Existing law establishes the California Promise, which requires at least 20 campuses of the California State University to establish a California Promise program by which the campus enters into a pledge with a qualifying transfer student to support the student in earning a baccalaureate degree within 2 academic years of the students first year of enrollment to the campus, as provided.

This bill would rename the California Promise program the Finish in Four and Through in Two program, as provided. The bill would require, commencing with the 202425 academic year, that at least 5% of each incoming class at each participating campus of the California State University be a participant in the Finish in Four and Through in Two program, and that at least 70% of those participating students be either low-income students, first-generation students, or students from communities that are underrepresented in postsecondary education. The bill would also require, commencing with the 202425 academic year, incoming first-time students at each participating campus of the California State University to opt out of, rather than self-select into, the Finish in Four and Through in Two program.

Date of Hearing: August 23, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 856

Author:(Glazer) – As Introduced Ver:February 17, 2023

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

SUMMARY:

This bill renames the California Promise program at the California State University (CSU) to the “Finish in Four and Through in Two” program and makes several substantive changes to the program.

Specifically, the bill enrolls all incoming first-time students into the Finish in Four and Through in Two program, with the option to students to opt out. In addition, the bill, commencing with the 2024-25 academic year, requires at least 5% of each incoming class of first-time freshman students and qualifying transfer students participate in the Finish in Four and Through in Two program at each campus of the CSU that offers the program. The bill also requires at least 70% of Finish in Four and Through in Two program participants be either low-income students, first-generation students or students from underrepresented communities within postsecondary education.

FISCAL EFFECT:

Ongoing General Fund cost pressures, potentially in the millions of dollars annually across all campuses, to CSU campuses that offer the Finish in Four and Through in Two program to enroll all first-time students in the program and bring program participation at each campus to at least 5%. All campuses would likely need to redirect or hire outreach staff to recruit students for the program and redirect or hire additional academic advisors to support an increase in program participation. Because current participation in the program varies from campus to campus, additional costs would also vary.

COMMENTS:

1. Purpose. According to the author:

Today, the CSU awards nearly half of California’s bachelor’s degrees and more than half of CSU students are students of color. While system-wide graduation rates have steadily improved over the past five years, more must be done to increase rates of California students receiving their bachelor’s degrees within four years of cumulative study.

1. Background.

CSU California Promise Program. SB 412 (Glazer), Chapter 436, Statutes of 2016, required the trustees of the CSU to develop and implement the California Promise program at a minimum of eight campuses for first-time freshman students and a minimum of 20 campuses for qualified transfer students. Participating campuses enter into a pledge with a first-time freshman or with a qualified transfer student to support the student in obtaining a baccalaureate degree within four academic years or within two years for transfer students. A student who commits to enter either the four-year or two-year pledge are given priority registration and are provided with other supports, such as routine academic advisement.

Currently, all 23 CSU campuses offer Promise programs. Of these, 16 CSU campuses offer the first-time freshman Promise programs and 22 campuses offer the two-year Promise program for qualified transfer students. As of fall 2021, across all campuses, about 5% of first-time freshman students or qualified transfer students were enrolled in a Promise program.

The number of first-time freshman students and qualifying transfer students enrolled in the Promise program varies by campus. For example, in fall 2021, CSU Long Beach enrolled 14% of qualified students in the Promise program, while CSU San Luis Obispo enrolled less than 1% of qualified students in the Promise program.

The CSU chancellor’s office is unable to provide an estimate of how much CSU campuses currently are spending on the Promise program. However, the chancellor’s office indicates CSU campuses have had to reallocate staff for the Promise program. For example, CSU Long Beach has re-allocated five academic advisors to provide extra academic advising to Promise program students.

Graduation Initiative 2025. CSU launched its “Graduation Initiative 2025” in 2015 to address its low graduation rates. The program also aims to address the achievement gap in graduation rates for low-income and first-generation college going students. Toward this end, CSU has hired faculty, offered additional courses, hired academic advisors and provided more support services to students. In addition to base funding to the university to serve students, the state budget has included additional funding for this initiative in recent years. The 2019 Budget Act included $45 million ongoing General Fund and $30 million one-time funding to support the initiative. The 2021 Budget Act included $15 million ongoing General Fund for the initiative to support student basic needs such as housing and food. The 2022 Budget Act increased ongoing General Fund for the initiative to $35 million.

CSU indicates, between 2015 and 2022, four-year graduation rates for first-time students increased from 19% to 35% and six-year graduation rates increased from 57% to 62%.

CSU Concerns. While the CSU chancellor’s office does not have an official position on this bill, the office indicates the requirement that all incoming students enroll in the program and that 5% of students participate in the Promise program on each participating campus by the start of the 2024-25 academic year will be challenging for campuses to implement. The chancellor’s office believes their Graduation Initiative 2025 is the best way to help disadvantaged students graduate in a timely manner, in concert with the current Promise program.

1. Prior Legislation. SB 785 (Glazer), of the 2021-22 Legislative Session, was very similar to this measure, except it did not change the name of the California Promise program and did not automatically enroll students in the program. SB 785 was vetoed with the following message:

The author’s efforts to increase CSU graduation rates and close equity gaps are laudable. I too share these goals, which is why my Administration, and the CSU entered a five-year Compact aimed at increase student achievement, advancing equity, increasing affordability and meeting the State’s workforce needs. However, I am concerned that this bill is overly prescriptive and could result in diverting resources away from other student programs that may be more effective in realizing the goals of the Compact.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: June 27, 2023

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Mike Fong, Chair

SBPCA Bill Id:SB 856

Author:(Glazer) – As Introduced Ver:February 17, 2023

SENATE VOTE: 40-0

SUBJECT: California State University students: California Promise: Finish in Four and Through in Two.

