The 2022-23 Budget: Office of Planning and Research Higher Education Proposals

The 2022-23 Budget: Office of Planning and Research Higher Education Proposals MAY 2022 Summary. The Governor has three January Background higher education proposals within the Office of CELL Supports Development of Online Higher Planning and Research (OPR) budget. We have Education Course Content. Created in 2018-19, concerns with all three proposals. The first proposal, the purpose of CELL is to identify and extend which provides the California Education Learning best practices in lower-division online and hybrid Laboratory (CELL) a $3 million ongoing General courses in science, technology, engineering, and Fund augmentation, would support activities that mathematics (STEM) at the University of California overlap with higher education campuses’ core (UC), California State University (CSU), and activities. The second proposal, which provides California Community Colleges (CCC). The program $30 million one-time General Fund for an innovation accomplishes this objective primarily by awarding award program, shares many of the shortcomings competitive grants to intersegmental faculty teams, of previous higher education innovation programs which in turn develop the online course content. and lacks focus. We recommend rejecting Beyond awarding grants for new online course these two proposals. The third proposal, which content, state law allows CELL to undertake other provides $20 million to the Carnegie Institution actions to support instructional best practices, such for Science (Carnegie Science) for a construction as supporting faculty professional development and project, supports a private entity’s capital project developing a “best of” library of online materials. despite many unaddressed state capital issues. State Reduced Funding for CELL During We recommend the Legislature weigh this Pandemic. The 2018-19 budget provided proposal against its other budget priorities. If the $10 million ongoing General Fund to OPR for Legislature deems this proposal a high priority, CELL. As part of its package of solutions to an we recommend adding budget language both to anticipated pandemic-related budget problem in clarify the state’s role in the project and establish 2020-21, the state reduced ongoing support for reporting requirements. CELL by $2 million (to $8 million). According to the administration, CELL managed this reduction by INTRODUCTION awarding fewer grants, supporting less professional OPR is tasked by state law to support statewide development, and delaying development of its best planning and research activities. Among its many of library. activities, the office has overseen certain higher Program Has Supported A Total of 250 education initiatives. This post analyzes three higher Courses. According to CELL, from fall 2019 education OPR proposals in the Governor’s January through spring 2022, a total of 250 STEM courses budget for 2022-23. The remaining three sections of used CELL-funded content. (A course is counted the post analyze each proposal. each time it was provided by a campus. Thus, a course provided once per academic year at three CALIFORNIA EDUCATION campuses over the three-year period is counted as LEARNING LABORATORY nine courses.) Of these courses, CELL estimates 38 percent were at CCC, 31 percent were at CSU, This section provides background on CELL, 20 percent were at UC, and 11 percent were at describes the Governor’s proposal to augment high schools. (According to CELL, the 11 percent CELL’s ongoing funding, assesses the proposal, and of courses offered at high schools were part of offers an associated recommendation. 2022-23 Budget Series 1 intersegmental projects focused on advanced-level segments (happening on a much larger and broader math.) CELL estimates about 40,000 students scale), the advantage of augmenting a small, took these courses over the three-year period. separate program is unclear. For comparison, at CCC (the only segment that Pandemic Is Accelerating Campus Efforts to publicly reports course-level enrollment data), Increase and Improve Online Course Content. 334,472 students enrolled in general math courses When the state first provided CELL $10 million in the (one of the STEM areas) in fall 2020 (one of the terms 2018-19 budget, campuses had not yet experienced of the period). the rapid transition to remote instruction brought on by the COVID-19 pandemic. Since the start of Proposal the pandemic in early 2020, campuses and faculty Governor Proposes $3 Million Ongoing have devoted more resources and attention to online General Fund for CELL. Of this amount, education. Over the past two years, campuses also $2 million would restore CELL’s ongoing base to have allocated a portion of their COVID-19-related its pre-pandemic level of $10 million. According federal relief funds to improve their online courses to the administration, this restored base would and support associated faculty professional allow the program to offer more grants, support development. Moreover, campuses indicate that more professional development, resume efforts to they have been more closely examining their online develop its best of library, and host intersegmental courses and seeking to