BILL ANALYSIS                                                                                                                                                                                                    �




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


          AB 1451 (Holden) - Concurrent Enrollment
          
          Amended: June 25, 2014          Policy Vote: Education 7-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                                 
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill meets the criteria for referral to the Suspense File. 
          
          Bill Summary: AB 1451 authorizes the governing board of a school  
          district, until July 1, 2020 to enter into a formal concurrent  
          enrollment partnership agreement with a community college  
          district (CCD) located within its immediate service area, with  
          the goals of developing a seamless pathway from high school to  
          community college, as specified.

          Fiscal Impact: Easing restrictions on CCDs enrolling and/or  
          providing courses to high school students will create  
          substantial ongoing Prop 98 General Fund cost pressure to  
          increase community college apportionments. See staff comments.
              Reporting: Likely minor costs to a CCD that elects to enter  
              into a concurrent enrollment partnership agreement (CEPA)  
              with one or more school districts.

          Background: Existing law authorizes the governing board of a  
          school district, upon recommendation of the principal of a  
          student's school of attendance, and with parental consent, to  
          authorize a student who would benefit from advanced scholastic  
          or vocational work to attend a community college as a special  
          part-time or full-time student. Existing law also prohibits a  
          principal from recommending, for community college summer  
          session attendance, more than 5% of the total number of students  
          in the same grade level. (Education Code � 48800, et seq.). 

          Prior to January 1, 2014, the following courses were exempted  
          from the 5% cap; the summer course was (a) a lower division  
          Intersegmental General Education Transfer Curriculum (IGETC)  
          course that applies to the General Education breadth  
          requirements of the California State University (CSU), (b) the  
          course is a college-level occupational course for credit, and is  
          part of a sequence of vocational or career technical education  
          courses that leads to a degree or certificate, as specified; or  








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          (c) the course is necessary to assist a pupil who has not passed  
          the California High School Exit Exam (CAHSEE) and the student is  
          in the senior year, as specified. (Education Code � 48800 et  
          seq.) 

          Existing law also requires the California Community College  
          Chancellor's Office (CCCCO) to annually report to the Department  
          of Finance and the Legislature the number of full-time  
          equivalent students (FTES) claimed by each CCD for high school  
          pupils enrolled in non-credit, non-degree applicable, degree  
          applicable (excluding physical education), and degree applicable  
          physical education courses. Existing law further provides that,  
          for purposes of receiving state apportionments, CCDs may only  
          include high school students within the CCD's report on FTES if  
          the students are enrolled in courses that are open to the  
          general public, as specified. (EC �76002)

          The CCCCO is also required to annually report the number of  
          pupils who enroll in community college summer session courses  
          and receive a passing grade. (EC 48800)

          Finally, existing law requires the governing board of a CCD to  
          assign a low enrollment priority to special part-time or  
          full-time students in order to ensure that these students do not  
          displace regularly admitted community college students (EC �  
          76001)  
           
          Proposed Law: This bill authorizes the governing board of a  
          school district to enter into a formal concurrent enrollment  
          partnership agreement with a CCD located within its immediate  
          service area, with stated goals. More specifically, this bill:

          1)   Reinstates the course exemptions outlined in the Background  
               from the 5% cap on summer session concurrent enrollment  
               and, includes an additional exemption. These exemptions are  
               now scheduled to sunset January 1, 2017. 

          2)   Repeals the prohibition against the CCC Board of Governors  
               including in its annual budget request the concurrent  
               enrollment of high school pupils.
                
          3)   Specifies that a concurrently enrolled pupil may receive  
               community college and high school credit for completed  
               community college courses as determined to be appropriate  








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               by the governing boards of the school district and the  
               community college district, in accordance with state and  
               federal law.

          4)   Authorizes a school district to enter into a CEPA with the  
               governing board of a CCD located within its immediate  
               service area, with the goal of developing a pathway from  
               high school to community college for career-technical  
               education or preparation for transfer.

          5)   Requires concurrent enrollment partnership agreements to  
               outline the terms of the partnership, as specified, and to  
               file the agreement with the Superintendent of Public  
               Instruction (SPI) and the CCCCO before the start of a  
               program authorized by this statute.

          6)   Permits a pupil to receive community college and high  
               school credit for community college courses that he or she  
               completes, as determined to be appropriate by the governing  
               boards of the school district and the CCD, and in  
               accordance with other state and federal law.

          7)   Prohibits a pupil from being assessed any course-related  
               fees, as specified, for a community college course offered  
               through a CEPA.  

          8)   Specifies that a school district participating in a  
               partnership shall not receive a state allowance or  
               apportionment for an instructional activity for which a  
               community college district has been, or shall be, paid an  
               allowance or apportionment. Likewise, a CCD shall not  
               receive a state allowance or apportionment for an  
               instructional activity for which a school district has  
               been, or shall be, paid an allowance or apportionment.

          9)   Requires each CEPA participating school district and CCD to  
               annually report specified enrollment and outcome measures  
               to the CCCCO, the Legislature, the Department of Finance,  
               and the SPI.

          10)  Exempts pupils attending an early college high school and  
               participants of the CEPA program from the requirement that  
               concurrently enrolled pupils be assigned lower enrollment  
               priority to ensure they do not displace regularly admitted  








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               students. 

          11)  Allows a CCD to permit a pupil attending a middle or early  
               college high school or a pupil participating in a CEPA to  
               enroll in up to a maximum of 15 units if either: (a) the  
               units constitute no more than four community college  
               courses per term, or (b) those units are part of an  
               academic program offered at the middle or early college  
               high school that is designed to allow students to earn  
               enough credit to graduate with an associate's degree or CTE  
               certificate, or are part of a CEPA.

