California Community Colleges: Effects of Increases in Noncredit Course Funding Rates

California Community Colleges: Effects of Increases in Noncredit Course Funding Rates MAC TAYLOR • L E G I S L A T I V E A N A L Y S T • MARCH 2017 AN LAO REPORT 2 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT EXECUTIVE SUMMARY Background Noncredit Education Is a Key Mission of California Community Colleges (CCC). State law defines CCC’s core mission as offering credit instruction through the associate degree level. Statute also assigns CCC the “essential and important function” of providing precollegiate instruction through adult noncredit education. For many years, the state funded all CCC noncredit courses at a rate comparable to what school districts received for adult education (about $2,000 per full-time equivalent student). In 2005-06, this rate was just under half the average rate for CCC credit instruction. The lower funding rate reflected the generally lower costs for noncredit programs, mainly because of lower faculty pay rates. Legislature Increased Funding Rate for Certain Noncredit Courses. Chapter 631 of 2006 (SB 361, Scott) created a special category of noncredit education called “career development and college preparation” (CDCP), which covers instruction in elementary and secondary education, English as a second language (ESL), workforce preparation, and vocational education that is part of a sequence of courses leading to a certificate. Chapter 631 raised the state funding rate for this category of courses to 71 percent of the credit rate, compared with 60 percent of the credit rate for other types of noncredit instruction (such as citizenship and parenting classes). Chapter 34 of 2014 (SB 860, Senate Committee on Budget and Fiscal Review) further increased the state’s funding rate for CDCP courses to 100 percent of the credit rate, effective beginning in 2015-16. The higher rate was intended to encourage colleges to expand their CDCP offerings and, in particular, better support noncredit vocational programs, which sometimes have relatively high equipment and facility costs. Findings Studying Impacts of Rate Increases. Chapter 34 directed our office to report on changes in CDCP certificate programs, course offerings, and enrollment following the 2015-16 rate increase. Our findings are preliminary given that only one year of data is available following implementation of Chapter 34. Colleges Developed 87 New Certificate Programs After Passage of Chapter 34. Overall, the number of new certificate programs grew modestly—from 566 in 2013-14 to 653 in 2015-16. The Chancellor’s Office approved new certificate programs at 20 of CCC’s 113 colleges, with most of these colleges adding between one and three new certificate programs. One college, though, added 34 certificate programs in a major revamping of its noncredit offerings that began prior to 2014-15, which skews the total. The newly approved certificate programs primarily are in the areas of vocational, ESL, and elementary and secondary education. Of the new vocational programs, about one-quarter appear to be in areas that might have higher costs. Number of CDCP Course Sections Increased Relative to Other Categories. The number of CDCP course sections remained flat from 2009-10 through 2014-15, while the number of credit and other noncredit course sections declined substantially through 2012-13, then increased substantially the next two years. In 2015-16, the number of CDCP course sections increased 11 percent while the number of www.lao.ca.gov Legislative Analyst’s Office 3 AN LAO REPORT credit sections grew 3 percent and the number of other noncredit sections declined 7 percent. CDCP Enrollment Also Increased Relative to Other Categories. Enrollment in all three CCC instructional categories—credit, CDCP, and other noncredit—declined from 2007-08 to 2012-13 following CCC budget reductions. Both credit and CDCP enrollment grew somewhat from 2012-13 to 2014-15, while other noncredit enrollment remained flat. Since 2014-15, only CDCP enrollment has grown while the other categories have remained flat or declined. Assessment These early findings suggest Chapter 34 has had some of the effects the Legislature intended. The rate increase, however, also raises several concerns, as we summarize below. Funding for CDCP Not Well-Aligned With Actual Costs. Although colleges have modestly expanded the number of higher-cost vocational programs, ESL and elementary and secondary education courses (which typically have lower costs) account for 86 percent of all CDCP enrollment. Moreover, to the extent that some CDCP certificate programs are higher cost, the state now provides ongoing funding to support those costs through the Adult Education Block Grant (AEBG), which began in 2015-16, and the Strong Workforce Program, which began in 2016-17. Several colleges also report drawing on other CCC categorical programs, including the Student Success and Support and Basic Skills Initiative programs, to augment services for their CDCP students. Given the overlap between these programs, AEBG, Strong Workforce, and CDCP, the Legislature may want to rethink whether funding CDCP courses at the credit rate still makes sense. Delineation Between Credit and Noncredit Instruction Remains Unresolved. Currently, colleges largely decide for themselves whether to offer a precollegiate course as credit or noncredit. Such differences make assessing the effectiveness of CCC precollegiate education difficult. Furthermore, a clearer delineation would be especially important were the Legislature to fund credit and CDCP at different rates in the future. Limited Data and Accountability Measures for CDCP Programs. CCC accountability systems generally exclude data on noncredit programs. Currently no statewide data exists to assess the value of CCC’s 653 CDCP certificate programs created to date. Though some of these programs (such as programs leading to nursing assistant and welding certificates) likely have immediate workforce value to students, the benefit of others (such as programs leading to certificates in “number arithmetic” or “basic skills world history”) is less obvious. Issues for Legislative Consideration We raise four key related issues the Legislature could explore moving forward. The issues entail the appropriate funding rates for noncredit instruction, the respective roles and definitions of credit and noncredit instruction, the accessibility of noncredit and adult education across the state, and the system the state has for measuring the effectiveness of noncredit and adult education. By addressing these issues, we believe the Legislature could improve significantly the effectiveness of noncredit and adult education in California over the coming years. 