BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   June 10, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                       SB 173 (Liu) - As Amended:  May 12, 2014

           SENATE VOTE  :    SENATE VOTE :   36-1
           
          SUBJECT  :   Education funding: adult education

           SUMMARY  :   Requires the California Community Colleges  
          Chancellor's Office (CCCCO) and the California Department of  
          Education (CDE) to coordinate and issue guidelines and policy  
          recommendations to the Legislature regarding adult education in  
          the areas of assessment, performance accountability, teacher  
          requirements, and fee policies; and, requires that the CCCCO and  
          the CDE annually report on the number and types of adult  
          education courses being taught, including noncredit courses, and  
          the number of students being served with funding provided, thus  
          enhancing the existing reporting requirements pursuant to  
          Education Code (EC) Section 84830.  Specifically,  this bill  :   

          1)Requires the CCCCO in conjunction with the CDE, to coordinate  
            and issue assessment policy guidelines regarding assessments  
            to be used by community college districts and school districts  
            for purposes of placement in adult education courses offered,  
            as specified.

          2)Requires the CCCCO and the CDE, as part of the report and  
            recommendations required pursuant to EC Section 84830, to  
            develop and issue policy recommendations to the Legislature  
            that do the following:

             a)   Jointly establish and implement a comprehensive  
               accountability system for adult education courses; and,

             b)   Develop recommendations for all adult education funded  
               providers for assessment, evaluation, and data collection  
               to document participant outcomes and placement and other  
               measures they deem appropriate.  Specifies that  
               accountability measures may include receipt of a secondary  








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               school diploma or its recognized equivalent, placement in a  
               postsecondary educational institution, training, and  
               employment.  Requires all funded programs to annually  
               submit demographic and other student-level outcome  
               information.

          3)Requires the CCCCO and the CDE, as part of the report and  
            recommendations required pursuant to EC Section 84830, to  
            coordinate and issue both of the following:

             a)   Recommendations and fee policy guidelines to be used by  
               school districts and community college districts regarding  
               the authority to charge fees for courses offered, as  
               specified; declares that with respect to these  
               recommendations and guidelines, it is the intent of the  
               Legislature that:

               i)     Registration and course fees should be equivalent  
                 across all programs;

               ii)    Fees should not generate income beyond the cost of  
                 providing the courses; and,

               iii)   Fees should not create a barrier to student access  
                 to adult education programs.

             b)   Recommendations and policy guidelines regarding the use  
               of a single student identifier to be used by school  
               districts and community college districts for purposes of  
               developing a comprehensive accountability system pursuant  
               to the requirements of EC Section 84830.

          4)Requires the CCCCO, in conjunction with the CDE, to annually  
            report on the number and types of courses being taught and the  
            number of students being served with funding provided to the  
            regional consortia, as established by EC Section 84830; and,  
            specifies that the CCCCO shall annually report on the number  
            and types of noncredit courses being taught and the number of  
            students being served with funding provided to the community  
            colleges for the courses offered as specified.









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          5)Specifies that the CCCCO shall identify any deficits in course  
            offerings based upon levels, types, and needs for adult  
            education programs identified in the consortia plans submitted  
            as required under existing law.

          6)Requires, by July 1, 2015, the Commission on Teacher  
            Credentialing (CTC) and the Academic Senate for CCC to meet to  
            review their current requirements for noncredit adult  
            education and adult education instructors, and develop and  
            submit recommendations to the appropriate policy and fiscal  
            committees of the Legislature for modifying or establishing  
            reciprocity standards for instructors of adult education  
            courses. 

          7)Expresses that it is the intent of the Legislature to evaluate  
            the guidelines for the accountability system established under  
            current law and to consider allocating base adult education  
            funds and noncredit adult education funds to providers on the  
            basis of a combination of identified needs, enrollment, and  
            outcomes in course offered as specified.

          8)Defines "chancellor's office" as the Office of the Chancellor  
            of the California Community Colleges, and "department" to mean  
            the CDE.

