BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1425
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          Date of Hearing:   June 24, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                     SB 1425 (Block) - As Amended:  May 27, 2014

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Community colleges: retroactive awarding of degrees. 

           SUMMARY  :   Requires that the California Community Colleges (CCC)  
          Chancellor develop or identify a commercially available utility  
          to conduct systemwide automatic degree audits and requires all  
          112 CCC to award degrees and certificates, as specified,  
          retroactively to students who have been identified, as  
          specified, as eligible to receive a degree or certificate.   
          Specifically,  this bill  :   

          1)Requires the CCC Board of Governors (BOG) to require all  
            community colleges to award degrees retroactively, as  
            specified.

          2)Requires that prior to the beginning of the spring term of the  
            academic year (AY), and commencing with the 2015-16 AY for the  
            first 28 campuses, each community college district shall  
            perform a one-time inquiry as the automatic degree audit, as  
            specified, is put in place at each campus in order to identify  
            students who have completed the semester or quarter units  
            required to receive a degree or certificate, or who have  
            completed the California State University (CSU) or the  
            Intersegmental General Education Transfer Curriculum  (IGETC)  
            transfer requirements in up to 12 of the highest demand  
            majors, as determined by each community college district,  
            during the previous two AYs.

          3)Requires that a CCC campus shall notify students eligible to  
            receive a degree or certificate that they are eligible to  
            receive the degree or certificate; and, specifies that said  
            students shall have a choice to opt out or to receive the  
            degree or certificate.

          4)Requires the CCC Chancellor shall identify a commercially  
            available utility to conduct systemwide automatic degree  
            audits, as specified, and procure that utility.  Specifies  
            that once the utility is procured, the CCC Office of the  








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            Chancellor (CCCCO) shall oversee the implementation of this  
            measure in accordance with the following timetable:

             a)   At least 28 CCC campuses shall have the automatic degree  
               audit system in place by December 31, 2015;

             b)   At least 56 CCC campuses shall have the automatic degree  
               audit system in place by December 31, 2016; and, 

             c)   All 112 CCC campuses shall have the automatic degree  
               audit system in place by December 31, 2017.

          5)Specifies that the automatic degree audit system procured by  
            the CCC Chancellor, shall satisfy all of the following  
            conditions:

             a)   Comply with all pertinent privacy and security  
               considerations and requirements;

             b)   Be centrally purchased by the CCCCO in order to reduce  
               costs through a bulk procurement process;

             c)   Be managed by each community college district for use  
               among the campuses within each respective district;

             d)   Enable CCC counselors, advisors, and other student  
               services staff to monitor student progress toward  
               completing a degree or certificate program, or achieving  
               the minimum requirements for CSU or IGETC transfer; and, 

             e)   Be accessible to CCC personnel and students through an  
               Internet Web portal that provides a degree progress  
               profile, generated for each student upon request, that  
               includes all information regarding credits earned that is  
               available in the college's data.

          6)Requires the Legislative Analyst's Office (LAO) to submit a  
            report to the Governor and the Legislature on the progress and  
            implementation of the retroactive degree awarding and online  
            degree audit system on or before December 31, 2017, and on or  
            before December 31 every three years thereafter.

          7)Specifies that the metrics to be determined and reported by  
            the LAO shall include, but not necessarily be limited to all  
            of the following:








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             a)   The number and percentage of community college students  
               who were identified, and were awarded associate degrees or  
               certificates, or who were determined to have completed the  
               CSU or IGETC transfer requirements because of the degree  
               audit system;

             b)   The estimated economic benefits for the college and the  
               labor market of the degree audit system; and,

             c)   Other relevant indicators of student success resulting  
               from having a degree audit system in place.

          8)Specifies that this measure shall not be operative until the  
            BOG certifies that sufficient funds have been received from  
            state, federal, or private sources to implement the online  
            degree audit system; and, requires the BOG to prominently post  
            this certification promptly on its Internet Website. 

          9)Makes several legislative declaration and findings, including,  
            but not limited to the following:

             a)   California is falling behind in producing the necessary  
               postsecondary education to ensure our state's prosperity  
               and opportunities; b) The CCC system is the state's largest  
               workforce provider, offering associate degrees and  
               short-term job training certificates in more than 175  
               different fields; c) In California, less than one-fifth of  
               the community colleges have online degree audit systems  
               that can be used to inform their students about their  
               progress, leaving the remainder of the state's 112  
               community colleges without a mechanism to identify already  
               earned degrees; d) Earning a degree or certificate from a  
               CCC, on average, nearly doubles an individual's earnings  
               within three years; and, e) The Legislature will establish  
               a central auditing system at the CCC that enables  
               individual community colleges to audit student records,  
               identify the students who are eligible for a certificate or  
               degree, and notify these students of their ability to  
               receive a degree or certificate based on all prior work  
               they completed.

