BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 1391 (Hancock) - Inmate Education Programs and Apportionments  

          
          Amended: April 10, 2014         Policy Vote: Education 8-0, Pub.  
          Safety 6-0 
          Urgency: No                     Mandate: No
          Hearing Date: May 12, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 1391 waives the open course requirement for  
          California community college (CCC) courses offered in state  
          correctional facilities and allows attendance hours generated by  
          credit courses to be funded at the credit rate. This bill also  
          requires the California Department of Corrections and  
          Rehabilitation (CDCR) in collaboration with the Chancellor of  
          the CCC to establish the Innovative Career Technical Education  
          Grant (ICTEG) program, as specified.

          Fiscal Impact: 
              Conversion to "for credit" rate: Potentially substantial  
              new General Fund costs, likely in the high hundreds of  
              thousands of dollars, which will be determined by the number  
              of for-credit courses that would otherwise be funded at the  
              noncredit rate or which would not be offered at all without  
              the funding augmentation. 
              Inclusion of state correctional facilities: Potentially  
              significant costs, which will be determined by the extent to  
              which CCC courses expand in state prisons because of the  
              waiver. The expansion is likely to be mitigated by new  
              course offerings through the ICTEG Program.
              ICTEG Program: Approximately $20 million (General Fund)  
              statewide (or about $500,000 - $600,000 per correctional  
              institution) to establish the program. Ongoing annual costs  
              of $5 million - $6.5 million (General Fund) statewide (or  
              about $150,000 - $190,000 per correctional institution)  
              depending on the award amounts determined by CDCR and the  










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              CCC Chancellor and the availability of funding for this  
              program. The Chancellor's office would incur approximately  
              $110,000 - $170,000 in personnel and travel expenses  
              ongoing.

          Background: Existing law authorizes a community college district  
          (CCD) to claim state apportionment for classes it provides to  
          inmates of any city, county, or city and county jail, road camp,  
          farm for adults, or federal correctional facility (but not for  
          inmates in state correctional facilities). The attendance hours  
          generated by these classes, whether the classes are for credit  
          or noncredit, are counted as noncredit attendance hours for  
          apportionment purposes. (Education Code � 84810.5)

          Classes provided to inmates of state correctional facilities are  
          not currently authorized for state apportionment funding. In  
          addition, no funds provided for inmate education programs can be  
          considered as part of the base revenues for CCDs in computing  
          apportionments.  (EC � 84810.5)

          Courses offered to state correctional inmates must be "distance  
          education" courses which are open to the public, as well. This  
          requirement is waived for CCC courses offered in local and  
          federal correctional facilities, but those courses are funded at  
          a "noncredit rate", even if the courses are actually for credit.  
           

          Proposed Law: This bill waives open course provisions for any  
          CCD that provides classes for inmates in state correctional  
          facilities, and allows CCD governing boards to claim FTES for  
          inmate education programs that include those in state  
          correctional facilities.

          This bill authorizes attendance hours generated in CCC courses  
          offered in state, city, county or federal correctional  
          facilities to be funded at either: (a) the marginal credit rate  
          for credit courses, or (b) the noncredit rate for noncredit  
          courses; it also deletes the prohibition on the inclusion of  
          funds received for inmate education programs in the base revenue  
          computations for CCD apportionments.  

          This bill requires the CDCR, in collaboration with the  
          California Community Colleges Chancellor's Office (CCCCO) to  









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          establish and administer the ICTEG Program, as specified. As  
          part of the program, this bill requires an unspecified amount of  
          funding, beginning in 2014-15 and annually thereafter, be  
          transferred from the CDCR to the CCCCO for the purposes of the  
          program. In addition, the bill requires CDCR to provide for up  
          to an unspecified number of grants, with an unspecified number  
          of these grants being awarded for programs offered at a women's  
          correctional facility. The CDCR, in consultation with the CCCCO,  
          is responsible for determining the amount of grant awards, as  
          specified.

          Related Legislation: AB 1271 (Bonta) is virtually identical to  
          the funding/apportionment aspects of this measure. That bill is  
          awaiting action in the Senate Education Committee.

          AB 216 (Swanson) 2011 was virtually identical to the  
          funding/apportionment aspects of this measure. That bill was  
          held under submission in this Committee. 

          AB 1702 (Swanson) 2010 was also virtually identical to the  
          funding/apportionment aspects of this measure. That bill was  
          held under submission in this Committee.
          
          SB 574 (Hancock) 2009 was substantially similar to the  
          funding/apportionment aspects of this bill. That bill was held  
          under submission in this Committee.

          SB 413 (Scott) 2008 was nearly identical to SB 574. That bill  
          was vetoed by Governor Schwarzenegger.
          
