________________________________________________
          ____

          STAFF COMMENTS: SUSPENSE FILE. 

          

          This bill requires the state to establish an accountability 
          framework that provides the basis for a biennial assessment of 
          the collective contribution of the state's system of 








          AB 2 (Portantino)
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          postsecondary education toward meeting the clear and measurable 
          educational and economic goals, as specified. This bill provides 
          that the purpose of the new accountability framework is "to help 
          policymakers develop, maintain, and fund a postsecondary 
          education system that meets the state's goals, recognizes the 
          differentiated missions of each segment of postsecondary 
          education, and guides the segments toward maintaining effective 
          institutions consistent with state goals and institutional 
          missions." The bill further provides that the framework contain 
          data intended to drive "appropriate policy and funding 
          decisions."



          The framework will play a role in assessing future needs, and 
          determining future funding decisions for higher education 
          statewide. To the extent that the biennial assessment, for which 
          the framework is the basis, determines a need for additional 
          resources or new programming, there will be substantial cost 
          pressure to provide those additional resources in the future, to 
          an unknown extent.



          This bill requires the Governor to convene a task force by July 
          1, 2012, composed of: A) a representative of the President of 
          the University of California (UC), of the Chancellor of the 
          California State University (CSU), of the Chancellor of the 
          California Community Colleges (CCC), and from the Association of 
          Independent California Colleges and Universities, respectively; 
          B) a representative of the Superintendent of Public Instruction; 
          C) a representative of the Legislative Analyst's Office; D) a 
          representative of the Department of Finance; E) legislative 
          staff representatives, specified; and, F) up to 6 representative 
          appointed by the Governor, as specified.



          This task force is required to, by August 1, 2012 (one month 
          after the required convening date) recommend a set of 
          overarching goals for the state's higher education institutions 
          as a whole, including goals for the number of overall college 
          graduates by the year 2025, and to recommend a select number of 
          indicators that measure progress toward the specified goals in a 








          AB 2 (Portantino)
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          report to the Legislature and the Governor. In developing 
          recommendations for state higher education goals and objectives, 
          the task force is "urged" to consider the following questions: 

          1) Are enough Californians prepared for postsecondary education?
          2) Are enough Californians going to college?
          3) Is the state's postsecondary education system affordable to 
          all Californians?
          4) Are enough Californians successfully completing certificates 
          and degrees?
          5) Are college graduates prepared for life and work in 
          California?
          6) Are California's people, communities, and economy benefiting?

          Convening the required task force for one month is unlikely to 
          result in significant new state costs. The UC, CSU, and CCC 
          Chancellor's Office have all indicated that they would not incur 
          additional costs to participate in the task force, and it is 
          unlikely that other participating entities would incur 
          significant costs. It is, however, unclear who is ultimately 
          responsible for the work of the task force, and how it will be 
          staffed, if at all. It is also unclear what entity or entities 
          will be providing data to help inform the task force's 
          recommendations.

          Earlier versions of this bill assigned responsibility to the 
          California Postsecondary Education Commission (CPEC) to collect 
          higher education segment data, to provide that data to the task 
          force (in a useful form), and to complete the required report. 
          CPEC's funding was eliminated in the Budget Act, and 
          subsequently the CPEC provisions of this bill were deleted. They 
          have not, however, been replaced with a successor to the work 
          that was thought  to be required in order to make the task force 
          successful. It is unclear how the task force will complete its 
          work without at least some of the activities being completed 
          which had been delegated to the CPEC. 

          Once the task force has given its recommendations, this bill 
          provides that, to the extent the Governor and the Legislature 
          concur with those recommendations, "it is the intent of the 
          Legislature that these goals be formally adopted by statute, and 
          may be modified in any year, as part of the annual budget 
          process." The task force's recommendations will create cost 
          pressure in future years to adopt the recommendations and 








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          undertake activities to improve the outcomes identified. The 
          cost pressure will be driven by the extent to which the task 
          force recommends new or expanded programs and services.