Existing law establishes the University of California, under the administration of the Regents of the University of California, the California State University, under the administration of the Trustees of the California State University, and the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as the 3 public segments of postsecondary education in this state.

This bill would express the intent of the Legislature to enact legislation to create the Office of Higher Education Performance and Accountability as the statewide postsecondary education coordination and planning entity.

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1837 (Low) - Postsecondary education: Office of Higher Education Performance and Accountability

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill establishes the Office of Higher Education Performance and Accountability (Office), a successor agency to the former California Postsecondary Education Commission (CPEC), as the statewide postsecondary education coordination and planning agency. The purpose of the Office is to advise the Governor, Legislature, and other government officials and institutions of postsecondary education.

Fiscal Impact:

• Costs in the low millions annually to maintain the Office once fully operational. (General Fund)
• Costs to Segments: All segments cite costs, totaling about $600,000, related to working with the Office and responding to data requests based on workload from the former CPEC. The California Community Colleges (CCC) Chancellor’s Office estimates costs of about $443,000 across four positions; the California State University (CSU) estimates $110,000 for one position; and the (University of California) estimates the need for an additional half of a position, equating to about $50,000. (General Fund)
• Potential significant out year costs to the segments for their participation in an eligibility study. (General Fund)

Background:

The 1960 Master Plan for Higher Education in California, and through existing law, established the CPEC, a 17 member body, to be responsible for coordinating public, independent, and private postsecondary education in California and providing independent policy analysis and recommendations to the Legislature and the Governor on postsecondary education issues. The CPEC was tasked with providing fiscal and policy recommendations to the Governor and Legislature; monitoring and coordinating public institutions; and ensuring comprehensive planning for higher education and effective use of resources.

In 2011, Governor Brown vetoed funding of about $2 million General Fund for the CPEC resulting in its closure. In the veto message, the Governor cited the commission’s ineffectiveness but requested “that the state’s three public higher education segments, along with other higher education stakeholders, explore alternative ways to more effectively improve coordination and development of higher education policy.”

Existing law also establishes the state’s goals for higher education. The goals are to: (1) improve student access and success which includes, but is not limited to, greater participation by demographic groups, including low-income students, that have historically participated at lower rates, greater completion rates by all students, and improved outcomes for graduates; (2) better align degrees and credentials with the state’s economic, workforce, and civic needs; and (3) ensure the effective and efficient use of resources in order to increase high-quality postsecondary educational outcomes and maintain affordability.

Proposed Law:

This bill establishes the Office, a successor agency to the former CPEC, as the statewide postsecondary education coordination and planning agency. This bill also requires the Legislative Analyst’s Office (LAO) to report to the Legislature regarding the performance of the Office and its functions by January 1, 2020.

Specifically this bill:

Office makeup

• Establishes the Office within the Governor’s Office. The Governor is required to appoint the Executive Director which is to be confirmed by a majority vote of the membership of the Senate.
• Establishes an advisory board to examine and make recommendations to the Office regarding its functions and review and comment on any recommendations made by the Office to the Governor and the Legislature. The advisory board consists of the Chairperson of the Senate Committee on Education and the Chairperson of the Assembly Committee on Higher Education and six public members with experience in postsecondary education appointed to four year terms by the Senate Committee on Rules and the Speaker of the Assembly.
• The advisory board is required to develop an annual report on the condition of higher education in California and an annual review of the performance of the executive director of the Office. The advisory board members do not receive compensation but do receive reimbursement for actual and necessary expenses for its functions.

Office functions

• Requires the Office to:
  • Biennially evaluate statewide and institutional performance related to the state’s goals for higher education and take into consideration certain metrics.
  • Make recommendations on cross-segmental initiatives in areas such as efficiencies in instructional delivery, financial aid, transfer, and workforce coordination.
  • Advise on the need and location of new institutions and campuses of higher education, proposals by the public segments for new programs, the priorities that guide the public segments and the degree of coordination between segments.
  • Make recommendations on proposals for changes in eligibility pools for admission to postsecondary education segments. The Office must periodically conduct a study (often referred to as an eligibility study) of the percentages of California public high school graduates estimated to be eligible for admission to the UC and CSU.
  • Maintain programmatic, policy, and fiscal expertise to receive and aggregate information reported by the institutions of higher education.
  • Develop and maintain a database, with specified functions, to serve as a clearinghouse for postsecondary education information.
  • Furnish information from the segments upon request of the Governor and the Legislature.
  • Annually report to the Governor and Legislature regarding the progress in achieving the state goals for higher education.

Related Legislation:

Several bills have been pursued in the past that relate to the functions of the former CPEC. The most recent, SB 42 (Liu, 2015), almost identical to this bill, was vetoed by the Governor whose message said in part: “While there is much work to be done to improve higher education, I am not convinced we need a new office and an advisory board, especially of the kind this bill proposes, to get the job done.”

Staff Comments:

Based on the size of the CPEC’s last budget, costs to reinstitute a similar entity such as the one proposed in this bill would be about $2 million General Fund and 19 positions. However, in previous years the CPEC was funded with $3.7 million General Fund.

Depending upon the frequency and the nature of data being requested, this could drive significant workload to the segments to compile and submit the information to the Office. This bill authorizes the Office to require the governing boards and higher education institutions to submit data on plans and programs, costs, selection and retention of students, enrollments, plant capacities, and other matters related to effective planning, policy development, and articulation and coordination. It also requires the Office to furnish information concerning these matters to the Governor and the Legislature upon request. Any data reporting requirements the Office imposes, with statutory authority to do so, on the CCCs will likely be deemed by the Commission on State Mandates to be a reimbursable state mandate. Staff notes that currently the segments respond directly to the Administration and Legislature on data requests that cover many of the topics included in this bill.

This bill also includes a reporting requirement for the LAO regarding the performance of the Office and its functions by January 1, 2020. This date falls before the LAO’s annual budget analysis publication. It may make more sense to require this report at a later date so that it can be included in the budget analysis. The LAO estimates general costs of about $150,000 to complete a program evaluation. The requirement in this bill would likely not result in additional costs to the state, but would result in less time available to respond to other requests or complete other reports requested by the Governor and Legislature.

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SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: 1837 Hearing Date: 6/28/2016

SUBJECT: Postsecondary education: Office of Higher Education Performance and Accountability

DIGEST: This bill establishes the Office of Higher Education Performance and Accountability (OHEPA) as the statewide postsecondary coordination and planning agency, outlines its responsibilities, functions and authorities, and establishes an advisory board to the office to examine and make recommendations regarding its functions and operations, and to review and comment on OHEPA’s recommendations to the Governor and Legislature.

