BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          ACR 119 (Muratsuchi) - Community Colleges: Career Technical  
          Education 
          
          Amended: June 2, 2014           Policy Vote: Education 6-0
          Urgency: No                     Mandate: No
          Hearing Date: June 30, 2014                                  
          Consultant: Jacqueline Wong-Hernandez                       
          
          This resolution meets the criteria for referral to the Suspense  
          File.

          Bill Summary: ACR 119 encourages the Chancellor of the  
          California Community Colleges (CCC), in consultation with  
          affected stakeholders, as specified, to develop at least three  
          options to address the long-term funding needs of career  
          technical education (CTE) and other workforce and training  
          programs at the CCCs.

          Fiscal Impact: 
                   Potentially significant cost pressure to the CCC  
                Chancellor's Office to develop CTE funding options, and  
                present them to the Legislature by June 1, 2015.
                   Potentially substantial cost pressure for the  
                Legislature to "address the long-term funding needs" of  
                CTE and other workforce and training programs during the  
                2015-16 legislative session.

          Background: The CCC system is the nation's largest system of  
          higher education, comprised of 112 colleges that serve more than  
          2.3 million students per year. Under the California Master Plan  
          for Higher Education, the primary mission of the CCC is to  
          provide low-cost post-secondary education for any interested  
          Californian. Its mission includes providing lower-division  
          academic coursework that could lead to transfer to four-year  
          colleges, CTE, basic skills education, and enrichment courses. 

          Proposed Law: This resolution makes numerous findings and  
          declarations, relative to CTE and the CCC. This resolution also  
          resolves:

             1)   That the Legislature encourages the Chancellor of the  
               CCC in consultation with affected stakeholders, including,  








          ACR 119 (Muratsuchi)
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               but not limited to, experts in the field of CTE, business  
               and industry representatives, faculty, and organized labor  
               representatives to develop at least three options to  
               address the long-term funding needs of CTE and other  
               workforce and training programs at the CCC campuses, in a  
               manner that adequately funds the programs that regions deem  
               valuable to their economies, and to submit those options to  
               the Legislature before June 1, 2015; and

             2)   That it is the intent of the Legislature during the  
               2015-16 Regular Session to address the long-term funding  
               needs of CTE and other workforce and training programs at  
               the CCC.

          Staff Comments: This resolution will not result in direct state  
          costs, because it does not have the force of law. It does,  
          however, create substantial new cost pressure to the General  
          Fund in two ways. First, it sets a deadline (of six months from  
          enactment) by which the CCC Chancellor is expected to consult  
          with stakeholders and develop three options to "address" CTE and  
          other workforce and training program funding issues. The CCC  
          Chancellor's office has opined that costs would likely be  
          absorbable but, if outside research is needed, contracting costs  
          could be up to $200,000 (General Fund). Second, it states  
          legislative intent to (ostensibly consider those ideas, and)  
          take action to address the long-term funding needs of those  
          programs. Considering the substantial reductions many programs  
          have undergone in recent years, "addressing long-term funding  
          needs" will likely involve providing substantial new funding.