BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1684
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      AB 1684 (Eng) - As Amended:  May 1, 2012 

          Policy Committee:                              Higher 
          EducationVote:6-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Legislative Analyst's Office (LAO) to 
          report to the Legislature, by January 1, 2014, the following 
          information regarding the compensation of chancellors and 
          presidents of the state's community college districts and 
          campuses:

          1)"Compensation" (including source of funding) defined as 
            salary, bonuses, a vehicle allowance and a housing allowance.

          2)Comparisons of the compensation of current chancellors and 
            presidents and their predecessors.

          3)How often the college's hiring process for these positions is 
            opened, closed, or extended due to a lack of applications.

           FISCAL EFFECT  

          Assuming all 72 community college districts provide all of the 
          required data to the LAO in a timely manner and in a common 
          format specified by the LAO, the Office can likely collect and 
          compile this data into the required report within its existing 
          resources, but this will be accomplished at the expense of other 
          work.

           COMMENTS  

           1)Purpose  . According to the author, "The current economic 
            recession has resulted in funding being reduced from CCC 
            budgets, forcing the colleges to endure tighter spending 
            allowances and employee lay-offs.  At the same time, 








                                                                  AB 1684
                                                                  Page  2

            enrollment increases have forced many CCCs statewide to do 
            more with less, stretching their tight budgets even tighter as 
            schools struggle to meet the needs of additional students.  In 
            spite of these concerns, some chancellors are still 
            compensated high salaries regardless of their schools 
            budgetary shortfalls."

           2)Concern  . The LAO is the Legislature's nonpartisan fiscal and 
            policy advisor. Given the state's enormous, ongoing fiscal 
            challenges, should it a priority to allocate the office's 
            limited staff resources to compile compensation data on 
            community college chancellor's and presidents, who are 
            essentially local government employees whose compensation is 
            established by locally elected governing boards?

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