4 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT INTRODUCTION Chapter 34 of 2014 (SB 860, Senate Committee directs our office to report on changes in CDCP on Budget and Fiscal Review) increased the state’s programs, course offerings, and students served funding rate for certain California Community following the rate increase. This report fulfills that Colleges (CCC) noncredit courses. Specifically, the reporting requirement. We begin by providing legislation increased the funding rate beginning background on CCC instruction and course in 2015-16 for noncredit “career development funding rates. Next, we provide our findings and and college preparation” (CDCP)—instruction assessment regarding changes in levels of CDCP in elementary and secondary education, English instruction following the recent rate increase. as a second language (ESL), vocational skills, and We conclude by identifying several issues for workforce preparation that is part of a sequence of the Legislature’s consideration regarding CCC related courses leading to a certificate. Chapter 34 noncredit instruction. BACKGROUND Below, we provide background on CCC’s school districts and other education providers.) mission, credit and noncredit instruction at Additional community college missions include the community colleges, and the two main providing fully fee-supported community services classifications of noncredit courses—regular courses and economic development services such noncredit and CDCP. We also discuss changes in as employee training. the state funding rate for CDCP courses. Credit and Noncredit Instruction CCC Mission Some Overlap Between CCC Credit and Community Colleges Have Multiple Missions. Noncredit Instruction . . . In general, colleges State law defines CCC’s core mission as providing fulfill their mission of offering the first two years academic and vocational instruction through the of college instruction in academic and vocational second year of college, and authorizes community subjects through credit instruction, whereas they colleges to award the associate degree. Beyond this use noncredit instruction to address much of their primary mission, community colleges also are precollegiate adult education mission. Regulations, assigned the “essential and important function” however, permit colleges to offer some precollegiate of providing remedial instruction (precollegiate- instruction on a credit basis, including some ESL, level English and math) and adult noncredit secondary English and math courses, and many education. Adult education includes elementary vocational education courses. and secondary education—such as literacy and . . . But Notable Differences Between Them. high school diploma or equivalency programs—as Though CCC credit and noncredit instruction well as ESL, short-term vocational education, overlap, they differ in six notable ways, as shown workforce preparation, and programs for older in Figure 1 (see next page). First, credit courses adults and adults with disabilities. (Community may be in any academic or vocational subject, colleges offer adult education in coordination with whereas noncredit instruction is limited to ten www.lao.ca.gov Legislative Analyst’s Office 5 AN LAO REPORT categories. Second, depending on the course and 5 percent. (The remaining 1 percent is tutoring.) college, a student may be permitted to join or leave These proportions vary significantly by community a noncredit class at any time during the term. college district. In 2015-16, for example, the Third, only credit courses have restrictions on the amount of noncredit instruction ranged from number of times a student may reenroll (such as to 32 percent of FTE student enrollment in the San better master the course material) after receiving a Francisco Community College District to less than passing grade. Fourth, CCC regulations generally 1 percent in 20 other districts. Such differences require that faculty possess at least a bachelor’s typically arise from local agreements dating back degree in order to teach a noncredit course, many years regarding which types of institutions— compared to a master’s degree for most credit schools or community colleges—would provide the courses. Fifth, students are charged enrollment majority of adult education. fees only for credit courses. Lastly, the state funds Within Noncredit, Regular and CDCP Courses some noncredit courses at a lower rate than credit courses and calculates attendance differently. CDCP Is Subset of Noncredit. State law permits Most CCC Instruction Is Credit. Credit community colleges to offer noncredit courses in instruction, which all CCCs offer, accounts for ten instructional areas, as shown in Figure 2. As the 94 percent of full-time equivalent (FTE) student figure shows, four of these instructional areas are enrollment and noncredit instruction accounts for eligible for the CDCP designation: elementary and Figure 1 Key Differences Between Credit and Noncredit Courses Credit Courses Noncredit Courses Subjects May be in any academic or vocational subject. May State funding is limited to ten categories be college level or precollegiate. of noncredit courses, all precollegiate (see