1. AB 806 – WILK FIFTY PERCENT LAW FINANCIAL ANALYSIS MAY 2013 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE 1

2. FIFTY PERCENT LAW: AN OBSOLETE K-12 LAW– IGNORES ADVANCES IN HIGHER EDUCATION Fifty Percent Law Implemented in 1961 for K-12 Class Size Reduction  Class Size is Not a Higher Education Issue  Since 1961, New Regulations Established That Contradict This Law, Including AB 1725  Over 50 Years, Education Has Evolved As a Result of Advances in Technology and the Addition of Student Services Programs California Community Colleges -The Largest System of Higher Education in the United States  2.4 Million Community College Students Enrolled in California  1 in 10 Students in the United States Attend a California Community College CSU/UC - Higher Education Not Subject to Fifty Percent Law  Allowed to Manage Budget in Most Effective Way to Serve Students 2 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

3. AB 806 FIFTY PERCENT LAW: A COST NEUTRAL APPROACH TO STUDENT SUCCESS AB 806 Includes ALL FACULTY on the “Right Side” of the Law  Faculty Include: Counselors, Librarians, and All Other Faculty Assignments AB 806 is Cost Neutral  Requires No Additional Funding – Just Moves ALL FACULTY Costs to the “Right” Side of the Fifty Percent Law  Does Not Decrease Funding For Faculty Salaries – Just a Shift of Existing Salaries from “Wrong” Side to “Right” Side AB 806 Supports Student Success  Creates Budget Flexibility that Includes All Faculty to Support Student Success  Provides Up To Two Times the Funding for Student Success When State Funding Increases District Budgets 3 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

4. AB 806 FIFTY PERCENT LAW: ALL FACULTY ARE INCLUDED ON THE “RIGHT SIDE” Current Fifty Percent Law:  Instructors in Classroom  Instructional Aides in Classroom AB 806 Fifty Percent Law:  Recommends Including All Faculty on the “Right Side” of the Calculation: Faculty Counselors Faculty Librarians All Other Faculty Assignments: o Program Review, Development & Assessment of Student Learning Outcomes, Basic Skills, Curriculum Development, Professional Development, EOPS, DSPS, Tutoring, Articulation, etc. 4 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

5. AB 806 FIFTY PERCENT LAW IS COST NEUTRAL: JUST MOVES $ FROM WRONG SIDE TO RIGHT SIDE Right Side – 50% LawWrong Side – 50% Law Classroom instructors’ salaries & benefitsClassroom expenses (all costs except instructors/aides) Classroom instructional aides’ salaries & benefits Instructional Supplies/Replacement Equipment Counselors Librarians Faculty Outside Classroom (Development & Assessment of Student Learning Outcomes, Curriculum, Articulation, etc.) Faculty Outside Classroom (Development & Assessment of Student Learning Outcomes, Curriculum, Articulation, etc.) Student Services: Admissions and Records, Financial Aid, Job Placement, Transfer Center, Veteran’s Office District Administrators Maintenance and Operations Business Operations Human Resources MIS and Computer Support Insurance and Utilities All other Costs of Education 5 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

6. AB 806 FIFTY PERCENT LAW: MEETS COMPLIANCE AND SUPPORTS STUDENT SUCCESS WITH BUDGET FLEXIBILITY 6 Instructors and Instructional Aides Faculty Librarians; Faculty Counselors ; Faculty -- Support Student Success AB 806 RIGHT SIDE FIFTY PERCENT – RIGHT SIDE Instructional Supplies, Equipment and other Instructional Department Costs; Admissions & Records, Financial Aid, Veterans, Student Services; FIFTY PERCENT - WRONG SIDE $30 M – 50% $26 M – 45% $4 M – 5% All Administrative Costs $60 M TOTAL BUDGET – 15,000 FTES MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