           EXISTING LAW  :

          1)Authorizes both the California Community Colleges (CCC) and  
            K-12 systems to offer and receive state funding for adult  
            education courses.  Authorizes the following classes and  
            courses to be offered by the school districts and county  
            superintendent of schools for apportionment purposes from the  
            adult education fund and prohibits state apportionment to be  
            made for any course or class not specified in law; and,  
            specifies that the following noncredit classes and courses  
            offered by community college districts shall be eligible for  
            state funding:

             a)   Adult programs in parenting, including parent  
               cooperative preschools, and classes in child growth and  
               development, parent-child relationships, and parenting;








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             b)   Adult programs in elementary and secondary basic skills  
               and other courses and classes required for the high school  
               diploma; 

             c)   Adult education programs in English as a second  
               language;

             d)   Adult education programs for immigrant eligible for  
               educational services in citizenship, English as a second  
               language, and workforce preparation classes in the basic  
               skills of speaking, listening, reading, writing,  
               mathematics, decision-making and problem solving skills,  
               and other classes required for preparation to participate  
               in job specific technical training;

             e)   Adult education programs for adults with disabilities;

             f)   Adult short-term career technical education programs  
               with high employment potential;

             g)   Adult programs for older adults;

             h)   Adult education programs for apprentices;

             i)   Adult programs in home economics; and,

             j)   Adult programs in health and safety education (EC �  
               41976 and � 84757).

          2)Prohibits the local governing board of a community college  
            district maintaining a noncredit course from requiring an  
            adult enrolled in such a course to pay nonresident tuition or  
            any fee or charge of any kind for a class in English and  
            citizenship for foreigners, a class in an elementary subject,  
            a class designated as granting high school credit to an  
            individual without a high school diploma or other adult basic  
            education programs and courses, as specified (EC � 76380).

          3)Authorizes a school district governing board to require a fee  
            of an adult enrolled in a class for adults and prohibits the  








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            total of the fees required and revenues derived from average  
            daily attendance from exceeding the estimated cost of  
            maintaining such classes.  Current law also prohibits the  
            imposition of a charge of any kind for a class in English and  
            citizenship or a class in an elementary subject, nor for any  
            class which is designated as granting high school credit when  
            the class is taken by a person who does not hold a high school  
            diploma.  To note: for a class in English and citizenship, a  
            fee may be charged only until July 1, 2015 (EC � 52612).

          4)Prohibits the CCC from requiring an adult enrolled in a  
            noncredit course to pay nonresident tuition or any fee or  
            charge of any kind for a class in English and citizenship for  
            foreigners, a class in an elementary subject, a class  
            designated by the governing board as a class for which high  
            school credit is granted when the class is taken by a person  
            who does not hold a high school diploma, or any class offered  
            by a CCD pursuant to Sections 8531, 8532, 8533, or 8534 (EC �  
            76380).

          5)Charges the CCCCO and the CDE to jointly implement an adult  
            education planning process; authorizes the CCCCO and the CDE  
            to distribute $25 million to regional consortia to develop  
            plans with the shared goal of better serving the educational  
            needs of California's adult learners; and, specifies that the  
            following five areas are to be addressed in the plans:  

             a)   Elementary and secondary basic skills, including classes  
               required for a high school diploma; b) Classes and courses  
               for immigrants in English as a second language,  
               citizenship, and workforce preparations; c) Education  
               programs for adults with disabilities; d) Short-term career  
               technical education programs with high employment  
               potential; and, e) Programs for apprentices.  

            Additionally, current law requires the CCCCO and the CDE on or  
            before March 1, 2014 to submit a joint report to the Governor  
            and the Legislature to include, but not necessarily be limited  
            to the following:  a) the status of the developing regional  
            consortia across the state; and, b) the status and allocation  
            of grant awards made to the regional consortia.  The CCCCO and  








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            the CDE on or before March 1, 2015, shall submit a joint  
            report to the Governor and the Legislature to include, but not  
            be limited to all of the following:  a) The plans developed by  
            the regional consortia across the state; and, b)  
            Recommendations for additional improvements in the delivery  
            system serving adult learners.  Lastly, current law states  
            that the Legislature intends to work toward developing common  
            policies related to adult education affecting adult schools at  
            community colleges and local educational agencies, including  
            policies on fees and funding levels; and, to provide  
            additional funding in the 2015-16 fiscal year to the regional  
            consortia to expand and improve the provision of adult  
            education (EC � 84830).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   To note:  the May 28, 2013 version of this bill  
          passed out of the Assembly Education Committee with a 6-0 vote  
          on June 26, 2013.