categories in Figure 2). Attendance Requirements Students are expected to participate in the course Depending on the course, students may be during specific hours throughout the term and permitted to join or leave a class at any time complete homework. during the term. Typically does not require homework. Course Repetition Students who receive a satisfactory grade generally Typically no restriction on the number of times a may not reenroll in the same course. In addition, student may reenroll in the same class. students may not earn more than 30 semester units of credit for remedial courses. Faculty Qualifications Regulations generally require that faculty possess Regulations generally require that faculty possess at least a master’s degree (with exceptions for at least a bachelor’s degree. certain vocational disciplines). Enrollment Fees State law establishes mandatory enrollment fees. State law prohibits enrollment fees. For 2016‑17, fees are $46 per unit. Funding For 2016‑17, the funding rate per full‑time equivalent For 2016‑17, the funding rates per FTE student are (FTE) student is $5,070. Funding generally is based $3,049 for regular noncredit courses and $5,070 on student enrollment in a course at a given point for career development and college preparation in the academic term (typically the third or fourth courses (same as the credit rate). Funding is week). based on students’ daily course attendance. 6 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT Figure 2 State Authorizes Noncredit Instruction in Ten Categories Subjects Eligible for CDCP Funding 1 Elementary and secondary basic skills and remedial education 2 English as a second language 3 Short-term vocational programs 4 Workforce preparation Other Noncredit Subjects (Regular Noncredit) 5 Parenting education 6 Citizenship for immigrants 7 Education programs for persons with disabilities 8 Education programs for older adults 9 Home economics 10 Health and safety education CDCP = career development and college preparation. secondary education, ESL, short-term vocational Vocational courses comprise 13 percent of CDCP programs, and workforce preparation (such as enrollment and workforce preparation is 1 percent. communication skills). In addition to being in an CDCP Share of Noncredit Enrollment Varies eligible instructional area, a course must be offered Greatly Across Districts. Figure 4 (see next page) as part of a sequence of related courses leading to illustrates this variation. Whereas some districts, a noncredit certificate (such as certificates in basic such as Rancho Santiago, Glendale, Desert, and reading skills and healthcare careers preparation) Pasadena Area, offer almost exclusively CDCP to qualify as CDCP. courses in their noncredit programs, others, such More Than Half of Noncredit Enrollment Is as West Valley Mission, West Hills, Marin, and CDCP. In 2015-16, community colleges served MiraCosta offer only regular noncredit courses. about 68,000 FTE students in noncredit courses, 57 percent Figure 3 of which were in CDCP. CCC Noncredit Full‑Time Equivalent Figure 3 shows the share of Student Enrollment all noncredit courses that are 2015-16 CDCP and the breakdown within CDCP by instructional All Noncredit CDCP Noncredit area. As the figure shows, the Workforce Preparation Vocational Regular largest instructional areas Noncredit Elementary and are ESL and elementary Secondary Education and secondary education, accounting for 61 percent and English as a Second 25 percent, respectively, of CDCP Language CDCP enrollment in 2015-16. CDCP = career development and college preparation. www.lao.ca.gov Legislative Analyst’s Office 7 AN LAO REPORT Differential Funding Rates in part, generally lower costs for noncredit programs, mainly because of lower pay rates for Noncredit Instruction Historically Funded noncredit faculty. As noted earlier, CCC regulations at Lower Rate Than Credit. Figure 5 summarizes generally require instructors to possess at least changes in CCC course funding rates since a bachelor’s degree in order to teach noncredit 2005-06. Up to and including that year, CCC courses (compared to at least a master’s degree noncredit courses were funded at a rate comparable for most credit courses). Because faculty pay rates to what school districts received for adult education typically are higher for individuals with higher (about $2,000 per FTE student). In 2005-06, this levels of education, noncredit faculty often have had rate was just under half the average rate for CCC lower pay rates than credit faculty. credit instruction. The lower funding rate reflected, Figure 4 Large Variation Across State in Noncredit Instruction Noncredit Enrollment as a Percent of Total Full-Time Equivalent Enrollment by District, 2015-16a San Francisco Rancho Santiago Mt. San Antonio Glendale San Diego Siskiyou North Orange County CDCP Noncredit Sonoma County Allan Hancock Regular Noncredit Butte-Glenn Gavilan Merced Napa Valley South Orange County West Valley-Mission Monterey Peninsula Desert West Hills Marin MiraCosta Copper Mountain Los Angeles Sequoias Mt. San Jacinto Palo Verde Pasadena Area Palomar Lassen Santa Barbara 5 10 15 20 25 30 35% a Figure excludes districts in which noncredit enrollment is less than 4 percent of total enrollment. CDCP = career development and college preparation. 