7. Increase College and Career Readiness Collaborate with K-12/Common Core Standards Strengthen Support for Entering Students Develop/Implement Common Centralized Assessments Diagnostic Assessment, Orientation & Educational Plan Technology applications to better guide students Support resources-students lacking college readiness Declare a Program of Study Incentivize Successful Student Behaviors System-wide enrollment priorities Board of Governors Fee Waiver requirements Promote benefits of full-time attendance Begin addressing Basic Skills deficiencies in first year Align Course Offerings to Meet Student Needs Base course offerings & schedules on student needs Improve the Education of Basic Skills Students Alternative Basic Skills curriculum Statewide Strategy for Non-Credit & Audit Education Revitalize and Re-Envision Professional Development Enhanced professional development opportunities, including improved use of flexible calendar Improved use of professional development resources to spur improvements in Basic Skills Enable Efficient Statewide Leadership & Increase Coordination Among Colleges State and local student success goals Accountability scorecard Longitudinal student record system Align Resources with Student Success Recommendations Categorical program streamlining and cooperation Invest in Student Support Initiative Alternative Basic Skills funding model 7 AB 806 WILL SUPPORT 21 OF THE 22 STUDENT SUCCESS TASK FORCE RECOMMENDATIONS ON “WRONG SIDE” OF THE EXISTING FORMULA MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

8. AB 806 CAN IMPROVE STUDENT SUPPORT RATIOS THAT HAVE DECLINED WITH STATE BUDGET CUTS: COLLEGE OF THE CANYONS STATISTICS FOR 1 YEAR 4,500 Students 1 Librarian 1,500 Students 1 Counselor 300 Students 1 Faculty 8 3,000 Students 850 Students 300 Students 1 Librarian 1 Counselor 1 Faculty MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE (10 Classes Per year 30 Students Per Class) (Student Can See Counselor Every 2 Years) (Provides Assessment Testing, Tutoring, etc.) (10 Classes Per year 30 Students Per Class) (Student Can See Counselor Every Year) (Provides Assessment Testing, Tutoring, etc.)

9. AB 806 DOES NOT LIMIT FACULTY SALARIES: EXISTING LAWS PROTECT FULL-TIME FACULTY SALARIES, BENEFITS, HIRING AND ASSIGNMENTS Workload Measure Increases/ Decreases FTES and Students Served Full-Time Faculty Obligation (FON) Includes Faculty, Counselors, Librarians (Hiring Increased by Workload Measure) 75/25 Law Goal That 75% of Instruction is Provided by FT Faculty AB 1725 10 + 1 Academic/ Professional Standards Faculty Outside Classroom 9 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

10. STATE GROWTH FUNDING INCREASES DISTRICT REVENUES TO HIRE FACULTY AND SERVE MORE STUDENTS Growth Funding Allocation 1% = $800,000 x 2% FTES Target Higher 15,000 FTES Sections Added 5,000 Sections Workload Measure Increased FON – FT Faculty Obligation Increase: Includes Faculty, Counselors and Librarians 185 x 2% = 3.7 Faculty Hired Students Taught Increases 10 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE 2% = $1.6M Additional Revenue 2% = 300 FTES 2% = 100 Sections 189 Full-Time Faculty 500 Students 4 Full-Time Faculty 2%

11. AB 806 FIFTY PERCENT LAW: INCLUDES ALL FACULTY TO SUPPORT STUDENT SUCCESS 50% Instructors and Instructional Aides Counselors (Faculty) Faculty – Non- Instructional Assignments Admissions & Records, Financial Aid, Veterans, Other Student Services All Administrative Costs Instructional Supplies, Equipment and other Instr Department Costs Librarians (Faculty) 11 FIFTY PERCENT – RIGHT SIDE FIFTY PERCENT – WRONG SIDE AB 806 RIGHT SIDE MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE

12. AB 806 PROVIDES FLEXIBILITY TO BEST SERVE STUDENTS 12 AB806 allows flexibility to Best Serve Students MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE AB806 allows flexibility to Best Serve Students

13. AB 806 FIFTY PERCENT LAW: SUMMARY AB 806 Supports Student Success By Adding Budget Flexibility  Allows Districts to Make Local Decisions About How to Best Serve Students AB 806 is Cost Neutral  It is a formula change only, with no additional State Revenues required to meet regulatory requirements AB 806 Includes ALL FACULTY on the “Right Side” of the Law  Faculty Counselors, Faculty Librarians, All Other Faculty Time 13 MAY 15, 2013 AB 806 WILK ASSEMBLY APPROPRIATIONS COMMITTEE