BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 721
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          SENATE THIRD READING
          SB 721 (Alan Lowenthal)
          As Amended  August 20, 2012
          Majority vote 

           SENATE VOTE  :35-0  
           
           HIGHER EDUCATION    8-1         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Block, Olsen, Achadjian,  |Ayes:|Gatto, Harkey,            |
          |     |Brownley, Fong, Lara,     |     |Blumenfield, Bradford,    |
          |     |Miller, Portantino        |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Fuentes, |
          |     |                          |     |Hall, Hill, Cedillo,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Galgiani                  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes specified goals to guide budget and policy 
          decisions regarding postsecondary education and requires the 
          development of metrics to measure progress in meeting the goals. 
           Specifically,  this bill  :

          1)States legislative intent that budget and policy decisions 
            regarding higher education generally adhere to the following 
            goals:

             a)   Improving student access and success.

             b)   Better aligning degrees and credentials with the state's 
               economic, workforce, and civic needs.

             c)   Ensuring the effective and efficient use of resources in 
               order to increase high-quality outcomes and maintain 
               affordability.

          2)States legislative intent to:  a) define appropriate metrics 
            to monitor progress toward meeting the above goals; and, b) 
            establish interim targets for the metrics to be achieved by 
            2025.









                                                                  SB 721
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          3)Requires the Legislative Analyst's Office (LAO) to establish a 
            working group, as specified, to develop a set of between six 
            and 12 metrics, derived from publicly available data sources, 
            for purposes of assessing the state's progress toward meeting 
            each of the above goals.

          4)Requires the LAO, in consultation with the Department of 
            Finance, to submit the recommended metrics to the Legislature 
            and the Governor by January 31, 2013, and states legislative 
            intent to adopt statewide metrics following a review of the 
            LAO's recommendations.

          5)Requires the LAO to provide:

             a)   An annual statewide performance report, commencing 
               September 30, 2013, using each of the adopted metrics, and 
               to benchmark each metric against the appropriate interim 
               target.

             b)   Its own annual assessment, commencing January 1, 2014, 
               and as specified, of progress toward achieving the above 
               goals.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, costs for the workgroup and for the LAO to produce 
          the annual report and an assessment of the segments' progress 
          will be absorbable.  Additionally, to the extent this bill, as 
          intended, does not add new data-gathering duties on the 
          segments, their costs will be minor and absorbable.

           COMMENTS  :  Nearly all states have some form of mandated 
          statewide accountability program for higher education.  
          California has relied upon segmental accountability, reflecting 
          the missions and functions outlined in the state's Master Plan 
          for Higher Education.  However, none of these efforts combine to 
          measure how California's students perform as a whole, nor does 
          California engage in a statewide approach to higher education 
          policy planning.

          The Legislature has been considering statewide higher education 
          goals for a decade, beginning with a study commissioned by the 
          Senate in 2002 that served as the basis for several legislative 
          efforts.  As part of its recent reports on higher education 
          oversight, the LAO has recommended that the Legislature and the 








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          Administration establish a clear public agenda for higher 
          education, including specific and focused statewide goals that 
          could serve as the framework for an accountability system 
          designed to align higher education performance with the state's 
          needs.  The most recent Master Plan review, as reflected in ACR 
          184 (Ruskin), Res. Chapter 163, Statutes of 2010, noted the lack 
          of public policy goals based upon the outcomes required to meet 
          California's needs and found the establishment of statewide 
          goals will enable increased accountability across the entire 
          higher education system and within segments.
           
           
           Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916) 
          319-3960 


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