BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 661
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          Date of Hearing:  May 3, 2011  

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                     AB 661 (Block) - As Amended:  April 28, 2011
           
          SUBJECT  :   Public postsecondary education: >

           SUMMARY  :  Would authorize the Grossmont-Cuyamaca Community 
          College District (GCCCD) and the San Mateo Community College 
          District (SMCCD) to offer baccalaureate degrees, as specified.  
          Specifically,  this bill  :  

          1)Makes various findings and declarations, including that 
            allowing California Community Colleges (CCC) to provide 
            baccalaureate degrees can help California meet its future 
            workforce education needs. 

          2)Authorizes GCCCD and SMCCD to establish a baccalaureate degree 
            pilot program (Pilot), provides that the Pilot will expire 
            eight years after the first class of students begin the 
            program, and requires the Pilot to meet the following 
            eligibility requirements:   

             a)   The districts must seek accreditation as a baccalaureate 
               degree granting college.

             b)   The districts must maintain the primary mission of the 
               CCC as outlined in existing law but shall have the 
               additional mission to provide high-quality undergraduate 
               education at an affordable price for students and the 
               state.

             c)   The districts may offer one baccalaureate degree on each 
               campus in a field of study subject to the following 
               requirements as determined by the governing board of the 
               district:

               i)     Identified and documented unmet workforce needs in 
                 the subject areas of the baccalaureate degree to be 
                 offered;

               ii)    No duplication of similar programs offered by nearby 
                 public institutions; and 









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               iii)   Expertise, resources, and student interest in the 
                 area of study.

             d)   Requires GCCCD and SMCCD to maintain separate records 
               for students who are enrolled in courses classified in the 
               upper division and lower division of the Pilot.  Provides 
               that a student shall be reported as a community college 
               student for enrollment in a lower division course and as a 
               Pilot student for enrollment in an upper division course. 

             e)   Requires GCCCD and SMCCD governing boards to determine 
               the appropriate governance system for the Pilots, to make 
               decisions regarding the curriculum, faculty, and 
               facilities, and to establish the level of matriculation, 
               tuition, and other appropriate costs for students enrolled 
               in the Pilots. 

             f)   Authorizes the GCCCD and SMCCD governing boards to 
               charge Pilot students a fee, in an amount determined by the 
               governing board that covers the additional costs imposed by 
               providing the Pilot, for enrollment in courses that are not 
               transfer core curriculum courses.  Provides that the fees 
               shall be deposited in the designated fund of the district 
               in accordance with the CCC Budget and Accounting Manual and 
               expended for the Pilot.

             g)   Authorizes GCCCD and SMCCD governing boards to enter 
               into agreements with local businesses and agencies to 
               provide educational services to students participating in 
               the Pilots.  

             h)   Requires GCCCD and SMCCD to report to the Legislature 
               within one year prior to the expiration of the Pilots on 
               the success of the Pilots through an evaluation of the 
               following factors:

               i)     The percentage of students who complete a 
                 baccalaureate degree, calculated by dividing the number 
                 of students who graduate from the Pilot by the number of 
                 students who enrolled in the Pilot.

               ii)    The extent to which the Pilot is self-supporting, 
                 such that the student fees charged cover the costs of the 
                 Pilot.









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               iii)   Whether there is a problem with finding and paying 
                 instructors for the Pilot.

               iv)    Whether there was a decline in enrollment in the 
                 California State University (CSU) or the University of 
                 California (UC) as a result of the Pilot.

               v)     The number of students who received jobs in the area 
                 in the field of study of their baccalaureate degree.

               vi)    The amount of student fees charged as compared to 
                 the amount of student fees charged at CSU and UC.

           EXISTING LAW  

          1)Establishes CCC, with the primary mission to offer academic 
            and vocational instruction at the lower division level for 
            both younger and older students, including those persons 
            returning to school and not beyond the second year of college. 
             

          2)Establishes the CCC Baccalaureate Partnership Program, formed 
            for the purpose of offering baccalaureate degree programs on 
            participating CCC campuses.  

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal by 
          Legislative Counsel.  

