HomeMy WebLinkAbout2019-06-11 - AGENDA REPORTS - STATE LEGISLATION: AB 720 (2)Agenda Item: 4
DATE: June 11, 2019
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 720
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee recommendation to support
Assembly Bill 720 (Muratsuchi) and transmit position statements to Assembly Member
Muratsuchi, Santa Clarita's state legislative delegation, appropriate legislative committees,
Governor Newsom, and the League of California Cities.
BACKGROUND
Approximately 30 community college districts, including the Santa Clarita Community College
District, offer public safety classes through Instructional Service Agreements (ISA). ISA's exist
between public agencies or private entities and a college to provide specific training and
services.
ISA courses, among other things, include basic law enforcement and fire academy curriculum for
new recruits to sheriff, police, and fire departments, as well as specialized, ongoing, and
enhanced public safety training. The community colleges partner with their local public safety
departments to offer this training through ISA's, which have historically been funded through the
community college's enrollment -based state apportionments. These state revenues are typically
shared by the colleges with their partnering agencies in order to help cover all parties' respective
costs related to the training.
As part of the higher education trailer bill to the 2018-19 Budget Act (AB 1809, Chapter 33,
Statutes of 2018), the state legislature adopted and began phasing in a new funding formula for
ISA's within community colleges. This new formula applies to all ISA courses, including
courses related to public safety. Once this new formula is fully phased -in by 2020,
apportionments for ISA courses based on enrollment will be reduced from 100 percent to 60
percent. The remaining 40 percent will be apportioned within ISA's based on districts serving
students of need (20 percent) and for various measures of student success (20 percent), such as
attainment of degrees or certificates, transferring to four-year institutions, or obtaining gainful
Page 1
employment.
The current formula significantly reduces funding towards public safety ISA courses. Generally,
students in the public safety ISA courses are already employed by a public safety agency and
therefore, are not financially needy. Furthermore, the public safety ISA courses do not lead to
degrees or certificates and therefore, cannot be measured as part of student success. As a result,
when the new funding formula is fully phased -in, the apportionment revenue generated by the
ISA courses will decline by approximately 40 percent.
Based on its current enrollment in ISA courses, College of the Canyons (COC), which supports
Assembly Bill 720, indicates that under the current formula, it is projected to incur a $4 million
reduction in apportionment revenue this year from its ISA courses. COC estimates an additional
$600,000 reduction in apportionment next year, when the formula is fully phased -in.
Assembly Bill 720 proposes that, commencing in 2019-20, the funding formula for courses
offered pursuant to an ISA between a community college and a public safety agency be based on
a general apportionment rate per full -time -equivalent student for enrollment in those courses, as
was the formula prior to the adoption of the 2018-19 Budget Act.
Assembly Bill 720 was introduced on February 19, 2019, and unanimously passed the Assembly
(77-0-3) on May 22, 2019. The bill is pending consideration in the Senate Committee on
Education. No hearing in the Senate Committee on Education has been scheduled at the time of
the writing of this report.
The City Council Legislative Committee met on May 30, 2019, and recommends that the City
Council adopt a "support" position on Assembly Bill 720.
ALTERNATIVE ACTION
Adopt a "neutral" position on Assembly Bill 720
2. Adopt an "oppose" position on Assembly Bill 720
3. Take no action on Assembly Bill 720
4. Refer Assembly Bill 720 back to the Legislative Committee
5. Other action, as determined by the City Council
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted Fiscal Year 2018-19 budget.
ATTACHMENTS
Assembly Bill 720 - Bill Text
Page 2
AMENDED IN ASSEMBLY APRIL 11, 2019
AMENDED IN ASSEMBLY MARCH 19, 2019
CALIFORNIA LEGISLATURE -2019-20 REGULAR SESSION
ASSEMBLY BILL
No. 720
Introduced by Assembly Members Muratsuchi and Smith
February 19, 2019
An act to amend Sections 84750.4 and 84750.5 of the Education
Code, relating to community colleges.
LEGISLATIVE COUNSEL'S DIGEST
AB 720, as amended, Muratsuchi. Community colleges: funding:
instructional service agreements with public safety agencies.
Existing law establishes the California Community Colleges, under
the administration of the Board of Governors of the California
Community Colleges, as one of the segments of public postsecondary
education in this state. Existing law establishes community college
districts throughout the state, and authorizes these districts to provide
instruction at the community college campuses they operate and
maintain. Existing law provides for a formula for the calculation of
general purpose apportionments of state funds to community colleges.
Existing law provides a separate formula for the allocation of
apportionments of state funds to community colleges, which uses the
numbers of full-time equivalent students as its basis, for use for
apportionments for noncredit instruction and instruction in career
development and college preparation.
This bill would provide that instruction by community college districts
under instructional service agreements with public safety agencies, as
defined, would be funded under the apportionment formula used for
97
AB 720
instruction in career development and college preparation. The bill
would also make various nonsubstantive changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 84750.4 of the Education Code is
2 amended to read:
3 84750.4. (a) (1) The board of governors, in accordance with
4 this section, and in consultation with institutional representatives
5 of the California Community Colleges and statewide faculty and
6 staff organizations, so as to ensure their participation in the
7 development and review of policy proposals, shall develop criteria
8 and standards for the purpose of making the annual budget request
9 for the California Community Colleges to the Governor and the
10 Legislature, and for the purpose of allocating the state general
11 apportionment revenues.
12 (2) It is the intent of the Legislature in enacting this section to
13 adopt a formula for general purpose apportionments that
14 encourages access for underrepresented students, provides
15 additional funding in recognition of the need to provide additional
16 support for low-income students, rewards colleges' progress on
17 improving student success metrics, and improves overall equity
18 and predictability so that community college districts may more
19 readily plan and implement instruction and programs.
20 (3) It is the intent of the Legislature to determine the amounts
21 appropriated for purposes of this section through the annual Budget
22 Act. This section shall not be construed as limiting the authority
23 of either the Governor to propose, or the Legislature to approve,
24 appropriations for the California Community Colleges programs
25 or purposes.
26 (b) (1) Commencing with the 2018-19 fiscal year, and each
27 fiscal year thereafter, the chancellor's office shall annually calculate
28 a base allocation, a supplemental allocation, and a student success
29 allocation for each community college district in the state pursuant
30 to this section. This calculation only applies to the allocation of
31 credit revenue.