8 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT support noncredit Figure 5 vocational programs, CCC Instruction Funding Rates Over Timea a subset of noncredit Course Type 2005‑06 2006‑07 2015‑16 programs that sometimes Credit $4,189 $4,367 $5,004 have above-average CDCP noncredit N/A 3,092 5,004 costs due to expensive Regular noncredit 2,057 2,626 3,009 a State law sets forth that rates are to be adjusted annually for inflation and other factors. The Legislature equipment, supplies, and adopted additional CDCP rate increases effective in 2006-07 and 2015-16. facilities, as well as lower CDCP = career development and college preparation. student-to-faculty ratios. State Enhanced CDCP Funding Rate in • Program Quality. Colleges typically have 2006-07. Chapter 631 of 2006 (SB 361, Scott) a low share of full-time faculty in their created the CDCP category and enhanced the noncredit programs compared with their funding rate for CDCP courses, among other credit programs. A college might have, changes. Specifically, the legislation increased for example, only one or two full-time the CDCP rate to 71 percent of the credit rate, instructors and many part-timers in compared with 60 percent of the credit rate for a noncredit department. The lack of regular noncredit instruction. full-time faculty—who are paid for State Further Increased CDCP Rate in program planning and other academic 2015-16. Eight years after Chapter 631 brought activities beyond teaching—can hamper about enhanced funding, Chapter 34 increased course and program development, faculty the CDCP rate to 100 percent of the credit rate. A coordination, and program oversight. An one-year delay from Chapter 34’s enactment to the increased noncredit funding rate, colleges effective date for the rate increase (July 1, 2015) maintained, could facilitate the hiring of was intended to give colleges time to implement more full-time faculty. or expand their CDCP programs, such as by developing new courses and certificate programs, • Financial Incentives. Lawmakers were submitting these for state approval, and updating concerned that—because of the higher course catalogs. funding rate for credit instruction— colleges had a financial incentive to State’s Rationale for CDCP Rate Increases emphasize degree and transfer programs Higher Rates Intended as Incentive for over noncredit adult and vocational Colleges to Offer High-Priority Courses. Neither education, even if local workforce demand Chapter 631 nor Chapter 34 states the Legislature’s for graduates of noncredit programs went intent in raising the CDCP funding rate. Legislative unmet. Equal funding rates would remove discussions leading up to each law’s passage, this incentive, making it more likely that however, centered on three main considerations: colleges would offer the types of programs • Program Costs. Colleges maintained that needed to meet workforce needs. noncredit funding rates did not adequately www.lao.ca.gov Legislative Analyst’s Office 9 AN LAO REPORT FINDINGS In this section, we report on changes in CDCP of related, existing noncredit courses that the programs, courses, and enrollment since enactment colleges identified at the time as CDCP-eligible.) of Chapter 34. Specifically, we present data on Growth in the number of new certificate programs three measures: (1) the number of approved CDCP continued over the following years but at much noncredit certificate programs; (2) the number of lower levels. CDCP course sections (such as Arithmetic 1B on Colleges Developed 87 New Certificate Tuesday and Thursday evenings in fall 2016); and Programs After Passage of Chapter 34—Though (3) enrollment in CDCP courses. (As noted earlier, One College Skews Total. The pace of approvals CCC measures noncredit student enrollment by accelerated after passage of Chapter 34. During students’ daily course attendance. One FTE student the planning year (2014-15) and first year of equates to a student attending classes 15 hours implementation (2015-16), 20 colleges received per week for two semesters.) We also present approval for 87 new noncredit certificate programs, our findings regarding CDCP funding increases thereby increasing the total number of approved and how colleges have used the new funding and programs by 15 percent. Of the 20 colleges, most leveraged other CCC funding sources to support added between one and three certificate programs. their CDCP programs. One college, however, added 34 programs. This Findings Based on Systemwide Data and college undertook a complete revision of its adult Interviews With Selected Colleges. For historical secondary education program and expanded context, we examine data beginning in 2006-07, its vocational offerings. In doing so, the college the first year of enhanced funding for CDCP substantially revised many of its noncredit courses courses. Our review extends through 2015-16, and programs and created a few others. College the year Chapter 34’s rate increase took effect and officials reported that they initiated this process the most recent year for which data are available. prior to passage of Chapter 34 to improve program Because colleges have had only one full year of CDCP funding at the credit rate, we caution against Figure 6 reading too much into the most recent data. To Number of New CDCP gain a better understanding of campus decisions Certificate Programs Approved Annually regarding CDCP instruction, we also interviewed Fiscal Year New Programs Total Programs administrative and academic leaders from a 2006‑07a 254 254 number of campuses. 2007‑08 87 341 2008‑09 58 399 Approved CDCP Certificate Programs 2009‑10 67 466 2010‑11 39 505 Colleges Created First Noncredit Certificate 2011‑12 31 536 2012‑13 11 547 Programs Following 2006-07 Funding Increase. 