BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Jack Scott, Chair
                           2007-2008 Regular Session
                                        

          BILL NO:       SB 325
          AUTHOR:        Scott
          AMENDED:       April 9, 2007
          FISCAL COMM:   Yes            HEARING DATE:  April 11, 2007
          URGENCY:       No             CONSULTANT:Kathleen Chavira

          SUBJECT  :  Higher Education Accountability
          
           SUMMARY  

          This bill requires that the state establish an  
          accountability framework to biennially assess and report on  
          the collective progress of the state's system of  
          postsecondary education in meeting specified educational  
          and economic goals, and declares legislative intent that  
          the University of California (UC), the California State  
          University (CSU), the California Community Colleges (CCC)  
          and the private and independent colleges and universities  
          in California provide informational reporting for students  
          and parents, as specified.  

           BACKGROUND  

          AB 1417 (Pacheco, Statutes of 2004) required the Board of  
          Governors (BOG) of the CCC to provide recommendations  
          regarding the design of a structure for the annual  
          evaluation of district-level performance in meeting  
          statewide educational outcomes. The resulting  
          Accountability Reporting for the Community Colleges (ARCC)  
          is in the process of being implemented. The ARCC currently  
          contains data for a variety of indicators.  According to  
          the Chancellor's Office because the ARCC indicators have  
          unique definitions, they cannot be compared to indicators  
          generated for other states or by other studies of the CCC.   
           

          Both the CSU and the UC have entered into system-specific  
          "compacts" and then "partnerships" with the Governor to  
          ensure stable multi-year funding in exchange for a  
          commitment to deliver on specific performance measures. 





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           ANALYSIS
           
           This bill:  

          1)   Requires that the state establish an accountability  
               framework for the purpose of biennially assessing the  
               collective progress of the state's system of  
               postsecondary education in meeting specified  
               educational and economic goals.  Specifically it:

                    a)             Establishes principles to guide  
                    the development of the framework. 

                    b)             Requires the framework be used to  
                    measure progress towards specified goals by  
                    collecting and reporting information that answers  
                    the following six statewide policy questions:

                           i)                  Are enough  
                         Californians prepared for postsecondary  
                         education?

                           ii)     Are enough Californians going to  
                         college?

                           iii)    Is the state's postsecondary  
                         education system affordable to all  
                         Californians?

                           iv)     Are enough Californians  
                         successfully completing certificates and  
                         degrees?

                           v)                  Are college graduates  
                         prepared for life and work in California?

                           vi)     Are California's people,  
                         communities, and economy benefiting?

                    c)             Requires that the questions  
                    delineated in (b) be answered by collecting a  
                    select number of indicators of progress, not to  
                    exceed 30, and authorizes the collection of  
                    information to respond to the 25 indicators  
                    delineated in the bill.





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                    d)             Establishes the California  
                    Postsecondary Education Commission (CPEC) as the  
                    central repository for collecting and maintaining  
                    all data for the framework and make data  
                    available in a statewide aggregate format,  
                    segmentally, and regionally.  Additionally it:

                           i)                  Requires the segments  
                         of higher education in California to provide  
                         CPEC data, as specified.

                           ii)   Requires the segments, to the extent  
                         possible, to rely upon existing data,  
                         information systems, reports and processes  
                         in providing the required data.

                    e)             Requires the collection of the  
                    indicators of progress by race, ethnicity,  
                    gender, Cal Grant recipient status, and  
                    socioeconomic status to the extent available and  
                    to be collected and maintained longitudinally  
                    where appropriate. 

                    f)             Requires the Legislative Analyst's  
                    Office (LAO) to convene and chair a Technical  
                    Advisory Committee (TAC) to coordinate the  
                    technical specifications of the indicator data  
                    needed to comply with the bill's provisions.   
                    Specifically it:

                           i)                  Specifies the  
                         representation on the TAC to include  
                         representatives from each segment, CPEC, the  
                         LAO, the Department of Finance (DOF), up to  
                         three individuals with expertise in similar  
                         state accountability efforts, and  
                         representatives from any state agency that  
                         maintains data helpful in responding to the  
                         statewide policy questions delineated in the  
                         bill.  

                           ii)     Requires the TAC to report its  
                         written findings and recommendations to the  
                         Governor, Legislature and Director of  
                         Finance by May 1, 2008.





