BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       SB 114
          AUTHOR:        Yee
          AMENDED:       March 10, 2011
          FISCAL COMM:   Yes            HEARING DATE:  March 16, 2011
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  California Community Colleges:  academic salary 
          schedules.

           SUMMARY:   

          This bill requires California community college districts to 
          place part-time faculty on a schedule of comparable salary 
          steps as full-time faculty with similar academic preparation 
          and years of experience; pay part-time faculty in a manner 
          that mirrors the same relationship to the placement of 
          full-time faculty on the schedule, and report the salary on 
          payroll notices and to the State Teachers' Retirement System 
          (STRS) as a percentage of full-time salary.  

           BACKGROUND  

          Existing law defines any person who is employed to teach for 
          not more than 67% of the hours per week considered a 
          full-time assignment to be a temporary (part-time) employee.  
          (Education Code � 87482.5 and � 87882)  

          Existing law requires the governing board of each California 
          Community College (CCC) district to adopt and cause to be 
          printed and made available to each academic employee a 
          schedule of salaries to be paid.  (EC � 87802)  

          Existing law requires the Board of Governors (BOG) of the 
          California Community Colleges to adopt regulations regarding 
          the percent of credit instruction taught by full-time faculty 
          and authorizes CCC districts with less than 75% full-time 
          instructors to apply a portion of their "program improvement" 
          funds toward reaching a 75% goal.  However, the state has 
          stopped providing program improvement funds and the BOG has 
          since required CCC districts to provide a portion of their 
          growth funds to hiring more full-time faculty.  (EC � 
          87482.6)  



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          Existing law specifies the minimum standard for full-time 
          service in community colleges for purposes of calculating 
          STRS service credit and specifies 525 instructional hours per 
          school year for all instructors employed on a part-time 
          basis, except instructors employed in adult education 
          programs.  This minimum standard can be increased for 
          part-time faculty who participate in an office hours program, 
          as specified.  (EC � 22138.5)  




           ANALYSIS  

           This bill  :

          1)   Makes findings and declarations concerning the 
               similarity of part-time and full-time community college 
               faculty in terms of academic credentials and 
               qualifications and the number of non-classroom hours 
               spent preparing lessons and grading assignments; 
               declares that part-time community college faculty 
               salaries should accurately reflect actual work performed 
               both in and out of the classroom, including regularly 
               scheduled office hours, and asserts that an hourly pay 
               schedule underrepresents actual work performed.  

          2)   Finds that repeated problems have occurred, and continue 
               to occur, with accurate calculation and reporting of 
               service credit to the State Teachers' Retirement System 
               (STRS) and from STRS to part-time faculty, particularly 
               for faculty who work in more than one community college 
               district.  Finds that a full-time equivalent student 
               (FTES) percentage-based reporting system could 
               dramatically resolve problems in calculating and 
               reporting STRS service credit.  Finds that part-time 
               faculty salaries in the University of California and the 
               California State University systems, as well as in most 
               K-12 districts, are calculated and reported for all 
               purposes as FTES.  

          3)   States that all part-time and temporary faculty should 
               receive pay and benefits that are equal to those of 
               tenured and tenure-track faculty of comparable 
               qualifications doing comparable work as determined on a 
               pro rata basis.  



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          4)   Expresses the intent of the Legislature to enact 
               legislation that accomplishes the following:  

               a)        Requires that part-time community college 
                    faculty be placed on the same salary schedule as 
                    their full-time colleagues who have similar 
                    academic preparation and years of experience.  

               b)        Requires that the salary of part-time 
                    community college faculty be calculated, stated on 
                    payroll notices and class assignments, and reported 
                    to STRS as a percentage of full-time salary.  

          5)   Requires a community college district to determine the 
               compensation of part-time faculty using a salary 
               schedule that places part-time faculty on comparable 
               salary steps as full-time faculty with similar academic 
               preparation and years of experience.  

          6)   Requires part-time faculty to be placed on a schedule 
               that mirrors the same relationship to placement of 
               full-time faculty on the schedule.  

          7)   Requires a community college district to calculate the 
               salary of a part-time faculty member, and report that 
               salary on payroll notices and to STRS as a percentage of 
               full-time salary.  