sustain lessons learned over convenings on effective pedagogical practices. the past couple of years. Given the enhanced level of The remaining $1 million would support the campus engagement with online education since the expansion of a free, online, adaptive learning onset of the pandemic, the administration has not homework system. The existing system, which made a strong case to restore CELL’s budget to its was developed by faculty at UC Davis, CSU San pre-pandemic level. Bernardino, and Mendocino College for introductory CELL Has Flexibility to Scale Promising chemistry, was supported by a one-time CELL Initiatives From Its Base Funding. To the extent grant. According to CELL staff, the ongoing funding CELL identifies promising new course content or would enable faculty to expand the system for more other effective interventions, it has discretion to chemistry courses and STEM subjects, as well as prioritize its $8 million in base support to further improve the system’s current functionality. scale those efforts. Given this flexibility, the administration has not made a strong case to provide Assessment CELL augmentations for specific initiatives. Campuses Already Have Been Expanding Online Course Development. As we noted in past Recommendation years, (for example, in our brief The 2018-19 Budget: Reject Proposal. Given the issues we discuss The California Education Learning Lab), CELL’s core above, we recommend rejecting the proposed mission overlaps with activities campuses already $3 million augmentation for CELL. In lieu of are undertaking. As part of the base ongoing support augmenting CELL’s budget, the Legislature could they receive from the state, campuses already are redirect the funds toward its other ongoing higher expected to develop online content, provide faculty education budget priorities, including those aimed at professional development, and improve student expanding access to higher education or improving outcomes. Moreover, beyond base support, the student outcomes. state provides each segment with targeted ongoing funding specifically for online course development GOLDEN STATE AWARDS and related faculty professional development. The This section provides background on past state also provides funding to CSU and CCC for higher education innovation awards, describes activities intended to boost student outcomes and the Governor’s proposed Golden State Awards close achievements gaps between certain student initiative, assesses the proposal, and offers an groups. Given the numerous existing activities associated recommendation. that already are occurring across the three public 2022-23 Budget Series 2 Background Proposal State Has Provided Higher Education Proposes $30 Million One-Time General Innovation Awards. In every budget cycle from Fund for New Round of Innovation Awards. 2014-15 to 2021-22, Governors have proposed The Golden State Awards initiative would support one-time initiatives to support innovative practices at least 20 awards to individuals or teams at at the state’s public higher education institutions or associated with the public higher education intended to improve student outcomes. The segments who have developed or are developing Legislature approved these initiatives in some innovative practices. Compared to past innovation years and rejected them in other years. As Figure 1 award programs, this initiative has a broader set of shows, the initiatives that were approved by objectives. Grant awards could cover any activity the Legislature have varied in numerous ways. deemed innovative and high impact, including Some grant initiatives rewarded higher education but not limited to programs that improve student institutions for existing programs, while in other outcomes, research on climate change, and years the grants supported new approaches. research on low-carbon industries. CELL would Some initiatives supported programs at all of the administer the grant program, with oversight from segments, while others were targeted at specific a 12-member grant selection committee, with segments (such as the community colleges) or 10 members appointed by the Governor, 1 member specific regions (such as the San Joaquin Valley by the President pro Tempore of the Senate, and and Inland Empire). Some grants were allocated 1 member by the Speaker of the Assembly. CELL through a special committee, whereas others were would have three years to award the funds. It would allocated by state agencies. be required to report by January 1, 2026 on how it allocated the awards. Figure 1 Governor’s Higher Education Innovation Proposals Have Varied Over the Years One-Time General Fund (In Millions) Budget Funding Affected Segments Focus Administering Entity 2014-15 $50a CCC, CSU, and UC Bachelor’s degree production, four-year Award committee with completion, and transfer from community appointed members colleges 2015-16b 25 CSU Four-year completion Award committee with appointed members 2016-17 25c CCC Curriculum redesign, competency-based Award committee with education, and financial aid access appointed members 2017-18 20c CCC Instructional technology and outcomes for CCC Chancellor’s Office specified student groups 2018-19b 20c CCC Achievement gaps, excess units, and