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          2)   Establishes a reporting process for the information  
               collected under the framework.  Specifically it:

                    a)             Requires CPEC, beginning September  
                    1, 2008, and biennially thereafter, to provide  
                    the Legislature and the DOF with a summary report  
                    of information collected under the framework and  
                    requires a copy of the report be made available  
                    to the segments of higher education.  

                    b)             Requires the LAO to provide an  
                    analysis of the data in the report assessing  
                    progress on the six questions, identifying  
                    factors explaining the level of progress, and  
                    identifying policy and funding issues for  
                    legislative consideration.

                    c)             Authorizes the LAO to make related  
                    recommendations to budget and policy as well as  
                    for modifying the indicators and goals.

                    d)             Requires the governing boards of  
                    the public segments of higher education and the  
                    Association of Independent California Colleges  
                    and Universities to provide biennial reports  
                    beginning October 1, 2008, as part of the  
                    accountability record and requires the reports to  
                    include:

                    i)             Each segment's priorities for the  
                  state's goal areas.

                    ii)            Major activity underway to address  
                  each priority.

                    iii)           Performance indicators used to  
                  track progress.

                    iv)            Major highlights or issues from  
                  the data.

                           v)                  Each segment's  
                         institutional goals for student learning  
                         outcomes and their assessment and use of  
                         assessments to improve learning.





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                           vi)     A summary of activities undertaken  
                         to address; special state needs, programs to  
                         assist elementary and secondary students to  
                         meet placement and admission standards at  
                         each segment; remediation efforts and  
                         outcomes; efforts to expand capacity to  
                         effectively and efficiently serve students.

                    e)             Requires the governing boards of  
                    the public segments of higher education and the  
                    Association of Independent California Colleges  
                    and Universities to present the findings of their  
                    reports at a joint hearing of the appropriate  
                    legislative education policy and budget  
                    subcommittees, to be convened by January 30,  
                    2009, and biennially thereafter.  

          3)   Declares legislative intent that the UC, the CSU, the  
               CCC, and the private and independent colleges and  
               universities provide informational reporting for  
               students and parents that improve their understanding  
               and comparison of postsecondary educational  
               institutions.  

          4)   Declares the following educational and economic goals  
               for California by 2020:

                    a)             That educational pipeline numbers  
                    improve sufficiently so that it is among the top  
                    10 states in the nation in this regard.

                    b)             That per capita income be at the  
                    average of the top 10 new economy states, as  
                    defined. 

                    c)             That it be in the top 10 states  
                    nationally for the percentages of its age groups  
                    with degrees and certificates conferred.  

           STAFF COMMENTS
           
              1)   Informational hearing  .  On January 31, 2007, the  
               Senate Education Committee held an informational  
               hearing on Higher Education Accountability.  National  
               experts testified on trends in higher education  
               accountability as well as California's specific  




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               challenges in meeting the educational and economic  
               needs of its citizenry.  It was noted that while each  
               public segment of higher education in California  
               participates in system-specific accountability  
               efforts, there is a lack of meaningful data and  
               analysis to guide fiscal and policy decisions and to  
               assess the collective progress of the state's system  
               of postsecondary education in meeting the state's  
               educational and economic needs.  

               In 2002, the Senate commissioned a study of national  
               trends in higher education accountability.  The  
               resulting report: " An Accountability Framework for  
               California Higher Education: Informing Public Policy  
               and Improving Outcome," provided the initial framework  
               for developing an integrated system of accountability  
               for higher education in California and is the basis  
               for this bill.   

              2)   Prior legislation  .  SB 1331 (Alpert) passed by the  
               Legislature and vetoed by the Governor in 2004, would  
               have established a California Postsecondary Education  
               Accountability (CPSEA) structure to provide an annual  
               assessment of how the state is meeting identified  
               statewide public policy goals in higher education.   
               The Governor's veto message read in pertinent part: 

               While I favor accountability for all levels of  
               education, this bill mainly establishes only a  
               reporting structure for four broad policy goals rather  
               than providing for outcomes, such as performance based  
               measures, historically associated with accountability  
               systems.
          
               This bill responds to the Governor's concerns by  
               authorizing specific outcome indicators, and convening  
               a technical advisory committee to coordinate the  
               technical specifications of the necessary data.  
          
           SUPPORT  

          California Postsecondary Education Commission
          California State University
          Latino Coalition for a Healthy California
          University of California





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           OPPOSITION

           None received on this version.