          8)   Provides reimbursement authority for costs associated 
               with meeting requirements of this act if the Commission 
               on State Mandates determines that this act contains 
               mandated costs.  

           STAFF COMMENTS  

           1)   Part-time faculty  .  This bill attempts to deal with two 
               persistent issues for part-time faculty in California 
               community colleges:  Pay inequities between full-time 
               and part-time faculty and difficulties in accruing 
               equitable benefits in the STRS Defined Benefit Program.  
               As districts have increasingly turned to part-time 
               faculty to provide instruction, these issues have become 
               more significant for both part-time faculty and their 
               employers.  

          A 2000 report by the California State Auditor noted that 



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               overall, part-time faculty earn lower wages and receive 
               fewer benefits for teaching activities than full-time 
               faculty with similar education and experience.  This 
               report also found that none of the eight districts 
               included in the study enhance the pay rate of part-time 
               faculty who have more education and experience as 
               attractively as they do for their full-time instructors. 
                

          The State Auditor also found that it is more difficult for 
               part-time faculty to obtain the retirement benefits 
               provided to full-time faculty, in part because it takes 
               longer for them to vest in STRS and because service 
               credit is determined by dividing the amount earned by 
               the member by the full-time compensation earnable.  To 
               vest in the system, a part-time member must accumulate 
               the equivalent of at least five years of full-time 
               service.  If service credit was based on the percentage 
               of a full-time assignment, an instructor working 
               half-time would accumulate one half-year of service 
               credit for each year worked.  However, because a 
               part-time faculty member earns service credit in 
               proportion to the compensation of a full-time faculty 
               member and because a full-time faculty member typically 
               has a higher rate of pay, the actual service credit 
               earned may be much lower.  According to CalSTRS, 
               approximately 63 percent of Defined Benefits Program 
               members who are employed by a community college are 
               employed on a less-than-full-time basis.  

           2)   Need for the bill  .  Although part-time faculty must meet 
               the same minimum qualifications as full-time faculty and 
               perform the same teaching activities, the sponsor of the 
               bill, the California Federation of Teachers, argues that 
               many districts do not give part-time faculty salary 
               placement credit for education or experience beyond the 
               minimum qualifications, making it difficult for 
               part-time faculty to understand how to achieve salary 
               enhancements.  Further, the sponsor indicates that pay 
               rates based on classroom hours may not adequately 
               account for teaching activities such as preparing for 
               class or grading papers, resulting in inequalities in 
               salary and service credit reported to STRS.  This lack 
               of clarity creates complexities in determining the STRS 
               credit a member has earned and can make it more 
               difficult for part-time faculty to obtain retirement 
               benefits.  



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          According to the author, the goal of SB 114 is for community 
               college districts to establish a more uniform method of 
               determining the compensation of part-time faculty using 
               a core salary schedule that is based on education and 
               experience, such as a schedule that has columns that 
               reflect increasing amounts of education and rows (or 
               "steps") that reflect years of experience.  By requiring 
               districts to use salary schedules for part-time faculty 
               that mirror those used for full-time faculty and to 
               report earnings as a percentage of full-time salary, the 
               author hopes SB 114 will increase the transparency of 
               salary schedules for part-time faculty and facilitate 
               more accurate service credit accruals, thereby enabling 
               part-time faculty to obtain the retirement benefits they 
               deserve.  

           3)   Collective bargaining implications  .  Compensation 
               agreements for full and part-time community college 
               faculty are locally bargained.  In some districts, 
               part-time and full-time faculty may be in separate 
               bargaining units and have separate union representation. 
                Some districts have established higher pay rates for 
               full-time faculty to account for non-instructional 
               responsibilities such as curriculum development, 
               committee work, and staff development.  

          A district that would need to redesign an existing or 
               implement a new salary schedule that meets the 
               requirements of this bill may need to negotiate those 
               changes with their local bargaining units.  At least one 
               district noted that for districts that have separate 
               bargaining units for full and part-time faculty, the 
               comparability requirements would mean that the salary 
               conditions for one bargaining unit (part-time) would be 
               based upon the negotiations of another unit.  Could this 
               add unnecessary complexity to the bargaining process?  
               Given that compensation agreements for part-time faculty 
               are locally bargained and some districts have adopted 
               step and column schedules, it could be argued that local 
               pay schedules reflect what was bargained for on behalf 
               of part-time faculty.  