           Background  .   Adult education in California is part of a large,  
          complex, and diverse multi-provider system.  It is a vital and  
          integral part of the larger educational system that provides  
          adults with the skills and education that enable them to earn a  
          high school diploma or a general educational development (GED)  
          certificate, become American citizens, acquire specific job  
          skills, learn English, and/or become independent and productive  
          parents and members of their community.  

           Assembly Bill 86 (Section 76, Article 3)  .  In January 2013, the  
          Governor proposed in his 2013-14 budget shifting the  
          coordination and administration of all adult education programs  
          to the CCC.  The K-12 adult education program would be  
          eliminated, but CCC could contract with school districts to  
          provide instruction.  Due to concerns about the timing and  
          structure of the proposal, the Governor's May 2013 revision of  
          the budget withdrew the proposal and instead maintained the  
          current system for two years while allocating $30 million for  
          planning grants awarded to regional consortia comprised of CCC  
          and K-12 districts for the purpose of creating plans to  
          integrate existing programs and determine how best to serve  








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          adult students within regions throughout the state.  The budget  
          adopted by the Legislature reduced the planning grants to $25  
          million and adopted trailer bill language in AB 86 (Chapter 48,  
          Statutes of 2013).   

          AB 86 establishes the Adult Education Consortium Program with  
          the following features:

          1)Eligibility is limited to consortiums consisting of at least  
            one CCD and at least one school district within the boundaries  
            of a CCD.  Consortia may include other entities providing  
            adult education courses, such as correctional facilities,  
            other local public entities and community-based organizations.

          2)Planning grants must be used to create and implement a plan to  
            better provide adults in its region with all of the following:

             a)   Elementary and secondary basic skills, including classes  
               requires for a high school diploma or high school  
               equivalency certificate.

             b)   Classes and courses for immigrants eligible for  
               educational services in citizenship and English as a second  
               language, and workforce preparation classes in basic  
               skills.

             c)   Education programs for adults with disabilities.

             d)   Short-term career technical education program with high  
               employment potential.

             e)   Programs for apprentices.

          3)The regional consortium plan shall include an evaluation of  
            existing levels and types of adult education programs in the  
            region, current needs, how the parties that make up the  
            consortium will integrate their programs to create seamless  
            transitions into postsecondary education or the workforce,  
            plans to address gaps identified in the current offerings and  
            needs, plans to employ approaches to accelerate a student's  
            programs toward his or her academic or career goals, plans to  








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            collaborate in the provision of ongoing professional  
            development opportunities, and plans to leverage existing  
            regional structures, including local workforce investment  
            areas.  

          The CCC Chancellor and the CDE shall submit a joint status  
          report by March 1, 2014 (discussed below) and a final report by  
          March 1, 2015.  The intent of the Governor is to provide some  
          level of additional funding to provide adult education services  
          through the regional consortia beginning in 2015-16.  CCC and  
          K-12 districts can continue to offer their existing adult  
          education programs separate from the regional consortia.  CCCs  
          may continue to earn revenue limit funding, but because  
          categorical funds are eliminated through the Local Control  
          Funding Formula, school districts choosing to continue their  
          adult education programs would do so using their base funds.  

          To note, a concern has been expressed that AB 86 cut funding for  
          older adults and community education.  The issue of funding for  
          older adults and community education programs is outside the  
          scope of AB 86 and this bill.

          This bill enhances the reporting requirements of the AB 86  
          report due on March 1, 2015, to the Governor and the  
          Legislature.

           Status report  .  According to the April 2014 status report,  
          entitled "Adult Education Regional Planning" by the CCCCO and  
          the CDE, AB 86 has provided a valuable opportunity to "rethink  
          and redesign an educational system establishing linkages for  
          adult learners."  According to the report, the AB 86 regional  
          consortia consist of community college districts and school  
          districts within the 72 community college district boundaries.   
          The report noted that the following six area are not covered by  
          the 72 community college district boundaries:  Alpine County,  
          Amador County, Mariposa County, parts of Modoc County, Mono  
          County, and Sierra County.  The CCCCO and the CDE have taken  
          this under review and will provide solutions to fill the  
          geographical gaps.  

          Additionally, the report found that AB 86 indicates the intent  








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          of the Legislature is to provide additional funding in the  
          2015-16 fiscal year to the regional consortia to expand or  
          improve the provision of adult education, there is no mechanism  
          in place to do so.  The report states, "The absence of a funding  
          mechanism that identifies a funding model impacts the long-range  
          planning processes designed to address the five required areas  
          of focus in AB 86."