32 (2) Noncredit instruction, and instruction in career development
33 and college preparation full-time equivalent students (FTES) shall
97
— 3 — AB 720
1 be funded pursuant to the requirements of paragraphs (3) and (4),
2 respectively, of subdivision (d) of Section 84750.5, as that section
3 read on January 1, 2018.
4 (3) Instruction provided under an instructional service agreement
5 between a community college district and a public safety agency
6 shall be funded as specified in paragraph (3) of subdivision (h) of
7 Section 84750.5. As used in this paragraph, a public safety agency
8 includes, but is not necessarily limited to, a fire department, a
9 police department, a sheriff's office, a public agency employing
10 paramedics or emergency medical technicians, the Department of
11 the California Highway Patrol, and the Department of Corrections
12 and Rehabilitation.
13 (c) For purposes of computing the base allocation, the marginal
14 funding rate for credit revenue per FTES shall be no less than the
15 following:
16 (1) Three thousand seven hundred twenty-seven dollars ($3,727)
17 for the 2018-19 fiscal year.
18 (2) Three thousand three hundred eighty-seven dollars ($3,387)
19 for the 2019-20 fiscal year adjusted for changes in cost -of -living
20 and other base adjustments.
21 (3) Three thousand forty-six dollars ($3,046) for the 2020-21
22 fiscal year adjusted for changes in cost -of -living and other base
23 adjustments in the prior year and the cost -of -living and other base
24 adjustments for the 2020-21 fiscal year.
25 (4) Commencing with the 2021-22 fiscal year, the rate specified
26 in paragraph (3) adjusted for changes in cost -of -living and other
27 base adjustments in subsequent annual budget acts.
28 (d) (1) The base allocation shall be computed for each
29 community college district as follows:
30 (A) Each community college district shall receive a basic
31 allocation based on the number of colleges and comprehensive
32 centers in the community college district that is consistent with
33 the basic allocation formula established by the board of governors
34 pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as
35 of the 2015-16 fiscal year.
36 (B) Unless otherwise specified in subparagraph (C), each
37 community college district shall receive an allocation based on
38 credit base revenues associated with funded FTES as computed
39 pursuant to subparagraph (A) of paragraph (2) at the rate pursuant
40 to subdivision (c).
97
AB 720
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
—4—
(C) (i) Notwithstanding the rate in subdivision (c), for
community college districts that had higher rates used to calculate
their 2017-18 general purpose apportionments, the following rates
shall be used to calculate their base allocations for the 2018-19
fiscal year:
(1) For Foothill -De Anza Community College District, the rate
shall be no less than three thousand seven hundred forty-five dollars
($3,745).
(I1) For Lake Tahoe Community College District, the rate shall
be no less than three thousand eight hundred eighteen dollars
($3,818).
(II1) For Lassen Community College District, the rate shall be
no less than three thousand seven hundred ninety-four dollars
($3,794).
(IV) For Marin Community College District, the rate shall be
no less than four thousand two hundred sixty-one dollars ($4,261).
(V) For MiraCosta Community College District, the rate shall
be no less than three thousand seven hundred thirty-four dollars
($3,734).
(VI) For San Francisco Community College District, the rate
shall be no less than three thousand seven hundred fifty-six dollars
($3,756).
(VII) For San Jose -Evergreen Community College District, the
rate shall be no less than three thousand seven hundred forty-four
dollars ($3,744).
(VIII) For Santa Monica Community College District, the rate
shall be no less than three thousand seven hundred seventy-six
dollars ($3,776).
(IX) For South Orange Community College District, the rate
shall be no less than three thousand eight hundred twenty-six
dollars ($3,826).
(X) For West Kern Community College District, the rate shall
be no less than four thousand nine hundred thirty-four dollars
($4,934).
(ii) Notwithstanding the rate in subdivision (c), for community
college districts that had higher rates used to calculate their
2017-18 general purpose apportionments, the following rates shall
be used to calculate their base allocations for the 2019-20 fiscal
year:
97
— 5 — AB 720
1 (1) For Foothill -De Anza Community College District, the rate
2 shall be no less than three thousand four hundred three dollars
3 ($3,403) adjusted for changes in cost -of -living and other base
4 adjustments.
5 (I1) For Lake Tahoe Community College District, the rate shall
6 be no less than three thousand four hundred sixty-nine dollars
7 ($3,469) adjusted for changes in cost -of -living and other base
8 adjustments.
9 (II1) For Lassen Community College District, the rate shall be
10 no less than three thousand four hundred forty-seven dollars
11 ($3,447) adjusted for changes in cost -of -living and other base
12 adjustments.
13 (IV) For Marin Community College District, the rate shall be
14 no less than three thousand eight hundred seventy-two dollars
15 ($3,872) adjusted for changes in cost -of -living and other base
16 adjustments.
17 (V) For MiraCosta Community College District, the rate shall
18 be no less than three thousand three hundred ninety-two dollars
19 ($3,392) adjusted for changes in cost -of -living and other base
20 adjustments.
21 (VI) For San Francisco Community College District, the rate
22 shall be no less than three thousand four hundred thirteen dollars
23 ($3,413) adjusted for changes in cost -of -living and other base
24 adjustments.
25 (VII) For San Jose -Evergreen Community College District, the
26 rate shall be no less than three thousand four hundred one dollars
27 ($3,401) adjusted for changes in cost -of -living and other base
28 adjustments.
29 (VIII) For Santa Monica Community College District, the rate
30 shall be no less than three thousand four hundred thirty-one dollars
31 ($3,431) adjusted for changes in cost -of -living and other base
32 adjustments.
33 (IX) For South Orange Community College District, the rate
34 shall be no less than three thousand four hundred seventy-six
35 dollars ($3,476) adjusted for changes in cost -of -living and other
36 base adjustments.
37 (X) For West Kern Community College District, the rate shall
38 be no less than four thousand four hundred eighty-three dollars
39 ($4,483) adjusted for changes in cost -of -living and other base
40 adjustments.
97
AB 720
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
—6—
(iii) Notwithstanding the rate in subdivision (c), for community
college districts that had higher rates used to calculate their
2017-18 general purpose apportionments, the following rates shall
be used to calculate their base allocations for the 2020-21 fiscal
year:
(1) For Foothill -De Anza Community College District, the rate
shall be no less than three thousand sixty dollars ($3,060) adjusted
for changes in cost -of -living and other base adjustments in the
prior year and the cost -of -living and other base adjustments for
the 2020-21 fiscal year.
(I1) For Lake Tahoe Community College District, the rate shall
be no less than three thousand one hundred twenty dollars ($3,120)
adjusted for changes in cost -of -living and other base adjustments
in the prior year and the cost -of -living and other base adjustments
for the 2020-21 fiscal year.