2013‑14 19 566 Prior to 2006, colleges typically did not offer 2014‑15b 40 606 noncredit certificates. To take advantage of the new 2015‑16 47 653 a CDCP funding rate in 2006-07, colleges created Enhanced noncredit rate went into effect, funding CDCP enrollment at 71 percent of the credit rate. 254 new certificate programs, as shown in Figure 6. b CDCP funding rate raised to the credit rate effective in 2015-16. CDCP = career development and college preparation. (These programs generally consisted of sequences 10 Legislative Analyst’s Office www.lao.ca.gov quality and outcomes, as well as to take advantage CDCP Course Sections of the previous enhanced noncredit rate. Setting Number of CDCP Course Sections Remained aside this college, growth in the number of Fairly Flat Through 2014-15 . . . Despite annual approved certificate programs since enactment of increases in the number of approved CDCP Chapter 34 has been modest. programs, the number of CDCP course sections Assortment of New Certificate Programs offered to students did not change much between Approved. Among the programs approved since 2006-07 and 2014-15, as shown in Figure 7. By Chapter 34’s enactment, 44 percent were vocational, comparison, the number of credit and regular 25 percent were ESL, 24 percent were elementary noncredit course sections varied significantly and secondary education, and 6 percent were in over this period. Specifically, community colleges other areas. Examples of certificate programs substantially reduced credit and regular noncredit approved in 2014-15 and 2015-16 include in-home course offerings in response to the state’s fiscal support services, graphic design and web skills, downturn (2008-09 to 2012-13) and substantially general office clerk, starting a small business, and increased offerings in these categories after the state vocational ESL for child care providers. budget recovered (2013-14 to 2014-15). Figure 7 Number of CCC Course Sections Offered by Credit/Noncredit Classification 45,000 450,000 40,000 400,000 35,000 350,000 30,000 300,000 25,000 250,000 20,000 200,000 15,000 150,000 10,000 100,000 5,000 50,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 snoitceS esruoC tidercnoN Credit Course Sections AN LAO REPORT Credit (Right Axis) Regular Noncredit (Left Axis) CDCP Noncredit (Left Axis) CDCP = career development and college preparation. www.lao.ca.gov Legislative Analyst’s Office 11 AN LAO REPORT . . . Then Colleges Increased CDCP Course CDCP Funding Augmentations Sections by 11 Percent in 2015-16. The pattern Chapter 34 Resulted in $54 Million in changed in 2015-16, the first year CDCP enrollment Additional Funding for Districts Offering CDCP. was funded at the credit rate. In that year, as overall Statewide, apportionment funding in 2015-16 was funding continued to increase, the number of $54 million higher under Chapter 34 than it would CDCP course sections increased 11 percent while have been at the previous enhanced noncredit rate the number of regular noncredit course sections (which was 71 percent of the credit rate). Districts declined 7 percent compared to 2014-15. (Credit with large CDCP programs received substantial course sections increased 3 percent in the same year.) augmentations. With CDCP enrollment of more than 6,000 FTE students in 2015-16, San Diego CDCP Enrollment Community College District, for example, received CDCP Enrollment Has Fared Better Than about $9 million more than it would have received Regular Noncredit Enrollment. As Figure 8 shows, at the enhanced noncredit rate. Rancho Santiago, enrollment in all three instructional categories— San Francisco, and Mt. San Antonio College credit, regular noncredit, and CDCP—declined Districts were close behind. Fourteen districts each from 2007-08 to 2012-13 following CCC budget received at least $500,000 in additional funding reductions. Regular noncredit instruction declined compared with what they otherwise would have the most, dropping 46 percent, compared to earned. 22 percent for CDCP and 4 percent for credit. CDCP Programs Report Receiving Some Both credit and CDCP enrollment grew somewhat of New State Funding. Under current law and from 2012-13 to 2014-15, while regular noncredit regulations, districts have wide discretion enrollment remained flat. Since 2014-15, only on how to allocate apportionment funds. As CDCP enrollment has grown while the other a result, districts are not required to spend categories have remained flat or declined. funding generated from CDCP enrollment on Enrollment in CDCP courses has grown from CDCP programs. Campus noncredit deans we 43 percent of total noncredit enrollment in 2006-07 interviewed, however, report that their divisions (the first year with enhanced funding) to 57 percent have received at least a portion of the new funding. in 2015-16 (the first year with CDCP funded at the They state that, because CDCP courses now credit rate). generate as much per-student funding as credit Figure 8 Changes in Credit, Regular Noncredit, and CDCP Enrollment During Three Periods Percent Change in Full-Time Equivalent Enrollment Regular CDCP Total Credit Noncredit Noncredit Enrollment 2007-08 to 2012-13 (budget cuts) -4% -46% -22% -6% 2012-13 to 2014-15 (budget increases) 2 —a 5 2 2014-15 to 2015-16 (new CDCP rate takes effect) —a -2 4 —a Cumulative 2007‑08 to 2015‑16 ‑1% ‑47% ‑15% ‑4% a Less than 0.5 percent change. CDCP = career development and college preparation. 12 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT courses, they are able to make a stronger case to provide more stability for their programs and for additional faculty positions, instructional increase their capacity to develop and improve technology, and other resources. Because CCC does CDCP offerings. not have a centralized database of expenditures Other Findings by program, however, it is unclear how much of the new funding resulting from the Chapter 34 Several Colleges Report Supplementing CDCP rate increase actually has been spent on CDCP With Other CCC Programs. Several colleges we programs and services. interviewed have improved their CDCP programs Colleges Report Hiring Some Additional by tapping further resources available through four Full-Time Noncredit Faculty. No systemwide state categorical programs: the Strong Workforce information is available on noncredit faculty hiring Program, Student Success and Support Program, for 2015-16. Most of the colleges we interviewed, Adult Education Block Grant, and Basic Skills however, reported increased hiring in their Initiative. The state has increased ongoing funding noncredit programs to accommodate additional for these programs, which are described in a nearby CDCP enrollment. Some colleges have converted box, by more than $500 million since passage part-time positions to full time or created new of Chapter 34. One