Bill Text: CA SB88 | 2013-2014 | Regular Session | Amended
Bill Title: Education finance: higher education.
Spectrum: Slight Partisan Bill (Democrat 11-4)
Status: (Engrossed - Dead) 2013-06-13 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. (Corrected June 15.) [SB88 Detail]
Download: California-2013-SB88-Amended.html
BILL NUMBER: SB 88 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 13, 2013
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 10, 2013
An act relating to the Budget Act of 2013.
An act to add Sections 69515.5, 89762, 92493, 92494, 92495, 92495.5,
and 9249 6 to, to add Article 22 (commencing with Section
70020) to Chapter 2 of Part 42 of Division 5 of, to add Article 10
(commencing with Section 89290) and Article 10.5 (commencing with
Section 89295) to Chapter 2 of Part 55 of Division 8 of, to add
Article 7.5 (commencing with Section 92670) and Article 7.7
(commencing with Section 92675) to Chapter 6 of Part 57 of Division 9
of, Title 3 of, the Education Code, and to add Section 13313 to the
Government Code, relating to education finance, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 88, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2013. Education finance: higher
education.
(1) Existing law establishes the Student Aid Commission as the
primary state agency for the administration of state-authorized
student financial aid programs available to students attending all
segments of postsecondary education. Under existing law, the
commission, among other things, administers the Cal Grant Program,
the Student Opportunity and Access Program, the Assumption Program of
Loans for Education, the Graduate Assumption Program of Loans for
Education, the Public Interest Attorney Loan Repayment Program, and
the California State Work-Study Program. The commission also oversees
the state's participation in the Federal Family Education Loan
Program.
This bill would authorize the commission to enter into an
agreement with a public agency of a state other than California, or a
private entity related to an agency of another state, to assist the
other agency or entity in implementing financial aid programs,
including assistance with processing grants, fellowships, and loans
through the use of automated information systems. The bill would
create a Financial Aid Technical Assistance Fund, and would make
moneys in the fund available to the commission, upon appropriation by
the Legislature, for purposes of the bill. The bill would require
the commission to establish fees for services provided under the
bill, and would require that the fees be deposited in the fund. The
bill would authorize the use of residual moneys in the fund for
improvement of financial aid services for California. The bill would
require the commission, beginning October 1, 2014, to submit an
annual report, as prescribed, to the Department of Finance and the
Joint Legislative Budget Committee detailing the total revenues
collected in the fund, by service provided and applicable fee
collected, and the use of the moneys in the fund.
(2) Existing law provides for a public postsecondary education
system in this state. This system consists of the University of
California, the California State University, and the California
Community Colleges. Existing law authorizes these institutions to
require that mandatory systemwide fees and tuition, among other fees,
be paid by students at these institutions.
This bill would establish the Middle Class Scholarship Program
under the administration of the Student Aid Commission. The bill
would provide that, subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year,
undergraduate students enrolled at the University of California or
the California State University would receive a scholarship award
that, combined with other publicly funded student financial aid, as
defined, received by an eligible student, would be up to 40% of the
amount charged to that student for mandatory systemwide tuition in
that fiscal year if the student meets the following conditions: has
an annual household income that does not exceed $150,000; satisfies
specified requirements for a Cal Grant award; is a resident of this
state or exempt from paying nonresident tuition; files specified
financial aid forms; makes timely application or applications for
publicly funded student financial aid, as defined, for which he or
she is eligible; and maintains at least a 2.0 grade point average.
The bill would provide that a student whose annual household
income exceeds $100,000, but does not exceed $150,000, and who
otherwise meets the program requirements, would receive a scholarship
award that is reduced in accordance with prescribed calculations.
The bill would require, in order for students enrolled in their
respective segments to remain eligible to receive financial aid under
the bill, that the University of California and the California State
University maintain their respective institutional need-based grant
program policies and maintain their funding amounts at a level that,
at a minimum, is equal to the level maintained during the 2013-14
academic year.
The bill would require the Student Aid Commission to annually
determine if the amounts appropriated under the bill in each fiscal
year are sufficient to cover the costs of the scholarships as
projected to be awarded pursuant to the program. The bill would
require, if those amounts are not sufficient for this purpose, that
the scholarships be reduced proportionately by an equal percentage
for all recipients of scholarships under the bill.
The bill would establish the Middle Class Scholarship Fund, and
would specify amounts to be transferred, upon the order of the
Director of Finance, from the General Fund to the Middle Class
Scholarship Fund for annual appropriation to the Student Aid
Commission for allocation for purposes of the bill. The bill,
beginning with the 2014-15 fiscal year, would require the Department
of Finance to include in the Governor's Budget proposal a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the 2 immediately preceding
fiscal years.
(3) Existing law establishes the California State University,
under the administration of the Trustees of the California State
University, as one of the segments of public postsecondary education
in this state.
This bill would require the California State University to report
biennially to the Legislature and the Department of Finance,
beginning on or before October 1, 2014, and on or before October 1 of
each even-numbered year through 2020, on the total costs of
education at the university on a systemwide and campus-by-campus
basis, as specified.