           COMMENTS  :   Purpose of this bill  :  The author notes that tens of 
          thousands of students are being turned away from UC and CSU 
          campuses, and yet according to the Public Policy Institute of 
          California, this state needs to produce almost one million more 
          college educated workers by 2025 in order to remain economically 
          competitive. The author argues that allowing a select number of 
          CCCs to offer baccalaureate degrees could be one way to help 
          improve retention and graduation rates while providing 
          place-bound students an opportunity to get a high-quality 
          education close to home. 
          
           Committee oversight hearing  :  On March 1, 2011, the Assembly 
          Higher Education Committee conducted an oversight hearing to 
          examine the issues surrounding a CCC baccalaureate degree 
          program.  In an effort to increase the percentage of degree 
          holders and provide access to a population of students who may 
          not otherwise attend four-year universities, several states have 








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          taken steps to allow their community colleges to award 
          specialized baccalaureate degrees.  
          The arguments in favor of the community college baccalaureate 
          degree are compelling:

           1)Increased access  to the baccalaureate for place-bound, adult 
            workers and first-generation college students.     

           2)Greater affordability  for students as in most states the cost 
            of a community college baccalaureate is lower than tuition at 
            four-year institutions.  Committee staff notes that this bill 
            does not require the student fee amount to be lower than that 
            of CSU or UC but instead requires the fee amount to cover the 
            cost of the Pilot.
                
            3)Ability to meet local workforce demands  as community colleges 
            work with local employers and develop degree and certificate 
            programs that respond to specified workforce needs.  Committee 
            staff notes that this bill would require Pilot degrees to be 
            offered in areas of identified workforce need.
                
            4)Previously established joint accreditation process  whereby the 
            Western Association of Schools and Colleges accrediting 
            commission, the Accrediting Commission for Community and 
            Junior Colleges (ACCJC) provides for joint accreditation of 
            two-year degree granting institutions currently accredited by 
            ACCJC that wish to offer a single baccalaureate degree while 
            retaining their core mission as a two-year-degree-granting 
            institution.  Committee staff notes this bill would authorize 
            only one baccalaureate degree offering at the Pilot districts. 
              

           Examples in other states  :  According to the American Association 
          of State Colleges and Universities (AASCU), there has been a 
          steady growth in the number of community colleges offering 
          baccalaureate degrees.  An estimated 19 states have made 
          provisions for community college baccalaureate degrees.  With 
          the exception of Florida, in most states only a few colleges are 
          authorized to award baccalaureate degrees and within each 
          college only a few specialized baccalaureate degrees are 
          offered, mostly in health fields, teaching and education, and 
          science and mathematics.  A recent analysis of states with 
          community college bachelor degree programs found the primary 
          reasons for offering these programs are to address workforce 
          needs, respond to economic pressures from employers, increase 








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          access to populations underserved by traditional bachelor 
          degree-granting institutions, and maintain college 
          affordability.

           Pilot districts  :  Pilot programs are designed to test and 
          evaluate how a program will work in a variety of circumstances 
          before implementation on a statewide basis.  Thus, pilots are 
          usually selected by the CCC Chancellor in a competitive process 
          that seeks to ensure demographic and geographic diversity.  This 
          bill specifies the CCC districts that will serve as the Pilots 
          without the benefit of a competitive process or evaluation of 
          the diversity of the Pilots.  Will this provide a suitable test 
          of the viability of the CCC baccalaureate degree and possible 
          implementation challenges for all CCCs?

           Mission expansion:   This bill represents a significant expansion 
          of the CCC mission with an unknown impact on the ability of CCC 
          to complete its existing missions.  As reported by the Institute 
          for Higher Education Leadership & Policy, of the 60% of CCC 
          students seeking a degree or certificate, only about one-fourth 
          succeed in transferring to a university and/or earning an 
          associate's degree or certificate within six years.  In the 
          2009-10 Budget Act, the Legislature and Administration asked CCC 
          to focus its resources on three key priorities: career technical 
          education, basic skills, and transfer.  The author and committee 
          may wish to consider whether this bill is consistent with that 
          intent.  However, Committee staff notes that this bill requires 
          the CCC governing boards to maintain the primary mission of CCC 
          as outlined in existing law.   
           