(II1) For Lassen Community College District, the rate shall be
no less than three thousand one hundred dollars ($3,100) adjusted
for changes in cost -of -living and other base adjustments in the
prior year and the cost -of -living and other base adjustments for
the 2020-21 fiscal year.
(IV) For Marin Community College District, the rate shall be
no less than three thousand four hundred eighty-two dollars
($3,482) adjusted for changes in cost -of -living and other base
adjustments in the prior year and the cost -of -living and other base
adjustments for the 2020-21 fiscal year.
(V) For MiraCosta Community College District, the rate shall
be no less than three thousand fifty-one dollars ($3,051) adjusted
for changes in cost -of -living and other base adjustments in the
prior year and the cost -of -living and other base adjustments for
the 2020-21 fiscal year.
(VI) For San Francisco Community College District, the rate
shall be no less than three thousand sixty-nine dollars ($3,069)
adjusted for changes in cost -of -living and other base adjustments
in the prior year and the cost -of -living and other base adjustments
for the 2020-21 fiscal year.
(VII) For San Jose -Evergreen Community College District, the
rate shall be no less than three thousand fifty-nine dollars ($3,059)
adjusted for changes in cost -of -living and other base adjustments
in the prior year and the cost -of -living and other base adjustments
for the 2020-21 fiscal year.
97
— 7 — AB 720
1 (VIII) For Santa Monica Community College District, the rate
2 shall be no less than three thousand eighty-six dollars ($3,086)
3 adjusted for changes in cost -of -living and other base adjustments
4 in the prior year and the cost -of -living and other base adjustments
5 for the 2020-21 fiscal year.
6 (IX) For South Orange Community College District, the rate
7 shall be no less than three thousand one hundred twenty-six dollars
8 ($3,126) adjusted for changes in cost -of -living and other base
9 adjustments in the prior year and the cost -of -living and other base
10 adjustments for the 2020-21 fiscal year.
11 (X) For West Kern Community College District, the rate shall
12 be no less than four thousand thirty-two dollars ($4,032) adjusted
13 for changes in cost -of -living and other base adjustments in the
14 prior year and the cost -of -living and other base adjustments for
15 the 2020-21 fiscal year.
16 (iv) Commencing with the 2021-22 fiscal year, the rates in
17 clause (iii) shall be adjusted for changes in the cost -of -living and
18 other base adjustments in subsequent annual budget acts.
19 (2) To calculate the base allocation for each community college
20 district, the chancellor's office shall calculate the three-year rolling
21 average comprised of funded FTES from the current year, the prior
22 year, and the year prior to the prior year, as follows:
23 (A) Commencing with the 2018-19 fiscal year, the chancellor's
24 office shall compute the sum of annually funded credit FTES from
25 the current year, the prior year, and the year prior to the prior year,
26 and divide the sum by three.
27 (B) (i) In computing the three-year average pursuant to
28 subparagraph (A), credit FTES associated with enrollment growth
29 proposed in the annual Budget Act shall be excluded from the
30 three-year average and shall instead be added to the computed
31 three-year rolling average.
32 (ii) In computing the three-year average pursuant to
33 subparagraph (A), credit FTES generated by students who meet
34 the requirements of subdivision (a) of Section 84810.5 and special
35 admit students pursuant to Sections 76002, 76003, and 76004 shall
36 be excluded.
37 (C) The sum of a community college district's computed
38 three-year FTES rolling average and current year funded FTES
39 growth shall be multiplied by a community college district's
40 applicable base allocation funding rate pursuant to subdivision (c),
97
AB 720
1 or subparagraph (C) of paragraph (1), as applicable, to compute a
2 community college district's base allocation.
3 (D) Community college districts are entitled to the restoration
4 of any reductions in their base allocation due to decreases in FTES
5 during the three years following the initial year of decrease if there
6 is a subsequent increase in FTES.
7 (3) In addition to the amounts computed pursuant to paragraphs
8 (1) and (2), each community college district shall receive an
9 allocation based on credit base revenues associated with funded
10 FTES generated by students who meet the requirements of
11 subdivision (a) of Section 84810.5 and special admit students
12 pursuant to Sections 76002, 76003, and 76004. FTES generated
13 by students who meet the requirements of subdivision (a) of Section
14 84810.5 and special admit students pursuant to Sections 76002,
15 76003, and 76004 shall be multiplied by a community college
16 district's applicable credit revenue rate computed for the 2017-18
17 fiscal year pursuant to Section 84750.5, as that section read on
18 January 1, 2018, as adjusted for 2018-19 fiscal year cost -of -living
19 adjustment and other base adjustments, and adjusted for the
20 changes in the cost -of -living and other base adjustments in
21 subsequent annual budget acts.
22 (4) The chancellor shall allocate any funding appropriated in
23 the Budget Act for enrollment growth to support the following:
24 (A) First, for the stated percentage of enrollment growth in the
25 Budget Act and consistent with the growth formula used by the
26 board of governors in the 2015-16 fiscal year.
27 (B) Second, for the amount of uncapped growth attributable to
28 increases in the amount of a community college district's
29 supplemental allocation.
30 (C) Third, for the amount of uncapped growth attributable to
31 increases in the amount of a community college district's student
32 success allocation.
33 (e) Commencing with the 2018-19 fiscal year, a supplemental
34 allocation shall be computed for each community college district
35 based on the total points calculated for each community college
36 district in accordance with all of the following:
37 (1) The marginal funding rate per point for computing a
38 supplemental allocation shall be nine hundred nineteen dollars
39 ($919) and, commencing with the 2019-20 fiscal year, that rate
97
— 9 — AB 720
1 shall be adjusted for changes in the cost -of -living adjustment and
2 other base adjustments in subsequent annual budget acts.
3 (2) Each community college district shall be granted one point
4 for each student who is a recipient of financial aid under the Federal
5 Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount
6 data of students in the prior year.
7 (3) Each district shall be granted one point for each student who
8 is granted an exemption from nonresident tuition pursuant to
9 Section 68130.5, based on headcount data of students in the prior
10 year.
11 (4) Each district shall be granted one point for each student who
12 receives a fee waiver pursuant to Section 76300, based on
13 headcount data of students in the prior year.
14 (5) For the purposes of calculating the supplemental allocation,
15 the number of students shall be defined as the number of students
16 served by the community college district.