SUMMARY: Renames the California Promise the Finish in Four and Through in Two program and requires each participating California State University (CSU) campus to automatically enroll all incoming first-time students in the program, with the option for students to opt out; and, requires that a participating campus maintain at least 5% of each incoming class in the program, and that at least 70% of those participating undergraduates students be either low-income students, first-generation, or underrepresented students in higher education. Specifically, this bill:

1. Renames the California Promise the Finish in Four and Through in Two program.
2. Requires, commencing with the 2024-25 academic year (AY), at least 5% of each incoming class at each participating CSU campus be participants in the Finish in Four and Through in Two program, and at least 70% of those participating students be either low-income students, first-generation students, or students from communities that are underrepresented in higher education.
3. Requires, commencing with the 2024-25 AY, incoming first-time students at each participating CSU campuses to opt out of, rather than self-select into, the Finish in Four and Through in Two program thereby automatically enrolling those students.

EXISTING LAW:

1. Establishes the California Promise Program for the purposes of supporting CSU students in earning a baccalaureate degree within four academic years of the student’s first year of enrollment, or for transfer students, within two academic years of the student’s first year of enrollment to the campus.
2. Requires the Trustees of the CSU to:
   1. Develop and implement a California Promise Program, beginning the 2017-18 AY, at a minimum of eight campuses for non-transfer students and a minimum of 15 campuses (20 campuses by 2018-19) for qualifying transfer students. These campuses enter into a pledge with a first-time freshman or with a qualifying transfer student to support the student in obtaining a baccalaureate degree within a total of four academic years;
   2. Submit a report to legislative policy and fiscal committees by January 1, 2021, that includes the number of students participating in the Program in total, the total number of students who graduated in four academic years for students who entered as first-time freshman and two academic years for California Community College transfer students, and a summary description of significant differences in the implementation of the California Promise Program at each campus; and,
   3. Submit recommendations to the appropriate policy and fiscal committees of the Legislature, by March 15, 2017, regarding potential financial incentives that could benefit students who participate in the California Promise Program.
3. Requires support provided by a CSU campus for a California Promise Program student to include, but not necessarily be limited to, both of the following:
   1. Priority registration in coursework provided that a student does not qualify for priority registration under another policy or Program, as specified; and,
   2. Academic advisement that includes monitoring academic progress.
4. Requires a student, in order to qualify for the Program to:
   1. Be a California resident for purposes of in-state tuition eligibility; and,
   2. Commit to completing at least 30 semester units or the quarter equivalent per academic year, including summer term units, as specified.
5. Requires a campus to guarantee participation in the Program to, at a minimum, any student who is a low-income student, as defined, a student who has graduated from a high school located in a community that is underrepresented in college attendance, a first-generation college student or a transfer student who successfully completes his or her associate degree for transfer at a community college.
6. Establishes that, as a condition of continued participation in a California Promise Program, a student may be required to demonstrate both of the following:
   1. Completion of at least 30 semester units, or the quarter equivalent, in each prior academic year; and,
   2. Attainment of a grade point average in excess of a standard established by the campus.
7. Sunsets the Program on January 1, 2026 (Education Code Section 67430, et seq.).

FISCAL EFFECT: According to the Senate Committee on Appropriations, “this bill is likely to result in significant General Fund costs to the CSU, potentially in the low millions of dollars each year for all campuses. Since all students would be automatically enrolled in the program, campuses may need to hire additional academic advisors to support the increase in program participation. However, because current participation in the program varies across campuses, the number of additional staff and associated costs would vary from campus to campus.”

COMMENTS: California Promise Program. The Program, which is voluntary or self-selected for eligible CSU students to participate, was enacted in 2016 (by SB 412 Glazer, Chapter 436, Statutes of 2016). The Program initially required eight CSU campuses to offer four-year Promise Programs and 20 CSU campuses to offer two-year Promise Programs.

Currently, 16 of the 23 campuses of the CSU offer first-time freshmen Promise Programs and 22 of the 23 CSU campuses offer two-year Promise Programs for eligible transfer students. Campuses of the CSU who participate in the Program enter into a pledge with a first-time freshman or with a qualifying transfer student to support the student in obtaining a baccalaureate degree within four academic years or within two for transfer students. Students who commit to enter either the four-year or two-year pledge are given priority registration and are provided with routine and thorough academic advisement.

The tables below, as provided by the CSU Chancellor’s Office, provide total student enrollment numbers at each campus for the past five years, which CSU campuses currently offer Promise Programs, and the number of students participating in the Program; and, the number of new participants as of Fall 2022:

Purpose of the measure. According to the author, “today, the CSU awards nearly half of California’s bachelor’s degrees and more than half of CSU students are students of color. While system-wide graduation rates have steadily improved over the past five years, more must be done to increase rates of California students receiving their bachelor’s degrees within four years of cumulative study.”

The author contends that, “the system continues to struggle with graduation gaps for underrepresented students, and the system’s graduation rates still lag behind those of similar universities nationwide.”