           EXISTING LAW  establishes the mission and function of the CCC as  
          offering academic and vocational instruction at the lower  
          division level and authorizes the community colleges to grant  








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          the associate in arts and the associate in science degree  
          (Education Code � 66010.4). 

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, the following cost factors are associated with this  
          measure:

          1)Degree audits (commercial utility):  Approximately $12 million  
            from the General Fund (GF) to purchase a commercial utility  
            that meets this bill's requirements, for each of the  
            approximately 90 campuses that do not currently have one;

          2)Mandate:  Degree audits (workload) - Setting up the degree  
            audit software, maintaining the system, and updating the data,  
            and conducting annual degree audits for the community college  
            districts that do not have a system, will likely require two  
            dedicated classified employees at each community college  
            district.  Annual costs could total $10 million from the GF  
            across those districts, once the program is fully implemented.  
             Costs will vary at the approximately 65 community college  
            districts for which an existing system will need to be  
            maintained, the data updated, and degree audits conducted each  
            year (but would not need to be set up).  Even if those  
            districts required only employ one classified staff person  
            each, annual costs will exceed $2 million  from the GF; 

          3)Mandate:  Retroactive degrees - Potentially substantial  
            reimbursable state mandate, likely in the low millions of  
            dollars, to require each CCC to conduct retroactive degree  
            audits for each student enrolled in the past two years;

          4)Mandate:  Notifications - Potentially substantial reimbursable  
            mandate, likely hundreds of thousands of dollars, to establish  
            notification procedures and to notify students of their degree  
            status once the audit is completed each year; and,

          5)Report:  Potentially significant costs to the CCCCO to  
            complete the required implementation report.

           COMMENTS  :    Background  .  According to the Institute for Higher  
          Education Policy's (IHEP) examination of the U.S. Department of  
          Education datasets, approximately 15% of traditional-age  
          students in any cohort had completed more than 60 units yet held  
          no degree and were no longer enrolled anywhere; if applied to  
          the 2.4 million students currently enrolled at the CCC, this  








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          statistic represents hundreds of thousands of students who may  
          have completed their degrees or are very close to doing so. 

           Need for the bill  .  According to the author, while the  
          Seymour-Campbell Student Success Act of 2012 requires community  
          colleges to provide orientation, advising and educational  
          planning tools to all students, current law does not require the  
          institution to monitor and notify students of their progress  
          toward their defined educational goals. 
          The author contends that California's community colleges play a  
          vital role in meeting our current and future workforce needs;  
          however, according to the CCC Student Success Scorecard, fewer  
          than half of CCC students earn a degree, certificate, or  
          transfer to a four-year postsecondary institution after six  
          years.  The author states, "SB 1425 will help more students  
          cross the finish line and enter California's workforce with  
          increased opportunity by making a degree tracking system  
          available that will keep current and future students on track to  
          successfully reach their college goals.  The bill will also  
          require community colleges to award degrees to former students  
          who have earned a degree or certificate."
           
          Project Win-Win  .  Project Win-Win is a national initiative  
          undertaken in partnership by IHEP and the State Higher Education  
          Executive Officers and funded principally by Lumina Foundation  
          for Education that has proven in nine states and over 60  
          institutions of higher education, that degree tracking and  
          retroactive degree awarding are higher effective approaches to  
          improving student success.  These institutions identify former  
          students whose records qualify them for an associate's degree,  
          and the institutions award the degrees retroactively.  The  
          institutions also identify students who were near completion of  
          an associate's degree and seek to bring them back to complete  
          the degree. 

          According to IHEP, as of August 2011, 24 institutions had  
          identified over 44,000 students in the initial "universe of  
          interest" and 15 institutions had completed degree audits on  
          12,000 students (with 2,800 deemed eligible for associate's  
          awards, and 6,200 potential completers).  The initiative  
          projects these numbers nationally and estimates a potential 15%  
          to 16% increase in the number of associate's degrees awarded.   
          It is unclear how many of these students were actually awarded  
          or completed degrees.









