BILL ANALYSIS �
AB 977
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Date of Hearing: January 14, 2014
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 977 (Salas) - As Amended: January 7, 2014
SUBJECT : Community colleges: career and technical education
programs.
SUMMARY : Requires the California Community Colleges (CCC)
Chancellor to convene a group of experts in career technical
education (CTE), business, or industry. The group must include
individuals who are CCC faculty members or administrators, and
representatives of private sector business or industry.
Requires the group of experts to research and recommend ways to
address the technical, policy, and fiscal issues related to
implementing differential funding for credit-bearing high-cost,
high-demand courses and programs, including career technical
education offered at CCC campuses, that regions deem valuable to
their economies. Requires the group of experts to report
findings to the Legislature on or before January 1, 2016.
FISCAL EFFECT : Unknown.
COMMENTS : Background . In 2006, SB 361 (Scott), Chapter 631,
replaced the CCC program-based funding system with an allocation
mechanism that generally provides a single rate per full-time
equivalent student (FTES) for all districts. In 2013-14, credit
courses are funded at $4636 per FTES, non-credit courses are
funded at $2788 FTES, and "enhanced" non-credit courses, which
include college development and career preparation courses, are
funded at $3283.
Financing high-priority workforce programs . In August of 2013,
the Institute for Higher Education Leadership Policy (IHELP)
released a report entitled "Workforce Investments: State
Strategies to Preserve Higher-Cost Career Education Programs in
Community and Technical Colleges" which found that California's
current funding structure creates a fiscal disincentive to
support high-cost programs. IHELP studied the CTE funding
practices of 20 states, which could potentially be adapted to
California. IHELP identified differential funding as a
potential strategy for California. According to IHELP, thirteen
of the 20 states reviewed have some form of differential
funding, whereby state funding formulas take differential
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program costs into account in calculating need or allocations
for institutions.
Purpose of this bill . According to the author, California's
failure to adequately support CTE has led to a ten-year decline
in CTE's share of overall system enrollment at a time when the
need for postsecondary education, credential, and certificate
attainment has grown. The author notes that despite the success
of many CTE programs, CTE is disadvantaged in the competition
for resources within CCC. CTE programs are often more expensive
to offer than traditional classes due to the need for equipment
facilities and staff, smaller class sizes, and more faculty time
spent on updating curriculum and engaging with industry and
employers. The author argues that a funding formula that takes
differential program costs into account in determining
allocations is a promising approach to increasing investments in
CTE.
Existing efforts and recommendations . The Economic and
Workforce Development (EWD) program within the CCC Chancellor's
Office (CCCCO) exists to bridge the gap between workforce needs
and skills training provided by CCC. The EWD collaborates with
employers, organized labor, local communities, community
colleges and other educational entities. The Economic
Development Program Advisory Committee (EDPAC) and Workforce &
Economic Performance Advisory Committee (WEDPAC) are advisory
bodies to the EWD. Committee staff understands that these
advisory committees are in the process of reviewing the options
outlined in the IHELP report and making recommendations
regarding CTE program funding.
REGISTERED SUPPORT / OPPOSITION :
Support
California Edge Coalition
California Manufacturers and Technology Association
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960
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