           Adult Education and Community College Noncredit  .  Adult  
          education instruction is offered primarily at adult schools and  
          community colleges.  Some programs are also offered at community  
          based organizations, libraries, correctional facilities, and the  
          California Conservation Corps.  California adult education  
          schools offer the following ten programs:

          1)Adult Basic Education;

          2)English as a Second Language;

          3)High School Diploma or Adult Secondary Education, including  
            GED certification;

          4)Citizenship Preparation; 

          5)Career Technical Education;

          6)Adults with Disabilities;

          7)Health and Safety;

          8)Parent Education;

          9)Home Economics; and,

          10)Courses for Older Adults.

           State apportionment  .  The majority of funding for adult  
          education and community college noncredit comes from state  
          apportionment.  The state provides approximately 90 percent of  
          the total funding for adult education and community college  
          noncredit programs.  State apportionment funds are distributed  








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          to adult schools through average daily attendance.  Funding for  
          community college noncredit is based upon a formula per Full  
          Time Equivalent Student (FTES).  The remaining financing,  
          approximately 10 percent, is provided by federal funds.
          
           Recommended changes in state funded adult education  .  In the  
          last several years various reports have been published that have  
          recommended that the state re-evaluate its current adult  
          education structure.

          In December 1998, the Joint Board Task Force on Noncredit and  
          Adult Education (a joint task force comprised of the CCC Board  
          of Governors and the California State Board of Education),  
          published "Noncredit and Adult Education:  Challenges,  
          Opportunities, Changes."   The report describes in detail local  
          and state activities required to implement the following 12  
          recommendations:  1) clarify joint authorization to offer  
          noncredit and adult education; 2) create a formal structure for  
          joint development and implementation of policy for noncredit and  
          adult education; 3) develop strategies for assuring student  
          success; 4) redistribute unused existing resources; 5) encourage  
          districts to make fair share distributions; 6) determine the  
          cost of implementing endorsed changes; 7) equalize reimbursement  
          rates within and between segments; 8) finalize and distribute  
          program standards; 9) develop a coordinated data system;10)  
          clarify scope of authorized instructional categories; 11) permit  
          reimbursement for work-based education; and, 12) establish  
          reciprocity for instructors of noncredit and adult education.

          In April 2003, the California Senate Office of Research (SOR)  
          released, "Adult Education, Will it Meet the Challenges of the  
                                                                                Future."  SOR found that state funded adult education programs  
          provide a vast array of services through multiple programs with  
          inconsistent indicators of program outcomes.  As demand for  
          adult education services continues to grow and available  
          resources are increasingly limited, policymakers and program  
          operators should explore ways to deliver services more  
          efficiently, based on objective data.  The report suggest the  
          following policy changes:  1) that the state should clarify the  
          mission of adult education and re-focus its program offerings  
          around fewer key programs; 2) identify a clear delineation of  








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          function between the two governing entities (CCCCO and CDE); 3)  
          collect integrated data that represents the system as a whole;  
          4) distribute fiscal resources equitably throughout the state;  
          5) restructure state governance and local service delivery; and,  
          5) demonstrate the return on investment of adult education  
          programs.

          In December 2012, the LAO released, "Restructuring California's  
          Adult Education System."  The report gives the following policy  
          changes:  1) focus on the six instructional programs most  
          closely aligned with adult education's core mission; 2) clearly  
          distinguish between adult education and collegiate education; 3)  
          apply a consistent set of policies for faculty and students at  
          adult schools and community colleges; 4) create a funding  
          mechanism for adult education that promotes a coordinated system  
          centered around student access and success; and, 5) collect same  
          data on student enrollment and outcomes for both adult schools  
          and community colleges (this will link the respective systems).

          This bill begins the restructuring process proposed by the LAO  
          by addressing some of the programmatic changes necessary to  
          align the system of adult education services and to begin a more  
          coordinated and rational approach to delivery and funding. 

           Purpose of this bill  .  According to the author's office, this  
          bill is based on the December 2012 LAO report (see above).  The  
          author states, "This bill begins the implementation of  
          programmatic changes necessary to better align the bifurcated  
          system of delivering adult education and non-credit adult  
          education courses, and to begin a shift towards a more rational  
          and coordinated funding approach for K-12 adult education and  
          CCC noncredit adult education programs in California."