Further, the author argues that, “this bill will work in concert with CSU’s Graduation Initiative 2025 to eliminate these longstanding opportunity and achievement gaps between low-income or first-generation students and their peers. Improving education outcomes for young adults in California is essential to generate upward economic mobility and ensure a prosperous state.”

Graduation Initiative 2025. In 2015, CSU launched Graduation Initiative 2025 (GI 2025), its ambitious plan to increase graduation rates, eliminate equity gaps in degree completion and meet California’s workforce needs.

According to the CSU Chancellor’s Office, the CSU continues to experience a record-breaking rise in graduation rates systemwide, yet equity gaps are growing. The first-year class that entered in fall 2019 represents the cohort of students in which 6-year graduation rates and equity gaps will be measured in 2025. The COVID-19 pandemic and the disparate impacts across communities of color and low-income families have created a renewed urgency to close the gaps that exists between underserved and vulnerable students and their peers. Not since GI 2025 launched five years ago has the need to marshal the CSU’s collective resources been more critical to address differential patterns of student success.

The CSU, through the GI 2025, has the following graduation completion goals for first-year and transfer students:

First-Year 4-Year Goal – 40% by 2025 (as of 2022, the CSU is at 35%);

First-Year 6-Year Goal – 70% by 2025 (as of 2022, the CSU is at 62%);

Transfer Students 2-Year Goal – 45% by 2025 (as of 2022, the CSU is at 40%); and,

Transfer Students 4-Year Goal – 85% by 2025 (as of 2022, the CSU is at 80%).

The Promise Program requires that students must self-select to participate in the Program, and, CSU campuses are already devoting resources to raising awareness of the Program. However, this measure appears to have the potential to take away some of the on-going efforts, priorities, and resources as established in GI 2025 in order to increase participation in the Program.

The Committee may wish to examine if this measure is premature in nature and if GI 2025 should be completed and data released on its outcomes before adding another component that may increase the graduation rates, but only benefiting some CSU students.

The CSU. Committee Staff understands that while the CSU does not have an official position on this measure, the CSU is concerned by the dichotomy of the two major provisions of this bill – that 5% of each incoming class must be enrolled in the program (of whom, 70% should be either low-income, first-generation, or underrepresented), and that all incoming students should be enrolled in the program (unless they self-select to opt-out).

Committee Staff also understands that while the CSU currently promotes this Program to students in a variety of ways such as through the application portal as well as on campus websites, but without financial incentives they are often not interested in participating. The CSU believes the broader GI 2025 efforts and the high impact practices that the CSU continues to implement to close equity gaps are the best way to serve these students, while still offering the voluntary Promise pledge program for students who are interested and able to join.

Committee comments. As presently drafted, this measure, in part, requires, commencing with 2024-25 AY, at least 5% of each incoming class participate in the California Promise Program at each participating campus of the CSU (who offers the Program). Further, the measure requires that, commencing with 2024-25 AY, at least 70% of the students participating in the Program be either low-income students, first-generation students, or students that are underrepresented in higher education.

As noted in the California Promise Program section of this analysis, students in the Program self-select their participation. This measure stipulates that commencing with the 2024-25 AY, incoming first-time students at each participating CSU campuses to opt out of, rather than self-select into the Program, meaning all first-time students are required to be in the Program.

However, the measure is silent as to how students will even know they have automatically been enrolled in the Program, and the process for them to opt-out.

Moving forward, the author may wish to work directly with the CSU to determine if the Program should automatically enroll all first-year students into the Program, and, if it is deemed the best approach to automatically enroll all eligible students into the Program, determine how students will be notified they have been enrolled and how they can opt-out.

Additionally, should more than 95% of eligible students decide to opt-out of the Program, the measure is silent as to how each CSU campus will ensure that at least 5% of each incoming class participate in the Program. Further, the bill is silent as to the methods each campus of the CSU is to follow or adhere to if, or when, a campus of the CSU is unable to meet the stringent requirement as established in this measure.

Moving forward, the author may wish to delete the mandate that each campus of the CSU have at least 5% of each incoming class participate in the Program.

Further, according to systemwide data provided by the author, the CSU is close to reaching the requirement as delineated in this measure, that at least 70% of the students participating in the Program be either low-income students, first-generation students, or students that are underrepresented in higher education. However, when this data is disaggregated, it appears that some CSU campuses are not close to meeting the requirements as established in this measure.

Additionally, this measure is currently silent as to how all participating campuses of the CSU are expected to ensure that at least 70% of participating students meet the specified demographics, especially if the majority of students choose to opt-out of the Program. What happens if participating campuses of the CSU have more than 30% of their students participating in the Program that do not comply with the prescriptive demographics?

Moving forward, the author may wish to work with the CSU in order to explore whether or not 70% is an appropriate benchmark in the first year of implementing the next phase of this Program and if it takes away from the broader college completion efforts as established in the CSU’s GI 2025.

Moreover, given that California Promise students receive priority registration, how would the measure’s provisions be applied considering the number of students who will be automatically enrolled? How will priority be determined when many students have the same benefit?

Could this this measure result in the redirection of advising and support services from students who are not enrolled in the Program or who are unable to maintain their enrollment?

Further, the bill stipulates that the provisions of the measure are implemented in 2024-25 AY. It is presently unclear if this will provide the CSU enough time to implement the required changes.

Moving forward, the author may wish to work with the CSU in determining what is the best AY to implement this measure.

Lastly, by specifically requiring specified demographics to comprise an overwhelming majority of the students who participate in the Program, it is unclear if this may result in the violation of Article 31 of the California Constitution (Proposition 209 of 1996).