            High implementation costs  :  In order to add upper division 
          coursework, CCCs would need to increase faculty and upgrade 
          laboratories and libraries.  CCCs have argued during budget 
          debates that they do not receive adequate funding for their 
          existing responsibilities and student enrollment levels.  This 
          bill would authorize CCC governing boards to establish student 
          fee levels that cover the cost of the program.  If the student 
          fees include start-up costs, is it likely that the tuition rates 
          will be competitive with the rates charged by established 
          four-year institutions? 
            
            Fee amounts  :  This bill allows the Pilots to charge fees to 
          cover the additional costs imposed by providing a baccalaureate 
          degree pilot program, for enrollment in courses that are not 
          transfer core curriculum courses, as defined.  What is included 








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          in "costs"?  Could the fee differ among the Pilots?  Would CCC 
          seek funding from the state (CCC receives approximately $4,000 
          per full-time equivalent student)? If fees are not collected 
          until students are enrolling in Pilots, how will districts fund 
          start-up costs?  
            
            Other alternatives  :  Partnerships between a CCC and a CSU campus 
          have been established to deliver upper-division instruction at 
          community sites away from the main CSU campus.  The CCC 
          Baccalaureate Partnership Program, formed for the purpose of 
          offering baccalaureate degree programs on participating CCC 
          campuses, authorizes the CCC Chancellor's Office to award 
          annually two grants, not to exceed $50,000 each, to a 
          collaborative, consisting of at least one CCC and at least one 
          baccalaureate-degree granting institution, formed for the 
          purpose of offering a baccalaureate degree program at 
          participating CCCs.  Ca�ada College partners with SFSU and CSU 
          East Bay to provide baccalaureate degrees at the University 
          Center located on the Ca�ada College campus in Child and 
          Adolescent Development, Nursing, and Health Sciences.  The city 
          of Stockton receives baccalaureate-level instruction provided by 
          CSU Stanislaus at an off-campus site in Stockton.  CSU Fullerton 
          maintains a branch campus in El Toro, serving approximately 
          1,140 full-time equivalent students annually.  

          Several CCCs partner with both public and private universities 
          to provide baccalaureate degrees.  Operating the baccalaureate 
          programs, including the hiring of faculty, counseling students, 
          overseeing curricula and registering students is the 
          responsibility of each university partner exclusively, however 
          the courses are offered on the CCC campus.  College of the 
          Canyons partners with The American College, Brandman University, 
          California State University Bakersfield, California State 
          University Los Angeles, California State University Northridge, 
          National University, TEACH, UCLA Extension, and the University 
          of La Verne.  Shasta College has a university partnership with 
          National University offering students the opportunity to enroll 
          in National's bachelor program while concurrently enrolled in 
          Shasta.    
           
          Prior efforts :  AB 2400 (Block) of 2010, would have authorized 
          three specified CCC districts to offer baccalaureate degrees as 
          part of a pilot program and was held in the Assembly Higher 
          Education Committee at the request of the author.  AB 1455 
          (Hill) of 2009, subsequently amended to address public safety 








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          issues,  as introduced would have required the CCC Board of 
          Governors to establish a pilot program to allow selected CCC 
          districts to offer baccalaureate degrees.  AB 1280 (Maze), 
          Chapter 515, Statutes of 2005, established the CCC Baccalaureate 
          Partnership Program.  AB 1932 (Maze), of 2004, expressed 
          legislative intent to authorize CCCs to award bachelor's degrees 
          and was held without recommendation in the Assembly Higher 
          Education Committee.  The California Performance Review issued 
          by Governor Schwarzenegger in 2005 recommended that the Governor 
          work with the Legislature to create a pilot program allowing 
          approved CCCs to offer baccalaureate degrees. Under the pilot 
          program, individual community colleges interested in offering a 
          baccalaureate degree would submit a proposal for approval by the 
          Secretary of Education or his or her successor.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Nurses Association of California
          Grossmont-Cuyamaca Community College District
          Kaiser Permanente
          San Mateo Community College District
          Scripps Health

           Opposition 
           
          California Nurses Association
          Faculty Association of California Community Colleges
           
          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916) 
          319-3960