17 (6) It is the intent of the Legislature that the annual Budget Act
18 fully fund increases in the supplemental allocations computed
19 under this section.
20 (f) Commencing with the 2018-19 fiscal year, a student success
21 allocation shall be computed for each community college district
22 based on the total points calculated for each community college
23 district in accordance with all of the following:
24 (1) (A) The marginal funding rate per point for computing
25 student success allocation revenue shall be as follows:
26 (i) For the 2018-19 fiscal year, four hundred forty dollars
27 ($440).
28 (ii) For the 2019-20 fiscal year, six hundred sixty dollars ($660)
29 adjusted for changes in cost -of -living and other base adjustments
30 specified for the 2019-20 fiscal year.
31 (iii) For the 2020-21 fiscal year, eight hundred eighty dollars
32 ($880) adjusted for changes in cost -of -living and other base
33 adjustment in the prior year and the cost -of -living and other base
34 adjustments specified for the 2020-21 fiscal year.
35 (iv) Commencing with the 2021-22 fiscal year, the rate specified
36 in clause (iii) adjusted for changes in cost -of -living and other base
37 adjustments specified in subsequent annual budget acts.
38 (B) Each community college district shall be granted three points
39 for each chancellor's office approved associate degree or approved
40 baccalaureate degree granted, excluding an associate degree for
97
AB 720
1 transfer granted pursuant to Article 3 (commencing with Section
2 66745) of Chapter 9.2 of Part 40 of Division 5, based on prior year
3 data.
4 (C) Each community college district shall be granted four points
5 for each chancellor's office approved associate degree for transfer
6 degree granted pursuant to Article 3 (commencing with Section
7 66745) of Chapter 9.2 of Part 40 of Division 5, based on prior year
8 data.
9 (D) (i) Each community college district shall be granted two
10 points for each chancellor's office approved credit certificate
11 requiring 18 or more units granted, based on prior year data.
12 (ii) Chancellor's office approved credit certificates requiring
13 16 or more units granted may be used to compute these points if
14 the chancellor's office adopts regulations authorizing the approval
15 and issuance of certificates requiring 16 or more units.
16 (E) Each community college district shall be granted two points
17 for each student who successfully completes both transfer -level
18 mathematics and English courses within the student's first
19 academic year of enrollment, based on prior year data.
20 (F) (i) Each community college district shall be granted one
21 and one-half points for each student who successfully transfers to
22 a four-year university, based on prior year data.
23 (ii) The chancellor's office may reduce a community college
24 district's transfer points if a community college district enters into,
25 or expands, a transfer partnership with a private for-profit college
26 that has not demonstrated a track record of providing its students
27 with a baccalaureate degree that leads to a majority of the private
28 for-profit college's baccalaureate degree program students
29 obtaining a regional living wage within one year of completing
30 their degree program.
31 (iii) The chancellor's office may reduce a community college
32 district's transfer points if a community college district enters into,
33 or expands, a transfer partnership with a private for-profit college
34 that does not meet the qualifications to offer its students federal
35 financial aid.
36 (G) Each community college district shall be granted one point
37 for each student who successfully completes nine or more career
38 technical education units, based on prior year data.
97
-11— AB 720
1 (H) Each community college district shall be granted one point
2 for each student who obtains a regional living wage within one
3 year of community college completion, based on prior year data.
4 (2) (A) Each community college district shall also be granted
5 additional points for an equity component of the student success
6 allocation. The marginal funding per point for the equity
7 component of the student success allocation revenue shall be as
8 follows:
9 (i) For the 2018-19 fiscal year, one hundred eleven dollars
10 ($111).
11 (ii) For the 2019-20 fiscal year, one hundred sixty-seven dollars
12 ($167) adjusted for changes in cost -of -living and other base
13 adjustments specified for the 2019-20 fiscal year.
14 (iii) For the 2020-21 fiscal year, two hundred twenty-two dollars
15 ($222) adjusted for changes in cost -of -living and other base
16 adjustments specified for the prior year and the cost -of -living and
17 other base adjustments specified for the 2020-21 fiscal year.
18 (iv) Commencing with the 2021-22 fiscal year, the rate specified
19 in clause (iii) adjusted for changes in cost -of -living and other base
20 adjustments specified in subsequent annual budget acts.
21 (B) In computing this allocation, each community college district
22 shall receive points for a student who received a fee waiver
23 pursuant to Section 76300 and generated points for any of the
24 metrics described in paragraph (1), based on prior year data. For
25 each student identified pursuant to this subparagraph, the
26 community college district shall receive the number of points equal
27 to the number of points that the student generated for each of the
28 metrics described in paragraph (1).
29 (C) In computing this allocation, each community college district
30 shall receive points for a student who received financial aid under
31 the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and
32 generated points for any of the metrics described in paragraph (1),
33 based on prior year data. For each student identified pursuant to
34 this subparagraph, the community college district shall receive the
35 number of points equal to the following:
36 (i) Four and one-half points for each chancellor's office
37 approved associate degree or approved baccalaureate degree
38 granted, excluding an associate degree for transfer granted pursuant
39 to Article 3 (commencing with Section 66745) of Chapter 9.2 of
40 Part 40 of Division 5, based on prior year data.
97
AB 720
1 (ii) Six points for each chancellor's office approved associate
2 for transfer degree granted pursuant to Article 3 (commencing
3 with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based
4 on prior year data.
5 (iii) Three points for each chancellor's office approved credit
6 certificate requiring 16 or more units granted, based on prior year
7 data.
8 (iv) Three points for each student who successfully completes
9 transfer -level mathematics and English courses within the student's
10 first academic year of enrollment, based on prior year data.
11 (v) Two and one-quarter points for each student who
12 successfully transfers to a four-year university, based on prior year
13 data.
14 (vi) One and one-half points for each student who successfully
15 completes nine or more career technical education units, based on
16 prior year data.
17 (vii) One and one-half points for each student who obtains a
18 regional living wage within one year of community college
19 completion, based on prior year data.
20 (3) It is the intent of the Legislature that the annual Budget Act
21 fully fund increases in the student success allocations computed
22 under this section.
23 (g) To establish a hold harmless protection for community
24 college districts pursuant to the funding allocation established in
25 this section, a minimum funding level for all community college
26 districts shall be computed as follows:
27 (1) For the 2018-19 and 2019-20 fiscal years, a level of funding
28 to ensure that all community college districts receive at a minimum
29 the total computational revenue the district received in the 2017-18
30 fiscal year, defined as a district's final entitlement for general
31 purpose apportionment based on FTES and the number of colleges
32 and comprehensive centers the district operates.
