BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 850 (Block) - Community Colleges: Baccalaureate Degree Pilot  
          Program
          
          Amended: May 1, 2014            Policy Vote: Education 8-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE.

          Bill Summary: SB 850 authorizes the Board of Governors (BOG) of  
          the California community colleges (CCC), in consultation with  
          the California State University (CSU) and the University of  
          California (UC), to establish a statewide baccalaureate degree  
          pilot program at not more than 15 community college districts  
          (CCDs), as specified.

          Fiscal Impact: 
              Statewide administration: Significant one-time costs,  
              likely in the low hundreds of thousands of dollars, to  
              develop guidelines and create a baccalaureate degree pilot  
              program, and to select up to 15 CCDs to participate. Ongoing  
              administrative costs of approximately $350,000 for a 15 CCD  
              pilot program. Actual costs will depend on the number of  
              participating CCDs, as well as the the level of guidance and  
              oversight needed to ensure the program's success.
              Local implementation: Significant local costs and  
              potentially significant revenue for CCDs that elect to  
              participate, depending on the program structure and the type  
              of degree offered (relative to the expense of providing  
              upper division courses). To the extent that students who  
              participate in the program would otherwise have attended a  
              CSU campus, the state cost for the student's enrollment  
              would likely be similar; to the extent that this promoted  
              enrollment for students who would otherwise not take  
              additional college coursework, there will be additional  
              state costs for increased enrollment.
              Evaluation: Minor costs to the Legislative Analyst's Office  
              and the Department of Finance to conduct a statewide  
              evaluation of the program, as specified.

          Background: Existing law differentiates the missions and  








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          functions of public and independent institutions of higher  
          education. The mission and function of the California Community  
          Colleges (CCC) is the offering of academic and vocational  
          instruction at the lower division level and the CCC are  
          authorized to grant the associate in arts and the associate in  
          science degree. The CCCs are also required to offer remedial  
          instruction, English as a Second Language instruction, adult  
          noncredit instruction, and support services which help students  
          succeed at the postsecondary level. (Education Code � 66010.4)

          Proposed Law: This bill authorizes the BOG of the CCC, in  
          consultation with the CSU and the UC, to establish a statewide  
          baccalaureate degree pilot program at not more than 15 CCDs  
          selected by the CCC Chancellor's office, as specified.

          The pilot program would authorize each participating district to  
          offer one type of baccalaureate degree at one campus within the  
          district, as specified. The bill would require a district  
          baccalaureate degree pilot program to commence by the beginning  
          of the 2017-18 academic year, and would require a student  
          participating in a baccalaureate degree pilot program to  
          complete his or degree by the end of the 2022-23 academic year.  
          The bill would require participating community college districts  
          to meet specified requirements, including, but not limited to,  
          offering baccalaureate degrees not offered by the CSU or the UC,  
          and in subject areas with unmet workforce needs, as specified.

          Related Legislation: AB 661 (Block) 2011 would have authorized  
          the Grossmont-Cuyamaca and San Mateo CCDs to offer one  
          baccalaureate degree pilot program per campus. AB 661 was moved  
          to the inactive file on the Assembly Floor.

          AB 2400 (Block) 2010 would have authorized the San Diego,  
          Grossmont-Cuyamaca and San Mateo CCDs to establish baccalaureate  
          degree pilot programs. No vote was taken and AB 2400 was held in  
          the Assembly Higher Education Committee. 

          Staff Comments: The pilot program outlined in this bill is  
          permissive for both the BOG and CCDs. This bill authorizes the  
          BOG to consult with CSU and UC to authorize a baccalaureate  
          pilot program, as described in this bill.

          The CCCCO anticipates having significant one-time costs of  
          approximately $350,000 for a 15-CCD pilot, if it pursues the  








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          pilot program. The CCCCO would be responsible for actually  
          creating the program, outreach to CCDS, selecting up to 15 CCDs  
          to participate, and approving their degree programs. Several  
          aspects of program administration and oversight could be quite  
          technical and involved, including the determination (and  
          enforcement) of student fee limits and differentiation between  
          upper and lower division courses. Centralized costs are  
          difficult to determine, because they partially depend on the  
          number of participating CCDs and the types of baccalaureate  
          degrees the respective CCDs offer. They also depend on the level  
          of guidance and oversight ultimately needed to ensure the  
          program's success and accountability.

          The baccalaureate pilot program is optional for CCDs. They would  
          have to craft an administrative plan for their local programs to  
          be reviewed by the CCCO and BOG, and creating the new program is  
          likely to require extensive work. Any costs they incurred would  
          be at their local option. The bill provides that the Legislature  
          would have to approve fees, up to the CSU "marginal cost" cap  
          which is also functionally controlled by the Legislature. The  
          degree to which the fees would cover the cost of the program is  
          unclear.