          It is unclear whether the requirement to place part-time 
               faculty on a schedule that "mirrors the same 
               relationship to placement of full-time faculty on the 



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               schedule" will be interpreted in the same manner across 
               districts or between districts and their faculty 
               associations.  Although the sponsor has indicated that 
               the intent of this bill is not to require the adoption 
               of pro-rata pay schedules, could some interpret this 
               provision to mean there must be 100% 
               schedule-to-schedule parity, particularly given the 
               intent language in Section 1 of the bill?  In order to 
               clarify the stated intent, staff recommends amendments 
               to remove this intent language by deleting paragraph (b) 
               and subparagraphs (1) and (2) in Section 1 of the bill.  


           4)   Fiscal effect   This bill could result in unknown, but 
               potentially significant, mandated costs for districts 
               that need to modify existing or develop new salary 
               schedules for part-time faculty.  Additional costs could 
               be incurred if districts need to negotiate these changes 
               with their unions.  Further, it is unclear how districts 
               will account for part-time faculty who perform ancillary 
               duties such as governance, staff development, or 
               advising student organizations.  

           5)   STRS Task Force  .  The California State Teachers' 
               Retirement System is currently undertaking a 
               comprehensive review of the Designed Benefit Program as 
               it applies to community college faculty and has 
               established a task force to help facilitate a solution.  
               Over the next few months, this task force will be 
               considering alternatives to address the problems that 
               employers, members, and STRS experience with respect to 
               community college employment on a less-than-full-time 
               basis.  Recommendations from this panel could result in 
               new and more equitable methods of accruing retirement 
               benefits for part-time community college faculty.  
           
          6)   Previous legislation  .  The Legislature has considered 
               various measures addressing the use and compensation of 
               part-time faculty in the California Community Colleges:  


          ACR 138 (Nava, Resolution Chapter 142, 2010) stated the 
               intent of the Legislature that a) part-time and 
               temporary community college faculty receive pay and 
               benefits that are equal to those of specified tenured 
               and tenure-track faculty to the extent funding is 
               provided and b) the California Community Colleges 



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               increase the percentage of full-time tenured and 
               tenure-track faculty.  This measure was heard by this 
               Committee on June 30, 2010, and was passed on a 6-2 
               vote.  

          AB 360 (Ma, 2009) would have encouraged the State Teachers' 
               Retirement System to conduct a study that would examine 
               the feasibility and cost-effectiveness of either 
               creating a new program for part-time instructors or 
               making appropriate modifications to the Defined Benefit 
               Program to more appropriately reflect the career of a 
               part-time instructor.  This bill was held by the 
               Assembly Appropriations Committee.  

          AB 591 (Dymally, Chapter 84, Statutes of 2008) - increased 
               from 60 to 67 percent the proportion of hours per week 
               of a full-time instructional assignment that an 
               individual may teach and still be considered a temporary 
               employee.  This measure was heard by this Committee on 
               June 11, 2008, and was passed on a 9-0 vote.  

          AB 1423 (Davis, 2007), would have required CCC district 
               academic salary schedules to be uniform in application 
               and effect.  This measure was held by the Assembly 
               Appropriations Committee.  

          SB 955 (Burton, Chapter 25, Statutes of 2003) - exempts 
               service in ancillary professional activities, including 
               governance, staff development, grant writing, and 
               advising student organizations, from counting toward the 
               calculation of eligibility for contract or regular 
               status for part-time employees at California Community 
               Colleges unless otherwise provided for in the relevant 
               collective bargaining agreement.  This measure was heard 
               by this Committee on April 2, 2008, and was passed on a 
               12-0 vote.  




           SUPPORT
           
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          California Federation of Teachers
          California Labor Federation
          California Teachers Association



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          Faculty Association of California Community Colleges
          San Francisco Community College Federation of Teachers
          An individual

           OPPOSITION
           
          None received.