33 (2) Commencing with the 2020-21 fiscal year, and each year
34 thereafter, community college districts shall receive the higher of
35 (A) the funding level determined by the formula established in this
36 section, or (B) the level of funding determined by multiplying the
37 community college district's new FTES by the associated credit,
38 noncredit, and career development and college preparation rate
39 received by the district in the 2017-18 fiscal year. The level of
40 funding shall be adjusted to include a basic allocation based on
97
-13 — AB 720
1 the number of colleges and comprehensive centers in the district
2 consistent with the basic allocation rates used in the 2017-18 fiscal
3 year.
4 (3) (A) From the 2019-20 fiscal year to the 2023-24 fiscal
5 year, inclusive, for the San Francisco Community College District
6 and the Compton Community College District, the rates for
7 computing the hold harmless provisions pursuant to paragraphs
8 (1) and (2) shall be multiplied each year by the cost -of -living
9 adjustment identified in the annual Budget Act and adjusted for
10 increases to FTES. The level of funding for the San Francisco
11 Community College District and the Compton Community College
12 District shall be adjusted to include a basic allocation based on the
13 number of colleges and comprehensive centers in the district
14 consistent with the basic allocation rates used in the 2017-18 fiscal
15 year multiplied by the 2018-19 fiscal year cost -of -living
16 adjustment, and adjusted for changes in the cost -of -living in
17 subsequent annual budget acts. The intent of these adjustments is
18 to provide the San Francisco Community College District and the
19 Compton Community College District with the greater of the
20 amount that would have been calculated pursuant to the
21 requirements of Section 84750.5, as that section read on January
22 1, 2018, adjusted for annual changes in the cost -of -living
23 adjustment identified in the annual Budget Act and adjusted for
24 increases in FTES, or the amount computed pursuant to the funding
25 formula established in this section.
26 (B) For purposes of computing the FTES attributable to this
27 paragraph and subdivision (d), for five fiscal years beginning in
28 the 2017-18 fiscal year, the San Francisco Community College
29 District shall be entitled to restoration of any reduction in
30 apportionment revenue due to decreases in FTES, up to the level
31 of attendance of FTES funded in the 2012-13 fiscal year, if there
32 is a subsequent increase in FTES.
33 (C) (i) For purposes of computing the FTES attributable to this
34 paragraph and subdivision (d), for five fiscal years beginning in
35 the fiscal year the Compton Community College District is
36 accredited under the governing authority of the Board of Trustees
37 of the Compton Community College District, the board of
38 governors shall provide allocations to the Compton Community
39 College District in an amount not less than the total amount that
40 the district would receive if the level of attendance of FTES was
97
AB 720
1 the same level of attendance as in the 2017-18 fiscal year. The
2 amount shall be adjusted to reflect cost -of -living adjustments,
3 deficits in apportionments, or both, as appropriate for the applicable
4 fiscal years.
5 (ii) For purposes of computing the FTES attributable to this
6 paragraph and subdivision (d), for five fiscal years beginning in
7 the fiscal year the Compton Community College District is
8 accredited under the governing authority of the Board of Trustees
9 of the Compton Community College District, the Compton
10 Community College District shall be entitled to restoration of any
11 reduction in apportionment revenue due to decreases in FTES, up
12 to the level of attendance of FTES funded in the 2017-18 fiscal
13 year, if there is a subsequent increase in FTES.
14 (iii) In computing statewide entitlements to funding based upon
15 the attendance of FTES, the Compton Community College District
16 shall not be credited with more FTES than were actually enrolled
17 and in attendance.
18 (4) Decreases in a community college district's total revenue
19 computed pursuant to the sum of subdivisions (d), (e), and (f), or
20 computed pursuant to this subdivision shall result in the associated
21 reduction beginning in the year following the initial year of
22 decreases.
23 (h) For the fiscal years 2018-19 to 2020-21, inclusive, each
24 community college district whose increase in 2017-18 general
25 purpose apportionment funding computed pursuant to Section
26 84750.5, compared to apportionment funding computed pursuant
27 to this section, is less than the year -over -year cost -of -living
28 adjustments applicable to those fiscal years, shall receive
29 discretionary resources in an amount needed to ensure the
30 community college district receives no less than their 2017-18
31 general purpose apportionment funding computed pursuant to
32 Section 84750.5 adjusted for annual year -over -year cost -of -living
33 adjustments.
34 (i) The board of governors shall develop the criteria and
35 standards within the statewide minimum requirements established
36 pursuant to this section.
37 0) (1) Except as specifically provided in statute, regulations of
38 the board of governors for determining and allocating the state
39 general apportionment to the community college districts shall not
97
-15 — AB 720
1 require community college district governing boards to expend
2 the allocated revenues in specified categories of operation.
3 (2) Except as otherwise provided by statute, current categorical
4 programs providing direct services to students, including extended
5 opportunity programs and services, and disabled student programs
6 and services, shall continue to be funded separately through the
7 annual Budget Act, and shall not be assumed under the budget
8 formula otherwise specified by this section.
9 (k) It is the intent of the Legislature to allow for changes to the
10 criteria and standards developed pursuant to subdivisions (a) and
11 (h) in order to recognize increased operating costs and to improve
12 instruction.
13 ([) Notwithstanding Subchapter 1 (commencing with Section
14 51000) of Chapter 2 of Division 6 of Title 5 of the California Code
15 of Regulations and Section 84751, the chancellor shall allocate
16 the ongoing funds first appropriated to paragraph (1) of subdivision
17 (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the
18 Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015)
19 to all community college districts, including districts that have
20 offsetting local revenues that exceed the funding calculated
21 pursuant to the district's budget formula, on a per FTES basis by
22 modifying each district's budget formula pursuant to this section.
23 Any revisions to the budget formula made for the purposes of this
24 subdivision shall be made and reported consistent with the
25 requirements of subdivision (i).
26 (m) (1) (A) The governing board of each community college
27 district shall certify it will do all the following, no later than
28 January 1, 2019:
29 (i) Adopt goals for the community college district that meet the
30 following requirements:
31 (1) Are aligned with the systemwide goals identified in the
32 Vision for Success, which were adopted by the Board of Governors
33 of the California Community Colleges in 2017.
34 (I1) Are measurable numerically.
35 (II1) Specify the specific timeline for achievement.
36 (ii) For the meeting when the goals are considered for adoption,
37 include in the written agenda an explanation of how the goals are
38 consistent and aligned with the systemwide goals.