college we interviewed, for full-time positions, whereas others increased their example, stopped offering beginning-level ESL at hiring of adjunct instructors. Colleges hiring more its main site so it could focus on redesigning a more full-time faculty say they expect the new positions advanced ESL certificate program that historically Additional State Funding Sources for Career Development and College Preparation (CDCP) In addition to 2016‑17 Funding receiving general CCC Categorical Program (In Millions) purpose funding Strong Workforce Program. Started in 2016‑17 to expand and improve $200 based on the high‑cost career technical education (CTE) leading to certificates, degrees, and other credentials. Can be used for credit and noncredit number of full-time CTE programs. equivalent students Student Success and Support Program. Started in 2013‑14 to expand 200a in CDCP courses, and improve assessment, orientation, and counseling services for credit and noncredit CCC students. Includes designated funding to identify colleges receive and address disparities in access and completion for various subgroups categorical funding of CCC students. Also includes funds for faculty and staff professional development and technical assistance. for several related Adult Education Block Grant. Started in 2015‑16 to coordinate services 95b activities. Most among adult education providers and support CCC noncredit instruction primarily in three areas: (1) English as a second language, (2) high notably, colleges can school completion and precollegiate‑level English and math, and use funding from (3) vocational education. Basic Skills Initiative. Longstanding program to provide counseling 50 the four displayed and tutoring for students with precollegiate‑level reading, writing, or programs to provide math skills. Also provides curriculum development and professional development for faculty teaching precollegiate‑level credit and noncredit instruction and courses. support services for a Includes student service funding specifically designated for noncredit students, as well as all student equity and professional CDCP students. development funding in the categorical program. b Community college share of block grant funding. (Excludes share for school districts and other providers.) www.lao.ca.gov Legislative Analyst’s Office 13 AN LAO REPORT had a poor completion rate. Working within According to the college, the CDCP courses served its Adult Education Block Grant consortium, as a gateway for students who were hesitant to the college arranged with other adult education enroll in a credit program. Taking these courses on providers in its region to offer the beginner courses. a lower-stakes, noncredit basis allowed the students According to the college, this freed the faculty up to explore the career area and earn a noncredit to create a more intensive, accelerated certificate certificate. The college reports that, whereas its program at the advanced level that students could credit certificate program in electronics previously complete in one year (compared to 2.5 years for the had low enrollment and was at risk of closing, old program). The campus reports substantially the noncredit program has robust enrollment improved completion rates after implementing the and is encouraging more students to enroll in the change. Another college reports using Basic Skills associated credit programs as well as helping them Initiative funding to create noncredit courses for gain immediate employment. students majoring in biology who are assessed as Modest Expansion in Higher-Cost Areas. As unprepared for college-level English or math. The discussed earlier, 44 percent of CDCP certificate students take the CDCP courses concurrently with programs approved since passage of Chapter 34 their major courses, earning a noncredit certificate are in vocational areas. Based on the courses along the way. Several colleges report using their associated with the new vocational programs, we Student Success and Support Program funds to estimate that about one-quarter of these programs help provide counseling and guidance to CDCP appear to be in areas that might have higher costs students. due to specialized equipment or limits on class A Few Courses Shifted From Credit sizes. Examples include computer-aided design to Noncredit. A handful of the colleges we and drafting; multimedia art and animation; and interviewed reported converting precollegiate-level heating, ventilation, and air conditioning certificate credit courses to CDCP, though no systemwide programs. One college we interviewed noted that it data on such conversions is available. In one was developing a CDCP certified nursing assistant example, a college began offering ESL courses program (with a low student-to-faculty ratio) as both credit and noncredit. Previously, the to address significant unmet local labor market college had offered the courses only for credit. demand. Another college reports it is developing The courses had low credit enrollment and a large an industry-recognized noncredit electrical trainee number of students auditing (paying a small fee certificate, noting that it could not have afforded to sit in on the class). According to the college, the required laboratory without the higher funding many of these students chose not to enroll in the rate (in addition to funding from the Strong courses for credit because they did not want the Workforce Program). courses to affect their grades, course repeatability, Little Change in Number of Districts Offering credit accumulation, or financial aid status. The CDCP Instruction . . . Of the state’s 72 community change allowed these students to enroll with no college districts, 37 were offering approved CDCP fee, provided an opportunity for them to earn a courses by 2009-10. Currently, the number of noncredit certificate, and increased overall revenue participating districts is 39. Enrollment is highly for the college. In another example, a college shifted concentrated, however, in fewer than one-third lower-level courses from a credit career technical of these districts. Eleven districts accounted for education program in electronics to CDCP. 90 percent of all CDCP enrollment in 2015-16. 