This bill, commencing with the 2013-14 academic year, would
require the California State University to report, by March 1 of each
year, on specified performance measures, including various
calculations of graduation rates and amounts spent per degree, for
the preceding academic year.
This bill would require the contributions of the California State
University to the Public Employees' Retirement Fund to be based on
pensionable compensation and the rates set forth in the annual Budget
Act and to be paid out of the total appropriation of the university
in the annual Budget Act. The bill would specify that, beginning in
the 2013-14 fiscal year and each fiscal year thereafter, annual
adjustments to the appropriation for the pension contributions of the
California State University would be based on the university's
pensionable payroll for the 2013-14 fiscal year, as identified by the
Controller's office.
This bill would authorize the Director of Finance to defer payment
of General Fund moneys, in a cumulative amount not to exceed
$250,000,000 annually, appropriated to the California State
University in the annual Budget Act, for payment in May or June of
the same fiscal year for which the original payment would have been
made.
(4) Existing law creates the University of California,
administered by the Regents of the University of California, as one
of the segments of public postsecondary education in the state. The
University of California operates campuses at Berkeley, Davis,
Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco,
Santa Barbara, and Santa Cruz.
Existing law authorizes the University of California to issue
revenue bonds, secured by a specified pledge of revenues.
This bill would authorize the University of California to pledge
its annual General Fund support appropriation, less certain amounts,
to secure the payment of its general revenue bonds or commercial
paper associated with the general revenue bond program. The bill
would authorize the university to fund debt service for capital
expenditures, as defined, from its General Fund support
appropriation, as specified. The bill would provide that these
provisions do not require the Legislature to make an appropriation
from the General Fund to the university in any specific amount. The
bill would also authorize the university to fund pay-as-you-go
capital outlay projects from its General Fund support appropriation,
as specified.
This bill would require the University of California, if it is
able to reduce annual debt service costs by refunding, defeasing, or
retiring general obligation bonds or State Public Works Board lease
revenue bonds pursuant to these provisions, to annually contribute an
equal amount to reduce the existing unfunded liability of the
University of California Retirement Plan.
This bill would require the University of California to report to
the Joint Legislative Budget Committee and the Department of Finance
if it plans to use any of its support appropriation for capital
outlay projects in each fiscal year, as specified. The bill would
require the committee and the department to review the report by
specified dates, and would authorize the department to approve
capital outlay projects pursuant to specified procedures. The bill
would also require the university to submit a progress report by
April 1 of each year to the committee and the department detailing
the scope and funding of each project.
The bill would require the university to manage its general
revenue bond program so that not more than 15% of its General Fund
support appropriation, less a prescribed amount, is used for the
total of the following: debt service for specified capital
expenditures, pay-as-you-go capital outlay, and State Public Works
Board rental payments.
This bill would require the University of California to report
biennially to the Legislature and the Department of Finance,
beginning on or before October 1, 2014, and on or before October 1 of
each even-numbered year through 2020, on the total costs of
education at the university on a systemwide and campus-by-campus
basis, as specified.
This bill, commencing with the 2013-14 academic year, would
require the University of California to report, by March 1 of each
year, on specified performance measures, including various
calculations of graduation rates and amounts spent per degree, for
the preceding academic year.
This bill would appropriate $375,000 from the 1996 Higher
Education Capital Outlay Bond Fund to the University of California
for the purpose of funding the equipment phase of the Science and
Engineering Building at the Merced campus, as specified, during the
2013-14 fiscal year, with the appropriation available for encumbrance
until June 30, 2016, subject to the enactment of a resolution by the
Regents of the University of California requiring the payment of
prevailing wage rates by the contractors and subcontractors working
on this project, and all other capital outlay projects undertaken by
the University of California that are funded using nonstate funds or
are otherwise not financed with the funds appropriated for this
project, during the 2013-14 fiscal year.
This bill would require the University of California to allocate
and encumber from a specified appropriation the amount necessary to
pay in full all amounts that are reasonably anticipated to become due
and payable during the 2013-14 fiscal year for lease revenue and
general obligation bond debt service. The bill would require the
Controller to transfer funds from the specified appropriation in
accordance with specified schedules.
This bill would allocate $15,000,000 from a specified
appropriation in the Budget Act of 2013 to the Regents of the
University of California for the School of Medicine at the University
of California, Riverside, for specified purposes.
The bill would require, on or before April 1 of each year, the
University of California to provide progress reports and specified
information consistent with the published mission and vision of the
University of California, Riverside, School of Medicine to the
relevant policy and fiscal committees of the Legislature pertaining
to funding, recruitment, hiring, and outcomes for the University of
California, Riverside, School of Medicine.
The bill would declare that the absence of language in the Budget
Act of 2013 specifying that the University of California and the
Hastings College of the Law shall use budgeted funds for retirement
costs is not an indication of legislative support for, or acceptance
of, increased retirement costs being paid for by employees of the
University of California and the Hastings College of the Law.