          Staff Comments: Existing law does not permit CCCs to receive  
          state funding for courses that are not open to the public,  
          except for courses offered at city, county and federal  
          correctional facilities (but not at state correctional  
          facilities). Courses offered to state correctional inmates must  
          be "distance education" courses open to the public, as well.  
          Under existing law, CCC courses offered in local and federal  
          correctional facilities that are not open to the public are  
          funded at the "noncredit rate" (which is less than the "for  
          credit rate"), even if the courses are actually for credit.  

          This bill would waive the "open course" provisions for CCC  
          courses offered in state correctional facilities, thus  









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          conforming to current allowances for CCC courses in local or  
          federal correctional facilities, for which the college receives  
          funding even though the courses are not open to the general  
          public. The CCCs would be able to offer courses in state  
          correctional facilities, and receive apportionments for those  
          courses. Additionally, this bill would allow attendance hours  
          generated by credit courses, at all correctional facilities to  
          be funded at the corresponding rates for those types of courses  
          rather than at the lower, noncredit rate at which the existing  
          exception courses are funded.

          This bill would increase state costs by allowing community  
          colleges to claim funding for courses taught at state  
          correctional facilities and by funding credit courses provided  
          at these facilities at the full credit rate (noncredit courses  
          would still be funded at the lower noncredit rate). Currently,  
          for-credit courses are funded at the rate of $4,636 per  
          full-time equivalent student (FTES), career development and  
          college preparation noncredit courses are funded at $3,283 per  
          FTES, and noncredit courses at $2,788 per FTES.

          According to a survey conducted by the CCCCO, CCC programs  
          operated for-credit courses for 1,769 FTES in the 2006-07 fiscal  
          year (which remains the most recent survey data available). The  
          majority of these FTES would receive full credit funding,  
          because the courses were distance education courses also open to  
          the public. Under this bill, the remaining FTES would also  
          receive full credit apportionments, which are higher by $1,848  
          per FTES. If the course offerings from 2007 held true, 181  
          course rates would be converted, at a cost of $334,000. 

          Inmate education and training programs are beginning to be  
          restored, after years of CDCR departmental budget reductions  
          that resulted in the elimination of those programs. The 2011-12  
          Budget allocated only $99.5 million for inmate education  
          programs, which was less than half of the $206 million spent in  
          2008-09. In late 2011, Public Safety Realignment, aimed at  
          reducing prison overcrowding by prospectively housing more  
          felons in county jails, was enacted. Inmates incarcerated for  
          the commission of specified felonies considered non-serious,  
          non-violent, and non-sex offenses were largely realigned to  
          serve those sentences in county jails instead of state prisons.










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          In the current year, CDCR has allocated approximately $189  
          million to inmate education and training programs for inmates  
          who have remained incarcerated in state correctional facilities;  
          the Governor's 2014-15 Budget proposes a modest reduction to  
          $173 million. 

          Waiving the open course requirements (which would allow CCDs to  
          offer courses in state correctional facilities) combined with  
          increased fiscal incentive for the CCDs to offer courses in  
          state prisons would likely lead to an expansion of course  
          offerings and costs. These additional costs would depend on the  
          number of FTES that would take classes at a state correctional  
          facility. For every 100 for-credit FTES authorized under this  
          provision, state costs would increase by $464,000. While  
          community colleges are limited to enrollment caps, staff notes  
          that expanding access and funding rates creates pressure to  
          increase funds and incentivizes community colleges to augment  
          prison education programs statewide.

          CDCR's Division of Rehabilitative Programs would be responsible  
          for establishing and administering the ICTEGP. Staff would have  
          to work with the CCCCO to determine the level of available grant  
          funding and how to allocate it among the 35 state correctional  
          facilities. The CDCR estimates that costs to establish the ICTEG  
          Program (and fund a year of actual programming) at each  
          institution for 27 inmates per prison would be approximately $20  
          million, including training, equipment, supplies, coordination,  
          and CCC tuition paid by the CDCR. Costs could be less, depending  
          on the level of staffing required to coordinate the program with  
          CCDs and the CCCCO. 

          Annual ongoing costs would drop substantially, to $5 million -  
          $6.5 million per year to continue to provide the courses. This  
          assumes that coordination efforts do not require a dedicated  
          staff person at each prison, but rather could be done by one  
          position for every 5 state prisons participating. The CCCCO  
          estimates that it would incur approximately $110,000 - $170,000  
          in ongoing personnel and travel expenses for its role in  
          establishing, evaluating, and participating in the  
          administration of the program.

          Numerous studied have indicated that providing high quality job  
          training and education programs, particularly career technical  









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          education, to inmates increases their chances of successfully  
          transitioning to society after release. To the extent that  
          providing inmates with career technical programming prepares  
          them to successfully obtain and keep jobs upon release, there  
          will likely be some amount of reduced recidivism and related  
          future state cost avoidance.