BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1196
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          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 1196 (Liu) - As Amended:  June 30, 2014 

          Policy Committee:                             Higher  
          EducationVote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill establishes a process for setting postsecondary  
          educational attainment goals and requires that these goals guide  
          the development of plans by the California Community Colleges  
          (CCC), the California State University (CSU), and the University  
          of California (UC) for making progress toward the state's goals.  
           Specifically, this bill:   

          1)Requires the Governor, or designee, in consultation with the  
            CCC, CSU, UC, the independent postsecondary institutions, the  
            private postsecondary institutions, and other entities as  
            specified, to identify and establish specific educational  
            attainment goals for the segments of postsecondary education  
            and a target date for these segments to achieve these goals.

          2)Establishes intent that the goals established be challenging  
            and quantifiable; address achievement gaps for  
            underrepresented populations; increase and align the  
            educational attainment of California's adult population to the  
            workforce and economic needs of the state; be guided by  
            statewide goals; and guide the development of the plans  
            adopted to be adopted.

          3)Requires the CSU Trustees, CCC Board of Governors and, as a  
            condition of receiving a General Fund appropriation from the  
            state, the UC Regents, to each develop and adopt a plan for  
            making progress toward established statewide goals.

          4)Requires the Governor, or designee, to convene a technical  
            working group, as specified, to, by January 31, 2015, advise  
            the segments in the development of the required plans by  








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            identifying and defining specific metrics and developing  
            coordinated data-gathering efforts.

          5)Requires, in developing and adopting their respective plans,  
            UC, CSU and CCC to establish a process for setting their  
            respective attainment goals and performance targets at a  
            regional and campus level and to collaborate across their  
            respective segments in order to set attainment goals and  
            performance targets that align with statewide and regional  
            needs.

          6)Requires UC, CSU and CCC to annually report to the Legislature  
            on each of their plans and progress toward both statewide  
            goals and their respective objectives as part of the state  
            budget process.  Sunsets this reporting requirement on January  
            1, 2021.

           


          FISCAL EFFECT  

          UC estimates one-time GF costs of $800,000, assuming that staff  
          workload needed to develop the plan, collaborate with the other  
          segments, and establish a process at the campus and regional  
          level would require formation of a workgroup similar in size and  
          composition to those created to address the AB 94 reporting  
          requirements (see Background below) for performance outcome  
          measures and cost of instruction. UC indicates this estimate  
          does not include other costs, such as for participation on the  
          technical advisory group and reporting costs.

          Similar to UC, CSU's costs would likely be in the hundreds of  
          thousands of dollars.

          CCC estimates one-time IT costs of $110,000 for one research  
          analyst position to manage the new reporting requirements. The  
          CCC's recently-completed Student Success Task Force has laid the  
          groundwork for much of what is required in the bill.

           COMMENTS  

           1)Background  . AB 94, a trailer bill to the 2013-14 Budget Act,  
            required CSU and UC to report annually on specified  
            performance measures, in order to inform budget and policy  








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            decisions and promote effective and efficient use of  
            resources. SB 195 (Liu)/Statutes of 2013 established general  
            statewide goals for higher education, with the intent to  
            identify specific metrics for measuring progress toward  
            statewide goals. The Governor's Office committed to the author  
            to convene stakeholder meetings to evaluate the development of  
            metrics for purposes of monitoring progress toward meeting  
            outlined goals. Two stakeholder meetings were held in the fall  
            2013.

            The 2014-15 Budget Act (SB 852) requires UC and CSU to approve  
            three-year "sustainability plans," by November 30, that use  
            projections of funding provided by the Department of Finance  
            to establish projections of resident and non-resident  
            enrollment and the university's goals for the performance  
            measures that were required to be adopted pursuant to AB 94.  
            Additionally, CCCs are required, pursuant to a 2014-15 Budget  
            Act higher education trailer bill (SB 860), to establish and  
            report, as a condition of receipt of Student Success Funds, on  
            Student Equity Plans. These plans are designed to ensure equal  
            educational opportunities and to promote student success for  
            all students.   

           2)Purpose  . The Legislature has been considering statewide higher  
            education goals and objectives for over a decade, beginning  
            with a study commissioned by the Senate in 2002 that served as  
            the basis for several legislative efforts.  As part of its  
            recent reports on higher education oversight, the Legislative  
            Analyst's Office has recommended that the Legislature and the  
            Administration establish a clear public agenda for higher  
            education, including specific and focused statewide goals that  
            could serve as the framework for an accountability system  
            designed to align higher education performance with the  
            state's needs.

            According to the author, this bill is intended to propose a  
            more collaborative process that engages the Legislature, the  
            public postsecondary education segments and the Administration  
            in the development of the sustainability plans adopted in the  
            2014-15 Budget Act.  This bill establishes a process that  
            includes all three entities to ensure that all participate in  
            the development of the sustainability plans envisioned by the  
            Governor. 
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081 









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