Moving forward, the author may wish to work with the Office of Legislative Counsel and the CSU in order to ascertain if this provision violates any aspect of Article 31 of the California Constitution.

Prior legislation. SB 785 (Glazer) of the 2021-22 Legislative Session, which is similar to this measure, would have required at least 5% of each incoming class at each participating CSU campus to participate in the California Promise program, and that at least 70% of those participating undergraduate students be either low-income students, first-generation, or students from communities that are underrepresented in postsecondary education. SB 785 did not automatically enroll students in the program. SB 785 was vetoed by Governor Newsom whose message, in part, stated the following:

“The author’s efforts to increase CSU graduation rates and close equity gaps are laudable. I too share these goals, which is why my Administration, and the CSU entered a five-year Compact aimed at increase student achievement, advancing equity, increasing affordability and meeting the State’s workforce needs. However, I am concerned that this bill is overly prescriptive and could result in diverting resources away from other student programs that may be more effective in realizing the goals of the Compact.”

SB 1211 (Glazer) of 2020, which was not heard in the Senate Committee on Education Committee due to the shortened 2020 Legislative Calendar, was similar in nature to this measure.

SB 148 (Glazer) of 2019, which was held on the Suspense File by the Assembly Committee on Appropriations, would have established the Student Success and On-time Completion Fund in the State Treasury, and authorized the Trustees of the CSU to use money in the fund to incentivize participation in a California Promise Program through the offering of grants or tuition freeze, as specified. SB 148 also required CSU to waive systemwide tuition or fees for a participating student unable to complete their degree due to limited space or no course offerings, as specified.

SB 346 (Glazer) of 2018, which failed passage on the Assembly Floor, was virtually identical to SB 148 in its final form.

SB 803 (Glazer) of 2017, which was held on the Suspense File by the Senate Committee on Appropriations, was nearly identical to SB 346 (as described above).

SB 412 (Glazer), Chapter 436, Statues of 2016, required the CSU Board of Trustees to develop and implement a program, known as the California Program, that authorizes a campus to enter into a pledge with qualifying students, as defined, to support completion of a baccalaureate degree within four years or for transfer students within two years, and outlines the requirements which may be included in such a program. SB 412 also required the Board of Trustees to submit recommendations regarding potential financial incentives that could benefit students who participate in the program.

SB 1450 (Glazer) of 2016, Both SB 1450 and SB 412 (as described above) required the CSU to develop and implement a program that authorizes a campus to enter into a pledge with qualifying students to support completion of a baccalaureate degree within four years and offer incentives to students in exchange for participation in the program. Unlike, SB 412 and similar to this measure, SB 1450 established various requirements regarding systemwide fees for California Promise students at CSU, including freezing tuition and granting tuition waivers if students were unable to complete a degree within the required timeframe due to unavailability of courses. SB 1450 also imposed these same requirements on the California Community Colleges (CCC) and required the CCC Board of Governors to establish the Promise Program as well. The CCC was removed from the scope of the bill and instead required CSU to ensure entry into a Promise Program for any CCC student who transfers with an Associate Degree for Transfer. SB 1450 failed to secure passage out of the Senate Committee on Education on April 20, 2016, by a vote of 4-2.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

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

 THIRD READING  

Bill No: SB 856

Author: Glazer (D)

Introduced: 2/17/23

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 4/12/23

AYES: Newman, Ochoa Bogh, Cortese, Glazer, McGuire, Smallwood-Cuevas, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

SUBJECT: California State University students: California Promise: Finish in Four and Through in Two

SOURCE: Author

DIGEST:

This bill renames the California Promise the Finish in Four and Through in Two program and requires each participating California State University (CSU) campus to automatically enroll all incoming first-time students in the program, with the option for students to opt out. This bill further requires that a participating campus maintain at least 5 percent of each incoming class in the program, and that at least 70 percent of those participating undergraduates students be either low-income students, first-generation, or underrepresented students in higher education.

ANALYSIS: Existing law establishes the California Promise program for the purposes of supporting CSU students in earning a baccalaureate degree within four academic years of the student’s first year of enrollment, or for transfer students, within two academic years of the student’s first year of enrollment to the campus. (Education Code § 67430 et. seq.)

This bill:

1. Renames the California Promise the Finish in Four and Through in Two program.
2. Requires, commencing with the 2024-25 academic year, at least 5 percent of each incoming class at each participating CSU campus be participants in the Finish in Four and Through in Two program, and at least 70 percent of those participating students be either low-income students, first-generation students, or students from communities that are underrepresented in higher education.
3. Requires, commencing with the 2024-25 academic year, incoming first-time students at each participating CSU campuses to opt out of, rather than self-select into, the Finish in Four and Through in Two program thereby automatically enrolling those students.