ANALYSIS:

Existing law:

1. Establishes the University of California (UC), under the administration of the Regents of the University of California, the California State University (CSU), under the administration of the Trustees of the California State University, the California Community Colleges (CCC), under the administration of the Board of Governors of the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions as the segments of postsecondary education in this state.
2. States that the intent of the Legislature that budget and policy decisions regarding postsecondary education generally adhere to three specified goals and that appropriate metrics be identified, defined, and formally adopted to monitor progress toward the achievement of the goals.
3. Establishes the California Postsecondary Education Commission (CPEC) as the statewide postsecondary education coordinating and planning agency, and provides for its functions and responsibilities.
4. Provides for the composition of the CPEC’s membership. The annual Budget Acts from the 2011-12 fiscal year to the 2015-16 fiscal year, inclusive, have provided no funding for CPEC.

This bill:

1. Establishes OHEPA as the statewide postsecondary education coordination and planning agency and places OHEPA under the direct control of an Executive Director who shall be appointed by the Governor and subject to Senate confirmation.
2. Provides that the Executive Director is responsible for all duties, powers, and responsibilities vested in OHEPA, including contracting for relevant professional or consultant services.
3. Requires the Executive Director to appoint any staff positions authorized by the Governor.
4. Establishes an Advisory Board to OHEPA for the purpose of examining and making recommendations to OHEPA regarding the functions and operations of OHEPA and reviewing and commenting on any recommendations made by OHEPA to the Governor and Legislature.
5. Requires the advisory board to consist of the Chairperson of the Senate Committee on Education and the Chairperson of the Assembly Committee on Higher Education, who serve as ex officio members and six public members with experience in postsecondary education, appointed to terms of four years as follows:
   1. Three members of the advisory board appointed by the Senate Committee on Rules.
   2. Three members of the advisory appointed by the Speaker of the Assembly.
6. Requires OHEPA to actively seek input from, and consult with, the advisory board regarding functions, operations, and recommendations of OHEPA, and provide the advisory board with sufficient time to review and comment.
7. Requires the advisory board to meet at least quarterly, and requires the advisory board to appoint one of its members to represent the board for purposes of communicating with the Legislature.
8. Specifies that the advisory board is responsible for developing an independent annual report on the condition of higher education in California and issuing an annual review of the performance of the Executive Director of OHEPA.
9. Requires members of the advisory board to serve without compensation, but shall receive reimbursement for actual and necessary expenses incurred in connection with the performance of their duties as board members.
10. Requires OHEPA to consult with higher education segments and stakeholders, as appropriate, in the conduct of its duties and responsibilities.
11. Declares that OHEPA exists for the purpose of advising the Governor, the Legislature and other appropriate government officials and institutions of postsecondary education and specifies that OHEPA has the following functions and responsibilities:
    1. Requires, through its use of information and its analytic capacity, that it inform the identification and period revision of state goals and priorities for higher education consistent with the existing goals and metrics outlined in Statute by SB 195 (Liu, Chapter 367, Statutes of 2013) and in the 2013-14 and 2014-15 Budget Acts, and that it biennially evaluate both statewide and institutional performance in relation to these goals and priorities.
    2. Requires that it review and make recommendations regarding cross segmental and interagency initiatives and programs in areas that may include, but are not necessarily limited to, efficiencies in instructional delivery, financial aid, transfer, and workforce coordination.
    3. Requires that it advise the Legislature and the Governor regarding the need for, and the location of, new institutions and campuses of public higher education.
    4. Requires that it review proposals by the public segments, as specified, and make recommendations regarding those proposals to the Legislature and the Governor.
    5. Requires that it act as the clearinghouse for postsecondary education information and as a primary source of information for the Legislature, the Governor, and other agencies.
    6. Requires that it develop and maintain a comprehensive database that ensures data compatibility, supports longitudinal studies, is compatible with K-12 data systems, provides Internet access to data for the sectors of higher education in order to support statewide, segmental and individual campus educational research needs.
    7. Requires that it review all proposals for changes in eligibility pools for admission to public institutions and segments of postsecondary education and that it periodically conduct eligibility studies.
    8. Requires that it manage data systems and maintain programmatic, policy, and fiscal expertise to receive and aggregate information reported by the institutions of higher education in this state.
12. Authorizes OHEPA to require governing boards and the institutions of public postsecondary education to submit data to OHEPA on plans, programs, costs, student selection and retention, enrollments, and other specified information, and requires OHEPA to furnish information concerning these matters to the Legislature and Governor as requested by them.
13. Requires OHEPA to annually report to the Legislature and the Governor regarding its progress in achieving the aforementioned objectives and responsibilities by December 31^st of each year.
14. Requires the Legislative Analyst’s Office (LAO) to review and report to the Legislature regarding performance of the OHEPA in fulfilling its functions and responsibilities by January 1, 2020.
15. Sunsets these provisions on January 1, 2021.

Background

Purpose of the bill. According to the author, “the state’s approach to higher education must become more comprehensive if it is to ensure state-level workforce needs and priorities are being met. Numerous reports, including legislative reviews of the Master Plan and more recent reports from higher education experts, have called for California to establish a central higher education body. This central body is an important element of the state’s ability to honor its promise of affordable, high quality postsecondary education for all high school graduates and adults. Without such an entity, California cannot systematically plan to address the current and future needs of all its students and overall economy. “

The author further states that, “AB 1837 represents the next necessary step in establishing greater clarity and accountability for our higher education system’s performance in meeting the state wide goals outlined in the Master Plan of equity, access, and success, alignment with workforce needs, and the effective and efficient use of resources.”

California Postsecondary Education Commission. The 1960 Master Plan for Higher Education recognized that critical to the success of the State’s tripartite system of public higher education was a central body responsible for coordination and planning for higher education. Specifically, the Master Plan articulated basic state policies on higher education, such as assigning missions to the different higher education segments, specifying eligibility targets and expressing the state’s intent that higher education remain accessible, affordable, high quality and accountable. In addition, the Master plan created the CPEC as an oversight body tasked with providing fiscal and policy recommendations to the Governor and Legislature, monitoring and coordinating public institutions, and ensuring comprehensive statewide planning for higher education and effective use of resources.

In the 2011-12 Budget Act, Governor Brown vetoed funding for CPEC citing the agency’s ineffectiveness in higher education oversight. However, in his veto message, the Governor acknowledged the need for coordinating and guiding state higher education policy and requested that stakeholders explore ways these functions could be fulfilled. This bill proposes an alternative.