39 (iii) Submit the written item and summary of action to the
40 chancellor's office.
97
AB 720
1 (B) The chancellor's office shall make available guidance to
2 assist governing boards of community college districts in meeting
3 the requirements of this section. The funds apportioned to a
4 community college district pursuant to this section, and for excess
5 tax districts, the Student Equity and Achievement Program, shall
6 be available to implement the activities required pursuant to this
7 paragraph.
8 (2) Each community college district shall align its
9 comprehensive plan pursuant to paragraph (9) of subdivision (b)
10 of Section 70901 with the adopted local plan goals and align its
11 budget with the comprehensive plan. The funds apportioned to a
12 community college district pursuant to this section, and for excess
13 tax districts, the Student Equity and Achievement Program, shall
14 be available to implement the activities required pursuant to this
15 paragraph.
16 (3) If a community college district is identified as needing
17 further assistance to make progress towards achieving specified
18 goals, the chancellor's office, with the approval from the board of
19 governors, may direct the community college district to use up to
20 1 percent of the district's apportionments allocation on technical
21 assistance and professional development to support efforts to meet
22 the district's efforts towards their goals.
23 (4) (A) The chancellor's office shall develop processes to
24 monitor the approval of new awards, certificates, and degree
25 programs. The chancellor's office shall also develop a process to
26 monitor the number of students who transfer to for-profit
27 postsecondary educational institutions and report on the growth
28 of transfer to these institutions compared to four-year public
29 postsecondary educational institutions.
30 (B) The chancellor's office shall also develop minimum
31 standards, in consultation with the oversight committee established
32 pursuant to Section 84750.41, for the approval of certificates and
33 awards that would count towards the funding formula pursuant to
34 this section.
35 (C) The board of governors shall include instructions in the
36 audit report required by Section 84040 related to the
37 implementation of the funding formula pursuant to this section.
38 The chancellor may require a community college district to repay
39 any funding associated with an audit exception identified in a
97
-17 — AB 720
1 community college district's audit report pursuant to this
2 subparagraph.
3 (5) Notwithstanding Section 10231.5 of the Government Code,
4 on or before October 15, 2019, and each year thereafter, the
5 chancellor's office shall report to the Legislature, consistent with
6 Section 9795 of the Government Code, on the course sections and
7 FTES added at each community college that received
8 apportionment growth funding in the prior fiscal year, including
9 the number of course sections and if any course sections and FTES
10 were added that are within the primary missions of the segment
11 and those that are not within the primary missions of the segment.
12 (6) (A) On or before July 1, 2022, the chancellor's office shall
13 report to the Legislature and the Department of Finance, consistent
14 with Section 9795 of the Government Code, a description on how
15 community college districts are making progress on advancing the
16 goals outlined in the system's strategic vision plan.
17 (B) The requirement for submitting a report imposed under
18 subparagraph (A) is inoperative on July 1, 2026, pursuant to
19 Section 10231.5 of the Government Code.
20 (n) For purposes of this section, the following terms have the
21 following meanings:
22 (1) "Career development and college preparation" means courses
23 in programs that conform to the requirements of Section 84760.5.
24 (2) "Chancellor's office" means the Office of the Chancellor
25 of the California Community Colleges.
26 (3) "Primary missions of the segment" means credit courses
27 and those noncredit courses specified in paragraphs (2) to (6),
28 inclusive, of subdivision (a) of Section 84757.
29 SEC. 2. Section 84750.5 of the Education Code is amended to
30 read:
31 84750.5. (a) The board of governors, in accordance with the
32 statewide requirements contained in paragraphs (1) to (9), inclusive,
33 of subdivision (d), and in consultation with institutional
34 representatives of the California Community Colleges and
35 statewide faculty and staff organizations, so as to ensure their
36 participation in the development and review of policy proposals,
37 shall develop criteria and standards for the purpose of making the
38 annual budget request for the California Community Colleges to
39 the Governor and the Legislature, and for the purpose of allocating
40 the state general apportionment revenues.
97
AB 720
1 (b) In developing the criteria and standards, the board of
2 governors shall use and strongly consider the recommendations
3 and work product of the "System Office Recommendations Based
4 on the Report of the Work Group on Community College Finance"
5 that was adopted by the board at its meeting of March 7, 2005.
6 The board of governors shall complete the development of these
7 criteria and standards, accompanied by the necessary procedures,
8 processes, and formulas for using its criteria and standards, by
9 March 1, 2007, and shall submit on or before that date a report on
10 these items to the Legislature and the Governor.
11 (c) (1) It is the intent of the Legislature in enacting this section
12 to improve the equity and predictability of general apportionment
13 and growth funding for community college districts in order that
14 the districts may more readily plan and implement instruction and
15 related programs, more readily serve students according to the
16 policies of the state's master plan for higher education, and enhance
17 the quality of instruction and related services for students.
18 (2) It is the intent of the Legislature to determine the amounts
19 to be appropriated for purposes of this section through the annual
20 Budget Act. This section shall not be construed as limiting the
21 authority either of the Governor to propose, or the Legislature to
22 approve, appropriations for California Community Colleges
23 programs or purposes.
24 (d) The board of governors shall develop the criteria and
25 standards within the following statewide minimum requirements:
26 (1) The calculations of each community college district's
27 revenue level for each fiscal year shall be based on the level of
28 general apportionment revenues, state and local, the community
29 college district received for the prior year plus any amount
30 attributed to a deficit from the adopted standards to be developed
31 pursuant to this section, with revenue adjustments being made for
32 increases or decreases in full-time equivalent students (FTES), for
33 equalization of funding per credit FTES, for necessary alignment
34 of funding per FTES between credit and noncredit programs, for
35 inflation, and for other purposes authorized by law.
36 (2) Commencing with the 2006-07 fiscal year, the funding
37 mechanism developed pursuant to this section shall recognize the
38 need for community college districts to receive an annual allocation
39 based on the number of colleges and comprehensive centers in the
40 community college district. In addition to this basic allocation, the
97
-19 — AB 720
1 marginal amount of credit revenue allocated per FTES shall be
2 funded at a rate not less than four thousand three hundred
3 sixty-seven dollars ($4,367), as adjusted for the change in the cost
4 of living in subsequent annual budget acts.
5 (A) To the extent that the Budget Act of 2006 contains an
6 appropriation of one hundred fifty-nine million four hundred
7 thirty-eight thousand dollars ($159,438,000) for community college
8 equalization, the Legislature finds and declares that community
9 college equalization for credit FTES has been effectively
10 accomplished as of March 31, 2007.