14 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT (This finding reflects the historical pattern of requests for assistance in the last year from colleges community colleges serving as the primary adult around the state that want to develop CDCP education providers in a few localities.) programs. In addition, the statewide Academic . . . But Interest Is Growing. According to Senate has responded to growing interest by colleges we interviewed that have well-established offering workshops on effective practices for CDCP programs, many have received numerous developing and implementing CDCP curriculum. LAO ASSESSMENT Below, we provide our assessment of how higher-than-average costs, the state now provides CCC’s implementation of Chapter 34 is addressing separate, ongoing funding to support those costs. the Legislature’s concerns about noncredit As we discussed, the Legislature adopted the instruction at the community colleges. We first Strong Workforce Program beginning in 2016-17 discuss costs, quality, and incentives related to to provide substantial new funding for vocational CDCP instruction. We then turn to data and education. The Legislature also provided new accountability measures for CDCP programs. funding for adult education (which includes Funding for CDCP Not Well-Aligned vocational education) beginning in 2015-16. These With Actual Costs. As noted earlier, one of the new programs are intended specifically to offset Legislature’s main considerations in enacting higher vocational program costs and encourage Chapter 34 was the cost of vocational programs. expansion and improvement in other CDCP Colleges maintained that noncredit funding instructional areas. The state’s creation of these rates did not adequately support noncredit programs in the years since passage of Chapter 34 vocational programs, which sometimes have raises questions about the continued need for relatively high equipment, facility, and staffing funding CDCP at the credit rate. costs. To date, however, higher-cost vocational Encouraging (Though Early) Signs of Improved education programs appear to be a small minority Program Quality. Several colleges’ descriptions of newly approved CDCP certificate programs. of improved CDCP coordination with other CCC As we described, ESL and elementary and programs represent an encouraging development. secondary education courses—which typically Spurred in part by the increased funding rate for have lower-than-average costs due to lower CDCP, colleges are reexamining their noncredit educational requirements for faculty and no need offerings for opportunities to improve and expand for specialized equipment or labs—account for them. As part of this process, colleges are bringing 86 percent of all CDCP enrollment. As a result, together efforts related to student success and the vast majority of increased CDCP funding equity, workforce education, adult education, is supporting student enrollment in relatively and basic skills reform to improve the quality low-cost courses. and outcomes of their noncredit as well as credit State Provides Separate Funding to programs. Improvement in this regard is anecdotal Supplement High-Cost Vocational Programs. to date, however, and likely falls in the category of To the extent that some CDCP certificate promising, rather than widespread, practice. programs—typically in vocational fields—have www.lao.ca.gov Legislative Analyst’s Office 15 AN LAO REPORT Chapter 34’s Effect on Faculty Hiring Unclear. suggests that the higher funding rate primarily is In discussing program quality, proponents of encouraging existing providers to expand their Chapter 34 identified the share of full-time faculty programs rather than attracting additional colleges in CDCP programs as a key factor. Several colleges to offer CDCP instruction. This may be starting we interviewed report that the higher CDCP to change, though, as additional colleges have funding rate has resulted in their being able to expressed interest in developing CDCP programs hire more full-time faculty. Without systemwide since passage of Chapter 34. data on changes in noncredit faculty, however, it Limited Data and Accountability Measures is difficult to gauge the extent of full-time faculty for CDCP Programs. As evident throughout the hiring. Moreover, it is not possible to determine findings section of this report, limited information how much of the hiring would have occurred in the currently is available about community college absence of Chapter 34, as colleges restore noncredit CDCP programs. Data on noncredit faculty courses they previously had curtailed due to budget hiring and shifts in course offerings from credit reductions. to noncredit are anecdotal, based on interviews. Some Evidence That Rate Increase Is Colleges do not report individual course or Somewhat Improving Colleges’ Use of Noncredit program costs. The CCC Student Success Scorecard Instruction . . . By eliminating the difference measures completion of certificates, degrees, or in funding rates between credit and CDCP transfer within six years for students who initially instruction, the Legislature removed a significant enrolled in CDCP courses, but the Salary Surfer, financial incentive for colleges to favor credit over which shows earnings of certain CCC graduates, as CDCP enrollment. The relative stability of CDCP well as CCC’s basic skills outcomes tracking tool, enrollment (compared to credit and noncredit) exclude noncredit students. Most concerning, there over the past decade, and the 2015-16 uptick in currently is no statewide data to assess the value of CDCP enrollment after Chapter 34’s rate increase the 653 CDCP certificate programs created to date. took effect, suggest