Improving Higher Education Oversight. In a January 2012 report by the LAO titled, “Improving Higher Education Oversight,” the LAO raised concerns that in the wake of CPEC’s closure, the future of higher education oversight was unclear. The LAO stated that while the public segments had stepped in to assume some roles previously performed by the CPEC, they expressed concerns about how institutional and public interests would be balanced.

The LAO also noted that while CPEC’s performance had been problematic, several important functions performed by CPEC had been lost. Among other things, the LAO recommended the Legislature re-establish an independent oversight body and increase the body’s independence from the public higher education segments, assign the body with limited and clear responsibilities, and develop a more unified governing board appointment process.

Prior/Related Legislation

SB 195 (Liu, Chapter 367, Statutes of 2013) established legislative intent that budget and policy decisions regarding postsecondary education generally adheres to the goals of improving student access and success, better aligning degrees and credentials with the state’s economic, workforce, and civic needs, and ensuring the effective and efficient use of resources.

SB 42 (Liu, 2015) would have recast the CPEC as the California Commission on Higher Education Performance and Accountability, modified the make-up of the prior commission, reduced and clarified the Commission’s functions and responsibilities, deleted a number of obsolete reporting requirements, and make a number of conforming and technical changes. (Vetoed by Governor Brown)

AB 1348 (John A. Perez, 2014) would have established the California Higher Education Authority, its governing board and its responsibilities, as specified, phased-in over a three-year period. (Held in the Senate Appropriations Suspense File)

SB 1022 (Huff, Chapter 394, Statutes of 2014) required CSU, and requested the UC, to post annual updated labor market data regarding their graduates on their Internet Web sites.

SB 1196 (Liu, 2014) would have established a process for setting postsecondary educational attainment goals and would have required that these goals guide the development of plans by the CCC, the CSU, and the UC for making progress towards the state’s goals. (Held in the Assembly Appropriations Suspense File)

AB 2190 (John A. Perez, 2012) would have established a new state oversight and coordinating body for higher education. (Held in the Assembly Appropriations Suspense File)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Campaign for College Opportunity

California Competes

California Faculty Association

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Campaign for College Opportunity, “in 2014, we released a policy brief showing how states across the nation have faced and overcome some of the same challenges of college access, affordability, and completion that are before California’s higher education systems. All six states shared some common factors that made major higher education reforms and innovation possible, including a central authority or agency responsible for higher education and a clear vision and plan with goals for higher education. AB 1837 fills a critical void in statewide higher education planning by establishing an independent body to steward a public agenda for higher education and that can ensure implementation efforts to help achieve state goals.”

SENATE COMMITTEE ON EDUCATION

Senator Carol Liu, Chair

2015 - 2016 Regular

Bill No: AB 1837

Subject: Postsecondary education: Office of Higher Education Performance and Accountability

NOTE: This bill has been referred to the Committees on Education and Governmental Organization. A “do pass” motion should include referral to the Governmental Organization Committee.

SUMMARY

This bill establishes the Office of Higher Education Performance and Accountability (OHEPA) as the statewide postsecondary coordination and planning agency, outlines its responsibilities, functions and authorities, and establishes an advisory board to the office (comprised of legislative appointees) to examine and make recommendations regarding its functions and operations, and to review and comment on the office’s recommendations to the Governor and Legislature.

BACKGROUND

Existing law establishes the California Postsecondary Education Commission (CPEC), a 17 member body representing the higher education segments, the State Board of Education, and nine representatives appointed by the Governor, Senate Rules Committee, and Assembly Speaker, to be responsible for coordinating public, independent, and private postsecondary education in California and to provide independent policy analysis and recommendations to the Legislature and the Governor on postsecondary education policy. (Education Code § 66900, et seq.)

ANALYSIS

This bill establishes the OHEPA as the statewide postsecondary education planning and coordination entity. It:

1. Establishes the OHEPA within the Governor’s Office and:
   1. Places the OHEPA under the direct control of an Executive Director appointed by the Governor and subject to Senate confirmation.
   2. Provides that the Executive Director is responsible for all duties, powers, and responsibilities vested in the OHEPA, including contracting for relevant professional or consultant services
   3. Requires the Director to appoint any staff positions authorized by the Governor.
2. Establishes an Advisory Board (Board) to the Office of Higher Education Performance and Accountability (OHEPA), and:
   1. Requires that the Board:
      1. Meet at least quarterly,
      2. Be subject to open meeting requirements.
      3. Review and comment on any recommendations made by the OHEPA to the Governor and the Legislature.
      4. Develop an annual report on the condition of California higher education.
      5. Issue an annual performance review of the Director.
   2. Provides that Board members shall serve without compensation, except reimbursement for expenses.
   3. Prescribes its membership as follows:
      1. Three members with experience in postsecondary education appointed by the Senate Committee on Rules;
      2. Three members with experience in postsecondary education appointed by the Speaker of the Assembly; and,
      3. The chair of the Senate Committee on Education and the chair of the Assembly Committee on Higher Education to serve as ex officio members.
3. Requires the OHEPA to actively seek input from and consult with the advisory board and higher education segments and stakeholders, as appropriate, in the conduct of its duties and responsibilities.
4. Declares that the OHEPA exists for the purpose of advising the Governor, the Legislature and other appropriate government officials and institutions of postsecondary education and outlines its functions and responsibilities. It:
   1. Requires, through its use of information and its analytic capacity, that it inform the identification and periodic revision of state goals and priorities for higher education consistent with the existing goals and metrics outlined in statute by SB 195 (Liu, Chapter 367, Statutes of 2013) and in the 2013-14 and 2014-15 Budget Acts, and that it biennially evaluate both statewide and institutional performance in relation to these goals and priorities.
   2. Requires that it review and make recommendations regarding cross-segmental and interagency initiatives and programs in areas that include, but are not limited to, efficiencies in instructional delivery, financial aid, transfer, and workforce coordination.
   3. Requires that it advise the Legislature and the Governor regarding the need for, and location of, new institutions and campuses of public higher education.
   4. Requires that it review proposals by the public segments for new programs, as specified, and make recommendations regarding those proposals to the Legislature and the Governor.
   5. Requires that it act as a clearinghouse for postsecondary education information and as a primary source of information for the Legislature, the Governor, and other agencies.
   6. Requires that it develop and maintain a comprehensive database that ensures data compatibility, supports longitudinal studies, is compatible with K-12 data systems, provides Internet access to data for the sectors of higher education in order to support statewide, segmental and individual campus educational research needs.
   7. Requires that it review all proposals for changes in eligibility pools for admission to public institutions and segments of postsecondary education and that it periodically conduct eligibility studies.
   8. Requires that it manage data systems and maintain programmatic, policy, and fiscal expertise to receive and aggregate information reported by the institutions of higher education in this state.
5. Authorizes the Office of Higher Education Performance and Accountability (OHEPA) to require the governing boards and the institutions of public postsecondary education to submit data to the office on plans, programs, costs, student selection and retention, enrollments, and other specified information, and requires the Office to furnish information concerning these matters to the Legislature and Governor as requested by them.
6. Requires the OHEPA to annually report to the Legislature and the Governor regarding its progress in achieving the aforementioned objectives and responsibilities by December 31st of each year.
7. Requires the Legislative Analyst’s Office (LAO) to review and report to the Legislature regarding the performance of the OHEPA in fulfilling its functions and responsibilities by January 1, 2020.
8. Sunsets these provisions on January 1, 2021.