11 (B) The chancellor shall develop criteria for the allocation of
12 one-time grants for those community college districts that would
13 have qualified for more equalization under prior law than pursuant
14 to this section and the Budget Act of 2006, and for those
15 community college districts that would have qualified for more
16 funding under a proposed rural college access grant than pursuant
17 to this section and the Budget Act of 2006, as determined by the
18 chancellor. Appropriations for the one-time grants shall be provided
19 pursuant to paragraph (24) of subdivision (a) of Section 43 of
20 Chapter 79 of the Statutes of 2006.
21 (3) Noncredit instruction shall be funded at a uniform rate of
22 two thousand six hundred twenty-six dollars ($2,626) per FTES,
23 as adjusted for the change in the cost of living provided in
24 subsequent annual budget acts.
25 (4) Funding for instruction in career development and college
26 preparation, as authorized pursuant to Section 84760.5, shall be
27 provided as follows:
28 (A) (i) Beginning in the 2006-07 fiscal year, career
29 development and college preparation FTES may be funded at a
30 rate of three thousand ninety-two dollars ($3,092) per FTES for
31 courses in programs that conform to the requirements of Section
32 84760.5. This rate shall be adjusted for the change in the cost of
33 living or as otherwise provided in subsequent annual budget acts.
34 (ii) Beginning in the 2015-16 fiscal year, career development
35 and college preparation FTES shall be funded at the same level as
36 the credit rate specified in paragraph (2). This rate shall be adjusted
37 for the change in the cost of living or as otherwise provided in
38 subsequent annual budget acts.
39 (B) Changes in career development and college preparation
40 FTES shall result in adjustments to revenues as follows:
97
AB 720 —20—
I
20-
1 (i) Increases in career development and college preparation
2 FTES shall result in an increase in revenues in the year of the
3 increase and at the average rate per career development and college
4 preparation FTES, including any cost -of -living adjustment
5 authorized by statute or by the annual Budget Act.
6 (ii) Decreases in career development and college preparation
7 FTES shall result in a revenue reduction in the year following the
8 decrease at the average rate per career development and college
9 preparation FTES.
10 (5) Except as otherwise provided by statute, current categorical
11 programs providing direct services to students, including extended
12 opportunity programs and services, and disabled students programs
13 and services, shall continue to be funded separately through the
14 annual Budget Act, and shall not be assumed under the budget
15 formula otherwise specified by this section.
16 (6) For credit and noncredit instruction, changes in FTES shall
17 result in adjustments in community college district revenues as
18 follows:
19 (A) Increases in FTES shall result in an increase in revenues in
20 the year of the increase and at the amount per FTES provided for
21 in paragraph (2) or (3), as appropriate, including any cost -of -living
22 adjustment authorized by statute or by the annual Budget Act.
23 (B) Decreases in FTES shall result in revenue reductions
24 beginning in the year following the initial year of decrease in FTES,
25 and at the district's marginal funding per FTES.
26 (C) Community college districts shall be entitled to the
27 restoration of any reductions in apportionment revenue due to
28 decreases in FTES during the three years following the initial year
29 of decrease in FTES if there is a subsequent increase in FTES.
30 (7) Revenue adjustments shall be made to reflect cost changes,
31 using the same inflation adjustment as required for school districts
32 pursuant to paragraph (2) of subdivision (d) of Section 42238.02.
33 These revenue adjustments shall be made to the college and center
34 basic allocations, credit and noncredit FTES funding rates, and
35 career development and college preparation FTES funding rates.
36 (8) The statewide requested increase in budgeted workload
37 FTES shall be based, at a minimum, on the sum of the following
38 computations:
39 (A) Determination of an equally weighted average of the rate
40 of change in the state's population of persons between 19 and 24
97
— 21— AB 720
1 years of age and the rate of change in the state's population of
2 persons between 25 and 65 years of age, both as determined by
3 the Department of Finance's Demographic Research Unit as
4 determined for the preceding fiscal year.
5 (B) To the extent the state's unemployment rate exceeds 5
6 percent for the most recently completed fiscal year, that positive
7 difference shall be added to the rate computed in subparagraph
8 (A). In no event shall that positive difference exceed 2 percent.
9 (C) The chancellor may also add to the amounts calculated
10 pursuant to subparagraphs (A) and (B) the number of FTES in the
11 areas of transfer, vocational education, and basic skills that were
12 unfunded in the current fiscal year. For this purpose, the following
13 computation shall be determined for each community college
14 district, and a statewide total shall be calculated:
15 (i) Establish the base level of FTES earned in the prior fiscal
16 year for transfer courses consisting of courses meeting the
17 California State University breadth or Intersegmental General
18 Education Transfer Curriculum requirements or major course
19 prerequisites accepted by the University of California or the
20 California State University.
21 (ii) Establish the base level of FTES earned in the prior fiscal
22 year for vocational education courses consisting of courses defined
23 by the chancellor's office Student Accountability Model codes A
24 and B that are consistent with the courses used for measuring
25 success in this program area under the accountability system
26 established pursuant to Section 84754.5.
27 (iii) Establish the base level of FTES in the prior fiscal year for
28 basic skills courses, both credit and noncredit.
29 (iv) Add the sum of FTES for clauses (i) to (iii), inclusive.
30 (v) Multiply the result of the calculation made under clause (iv)
31 by one plus the community college district's funded growth rate
32 in the current fiscal year. This figure shall represent the
33 maintenance of effort level for the budget year.
34 (vi) FTES in transfer, vocational education, and basic skills that
35 are in excess of the total calculated pursuant to clause (v), shall be
36 considered in excess of the maintenance of effort level, and shall
37 be eligible for overcap growth funding if the community college
38 district exceeds its overall funded FTES.
39 (vii) In no event shall the amount calculated pursuant to clause
40 (vi) exceed the total unfunded FTES for that fiscal year. To the
97
AB 720 —22—
I
22-
1 extent the computation specified in subdivision (c) requires the
2 reporting of additional data by community college districts, that
3 reporting shall be a condition of the receipt of apportionment for
4 growth pursuant to this section and those funds shall be available
5 to offset any and all costs of providing the data.
6 (9) Except as specifically provided in statute, regulations of the
7 board of governors for determining and allocating the state general
8 apportionment to the community college districts shall not require
9 community college district governing boards to expend the
10 allocated revenues in specified categories of operation or according
11 to the workload measures developed by the board of governors.
