BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 2655 (Swanson) - Community Colleges: Inmate Education.
          
          Amended: March 29, 2012         Policy Vote: Education 9-0
          Urgency: No                     Mandate: No
          Hearing Date: July 2, 2012      Consultant: Jacqueline 
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: AB 2566 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.  

          Fiscal Impact: 
              Hundreds of thousands to millions General Fund, to the 
              extent that this bill's "open course" waiver results in 
              increased CCC courses taught in state prisons. 
              $329,000 General Fund annually, to increase apportionment 
              to the "for credit" rate.

          Background: Existing law authorizes a community college district 
          to claim state apportionment for classes it provides to inmates 
          of any city, county, or city and county jail, road camp, farm 
          for adults, or federal correctional facility. Under existing 
          law, the attendance hours generated by these classes, whether 
          credit or noncredit, count as noncredit attendance hours for 
          apportionment purposes. (Education Code � 84810.5)

          Classes provided to inmates of state correctional facilities are 
          not authorized for state apportionment. In addition, no funds 
          provided for inmate education programs can be considered as part 
          of the base revenues for community college districts in 
          computing apportionments. (EC � 84810.5)

          Proposed Law: AB 2655 waives the open course requirement for 
          California community college (CCC) courses offered in state 
          correctional facilities, allowing courses other than distance 
          courses to be taught in state prisons. This bill also allows 
          attendance hours generated by credit courses to be funded at the 








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          credit rate, instead of the noncredit funding rate.  

          Related Legislation: AB 216 (Swanson) 2011 was nearly identical 
          to this bill, and was held under submission in this Committee.

          AB 1702 (Swanson) 2010 was similar to this bill, and held under 
          submission in this Committee. 

          SB 574 (Hancock) 2009 was also similar to this bill, and was 
          held under submission in this Committee.

          Staff Comments: 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 
          conforming to current allowances for CCC courses in local or 
          federal correctional facilities, for which the colleges receive 
          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  current 
          courses offered in federal prisons and county jails are funded.

          This bill would increase state costs by allowing CCCs 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.








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          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 remains 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 
          FTES 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.

          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 allocated 
          $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 an increased fiscal 
          incentive for the CCCs to offer courses in state prisons would 
          likely lead to an expansion of course offerings and costs above 
          what will likely occur without those increases.

          Last October, the state enacted the 2011 Public Safety 
          Realignment, aimed at reducing prison overcrowding by 
          prospectively housing more felons in county jails. Public Safety 
          Realignment will result in future sentences for specified 
          felonies considered non-serious, non-violent, and non-sex 
          offenses being served in county jails instead of state prisons. 
          To the extent that the demand for CCC courses begins to increase 
          in county jails, as the inmate population (which previously 
          would have been sentenced to state prisons) grows, CCCs will be 
          able to increase courses for which the open course requirement 
          is waived. All courses will still, however, have to be funded at 
          the non-credit rate.

          The costs incurred by this bill would depend on the number of 
          additional FTES that would take classes at a state correctional 
          facility. For every 100 for-credit FTES authorized under this 
          provision, state costs would increase by $456,000. While CCCs 
          are limited to enrollment caps, staff notes that expanding 
          access and funding rates creates pressure to increase funds and 
          incentivizes CCCs to augment prison education programs 
          statewide.









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