          12)  Specifies that a CCD may limit enrollment in a community  
               college course solely to high school pupils if the course  
               is offered at a high school campus, is not otherwise  
               offered at the high school, and the course is offered by a  
               middle college and/or early college high school and/or is  
               offered pursuant to a CEPA.  

          Related Legislation: AB 1540 (Hagman, 2014) would have  
          authorized the creation of concurrent enrollment partnerships  
          for computer science courses. That bill was held on the Suspense  
          File in the Assembly Appropriations Committee.
          
          AB 1146 (Morrell, 2013) would have extended, from January 1,  
          2014 to January 1, 2019, the exemption from the 5% cap on  
          concurrent enrollment for pupils who enroll in community college  
          summer session courses that meet specified criteria. That bill  
          was held on the Suspense File in this Committee.

          AB 160 (Portantino, 2011) would have removed certain  
          restrictions on concurrent enrollment and authorized school  
          districts to enter into partnerships with CCDs to provide high  
          school pupils opportunities for advanced scholastic work, career  
          technical or other coursework. That bill was held on the  
          suspense file in this Committee.   

          Staff Comments: This bill is a variation on the several  
          concurrent enrollment bills introduced in the past few years.  
          Its requirements relative to CEPAs and to reporting are more  
          extensive than recent versions; its reinstatement of exceptions  
          to the 5% cap and allowance of closed courses taught on high  
          school campuses are broader. 









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          The intent of this bill is to make it easier for CCDs to elect  
          to provide community college course instruction to high school  
          students, with community college apportionment funds. While the  
          cost is unknown, because it depends on how the changes affect  
          enrollment, every apportionment increase of 1% statewide would  
          cost an additional $57 million in Prop 98 General Fund. The  
          2013-14 for-credit rate was $4,636 per FTES. With a 2014-15 COLA  
          of 0.85%, the rate will be $4,675 per FTES going forward. 

          CEPAs could also apply to summer school courses, which are  
          likely to be more popular, especially since many high schools  
          have not fully reinstated summer school courses since budget  
          reductions beginning in 2008-09 limited or eliminated summer  
          school offerings at high schools. Every 10% increase in  
          participation in summer courses would result in costs of $14.7  
          million (assuming the CCC for credit rates of $4,675 per FTES).  
          Actual costs would depend on participation, and the courses  
          taken.

          In order to avoid issues of double funding, this bill would  
          prohibit a CCC from receiving an allowance or an apportionment  
          for summer session instruction for which a school district is  
          also paid. It allows, however, for apportionments that are not  
          also given to school districts; summer session would be one such  
          apportionment, and represent a unique cost to this bill. 

          Placing a 5% cap on the number of high school students in each  
          grade, at each high school, who may concurrently enroll in  
          community college summer courses, limits the total number of  
          high school students who can take community college classes and  
          be counted toward FTES for the purposes of state reimbursement.  
          When the exemptions sunset on January 1, 2014, the 5% cap began  
          to apply to all concurrent enrollment students, irrespective of  
          their coursework. Fully exempting from the 5% cap any student  
          who takes a course that meets any of the following criteria, on  
          the other hand, effectively removes the cap: (a) a lower  
          division IGETC course that applies to the General Education  
          breadth requirements of the CSU; (b) a college-level  
          occupational course for credit, that is part of a sequence of  
          vocational or career technical education courses that leads to a  
          degree or certificate, as specified; or, (c) a course that is  
          necessary to assist a pupil who has not passed the CAHSEE, and  
          who is in the senior year, as specified. There can be an  
          unlimited number of enrollments in those categories of classes.  








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          There would only be a 5% cap on enrollment in courses that do  
          not meet the exemption criteria. 
          
          While the theoretical costs of this bill could be substantial,  
          it is unclear what the practical costs would be. When the  
          exemptions were in place previously, neither the CCCCO nor the  
          California Department of Education (CDE) tracked the  
          disaggregated number of concurrently enrolled students from each  
          high school, in each grade level. No state agency enforced the  
          5% cap on course enrollments that did not meet the exemption  
          criteria, nor collected schoolsite level data to determine if  
          any school (that is not an early college or middle college high  
          school) actually allowed more than 5% of students in any grade  
          level to concurrently enroll in community college summer  
          courses. Furthermore, no state agency collected data on which,  
          if any, high school students concurrently enrolled pursuant to  
          the exemption rather than within the blanket 5% cap. The CCCCO  
          collects data on the number of high school students statewide  
          who successfully complete community college summer session  
          courses -16,403 in 2012, significantly fewer than the 59,303 in  
          2008 - but does not track the data at a level that would allow  
          any cap to be enforced. 16,403 is far fewer than 5% of the  
          number of high school students in the state, but it is unlikely  
          that the students matriculate equally from all high schools.

          Existing law places responsibility for not approving enrollments  
          above the cap on the school principal, but it is unclear whether  
          or how that requirement was ever enforced. To the extent that  
          the cap and its exemptions were unenforced, this bill is not  
          likely to result in any change to behavior or to state FTES  
          reimbursement costs.

          To the extent that this bill results in more students earning  
          college credits that will allow them to move through a public  
          postsecondary institution more quickly in the future, there may  
          be future cost savings from reduced time in college (which may  
          also mean reduced time receiving state-funded financial aid).