STAFF COMMENTS

1. Need for the bill. According to the author, California's education and workforce needs cannot be addressed by any single segment and the state's approach to higher education must become more comprehensive if it is to ensure state-level workforce needs and priorities are being met. Currently, there is no coordinating entity for higher education in California, as Governor Brown vetoed funding for California Postsecondary Education Commission (CPEC) in the 2011-12 Budget Act, citing the agency’s ineffectiveness in higher education oversight.
   

Numerous reports, including legislative reviews of the Master Plan for Higher Education and more recent reports from higher education experts, have called for California to establish a central higher education body. This central body is an important element of the state's ability to honor its promise of affordable, high quality postsecondary education for all high school graduates and adults who could benefit from instruction offered at California's colleges and universities. Without such an entity, California cannot systematically plan to address the current and future needs of all its students and the overall economy.

This bill represents the next necessary step in establishing greater clarity and accountability for our higher education system’s performance in meeting the statewide goals for postsecondary education (SB 195, Liu, Chapter 367, Statutes of 2013) of equity, access, and success; alignment with workforce needs; and the effective and efficient use of resources.

1. History of CPEC. The 1960 Master Plan for Higher Education in California articulated basic state policies on higher education, such as assigning missions to the different higher education segments, specifying eligibility targets and expressing the state's intent that higher education remain accessible, affordable, high-quality and accountable. In addition, the Master Plan created an oversight body, the CPEC tasked with providing fiscal and policy recommendations to the Governor and Legislature; monitoring and coordinating public institutions; and ensuring comprehensive statewide planning for higher education and effective use of resources.

Although the Governor vetoed funding for CPEC in the 2011-12 budget, his veto message acknowledged the well-established need for coordinating and guiding state higher education policy and requested that stakeholders explore alternative ways that these functions could be fulfilled. This bill proposes an alternative.

1. Since the closure of CPEC?
   1. Performance and Accountability. In the absence of a coordinating body, the Legislature and Governor have taken some steps toward developing, supporting and refining greater accountability for higher education. These efforts include the passage and development of agreed upon goals for higher education through the passage of SB 195 (Liu, Chaptered 2014).

SB 195 established statewide goals of improved student access, equity and success, degree/credential alignment with workforce needs, and the efficient/effective use of resources. The 2013-14 and 2014-15 Budget Acts added reporting requirements around specified performance metrics and required the University of California, California State University, and community colleges to set targets around these metrics consistent with the statewide goals outlined by SB 195 (Liu, 2014). However, there has been no clear articulation around specific state goals and no specific entity charged with stewarding a public agenda to guide budget and policy deliberations.

• 1. Data management. The California Postsecondary Education Commission (CPEC) was able to obtain and maintain individual student records from the public higher education systems, link this data across the three segments using unique student identifiers, and used this information, as well as other publicly available datasets, to create useful data for the public and to respond to policymaker and legislative inquiries. Additionally, the CPEC provided each of the segments access to the data to support statewide, segmental and individual campus educational research needs. The CPEC functioned as a data management entity independent of the public segments, enabling the CPEC to perform analyses and provide information on behalf of and in response to requests from the Legislature or others, without relying on the "approval" or framing of information by the entity whose performance was being studied, analyzed, or evaluated.

Prior to its closure, the CPEC transferred its data warehouse to the California Community College (CCC) Chancellor's Office where the existing data is being housed and stored under an interagency agreement between the University of California, California State University, and the CCC. According to the Chancellor's office, the existing database is being maintained, and the CPEC Web site is available to the public for purposes of accessing existing reports posted on the Web site. However, under the current arrangement, access to the data is limited, since each segment has control over access to its own student records and outside entities wishing to use the database information must secure the approval of each of the affected segments.

• 1. Program and campus review. The CPEC's role in program and campus review was to coordinate the long-range planning of the state's public higher education systems as a means to ensure that they were working together to carry out their individual missions while serving the state's long-range workforce and economic needs. In its oversight report, the Legislative Analyst's Office (LAO) noted that no office or committee has the resources to devote to review of programs to identify long-term costs, alignment with state needs and institutional missions, duplication and priority relative to other demands.

1. Related reports/recommendations. A number of recent reports have cited the need for an independent body to steward a public agenda for higher education. These include the following:
   1. Improving Higher Education Oversight (LAO, January 2012) – In this report, the LAO raised concerns that in the wake of CPEC's closure, the future of higher education oversight was unclear. The LAO noted that while the public segments had stepped in to assume some roles previously performed by California Postsecondary Education Commission (CPEC), they expressed concerns about how institutional and public interests would be balanced. The Legislative Analyst's Office (LAO) also noted that while CPEC's performance had been problematic, several important functions performed by CPEC had been lost. Among other things, the LAO recommended the Legislature re-establish an independent oversight body and increase the body's independence from the public higher education segments, assign the body with limited and clear responsibilities, and develop a more unified governing board appointment process.
   2. Charting a Course for California’s Colleges: State Leadership in Higher Education (California Competes, February 2014) – The report noted that California is one of only two states nationwide (the other being Michigan) without comprehensive oversight or coordination of higher education. The report opined that the state needs an independent agency to develop a public agenda for higher education that links the needs of the state’s economy to the degree attainment outputs of the state’s institutions. Further, that independence means that the entity would not have representatives of the segments on its decision-making body to allow it to maintain its impartiality. Finally, the report recommended that the state’s priorities be focused on the goals of access to quality programs and outcomes from those programs; that the entity should be a coordinating agency and the segments should remain autonomous; and that its primary functions should be planning and policy development, data collection, analysis and monitoring, and administration of state financial aid programs.
   3. A New Vision for California Higher Education: A Model Public Agenda (Institute for Higher Education Leadership and Policy, March 2014) – The report highlights the challenges faced by California and offers a model public agenda centered on these goals: addressing access and attainment; equity, affordability and efficiency; and state policy leadership. As regards policy leadership, the report opines that this function is best filled by an executive branch entity, such as a California Office of Higher Education, that reports to the Governor. The responsibilities of this office would be to, among other things, provide policy leadership and advise the Governor on higher education budget and policy development, administer financial aid programs, manage a coordinated higher education data system that allows for analysis of enrollments, progression, and completion across all public segments, manage a higher education accountability process, and conduct analysis of goals and targets to assess how well regional efforts aggregate to meet statewide goals.
2. Related and prior legislation. Several bills have been introduced in an effort to improve higher education performance and accountability, and to re-establish CPEC's most important functions. These include the following:
   1. SB 42 (Liu, 2015), in its final form, was essentially identical to this bill. Although SB 42 was heard and passed by both houses, it was ultimately vetoed by the Governor, whose message read, in pertinent part:

“While there is much work to be done to improve higher education, I am not convinced we need a new office and an advisory board, especially of the kind this bill proposes, to get the job done.”

• 1. SB 1196 (Liu, 2014) would have established a process for setting specific educational attainment goals for the State. SB 1196 was held in the Assembly Appropriations Committee.
  2. AB 1348 (John A. Pérez, 2014) which would have established the California Higher Education Authority, its governing board and its responsibilities, as specified, phased-in over a three-year period. AB 1348 was held in the Senate Appropriations Committee.
  3. SB 1022 (Huff, Chaptered 394, Statutes of 2014) requires the California State University and requests the University of California to provide labor market outcome data on their graduates.
  4. AB 2190 (John A. Pérez, 2012) would have established a new state oversight and coordinating body for higher education. AB 2190 was held in the Assembly Appropriations Committee.
  5. SB 721 (Lowenthal, 2012) would have established statewide goals for guiding budget and policy decisions. SB 721 was ultimately vetoed.
  6. SB 1138 (Liu, 2011-12) would have established a central data management system for the higher education segments. SB 1138 was held in the Senate Appropriations Committee.
  7. AB 2 (Portantino, 2011) and AB 218 (Portantino, 2009) essentially identical bills, required that the state to 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. Both bills were heard and passed by this Committee and were subsequently held in the Senate Appropriations Committee.

SUPPORT

California Competes

Campaign for College Opportunity

OPPOSITION

None received.

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ASSEMBLY THIRD READING

ATR Bill Id:AB 1837

Author:(Low and Eggman)

As Amended Ver:March 17, 2016

Majority vote

SUMMARY: Establishes the Office of Higher Education Performance and Accountability (OHEPA) to provide statewide postsecondary education planning and coordination. Specifically, this bill:

1. Establishes OHEPA as the statewide postsecondary education coordination and planning entity within the Governor's office and under the direct control of an Executive Director (Director) appointed by the Governor and subject to Senate confirmation.
2. Provides that the Director is responsible for all duties, powers, and responsibilities vested in OHEPA, including contracting for relevant professional or consultant services. The Director is required to appoint any staff positions authorized by the Governor.
3. Establishes an Advisory Board to OHEPA, subject to open meetings requirements and meeting at least quarterly, for the purpose of reviewing and commenting on any recommendations made by OHEPA to the Governor and the Legislature, developing an annual report on the condition of California higher education, issuing an annual performance review of the Director. Provides that the Advisory Board members shall serve without compensation, except reimbursement for expenses. Establishes the Advisory Board membership as follows:
   1. Three members with experience in postsecondary education appointed by the Senate Committee on Rules;
   2. Three members with experience in postsecondary education appointed by the Speaker of the Assembly; and,
   3. The chair of the Senate Committee on Education and the chair of the Assembly Committee on Higher Education to serve as ex officio members.
4. Requires OHEPA to actively seek input from and consult with the advisory board and higher education segments and stakeholders, as appropriate, in the conduct of its duties and responsibilities.
5. Establishes OHEPA for the purpose of advising the Governor, the Legislature and other appropriate government officials and institutions of postsecondary education, and specifically requires OHEPA to conduct all of the following:
   1. Inform the identification and periodic revision of state goals and priorities for higher education in a manner that is consistent with the goals, and taking into consideration the metrics, outlined in existing law. OHEPA is required to biennially interpret and evaluate both statewide and institutional performance in relation to these goals and priorities.
   2. Review and make recommendations, as necessary, regarding cross-segmental and interagency initiatives and programs in areas that may include efficiencies and instructional delivery, financial aid, transfer, and workforce coordination;
   3. Advise the Legislature and the Governor regarding the need for, and location of, new institutions and campuses of public higher education;
   4. Review proposals by the public segments for new programs, the priorities that guide them, and the degree of coordination with nearby public, independent, and private postsecondary educational institutions, and make recommendations regarding those proposals to the Legislature and the Governor;
   5. Act as a clearinghouse for postsecondary education information and as a primary source of information for the Legislature, the Governor, and other agencies, and develop and maintain a comprehensive database, as specified.
   6. Review proposals for changes in eligibility pools for admission to public institutions and segments of postsecondary education, and make recommendations to the Legislature, the Governor, and institutions of postsecondary education. Provides that OHEPA shall periodically study the percentages of California public high school graduates estimated to be eligible for admission to the California State University (CSU) and the University of California (UC);
   7. Through its use of information and its analytic capacity, inform the identification and periodic revision of state goals and priorities for higher education in a manner that is consistent with the goals and metrics outlined in existing law. Requires OHEPA to biennially interpret and evaluate both statewide and institutional performance in relation to these goals and priorities;
   8. Submit reports to the Legislature, as specified;
   9. Manage data systems and maintain programmatic, policy, and fiscal expertise to receive and aggregate information reported by the institutions of higher education in this state; and,
6. Provides that on or before December 31 of each year, OHEPA shall report to the Legislature and the Governor regarding its progress in achieving the aforementioned objectives and responsibilities.
7. Provides that on or before January 1, 2020, the Legislative Analyst's Office (LAO) shall review and report to the Legislature regarding the performance of the office in fulfilling its functions and responsibilities.
8. Sunsets the law on January 1, 2021.

EXISTING LAW: Establishes the California Postsecondary Education Commission (CPEC) composed of 17 members representing the higher education segments, the State Board of Education, and nine representatives appointed by the Governor, Senate Rules Committee, and Assembly Speaker to coordinate public, independent, and private postsecondary education in California. (Education Code Section 66900 et. seq.)