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           Degree audit programs  .   According to a research memo prepared  
          for the CCCCO by WestEd in January 2012, a survey of the  
          California Association of Community College Registrars and  
          Admissions Officers found that 21 of the 112 CCC had degree  
          audit systems in place, with seven more planning implementation  
          within the year.  It was noted that the initial process for  
          establishing the audit system is labor intensive and requires  
          annual updating to address changes in curriculum.  
           
            CCCCO concerns  .  According to the CCCCO, they have just begun  
          work on the Education Planning Initiative (EPI), which will help  
          provide colleges with integrated tools for education planning  
          and degree audit in order to support students.  The CCCCO notes  
          that the EPI is in its beginning stages.   

          According to the CCCCO, the EPI was given $6 million in the  
          2013-2014 budget.  The Request for Applications went out in  
          October 2013 and in December 2014 the project was awarded to  
          Butte Glen Community College District Technology Center to  
          coordinate.  The EPI Steering Committee has been assembled and  
          is meeting.   A list of 10-12 colleges who wish to participate  
          in the pilot is being finalized.  The next step is the Request  
          for Information, which is basically a request for information  
          from vendors to see what is technologically possible and/or  
          available.  The next implementation phase of the EPI will entail  
          the CCCCO sending out Request for Proposals - to note this phase  
          will not begin to be developed until sometime in July.

          The CCCCO has a goal that by June 2016 the 10-12 pilot colleges  
          have a system of education planning and degree audit that can  
          begin to communicate across campuses in order to provide a model  
          for the entire system to eventually use.  

          It is unclear as to the length of time it will take before the  
          EPI is fully online and being implemented in all 112 colleges of  
          the system.  

           Committee considerations  .  The CCCCO (as noted in the "CCCCO  
          concerns" section of this analysis) has indicated that it is  
          currently implementing the EPI that appears to have similar  
          goals as brought forth in this bill.  Committee staff notes that  
          the Community College League of California and several community  
          college districts have expressed concerns regarding the  
          feasibility of implementing this measure and the cost pressures  
          the districts will face should the measure be chaptered.  








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          The CCCCO and the community college districts are in the process  
          of implementing the Seymour-Campbell Student Success Act of  
          2012.  If potential funds for the necessary software for degree  
          audits and the likes in order to confer degrees to former CCC  
          students take away from potential dollars that could be  
          otherwise used for student success related activities for  
          current CCC students, the Committee may wish to consider what  
          the cost benefit of this measure entails.  

          To address some of the fiscal concerns, the author may wish to  
          consider amending this bill to become a pilot program - aligned  
          with the current work of the CCCCO's EPI.

           Previous legislation  .  AB 868 (V. Manuel P�rez) of 2010, which  
          the author cancelled the hearing in the Senate Education  
          Committee, would have required every community college district  
          to develop and implement an online degree audit system.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Access College Foundation
          Alliance College-Ready Public Schools
          ALL Management Corporation
          Al Wooten Jr. Heritage Center
          Boys & Girls Clubs of the Los Angeles Harbor
          Bresee Youth Center
          Bright Prospect
          California Communities United Institute
          California Competes
          Campaign for College Opportunity
          Center for Student Opportunity
          Centro Binacional para el Desarrollo Ind�gena Oaxaque�o 
          Children Youth and Family Collaborative
          College Match
          College Summit
          Community Partners
          Constitutional Rights Foundation 
          Department of Sociology - California State University, Fresno
          Determined To Succeed
          Fulfillment Fund
          Girls Incorporated of Orange County
          GLOW Foundation








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          Gradguru
          Heart of Los Angeles
          Hispanic Association of Colleges and Universities
          i.am College Track
          InnerCity Struggle
          Institute for Higher Education Policy
          Japanese Community Youth Council
          Kid City Hope Place
          LA Coalition of Essential Schools
          Los Angeles Area Chamber of Commerce
          Los Angeles Education Partnership
          Los Angeles United Methodist Urban Foundation
          Los Angeles Urban League
          Latino Coalition for a Healthy California
          Mar Vista Family Center
          META Foundation
          Mexican American Legal Defense and Educational Fund
          North Bay Leadership Council
          One Voice
          Parent Institute for Quality Education
          Project GRAD Los Angeles
          San Diego Regional Chamber of Commerce
          South Central Scholars
          Southern California College Access Network
          Students Making a Change
          Study Smart Tutors
          The Institute for College Access & Success
          Transformative Action Institute
          United Friends of the Children
          USC Pullias Center for Higher Education
          Young Invincibles
          Youth Alliance
           
            Opposition 
           
          None on file.

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