CCC Chancellor’s Office employment outcomes for career- technical education students 2019-20 10 K-12, CCC, CSU, and UC K-12 and higher education alignment, Office of Planning and campuses in San Joaquin college participation, and college Research Valley and Inland Empire completion 2020-21b 17 Education institutions in the Intersegmental academic pathways Office of Planning and greater Fresno region Research 2021-22 250 K-12, CCC, CSU, and UC Intersegmental academic pathways in health Department of General campuses care, education, business management, Services and engineering a Of this amount, $23 million was Proposition 98 General Fund. b Proposal ultimately was not adopted in final budget. c All Proposition 98 General Fund. 2022-23 Budget Series 3 Assessment Background Innovation Awards Have Unclear Statewide Carnegie Science Conducts Research. Benefit. Past innovation award initiatives have Founded in 1902, Carnegie Science is a nonprofit had a few basic shortcomings—all of which also organization that conducts research on astronomy, apply to the Governor’s new award initiative. life sciences, and earth sciences, among other One shortcoming is the initiative would provide subjects. It is headquartered in Washington D.C. relatively large sums to a small number of recipients and conducts research at several sites nationally without any clear mechanism for disseminating and abroad. In California, it has sites in Stanford best practices. A related shortcoming is that and Pasadena. According to Carnegie Science, in the initiative is unclear in how selected activities 2019-20 (the most recent year of data available), it would be sustained and scaled, in turn potentially supported a total of 67 researchers across its sites. creating considerable future cost pressure for Carnegie Science Is Primarily Supported the state. A third shortcoming is that the added From an Endowment. As a private entity, Carnegie value of rewarding existing activities potentially Science does not receive direct appropriations begun without state direction, funding, or reporting from the state to support its operations or facilities. is questionable. For its operating costs, it relies on investment Proposed Award Initiative Lacks Focus. income from its endowment. Similar to other Though innovation award initiatives by design are endowed institutions, a portion of the endowment problematic, the Governor’s proposal is especially income Carnegie Science earns must be spent concerning given its broad scope ranging from on donor-specific activities (such as supporting higher education to climate change to any other specific research topics), with the remaining area of interest to the administration. This lack funds unrestricted. Carnegie Science also relies of focus almost certainly would undermine the on government and private research grants and initiative’s ability to meaningfully impact any one contracts (primarily from the federal government) area. The broad scope also means the program to support specific research projects and activities. likely overlaps with other existing state efforts. Comprehensive information is not readily available For example, the state has funded research on on how Carnegie Science has funded previous climate-related issues through other programs facility construction projects. and departments. Certain Capital Projects Are Excluded From State Appropriations Limit (SAL). As we noted Recommendation in our recent report The State Appropriations Reject Golden State Awards. Given its Limit, the California Constitution limits the amount fundamentally poor design, we recommend the of revenue the state can appropriate each year. Legislature reject the proposed $30 million General The state, however, can exclude appropriations Fund and redirect the funds toward other high for certain capital outlay projects from the SAL one-time priorities. calculation. For this purpose, state law defines a capital project to be an appropriation supporting a CARNEGIE INSTITUTION fixed asset with a useful life of ten or more years and FOR SCIENCE a value of at least $100,000. This section provides background on Carnegie Proposal Science, describes the Governor’s proposal to Governor Proposes $20 Million One-Time support construction of a new Carnegie Science General Fund for New Carnegie Science Facility facility, assesses the proposal, and offers an in Pasadena. Budget bill language indicates associated recommendation. these funds are to “support a grant to Carnegie Science for a research hub facility.” No other detail is provided for this proposal in budget or trailer bill language. According to information 2022-23 Budget Series 4 released by Carnegie Science, the proposal would research at the proposed Carnegie Science facility support the construction of a 135,000 square would align with state research priorities or be foot facility in Pasadena. The building would coordinated with other state efforts. As a private colocate the institution’s global ecology, plant entity, Carnegie Science would have flexibility to set biology, and embryology departments. (The first its own research agenda based on its priorities, as two departments currently are located in Stanford well as the priorities specified from private