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. In its last full year of operation, California Postsecondary Education Commission's (CPEC's) General Fund operating budget was $1.9 million for the equivalent of 18 positions. The new office established in this bill would likely have a somewhat smaller budget. In addition, the office would incur one-time information technology costs and other start-up costs in the low hundreds of thousands of dollar.
2. The three public higher education segments will incur the following costs to work with the new office and to respond to data requests:
   1. UC. Ongoing costs of $50,000 for one-half position.
   2. CSU. Ongoing costs of $110,000 for one position.
   3. California Community Colleges (CCC). Estimates ongoing costs of up to $440,000 for four positions, based on prior workload demands involving CPEC.

COMMENTS: Background on CPEC. As previously outlined, CPEC was established to coordinate postsecondary education in California and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. However, CPEC's budget and responsibilities were reduced over time, casting doubt on its effectiveness and triggering calls for its restructuring. In the 2011-12 Budget Act, Governor Brown vetoed funding for CPEC citing the agency's ineffectiveness in higher education oversight. In his veto message, the Governor acknowledged the well-established need for coordinating and guiding state higher education policy and requested that stakeholders explore alternative ways these functions could be fulfilled. CPEC shut down in fall 2011, transferring its federal Teacher Quality Improvement grant program to the California Department of Education (CDE) and extensive data resources to the California Community Colleges (CCC) Chancellor's Office. There is currently no coordinating entity for higher education in California.

Establishing goals and accountability in the absence of CPEC. The National Commission on Accountability in Higher Education, in a report published in 2005, concluded that "real improvement in higher education will come when accountability in higher education provides for explicit shared goals, progress in achieving these goals is measured, and work to improve performance is motivated and guided." Statewide higher education goals and objectives have been considered by the Legislature for over a decade; in recent years, despite the absence of CPEC, some progress has been made on this front.

The 2013-14 Budget Act education trailer bill (AB 94 (Committee on Budget), Chapter 50, Statutes of 2013) required CSU and UC to report annually on specified performance measures, in order to inform budget and policy decisions and promote effective and efficient use of resources. SB 195 (Liu), Chapter 367, Statutes of 2013, established general statewide goals for higher education, and Legislative intent to identify specific metrics for measuring progress toward statewide goals. The 2014-15 Budget Act (SB 852 (Leno), Chapter 25, Statutes of 2014) required UC and CSU to approve three-year "sustainability plans" that use funding projections to establish projections of enrollment and the university's goals for the performance measures that are required to be adopted pursuant to AB 94; this requirement was continued in the 2015-16 Budget Act. CCCs were required, pursuant to the 2014-15 Budget higher education trailer bill (SB 860 (Committee on Budget), Chapter 34, Statutes of 2014), to adopt goals and targets for student performance by June 30, 2015, and to establish and report on Student Equity Plans designed to ensure equal educational opportunities and to promote student success for all students.

Purpose of this bill. According to the author, "this bill represents the next necessary step in establishing greater clarity and accountability for our higher education system's performance in meeting the statewide goals outlined in the Master Plan of equity, access, and success; alignment with workforce needs; and the effective and efficient use of resources. This bill establishes OHEPA as the statewide postsecondary coordination and planning entity, outlines its responsibilities, functions and authorities, and establishes an advisory board to the office (comprised of legislative appointees) to examine and make recommendations regarding its functions and operations, and to review and comment on the office's recommendations to the Governor and Legislature."

Recommendations to reestablish coordination. A number of reports have been issued in recent years that recommend various approaches to reestablishing higher education oversight and coordination in California. In 2012, the Legislative Analyst's Office (LAO) recommended, in Improving Higher Education Oversight, the Legislature establish an oversight body and increase the body's independence from the public higher education segments, assign the body with limited and clear responsibilities, and develop a more unified governing board appointment process. In 2014, California Competes, in Chartering a Course for California's Colleges: State Leadership in Higher Education, also highlighted the importance of impartiality and independence from the higher education segments. The Institute for Higher Education Leadership and Policy, in March of 2014, issued A New Vision for California Higher Education: A Model Public Agenda, which noted that policy leadership could be best filled by regional consortia that set goals and targets working in coordination with an executive branch entity (such as a Higher Education Office) that reported to the Governor with respect to finance and accountability.

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0003109

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1837

Author:(Low) – As Amended Ver:March 17, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill, until January 1, 2021, establishes the Office of Higher Education Performance and Accountability (OHEPA), within the Governor's office, as the statewide postsecondary education planning and coordinating agency, and advisor to the Legislature and the Governor. Specifically, this bill:

1. Requires the Governor to appoint an Executive Director of OHEPA, who shall be subject to confirmation by the Senate.
2. Establishes a six-member advisory board—with three members each appointed by the Assembly Speaker and Senate Rules, respectively—and requires OHEPA to consult with the board, as well as with the higher education segments and stakeholders.
3. Delineates OHEPA's functions and responsibilities, including:
   1. Reviewing and advising regarding state goals and priorities for higher education.
   2. Providing advice regarding the need for new institutions and campuses.
   3. Reviewing, as specified, proposals from public institutions for new programs.
   4. Acting as a clearinghouse for postsecondary education information and developing and maintaining a database, as specified.
   5. Reviewing public segments' proposals to change eligibility pools, and periodically studying the percentages of California public high school graduates eligible for admission to the University of California (UC) and the California State University (CSU).
   6. Reporting annually to the Legislature and the Governor on its progress in meeting its responsibilities.
4. Authorizes the office to require that the public segments of higher education to submit data to the office as needed by the office to perform its responsibilities.
5. Requires the Legislative Analyst's Office (LAO), by January 1, 2020, to report to the Legislature regarding OHEPA's performance.

FISCAL EFFECT:

1. In its last full year of operation, California Postsecondary Education Commission's (CPEC's) General Fund operating budget was $1.9 million for the equivalent of 18 positions. The new office established in this bill would likely have a somewhat smaller budget. In addition, the office would incur one-time information technology costs and other start-up costs in the low hundreds of thousands of dollar.
2. The three public higher education segments will incur the following costs to work with the new office and to respond to data requests:
   1. UC. Ongoing costs of $50,000 for one-half position.
   2. CSU. Ongoing costs of $110,000 for one position.
   3. CCC. Estimates ongoing costs of up to $440,000 for four positions, based on prior workload demands involving CPEC.

