BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2087
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2087 (Ammiano) - As Amended:  April 24, 2014 

          Policy Committee:                              Higher  
          EducationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires that regulations of the California Community  
          Colleges (CCC) Board of Governors (BOG) regarding the  
          appointment of the special trustee to manage a community college  
          district must include specific benchmarks to indicate the  
          district's capacity to resume its management and standards.
           
           FISCAL EFFECT  

          Minor absorbable cost to the Chancellor's Office of the CCC to  
          develop regulations for consideration and adoption by the BOG.

          Depending on the parameters of the regulations regarding  
          consultation, a district under the management of a special  
          trustee could incur costs related to conducting such meetings.  
          Depending on the specific requirements for consultation,  
          decisionmaking by a special trustee could be delayed, with  
          unknown fiscal consequences for the college's recovery.

           COMMENTS  

           Purpose  . Prior to the most recent amendments, this bill would  
          have eliminated the BOG's authority to intervene when districts  
          face fiscal insolvency and/or loss of accreditation. This was in  
          response to the BOG action in July 2013 to appoint a special  
          trustee to manage San Francisco City College, following notice  
          that the college's accreditation was to be terminated July 31,  
          2014. The author was concerned that an unelected trustee was  
          managing the district in lieu of elected district board members  
          accountable to the citizens of the district.









                                                                  AB 2087
                                                                  Page  2

          Since a state-level intervention process is also in place when a  
          K-12 school district is fiscally insolvent, the policy rationale  
          for proposing to treat CCC districts and K-12 districts  
          differently in these circumstances is unclear, as both receive  
          the majority of funding from state funds. Rather than removing  
          the board's authority, the bill requires the board to amend its  
          regulation to require benchmarks for the return of local  
          governance authority, and clear standards that provide  
          meaningful consultation on the part of the appointed special  
          trustee with the college stakeholders.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081