Comments

1. Need for the bill. According to the author, “Today, the CSU awards nearly half of California’s bachelor’s degrees and more than half of CSU students are students of color. While system-wide graduation rates have steadily improved over the past five years, more must be done to increase rates of California students receiving their bachelor’s degrees within four years of cumulative study. The system continues to struggle with graduation gaps for underrepresented students, and the system’s graduation rates still lag behind those of similar universities nationwide. In addition, equity gaps remain to be stubborn and closing them is key to creating a diverse workforce that is representative of all Californians. Increasing student participation in the California Promise program will provide spots to students who identify as low-income, first-generation and underrepresented and ensure they have the tools needed to graduate. This bill will work in concert with CSU’s Graduation Initiative 2025 to eliminate these longstanding opportunity and achievement gaps between low-income or first-generation students and their peers. Improving education outcomes for young adults in California is essential to generate upward economic mobility and ensure a prosperous state.”
2. California Promise pledge and participation. Existing law, established by Senate Bill 412 (Glazer, Chapter. 436, Statutes. 2016), required that the CSU Trustees develop and implement California Promise programs on at least eight campuses for non-transfer students and at least 20 campuses for qualifying transfer students. Each participating campus commits to help participating students finish their baccalaureate degree in four academic years or two for transfer students. Students who commit to either the four-year or two-year pledge with the campus receive priority registration and routine and comprehensive academic advisement. California Promise students must complete 30 units per academic year and maintain minimum grade point average requirements. According to CSU’s 2021 report to the legislature on the program, participation has grown since 2017 with16 campuses offering a four-year pledge plan and 22 campuses offering a two-year pledge plan. Over the last four years, more than 30,000 CSU students have participated in some variation of the four-or two-year pledge. Of those, more than 13,000 were among the first in their family to attend college.

As noted in the report, the program is limited to students who are California residents and who are either low-income and or Pell eligible, first-generation college students or from underrepresented communities, or have completed an Associate Degree for Transfer. Campuses can open the program to other students to ensure the provided benefits reflect the demographics of a campus and are made available on an equitable basis. Not all CSU majors are eligible for this program due to the curriculum and required units, and students must meet pledge requirements to remain in the program. By requiring each campus to automatically enroll all incoming first-time students on an annual basis, implementation of the bill’s provisions could result in a major increase in program participation rates. Once enrolled a student may opt out of the program and campuses are required to retain a portion those students in addition to ensuring that a majority of those are from underserved groups. This is a change from current practice where students self-select into California Promise.

Given that California Promise students receive priority registration, how would the bill’s provisions be applied considering the number of students who will be automatically enrolled? How will priority be determined when many students have the same benefit?

Could this bill result in the redirection of advising and support services away from students who are not enrolled in the program or who are unable to maintain their enrollment?

1. Higher two-year graduation rates. Data from the CSU show, 64 percent of community college transfer students who engaged in the two-year pledge were able to graduate within two-years. This figure is significantly higher than that of the system as a whole. The higher graduation rates also hold across students groups by first-generation status, Pell status, and race/ethnicity. Four-year graduation rates for first-time students were unavailable at the time the CSU report was prepared.
2. Other systemwide efforts to promote timely degree completion at CSU. To address low graduation rates, CSU launched “Graduation Initiative (GI) 2025,” in 2015. By 2025, CSU aims to boost the six-and four-year graduation rates for first time freshman to 70 percent and 40 percent, respectively as well as boost graduation rates for student transfers to 45 percent (two-year rate) and 85 percent (four-year rate). It also intends to close achievement gaps by decreasing graduation rate disparities across various student groups, particularly low-income and first-generation students. Over the last five years, the state has made significant investments; because of these investments, CSU reports that it has achieved all-time highs in graduations rates for first-time students and for transfer students and is on track to meet the GI 2025 goals. Currently, the systemwide four year graduation rate is 33 percent (historically below 20 percent) for first time students and the two-year graduation rate is 44 percent (historically below 30 percent) for transfer students. Campuses may employ their own strategies to achieve goals, which include hiring faculty, adding more course sections, hiring academic advisors, and investing in student support programs and services.

A campus can use California Promise to fulfill GI objectives, but it is not currently required. Its unclear whether allocating campus resources toward expanding participation in a particular program, such as the California Promise program, will affect a campus’s capacity to implement campus-specific tactics or promote the state supported Graduation Initiative and its specific goals.

1. Addressing achievement gaps. Despite the increases in graduation rates for first-time and transfer students, the GI has struggled to meet its goals to close equity gaps for underrepresented students. In response, the CSU convened an advisory committee in 2021 to address these remaining gaps. The advisory committee submitted a report in July 2021 with a set of recommendations and strategic imperatives to address equity gaps and the CSU subsequently adopted five recommendations and will dedicate resources to these efforts:

• Reengage and reenroll underserved students such as students of color, Pell Grant recipients, and first-generation students.
• Expand credit opportunities with summer/intersession.
• Ensure “equitable access” to digital degree planners that help students navigate the registration process, select core courses, and stay on track for timely graduation.
• Eliminate administrative barriers to graduation such as fee assessments, registration holds, and cumbersome processes.
• Promote “equitable learning practices” and reduce non-passing (D-F-Withdraw) rates by providing opportunities for additional learning when needed.

The California Promise program is not mentioned among the adopted strategies but continues to remain an option for campuses and has demonstrated positive outcomes for underrepresented groups. As described in the California Promise report of 2021, students from priority groups, including first-generation and low-income students, are well-represented among California Promise participants and there is evidence of reduced time-to-degree across groups based on the initial cohorts of transfer students who participated in California Promise. This bill seeks to amplify the California Promise as a means for addressing equity gaps at CSU.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

This bill is likely to result in significant General Fund costs to the CSU, potentially in the low millions of dollars each year for all campuses. Since all students would be automatically enrolled in the program, campuses may need to hire additional academic advisors to support the increase in program participation. However, because current participation in the program varies across campuses, the number of additional staff and associated costs would vary from campus to campus.