COMMENTS:

1. Background. AB 770 (Vasconcellos) of 1973 created the CPEC and made it responsible for the planning and coordination of postsecondary education. CPEC was charged with providing analysis, advice, and recommendations to the Legislature and the Governor on statewide policy and funding priorities. As part of his 2011-12 budget, Governor Brown proposed eliminating CPEC. Both houses rejected this proposal, but the Governor exercised his line item veto to remove all General Fund support for CPEC, describing the commission as “ineffective.” In his veto message, however, the Governor acknowledged the need for coordinating and guiding state higher education policy and requested that stakeholders explore alternative ways these functions could be fulfilled.

On November 18, 2011, CPEC closed its office and ceased operations. Its federal Teacher Quality Improvement grant program was transferred to the California Department of Education (CDE) and its extensive data resources were transferred to the California Community Colleges (CCC) Chancellor's Office.

In a January 2013 report, “Improving Higher Education Oversight,” the LAO contended that the state needed higher education oversight that enables policymakers and others to monitor how efficiently and effectively the postsecondary system is serving the state's needs, and to make changes to improve its performance.

1. Subsequent Legislation. A 2013-14 Budget Act trailer bill (AB 94, Chapter 50) required CSU and UC to report annually on specified performance measures, in order to inform budget and policy decisions and promote effective and efficient use of resources. SB 195 (Liu), Chapter 367, Statutes of 2013, established general statewide goals for higher education, and legislative intent to identify specific metrics for measuring progress toward statewide goals. The 2014-15 Budget Act (SB 852, Chapter 25) required UC and CSU to approve three-year "sustainability plans" that use funding projections to establish projections of enrollment and the university's goals for the performance measures that are required to be adopted pursuant to AB 94; this requirement was continued in the 2015-16 Budget Act. CCCs were required, pursuant to the 2014-15 Budget higher education trailer bill (SB 860, Chapter 34), to adopt goals and targets for student performance by June 30, 2015, and to establish and report on Student Equity Plans designed to ensure equal educational opportunities and to promote student success for all students.
2. Purpose. According to the author, "this bill represents the next necessary step in establishing greater clarity and accountability for our higher education systems’ performance in meeting the statewide goals outlined in the Master Plan of equity, access, and success; alignment with workforce needs; and the effective and efficient use of resources.”
3. Related Legislation. AB 2434 (Bonta), pending on this committee's Suspense file, establishes a Blue Ribbon Commission on Public Postsecondary Education to provide research and recommendations regarding California higher education.
4. Prior Legislation. SB 42 (Liu, 2015), which was substantially similar to this measure, was vetoed. The Governor stated, in part "While there is much work to be done to improve higher education, I am not convinced we need a new office and an advisory board, especially of the kind this bill proposes, to get the job done."

SB 1196 (Liu, 2014), which would have established a process for setting specific educational attainment goals for the State, was held on this committee's Suspense file.

AB 1348 (John A. Pérez, 2014), which would have established the California Higher Education Authority, its governing board and its responsibilities, as specified, phased-in over a three-year period, was held on Suspense in Senate Appropriations.

AB 2190 (John A. Pérez, 2012), which would have established a new state oversight and coordinating body for higher education, was held on this committee's Suspense file.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 19, 2016

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 1837 (

Author:Low) – As Amended Ver:March 17, 2016

SUBJECT: Postsecondary education: Office of Higher Education Performance and Accountability

SUMMARY: Establishes the Office of Higher Education Performance and Accountability (OHEPA) to provide statewide postsecondary education planning and coordination. Specifically, this bill:

1. Establishes OHEPA as the statewide postsecondary education coordination and planning entity within the Governor’s office and under the direct control of an Executive Director (Director) appointed by the Governor and subject to Senate confirmation.
2. Provides that the Director is responsible for all duties, powers, and responsibilities vested in OHEPA, including contracting for relevant professional or consultant services. The Director is required to appoint any staff positions authorized by the Governor.
3. Establishes an Advisory Board to OHEPA, subject to open meetings requirements and meeting at least quarterly, for the purpose of reviewing and commenting on any recommendations made by OHEPA to the Governor and the Legislature, developing an annual report on the condition of California higher education, issuing an annual performance review of the Director. Provides that the Advisory Board members shall serve without compensation, except reimbursement for expenses. Establishes the Advisory Board membership as follows:
   1. Three members with experience in postsecondary education appointed by the Senate Committee on Rules;
   2. Three members with experience in postsecondary education appointed by the Speaker of the Assembly; and,
   3. The chair of the Senate Committee on Education and the chair of the Assembly Committee on Higher Education to serve as ex officio members.
4. Requires OHEPA to actively seek input from and consult with the advisory board and higher education segments and stakeholders, as appropriate, in the conduct of its duties and responsibilities.
5. Establishes OHEPA for the purpose of advising the Governor, the Legislature and other appropriate government officials and institutions of postsecondary education, and specifically requires OHEPA to conduct all of the following:
   1. Inform the identification and periodic revision of state goals and priorities for higher education in a manner that is consistent with the goals, and taking into consideration the metrics, outlined in existing law. OHEPA is required to biennially interpret and evaluate both statewide and institutional performance in relation to these goals and priorities.
   2. Review and make recommendations, as necessary, regarding cross-segmental and interagency initiatives and programs in areas that may include efficiencies and instructional delivery, financial aid, transfer, and workforce coordination;
   3. Advise the Legislature and the Governor regarding the need for, and location of, new institutions and campuses of public higher education;
   4. Review proposals by the public segments for new programs, the priorities that guide them, and the degree of coordination with nearby public, independent, and private postsecondary educational institutions, and make recommendations regarding those proposals to the Legislature and the Governor;
   5. Act as a clearinghouse for postsecondary education information and as a primary source of information for the Legislature, the Governor, and other agencies, and develop and maintain a comprehensive database, as specified.
   6. Review proposals for changes in eligibility pools for admission to public institutions and segments of postsecondary education, and make recommendations to the Legislature, the Governor, and institutions of postsecondary education. Provides that OHEPA shall periodically study the percentages of California public high school graduates estimated to be eligible for admission to the California State University (CSU) and the University of California (UC);
   7. Through its use of information and its analytic capacity, inform the identification and periodic revision of state goals and priorities for higher education in a manner that is consistent with the goals and metrics outlined in existing law. Requires OHEPA to biennially interpret and evaluate both statewide and institutional performance in relation to these goals and priorities;
   8. Submit reports to the Legislature, as specified;
   9. Manage data systems and maintain programmatic, policy, and fiscal expertise to receive and aggregate information reported by the institutions of higher education in this state; and,
6. Provides that on or before December 31 of each year, OHEPA shall report to the Legislature and the Governor regarding its progress in achieving the aforementioned objectives and responsibilities.
7. Provides that on or before January 1, 2020, the LAO shall review and report to the Legislature regarding the performance of the office in fulfilling its functions and responsibilities.
8. Sunsets the law on January 1, 2021.