12 (e) (1) The Chancellor of the California Community Colleges
13 shall develop, and the board of governors shall adopt, a revised
14 apportionment growth formula for use commencing with the
15 2015-16 fiscal year. The chancellor shall allocate apportionments
16 pursuant to the revised formula only after the revised formula, and
17 any formulas for adjustment pursuant to paragraph (2), have been
18 adopted by the board of governors. The revised apportionment
19 growth formula shall support the primary missions of the segment,
20 and shall be based on each community's need for access to the
21 community colleges, as determined by local demographics. In
22 developing the revised formula, the chancellor shall consider
23 multiple factors in determining need; however, the primary factors
24 shall be:
25 (A) (i) The number of persons under 25 years of age without
26 a college degree, within a community college district's boundaries,
27 and the number of persons 25 to 64 years of age, inclusive, without
28 a college degree, within a community college district's boundaries.
29 (ii) Notwithstanding clause (i), the chancellor may use
30 alternative age ranges depending on the availability of data.
31 (B) The number of persons who are unemployed, have limited
32 English skills, who are in poverty, or who exhibit other signs of
33 being disadvantaged, as determined by the chancellor, within a
34 community college district's boundaries.
35 (2) Beginning with the 2016-17 fiscal year, the chancellor shall
36 adjust upward the need determination based on each community
37 college's effectiveness in serving residents of neighborhoods,
38 within or outside of the community college district's boundaries,
39 that exhibit the highest levels of need in the state.
97
-23— AB 720
1 (3) The chancellor shall calculate each community college
2 district's proportionate share of the statewide need for access to
3 the community colleges based on the application of this formula
4 described in paragraph (1), as adjusted pursuant to paragraph (2).
5 (4) The chancellor shall calculate the difference between each
6 community college district's proportionate share of the statewide
7 need for access to the community colleges, as calculated pursuant
8 to paragraph (3), and its current proportionate share of statewide
9 enrollment in the community colleges.
10 (5) (A) Until a community college district reaches its highest
11 level of apportionment revenues previously received, its
12 apportionment revenues shall be eligible to increase by the lesser
13 of 1 percent of its current apportionment base, or one-half of the
14 statewide growth allocation on a proportionate basis, regardless
15 of need.
16 (B) After a community college district reaches its highest level
17 of apportionment revenues previously received, it is eligible to
18 increase its apportionment revenues by the lesser of one-half of 1
19 percent of its current apportionment base, or one-quarter of the
20 statewide growth allocation on a proportionate basis, regardless
21 of its need.
22 (6) The remainder of the apportionment growth funding shall
23 be allocated to allow each community college district to grow its
24 apportionment revenues based on its relative share of the difference
25 between the amounts calculated in paragraph (4), up to a maximum
26 of its apportionment base for the preceding fiscal year appropriate
27 to ensure that community college district is advancing the primary
28 missions of the segment. The maximum established by the
29 chancellor shall not be less than 5 percent nor greater than 10
30 percent of a community college district's apportionment base for
31 the preceding fiscal year.
32 (7) Unless otherwise agreed upon by the board of governors,
33 apportionment reductions shall be allocated proportionally based
34 on the most recent levels of apportionment revenues.
35 (8) (A) It is the intent of the Legislature, consistent with
36 direction provided in the 2014-15 Budget Act, that apportionment
37 growth funding be expended for purposes of increasing the number
38 of FTES in courses or programs that support the primary missions
39 of the segment.
97
AB 720 —24—
I
24-
1 (B) (i) Notwithstanding Section 10231.5 of the Government
2 Code, on or before October 15, 2015, and each year thereafter, the
3 chancellor shall report to the Legislature on the course sections
4 and FTES added at each community college that received
5 apportionment growth funding in the prior fiscal year, including
6 the number of course sections and if any course sections and FTES
7 were added that are within the primary missions of the segment
8 and those that are not within the primary missions of the segment.
9 (ii) A report submitted to the Legislature pursuant to clause (i)
10 shall be submitted in compliance with Section 9795 of the
11 Government Code.
12 (C) For purposes of this section, "primary missions of the
13 segment" means credit courses and those noncredit courses
14 specified in paragraphs (2) to (6), inclusive, of subdivision (a) of
15 Section 84757.
16 (f) (1) It is the intent of the Legislature to allow for changes to
17 the criteria and standards developed pursuant to subdivisions (a)
18 to (d), inclusive, in order to recognize increased operating costs
19 and to improve instruction.
20 (2) (A) If the annual Budget Act identifies funds appropriated
21 specifically for the purposes of this subdivision, the chancellor
22 shall adjust the budget request formula to allocate those funds
23 without altering any of the adjustments described in subdivision
24 (d). At least 30 days before allocating any state general
25 apportionment revenues using a budget request formula revised
26 pursuant to this subdivision, the chancellor shall submit to the
27 Department of Finance and the Legislature a description of the
28 specific adjustments made to the budget request formula.
29 (B) A report to the Legislature pursuant to subparagraph (A)
30 shall be submitted in compliance with Section 9795 of the
31 Government Code.
32 (g) Notwithstanding Subchapter 1 (commencing with Section
33 51000) of Chapter 2 of Division 6 of Title 5 of the California Code
34 of Regulations and Section 84751, the chancellor shall allocate
35 the ongoing funds first appropriated pursuant to paragraph (1) of
36 subdivision (e) of provision (2) of Item 6870-101-0001 of Section
37 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of
38 2015) to all community college districts, including districts that
39 have offsetting local revenues that exceed the funding calculated
40 pursuant to the district's budget formula, on a per FTES basis by
97
-25— AB 720
1 modifying each district's budget formula pursuant to this section.
2 Any revisions to the budget formula made for the purposes of this
3 subdivision shall be made and reported consistent with the
4 requirements of subdivision (f).
5 (h) This section shall be used to allocate revenue only for the
6 following purposes:
7 (1) Commencing with the 2018-19 fiscal year, pursuant to
8 subparagraph (A) of paragraph (3) of subdivision (e) of Section
9 36 of Article XIII of the California Constitution, to compute
10 allocations for noncredit instruction and career development and
11 college FTES.
12 (2) To compute allocations to community college districts for
13 fiscal years prior to the 2018-19 fiscal year.
14 (3) Commencing with the 2019-20 fiscal year, the funding rate
15 calculated pursuant to clause) (ii) of subparagraph (A) of
16 paragraph (4) of subdivision (d) shall be used to compute
17 allocations for instruction provided under an instructional service
18 agreement between a community college district and a public safety
19 agency.
X
97