SUPPORT: (Verified 5/18/23)

None received

OPPOSITION: (Verified 5/18/23)

None received

Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105

5/20/23 13:09:50

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

SB 856 (Glazer) - California State University students: California Promise: Finish in Four and Through in Two

Bill Summary:

This bill would rename the California Promise Program as the “Finish in Four and Through in Two Program” and require each participating California State University (CSU) campus to automatically enroll all incoming first-time students in the program, with the option for students to opt out. Further, this bill would require at least 5 percent of each incoming class to participate in the program, with at least 70 percent of participating undergraduates students as either low-income, first-generation, or underrepresented students in higher education.

Fiscal Impact:

This bill is likely to result in significant General Fund costs to the CSU, potentially in the low millions of dollars each year for all campuses. Since all students would be automatically enrolled in the program, campuses may need to hire additional academic advisors to support the increase in program participation. However, because current participation in the program varies across campuses, the number of additional staff and associated costs would vary from campus to campus.

Background:

Existing law establishes the California Promise program for the purposes of supporting CSU students in earning a baccalaureate degree within four academic years of the student’s first year of enrollment, or for transfer students, within two academic years of the student’s first year of enrollment to the campus.

Existing law requires participating campuses to provide priority registration in coursework provided that a student does not qualify for priority registration under another policy or program, as specified, and academic advisement that includes the monitoring of academic progress.

Existing law requires a student, in order to qualify for the program to be a California resident for purposes of in-state tuition eligibility and commit to completing at least 30 semester units or the quarter equivalent per academic year, including summer term units, as specified.

Existing law requires a campus to guarantee participation in the program to, at a minimum, any student who is a low-income student, as defined, a student who has graduated from a high school located in a community that is underrepresented in college attendance, a first-generation college student or a transfer student who successfully completes his or her associate degree for transfer at a community college.

As a condition of continued participation in a California Promise program, a student may be required to demonstrate both of the following: completion of at least 30 semester units, or the quarter equivalent, in each prior academic year and attainment of a grade point average in excess of a standard established by the campus.

The program sunsets on January 1, 2026.

Proposed Law:

This bill renames the California Promise the Finish in Four and Through in Two program. It provide that, commencing with the 2024-25 academic year, incoming first-time students at each participating CSU campuses opt out of, rather than self-select into, the Finish in Four and Through in Two program.

Further, this bill requires, commencing with the 2024-25 academic year, at least 5 percent of each incoming class at each participating CSU campus be participants in the Finish in Four and Through in Two program, and at least 70 percent of those participating students be either low-income students, first-generation students, or students from communities that are underrepresented in higher education.

Related Legislation:

SB 785 (Glazer, 2021), similar to this bill, would have required at least 5 percent of each incoming class to participate in the California Promise program at each CSU campus. This bill was vetoed with the following message:

The author’s efforts to increase CSU graduation rates and close equity gaps are laudable. I too share these goals, which is why my Administration, and the CSU entered a five-year Compact aimed at increase student achievement, advancing equity, increasing affordability and meeting the State’s workforce needs. However, I am concerned that this bill is overly prescriptive and could result in diverting resources away from other student programs that may be more effective in realizing the goals of the Compact.

SB 148 (Glazer, 2019) would have established the Student Success and On-time Completion Fund in the State Treasury, and authorized the Trustees of the CSU to use money in the fund to incentivize participation in a California Promise program through the offering of grants or tuition freeze, as specified. SB 148 also required CSU to waive systemwide tuition or fees for a participating student unable to complete their degree due to limited space or no course offerings, as specified. SB 148 was held in the Assembly Appropriations Committee.

Staff Comments:

This bill requires each participating CSU campus to automatically enroll all incoming first-time students in the “Finish in Four and Through in Two Program”, with the option for students to opt out. Further, this bill would require at least 5 percent of each incoming class to participate in the program, with at least 70 percent of those participating undergraduates students be either low-income, first-generation, or underrepresented students in higher education. The CSU would likely need to hire additional personnel for academic advising, especially since all incoming first-time students would be automatically enrolled in the program.

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SENATE COMMITTEE ON EDUCATION

Senator Josh Newman, Chair

2023 - 2024 Regular

Bill No: SB 856 Hearing Date: April 12, 2023

Subject: California State University students: California Promise: Finish in Four and Through in Two.

SUMMARY

This bill renames the California Promise the Finish in Four and Through in Two program and requires each participating California State University (CSU) campus to automatically enroll all incoming first-time students in the program, with the option for students to opt out. This bill further requires that a participating campus maintain at least 5 percent of each incoming class in the program, and that at least 70 percent of those participating undergraduates students be either low-income students, first-generation, or underrepresented students in higher education.

BACKGROUND

Existing law:

1. Establishes the California Promise program for the purposes of supporting CSU students in earning a baccalaureate degree within four academic years of the student’s first year of enrollment, or for transfer students, within two academic years of the student’s first year of enrollment to the campus.
2. Requires the Trustees of the CSU to:
   1. Develop and implement a California Promise program, beginning the

2017-18 academic year, at a minimum of eight campuses for non-transfer students and a minimum of 15 campuses (20 campuses by 2018-19) for qualifying transfer students. These campuses enter into a pledge with a first-time freshman or with a qualifying transfer student to support the student in obtaining a baccalaureate degree within a total of four academic years.