EXISTING LAW: Establishes the California Postsecondary Education Commission (CPEC) composed of 17 members representing the higher education segments, the State Board of Education, and nine representatives appointed by the Governor, Senate Rules Committee, and Assembly Speaker to coordinate public, independent, and private postsecondary education in California. (Education Code Section 66900 et. seq.)

FISCAL EFFECT: Unknown. According to the Assembly Appropriations Committee analysis of substantially similar legislation from 2015:

1. In its last full year of operation, CPEC's General Fund operating budget was $1.9 million for the equivalent of 18 positions. The new office established in this bill would likely have a somewhat smaller budget. In addition, the office would incur one-time information technology costs and other start-up costs in the low hundreds of thousands of dollar.
2. The three public higher education segments will incur the following costs to work with the new office and to respond to data requests:
   1. UC. Ongoing costs of $50,000 for one-half position.
   2. CSU. Ongoing costs of $110,000 for one position.
   3. CCC. Estimates ongoing costs of up to $440,000 for four positions, based on prior workload demands involving CPEC.

COMMENTS: Background on CPEC. As previously outlined, CPEC was established to coordinate postsecondary education in California and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. However, CPEC's budget and responsibilities were reduced over time, casting doubt on its effectiveness and triggering calls for its restructuring. In the 2011-12 Budget Act, Governor Brown vetoed funding for CPEC citing the agency’s ineffectiveness in higher education oversight. In his veto message, the Governor acknowledged the well-established need for coordinating and guiding state higher education policy and requested that stakeholders explore alternative ways these functions could be fulfilled. CPEC shut down in fall 2011, transferring its federal Teacher Quality Improvement grant program to the California Department of Education (CDE) and extensive data resources to the California Community Colleges (CCC) Chancellor's Office. There is currently no coordinating entity for higher education in California.

Establishing goals and accountability in the absence of CPEC. The National Commission on Accountability in Higher Education, in a report published in 2005, concluded that "real improvement in higher education will come when accountability in higher education provides for explicit shared goals, progress in achieving these goals is measured, and work to improve performance is motivated and guided." Statewide higher education goals and objectives have been considered by the Legislature for over a decade; in recent years, despite the absence of CPEC, some progress has been made on this front.

The 2013-14 Budget Act education trailer bill (AB 94, Chapter 50) required CSU and UC to report annually on specified performance measures, in order to inform budget and policy decisions and promote effective and efficient use of resources. SB 195 (Liu), Chapter 367, Statutes of 2013, established general statewide goals for higher education, and Legislative intent to identify specific metrics for measuring progress toward statewide goals. The 2014-15 Budget Act (SB 852, Chapter 25) required UC and CSU to approve three-year "sustainability plans" that use funding projections to establish projections of enrollment and the university's goals for the performance measures that are required to be adopted pursuant to AB 94; this requirement was continued in the 2015-16 Budget Act. CCCs were required, pursuant to the 2014-15 Budget higher education trailer bill (SB 860, Chapter 34), to adopt goals and targets for student performance by June 30, 2015, and to establish and report on Student Equity Plans designed to ensure equal educational opportunities and to promote student success for all students.

Purpose of this bill. According to the author, "this bill represents the next necessary step in establishing greater clarity and accountability for our higher education system’s performance in meeting the statewide goals outlined in the Master Plan of equity, access, and success; alignment with workforce needs; and the effective and efficient use of resources. This bill establishes OHEPA as the statewide postsecondary coordination and planning entity, outlines its responsibilities, functions and authorities, and establishes an advisory board to the office (comprised of legislative appointees) to examine and make recommendations regarding its functions and operations, and to review and comment on the office’s recommendations to the Governor and Legislature."

Recommendations to reestablish coordination. A number of reports have been issued in recent years that recommend various approaches to reestablishing higher education oversight and coordination in California. In 2012, the Legislative Analyst's Office (LAO) recommended, in Improving Higher Education Oversight, the Legislature establish an oversight body and increase the body's independence from the public higher education segments, assign the body with limited and clear responsibilities, and develop a more unified governing board appointment process. In 2014, California Competes, in Chartering a Course for California's Colleges: State Leadership in Higher Education, also highlighted the importance of impartiality and independence from the higher education segments. The Institute for Higher Education Leadership and Policy, in March of 2014, issued A New Vision for California Higher Education: A Model Public Agenda, which noted that policy leadership could be best filled by regional consortia that set goals and targets working in coordination with an executive branch entity (such as a Higher Education Office) that reported to the Governor with respect to finance and accountability.

Related legislation. AB 2434 (Bonta), which was approved by this Committee on April 12, 2016, would establish a Blue Ribbon Commission on Public Postsecondary Education to provide research and recommendations regarding California higher education.

Prior legislation. Several bills have been introduced in an effort to improve higher education performance and accountability, and to re-establish CPEC’s most important functions. These include the following:

SB 42 (Liu, 2015) was substantially similar to this measure. SB 42 was vetoed by Governor Brown, who stated, in part "While there is much work to be done to improve higher education, I am not convinced we need a new office and an advisory board, especially of the kind this bill proposes, to get the job done."

SB 1196 (Liu, 2014) would have established a process for setting specific educational attainment goals for the State. SB 1196 was held in the Assembly Appropriations Committee.

AB 1348 (John A. Pérez, 2014) would have established the California Higher Education Authority, its governing board and its responsibilities, as specified, phased-in over a three-year period. AB 1348 was held in the Senate Appropriations Committee.

AB 2190 (John A. Pérez, 2012) would have established a new state oversight and coordinating body for higher education. AB 2190 was held in the Assembly Appropriations Committee.

SB 721 (Lowenthal, 2012) would have established statewide goals for guiding budget and policy decisions. SB 721 was ultimately vetoed.

SB 1138 (Liu, 2011-12) would have established a central data management system for the higher education segments. SB 1138 was held in the Senate Appropriations Committee.

AB 2 (Portantino, 2011) and AB 218 (Portantino, 2009) essentially identical bills, required that the state to 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. Both bills were heard and passed by this Committee and were subsequently held in the Senate Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Competes

California Faculty Association

The Campaign for College Opportunity

Opposition

None on File

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960