that colleges are responding to Though some of these (such as programs leading the changed incentive. Moreover, the shifting of a to nursing assistant and welding certificates) likely few courses from credit to noncredit, as related in have immediate workforce value to students, the our interviews, suggests that at least some colleges benefit of others (such as a program leading to a have begun to offer courses in the category most certificate in “number arithmetic” or one in basic appropriate for the subject matter and student skills world history) is much less obvious. CDCP population. funding rules, which require a sequence of related . . . But Mostly Among Colleges That Already courses leading to a certificate, arguably could Were Offering CDCP Instruction. The minimal encourage colleges to create certificate programs change in the number of colleges offering CDCP with unproven value to students. 16 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT ISSUES FOR LEGISLATIVE CONSIDERATION Below, we highlight four questions for the Should the State Encourage Expansion of Legislature to consider as it makes decisions on CDCP (or Regular Noncredit) Instruction to CCC course funding going forward. Additional Districts? Though Chapter 34 appears Should the Legislature Revisit CCC Course to have expanded enrollment opportunities for Funding Rates? The Legislature adopted students in districts that already were providing Chapter 34 in 2014 to increase course funding CDCP instruction, to date it has had little effect rates for vocational and other high-priority on expanding access to other areas of the state. categories of noncredit instruction. Since then, the Colleges may have valid reasons for not offering Legislature has provided substantial new funding CDCP and regular noncredit courses. In some for the same categories of instructional programs areas, for example, other education providers through the Strong Workforce Program and Adult might already be offering robust adult education Education Block Grant. Given this overlap, does programs that meet the community’s needs and at funding CDCP enrollment at the credit rate still much lower funding rates. The Legislature could make sense? Moreover, what are the Legislature’s ask the Chancellor to review the regional adult expectations regarding the relationship of CDCP education consortia plans to determine whether programs with these other initiatives, as well as the other providers are addressing local needs in areas Student Success and Support Program and Basic where community colleges provide little or no Skills Initiative? noncredit instruction. If the Legislature wished to Should the State More Clearly Delineate the expand access to CDCP instruction to more areas Roles of Credit and Noncredit CCC Instruction? of the state, it could then direct the Chancellor’s Were the state to fund credit and CDCP instruction Office to provide additional guidance to colleges at different rates in the future, it would need a interested in developing CDCP programs. clearer distinction between the two categories. In How Should the State Measure the our 2012 report, Restructuring California’s Adult Effectiveness of CDCP Programs? With continued Education System, we recommended the Legislature growth in the number of—and enrollment in— restrict credit instruction in English and ESL to CDCP certificate programs, a better understanding transfer-level coursework, such that colleges would of the value of these programs to students and the offer precollegiate-level courses in those disciplines state is increasingly important. The Legislature on a noncredit basis. We also recommended could direct the Chancellor’s Office to include the Legislature restrict credit math instruction noncredit students in existing or new adult and to courses at or above the level of Intermediate workforce education performance measures. Algebra, and make math courses below that level Program-specific completion rates and workforce noncredit. In addition, we recommended the outcomes (such as employment and earnings) for Legislature convene a work group to clarify the students in noncredit certificate programs could be definitions of credit and noncredit vocational especially valuable to policymakers and prospective instruction. The Legislature could revisit these students. recommendations in the context of Chapter 34 and colleges’ subsequent expansion of CDCP instruction. www.lao.ca.gov Legislative Analyst’s Office 17 AN LAO REPORT CONCLUSION Overall, we find that Chapter 34 has had legislative and budget developments since passage some of the effects the Legislature intended—such of Chapter 34 raise new questions about how as leading to some expansion of higher-cost best to support CCC noncredit instruction. Also, noncredit programs, improving the organization a previous issue regarding lack of delineation and potentially the quality of CDCP instruction, between credit and noncredit instruction remains and expanding enrollment in CDCP courses. unresolved, and the state has limited data to These conclusions are preliminary, however, given evaluate the effectiveness of CDCP programs. By that only one year of data is available following considering these issues as it makes future policy implementation of Chapter 34. Moreover, and funding decisions, we believe the Legislature expansion has not been targeted to key areas, as the could improve the effectiveness of noncredit state provides the new funding rate for all CDCP instruction in meeting the needs of the state and its enrollment, including in low-cost and previously community college students. existing certificate programs. Additionally, 18 Legislative Analyst’s Office www.lao.ca.gov AN LAO REPORT www.lao.ca.gov Legislative Analyst’s Office 19 AN LAO REPORT LAO Publications This report was prepared by Judy Heiman and reviewed by Paul Steenhausen. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814. 20 Legislative Analyst’s Office www.lao.ca.gov