• 1. Submit a report to Legislative policy and fiscal committees by January 1,

2021 that includes the number of students participating in the program in

total, the total number of students who graduated in four academic years for students who entered as first-time freshman and two academic years for California Community College transfer students, and a summary description of significant differences in the implementation of the California Promise program at each campus.

• 1. Submit recommendations to the appropriate policy and fiscal committees

of the Legislature, by March 15, 2017, regarding potential financial incentives that could benefit students who participate in the California Promise program.

1. Requires support provided by a CSU campus for a California Promise program student to include, but not necessarily be limited to, both of the following:
   1. Priority registration in coursework provided that a student does not qualify

for priority registration under another policy or program, as specified.

• 1. Academic advisement that includes monitoring academic progress.

1. Requires a student, in order to qualify for the program to:
   1. Be a California resident for purposes of in-state tuition eligibility.
   2. Commit to completing at least 30 semester units or the quarter equivalent

per academic year, including summer term units, as specified.

1. Requires a campus to guarantee participation in the program to, at a minimum, any student who is a low-income student, as defined, a student who has graduated from a high school located in a community that is underrepresented in college attendance, a first-generation college student or a transfer student who successfully completes his or her associate degree for transfer at a community college.
2. Establishes that, as a condition of continued participation in a California Promise program, a student may be required to demonstrate both of the following:
   1. Completion of at least 30 semester units, or the quarter equivalent, in

each prior academic year.

• 1. Attainment of a grade point average in excess of a standard established

by the campus.

1. Sunsets the program on January 1, 2026. (Education Code § 67430 et. seq.)

ANALYSIS

This bill:

1. Renames the California Promise the Finish in Four and Through in Two program.
2. Requires, commencing with the 2024-25 academic year, at least 5 percent of each incoming class at each participating CSU campus be participants in the Finish in Four and Through in Two program, and at least 70 percent of those participating students be either low-income students, first-generation students, or students from communities that are underrepresented in higher education.
3. Requires, commencing with the 2024-25 academic year, incoming first-time students at each participating CSU campuses to opt out of, rather than self-select into, the Finish in Four and Through in Two program thereby automatically enrolling those students.

STAFF COMMENTS

1. Need for the bill. According to the author, “Today, the CSU awards nearly half of California’s bachelor’s degrees and more than half of CSU students are students of color. While system-wide graduation rates have steadily improved over the past five years, more must be done to increase rates of California students receiving their bachelor’s degrees within four years of cumulative study. The system continues to struggle with graduation gaps for underrepresented students, and the system’s graduation rates still lag behind those of similar universities nationwide. In addition, equity gaps remain to be stubborn and closing them is key to creating a diverse workforce that is representative of all Californians. Increasing student participation in the California Promise program will provide spots to students who identify as low-income, first-generation and underrepresented and ensure they have the tools needed to graduate. This bill will work in concert with CSU’s Graduation Initiative 2025 to eliminate these longstanding opportunity and achievement gaps between low-income or first-generation students and their peers. Improving education outcomes for young adults in California is essential to generate upward economic mobility and ensure a prosperous state.”
2. California Promise pledge and participation. Existing law, established by Senate Bill 412 (Glazer, Chapter. 436, Statutes. 2016), requires that the CSU Trustees develop and implement California Promise programs on at least eight campuses for non-transfer students and at least 20 campuses for qualifying transfer students. Each participating campus commits to help participating students finish their baccalaureate degree in four academic years or two for transfer students. Students who commit to either the four-year or two-year pledge with the campus receive priority registration and routine and comprehensive academic advisement. California Promise students must complete 30 units per academic year and maintain minimum grade point average requirements. According to CSU’s 2021 report to the legislature on the program, participation has grown since 2017 with16 campuses offering a four-year pledge plan and 22 campuses offering a two-year pledge plan. Over the last four years, more than 30,000 CSU students have participated in some variation of the four-or two-year pledge. Of those, more than 13,000 were among the first in their family to attend college.

As noted in the report, the program is limited to students who are California residents and who are either low-income and or Pell eligible, first-generation college students or from underrepresented communities, or have completed an Associate Degree for Transfer. Campuses can open the program to other students to ensure the provided benefits reflect the demographics of a campus and are made available on an equitable basis. Not all CSU majors are eligible for this program due to the curriculum and required units, and students must meet pledge requirements to remain in the program. By requiring each campus to automatically enroll all incoming first-time students on an annual basis, implementation of the bill’s provisions could result in a major increase in program participation rates. Once enrolled a student may opt out of the program and campuses are required to retain a portion those students in addition to ensuring that a majority of those are from underserved groups. This is a change from current practice where students self-select into California Promise.

The Committee may wish to consider:

• Given that California Promise students receive priority registration, how would the bill’s provisions be applied considering the number of students who will be automatically enrolled? How will priority be determined when many students have the same benefit?
• Could this bill result in the redirection of advising and support services away from students who are not enrolled in the program or who are unable to maintain their enrollment?