donors and the third department currently is located in and government grants and contracts. Moreover, Maryland.) The administration states that the total the Legislature would have no recourse to hold the cost of the project is expected to be $120 million private entity accountable were the research not to and that the institution currently is raising private meet state objectives. funding to cover the remaining $100 million in State Has Many Higher Capital Priorities. For project costs. No information was provided on the example, UC estimates having a facility maintenance project’s time line. backlog of $7.3 billion, as well as an approximately Proposal Is Part of Governor’s Climate $15.5 billion cost to bring all of its academic facilities Package. In the Governor’s Budget Summary, the up to seismic standards. Some of these renovations Governor includes this facility project in his package and seismic upgrades involve UC’s research of climate change budget proposals. (We describe facilities. The state’s total deferred maintenance the other higher education climate change proposals and seismic renovation need across all agencies in The 2022-23 Budget: UC Climate-Related is far greater than just the UC amounts, though an Proposals and The 2022-23 Budget: California exact estimate statewide is not available. Addressing State University.) In its brief description of the critical maintenance and seismic renovation project, Carnegie Science also characterizes the projects across state agencies are important overall focus of the new building to be on climate budget issues as they involve mitigating life-safety change mitigation and adaptation research. In hazards, avoiding disruptions to state programs, and correspondence with our office, the Department minimizing future escalation in repair costs. These of Finance cited the following potential research projects also qualify as SAL-excludable. In light areas: “climate impacts on ecosystems and human of these critical state facility issues, funding the communities to clarify ongoing changes; plant construction of a private facility that houses nonstate biology, crop productivity, and biofuel efficiency activities is particularly questionable. to combat global hunger; and materials science to Recommendation improve water quality and solar panel efficiency.” Weigh Proposal Against Other Climate Proposal Excluded From SAL. As the proposal Change and Capital Priorities. Given the issues supports construction of a new building, the raised above, we recommend the Legislature weigh administration excludes the proposed $20 million this proposal against its other climate change and from the SAL. capital priorities and consider alternatives to funding Assessment a portion of Carnegie Science’s new facility. For No Guarantee Carnegie Science’s Research example, were the Legislature interested in funding Would Align With State Efforts. As we noted more climate change research, it could redirect the in our recent post The 2022-23 Budget: UC funds to other existing state climate change research Climate-Related Proposals, the state in recent initiatives. Alternatively, if the Legislature wants to years has sought to coordinate various climate support more SAL-excludable capital projects, it change activities, including research, among could redirect the funds to high-priority state capital its various environmental protection and natural projects. (Were the Legislature to redirect the funds resource agencies. This is because of the to an activity that is not SAL-excludable, it likely multifaceted nature of climate change, which would want to identify a like amount of funding touches on many areas of state government. The for other excludable capital projects to meet the Legislature, however, has no guarantee that the SAL expectation.) 2022-23 Budget Series 5 Ensure Any State Funding in This Area Is donations. Third, we recommend requiring OPR (as Connected to State Objectives. After weighing the agency administering the funds) to report on the these alternatives, if the Legislature still deems the Carnegie Science facility upon its completion. At a Carnegie Science project to be a high priority, we minimum, this report should include (1) a summary recommend adopting three modifications. First, of the construction project’s scope, time line, and we recommend adopting intent language clarifying costs; and (2) a description of the specific research that the research at the facility is to assist the activities at the facility and how these activities state in attaining its greenhouse gas reduction will support state climate change mitigation and goals and support its climate change adaptation adaptation efforts. These modifications would efforts. Second, we recommend adopting intent offer the Legislature better information as to the language specifying that Carnegie Science, rather statewide benefit of supporting the construction of than the state, will be responsible for covering any the new facility. unanticipated project costs or shortfalls in private 2022-23 Budget Series 6 2022-23 Budget Series 7 LAO PUBLICATIONS This post was prepared by Jason Constantouros, and reviewed by Jennifer Pacella and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 8