          The two largest providers of adult education are school  
          districts and the CCC, with, according to the LAO, the majority  
          provided by the CCC (about 66% of FTES - 525 hours of  
          instructional hours - in 2009-10).  The LAO argues that the two  
          systems have unclear lines of responsibility, an overly broad  
          mission, inconsistent state-level policies, lack of coordination  
          among providers, and limited student data, despite serving the  
          same student populations.  The December report suggests that the  








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          system is in need of comprehensive restructuring.  

          The LAO suggests that while all classes have value, adult  
          education programs should focus on the knowledge and skills  
          needed to participate in civic life and workforce.

           Assessment  .  CCC and the K-12 adult schools use assessments for  
          enrollment and placements.  While the CCC is required to only  
          use assessment tools approved by the CCCCO for advisory purposes  
          and not for placement of students in classes, adult schools can  
          use any assessments they choose and can use them for minimum  
          qualifications to enroll in a class or to determine appropriate  
          class placement.  This bill directs CCCCO and the CDE to develop  
          assessment policy guidelines to be used by both systems for  
          purposes of placement in CCC adult education and K-12courses.  

           Accountability.   This bill, as part of the AB 86 report, due  
          March 1, 2015, requires the CCCCO and the CDE to jointly develop  
          guidelines and procedures for all adult education funded  
          providers for assessment, evaluation and data collection to  
          document participant outcomes and placement, and other  
          performance measures they deem appropriate, such as whether the  
          student received a secondary school diploma, placement in a  
          postsecondary educational institution, or became employed.  

          The CCCCO already has an in-depth data collection system that  
          was augmented by the Student Success Scorecard released in April  
          2013.  The scorecard was a recommendation of the Student Success  
          Task Force, enacted by SB 1143 (Liu), Chapter 409, Statutes of  
          2010.  The scorecard provides performance data that includes  
          completion and persistence rates that can be broken down by  
          student demographics. 

           Fee policies  .  This bill, as part of the AB 86 report, due March  
          1, 2015, requires the CCCCO and the CDE to coordinate and issue  
          recommendations and fee policy guidelines to be used by  
          community college districts and school districts regarding the  
          authority to charge fees for courses offered as specified.  

          A concern has been raised that as presently drafted the language  
          assumes that fees will be assessed for these courses.   To  








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          address this concern staff recommends the bill be amended to  
          reflect the following:  

               (c) The chancellor's office, in conjunction with the  
               department, and as a part of the report and recommendations  
               required pursuant to paragraph (1) of subdivision (f) of  
               Section 84830, shall coordinate and issue both of the  
               following:
               (1) Recommendations and fee policy guidelines to be used by  
               school districts and community college districts regarding  
               the authority to charge fees  , including whether or not fees  
               should be assessed,  for courses offered pursuant to Section  
               84830. 

           What is being offered  ?  This bill requires the CCCCO, in  
          conjunction with the CDE to annually report on the number and  
          types of courses being taught, and the number of students being  
          serviced with funding provide to the regional consortia and with  
          funding provided to the CCCs for all noncredit courses offered.   
          Additionally, this bill requires the CCCCO to identify any  
          deficits in course offerings based upon levels, types, and needs  
          for adult education programs as identified in the consortia  
          plans submitted as part of the AB 86 planning process.
          
           Teacher qualifications  .  CCC adult education instructors are  
          required to have a bachelor or master's degree depending on the  
          type of course taught, while K-12 adult school teachers are  
          required to have a teaching credential.  The LAO believes that  
          adult education instructors should be able to teach in either  
          system.  Requiring a teaching credential limits a CCC  
          instructor's ability to teach in K-12 adult schools; the LAO  
          recommends eliminating the requirement for adult school teachers  
          to have a teaching credential.  This bill directs the Academic  
          Senate for the CCC and the CTC to review the requirements for  
          noncredit adult education and adult school instructors, and  
          develop and submit recommendations to the appropriate policy and  
          fiscal committees of the Legislature by July 1, 2015, for  
          modifying or establishing reciprocity standards for instructors  
          of adult education courses.

           REGISTERED SUPPORT / OPPOSITION  :








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           Support 
           
          California Adult Education Administrators Association 
          California Council for Adult Education
           
            Opposition 
           
          None on file based on this version of the bill.


           Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960