1. Higher two-year graduation rates. Data from the CSU show, 64 percent of community college transfer students who engaged in the two-year pledge were able to graduate within two-years. This figure is significantly higher than that of the system as a whole. The higher graduation rates also hold across students groups by first-generation status, Pell status, and race/ethnicity. Four-year graduation rates for first-time students were unavailable at the time the CSU report was prepared.
2. Other systemwide efforts to promote timely degree completion at CSU. To address low graduation rates, CSU launched “Graduation Initiative (GI) 2025,” in 2015. By 2025, CSU aims to boost the six-and four-year graduation rates for first time freshman to 70 percent and 40 percent, respectively as well as boost graduation rates for student transfers to 45 percent (two-year rate) and 85 percent (four-year rate). It also intends to close achievement gaps by decreasing graduation rate disparities across various student groups, particularly low-income and first-generation students. Over the last five years, the state has made significant investments; because of these investments, CSU reports that it has achieved all-time highs in graduations rates for first-time students and for transfer students and is on track to meet the GI 2025 goals. Currently, the systemwide four year graduation rate is 33 percent (historically below 20 percent) for first time students and the two-year graduation rate is 44 percent (historically below 30 percent) for transfer students. Campuses may employ their own strategies to achieve goals, which include hiring faculty, adding more course sections, hiring academic advisors, and investing in student support programs and services.

A campus can use California Promise to fulfill GI objectives, but it is not currently required. The Committee may wish to consider whether allocating campus resources toward expanding participation in a particular program, such as the California Promise program, will affect a campus’s capacity to implement campus-specific tactics or promote the state supported Graduation Initiative and its specific goals.

1. Addressing achievement gaps. Despite the increases in graduation rates for first-time and transfer students, the GI has struggled to meet its goals to close equity gaps for underrepresented students. In response, the CSU convened an advisory committee in 2021 to address these remaining gaps. The advisory committee submitted a report in July 2021 with a set of recommendations and strategic imperatives to address equity gaps and the CSU subsequently adopted five recommendations and will dedicate resources to these efforts:

• Reengage and reenroll underserved students such as students of color,

Pell Grant recipients, and first-generation students.

• Expand credit opportunities with summer/intersession.
• Ensure “equitable access” to digital degree planners that help students

navigate the registration process, select core courses, and stay on track for timely graduation.

• Eliminate administrative barriers to graduation such as fee assessments, registration holds, and cumbersome processes.
• Promote “equitable learning practices” and reduce non-passing (D-F-

Withdraw) rates by providing opportunities for additional learning when needed.

The California Promise program is not mentioned among the adopted strategies but continues to remain an option for campuses and has demonstrated positive outcomes for underrepresented groups. As described in the California Promise report of 2021, students from priority groups, including first-generation and low-income students, are well-represented among California Promise participants and there is evidence of reduced time-to-degree across groups based on the initial cohorts of transfer students who participated in California Promise. This bill seeks to amplify the California Promise as a means for addressing equity gaps at CSU.

1. Related and prior legislation.

SB 785 (Glazer, 2022) similar to this bill, would have required at least 5 percent of each incoming class at each participating CSU campus to participate in the California Promise program, and that at least 70 percent of those participating undergraduate students be either low-income students, first-generation, or students from communities that are underrepresented in postsecondary education. SB 785 did not include an opt out requirement. SB 785 was vetoed by Governor Newsome whose message, in pertinent part, read:

“The author’s efforts to increase CSU graduation rates and close equity gaps are laudable. I too share these goals, which is why my Administration, and the CSU entered a five-year Compact aimed at increase student achievement, advancing equity, increasing affordability and meeting the State’s workforce needs. However, I am concerned that this bill is overly prescriptive and could result in diverting resources away from other student programs that may be more effective in realizing the goals of the Compact.”

SB 1211 (Glazer, 2020), identical to this bill, was not heard by this committee due to the shortened 2020 Legislative Calendar.

SB 148 (Glazer, 2019) would have established the Student Success and On-time Completion Fund in the State Treasury, and authorized the Trustees of the CSU to use money in the fund to incentivize participation in a California Promise program through the offering of grants or tuition freeze, as specified. SB 148 also required CSU to waive systemwide tuition or fees for a participating student unable to complete their degree due to limited space or no course offerings, as specified. SB 148 was held in the Assembly Appropriations Committee.

SB 346 (Glazer, 2018) was nearly identical to SB 148 in its final form, and failed passage on the Assembly floor. SB 346 was not heard by this committee.

SB 803 (Glazer, 2017) was nearly identical to SB 346, was approved by this committee by a vote of 5-2 and was subsequently held on the Senate Appropriations Committee Suspense file.

SB 412 (Glazer, Chapter 436, Statues of 2016) required the CSU Board of Trustees to develop and implement a program, known as the California Program, that authorizes a campus to enter into a pledge with qualifying students, as defined, to support completion of a baccalaureate degree within four years or for transfer students within two years, and outlines the requirements which may be included in such a program. SB 412 also required the Board of Trustees to submit recommendations regarding potential financial incentives that could benefit students who participate in the program.

SB 1450 (Glazer, 2016) Both SB 1450 and SB 412 required the CSU to develop and implement a program that authorizes a campus to enter into a pledge with qualifying students to support completion of a baccalaureate degree within four years and offer incentives to students in exchange for participation in the program.

Unlike, SB 412 and similar to this bill, SB 1450 established various requirements regarding systemwide fees for California Promise students at CSU, including freezing tuition and granting tuition waivers if students were unable to complete a degree within the required timeframe due to unavailability of courses. SB 1450 also imposed these same requirements on the community colleges (CCC) and required the CCC Board of Governors to establish the Promise program as well. The CCC was removed from the scope of the bill and instead required CSU to ensure entry into a Promise program for any CCC student who transfers with an Associate Degree for Transfer. SB 1450 was heard by this committee on April 20, 2016 and failed passage, by a vote of 4-2.

SUPPORT

None received

OPPOSITION

None received

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