BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 216 (Swanson)
          
          Hearing Date: 08/25/2011        Amended: As Introduced
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 9-0
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          ____
          BILL SUMMARY: AB 216 waives the open course requirement for 
          California community college (CCC) courses offered in state 
          correctional facilities and allows attendance hours generated by 
          credit courses to be funded at the credit rate, instead of the 
          noncredit funding rate.  
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions        2011-12      2012-13       2013-14     Fund
           
          Conversion to "for credit" rate     $329        $329      
          $329General*

          State correctional facilities    Significant costs; likely 
          hundreds of thousands  General*
                                         
          *Counts toward meeting the Proposition 98 minimum funding 
          guarantee     
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          ____

          STAFF COMMENTS: SUSPENSE FILE. 

          Existing law does not permit CCCs to receive state funding for 
          courses that are not open to the public, except for courses 
          offered at city, county and federal correctional facilities (but 
          not at state correctional facilities). Courses offered to state 
          correctional inmates must be "distance education" courses open 
          to the public, as well. Under existing law, CCC courses offered 
          in local and federal correctional facilities that are not open 
          to the public are funded at a "noncredit rate" (which is less 
          than a "for credit rate"), even if the courses are actually for 
          credit.  

          This bill would waive the "open course" provisions for CCC 
          courses offered in state correctional facilities, thus 








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          conforming to current allowances for CCC courses in local or 
          federal correctional facilities, for which the college receives 
          funding even though the courses are not open to the general 
          public. The CCCs would be able to offer courses in state 
          correctional facilities, and receive apportionments for those 
          courses. Additionally, this bill would allow attendance hours 
          generated by credit courses, at all correctional facilities to 
          be funded at the corresponding rates for those types of courses 
          rather than at the lower, noncredit rate at which the existing 
          exception courses are funded.

          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 student (FTES), career development and 
          college preparation noncredit courses are funded at $3,237 per 
          FTES, and noncredit courses at $2,745 per FTES.
          According to the CCC Chancellor's Office, community college 
          programs projected serving credit courses for 1,769 FTES in the 
          2006-07 fiscal year (which is the most recent survey data 
          available). The majority of these FTES would already receive 
          full credit funding, because the courses are distance education 
          courses also open to the public. Under this bill, the remaining 
          would also receive full credit apportionments, which are $1,820 
          per FTES. For the 181 converted course rates, the cost would be 
          approximately $329,000 per FTES. 

          The Department of Corrections and Rehabilitation (CDCR) has 
          sustained substantial budget reductions in recent years. The 
          CDCR has, in turn, reduced many of its programs including inmate 
          education and training programs. The 2011-12 Budget allocates 
          $99.5 million for inmate education programs, which is less than 
          half of the $206 million spent in 2008-09. Waiving the open 
          course requirements (which would allow CCCs to offer courses in 
          state correctional facilities) combined with increased fiscal 
          incentive for the CCCs to offer courses in state prisons would 
          likely lead to an expansion of course offerings and costs.

          These additional costs would depend on the number of FTES that 
          would take classes
          at a state correctional facility.  For every 100 for-credit FTES 








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          authorized under this provision, state costs would increase by 
          $456,000. While community colleges are limited to enrollment 
          caps, staff notes that expanding access and funding rates 
          creates pressure to increase funds and incentivizes community 
          colleges to augment prison education programs statewide.

          There have been many similar bills heard by this committee in 
          recent years. AB 1702 (Swanson 2010) was held in this committee 
          last year, and SB 574 (Hancock, 2009) was held in this committee 
          the prior year. SB 413 (Scott, 2008) was vetoed by the Governor 
          in 2008. SB 1460 (Cox) was held by this committee 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.