(5) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2013.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 69515.5 is added to the
Education Code , to read:
69515.5. (a) The commission may enter into an agreement with a
public agency of a state other than California, or a private entity
related to an agency of another state, to assist the other agency or
entity in implementing student financial aid programs, including
providing assistance with processing grants, fellowships, and loans
through the use of automated information systems. The commission may
receive payment, reimbursement, or other resources as consideration
for services provided pursuant to agreements entered into under this
section.
(b) The commission shall establish fees for services it provides
pursuant to this section in order to recover, at a minimum, the full
costs of providing those services, including all direct and indirect
costs.
(c) The Financial Aid Technical Assistance Fund is hereby created
in the State Treasury, and moneys in the fund shall be available,
upon appropriation by the Legislature to the commission, for the
direct and indirect costs of providing assistance to agencies and
entities of other states with implementation of Dream Act programs
and to improve financial aid services for California. The commission
shall deposit the proceeds of the fees established under this section
into the fund. Only the moneys received for purposes of this section
shall be deposited into the fund. The fund shall be credited with
all of the investment income earned by the moneys deposited in the
fund. Moneys in the fund are not part of the General Fund as defined
in Section 16300 of the Government Code.
(d) The commission shall use moneys deposited in the fund for all
costs associated with providing technical assistance to agencies of
states other than California, and related private entities, pursuant
to this section, and moneys remaining in the fund after those costs
are retired shall be used to improve student financial aid services
for California. Prior to the expenditure of these residual funds, the
commission shall submit a detailed expenditure plan for approval by
the Department of Finance as part of the annual budget process.
(e) Beginning October 1, 2014, the commission shall submit an
annual report to the Department of Finance and the Joint Legislative
Budget Committee detailing the total revenues collected in the fund,
by service provided and applicable fee collected, and the use of the
moneys in the fund.
SEC. 2. Article 22 (commencing with Section 70020)
is added to Chapter 2 of Part 42 of Division 5 of Title 3
of the Education Code , to read:
Article 22. Middle Class Scholarship Program
70020. The Middle Class Scholarship Fund is hereby established in
the State Treasury. Moneys in the fund shall be allocated, in
accordance with this article, to make higher education more
affordable.
70021. The Middle Class Scholarship Program is hereby established
under the administration of the Student Aid Commission. For purposes
of this article, "commission" means the Student Aid Commission.
70022. (a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University or
the University of California who meets the requirements of paragraph
(2) is eligible for a scholarship award as described in that
paragraph.
(2) Each academic year, except as provided in paragraphs (3) and
(4), a student shall receive a scholarship award in an amount that,
combined with other publicly funded student financial aid received by
an eligible student, is up to 40 percent of the amount charged to
that student in that academic year for mandatory systemwide tuition,
if all of the following requirements are met:
(A) The student's annual household income does not exceed one
hundred fifty thousand dollars ($150,000). For purposes of this
article, annual household income shall be calculated in a manner that
is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7
(commencing with Section 69430)) and Section 69506.
(B) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student who is
exempt from nonresident tuition under Section 68130.5 shall not be
required to satisfy the requirements of subdivision (a) of Section
69433.9.
(C) The student is exempt from paying nonresident tuition.
(D) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. If the student is not able
to complete a FAFSA application, the student submits an application
determined by the commission to be equivalent to the FAFSA
application for purposes of this article.
(E) The student makes a timely application or applications for
publicly funded student financial aid from programs for which he or
she is eligible, other than the program established by this article.
For purposes of this article, "publicly funded student financial aid"
shall be defined as the federal Pell Grant Program, the Cal Grant
Program, and institutional need-based grants.
(F) The student maintains at least a 2.0 grade point average in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7
(commencing with Section 69430)).
(3) The scholarship award under this article to a student whose
annual household income is greater than one hundred thousand dollars
($100,000), and who otherwise meets the requirements of paragraph
(2), shall be reduced by 0.6-percent increments, from a maximum 40
percent of mandatory systemwide tuition for an academic year to a
minimum 10 percent of mandatory systemwide tuition for an academic
year, per one thousand dollars ($1,000) of annual household income in
excess of one hundred thousand dollars ($100,000), provided that no
scholarship award shall be provided to a student with an annual
household income of one hundred fifty thousand dollars ($150,000) or
more. This reduction shall be in addition to any reduction required
by subdivision (e) of Section 70023.
(4) For the 2014-15, 2015-16, and 2016-17 academic years, the
maximum amount of a student's scholarship award shall be 35 percent,
50 percent, and 75 percent, respectively, of the total scholarship
award amount that the student would otherwise be eligible to receive.
(b) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship under this article, the
University of California and the California State University shall
maintain their respective institutional need-based grant program
policies, and shall maintain their funding amounts at a level that,
at a minimum, is equal to the level maintained during the 2013-14
academic year.
(c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.
70023. (a) For each academic year, the commission shall determine
an amount sufficient, when combined with Cal Grants, Pell Grants,
and institutional need-based grants received by eligible students
from other sources, to provide scholarships to eligible students in
the amounts described in paragraphs (2) and (3) of subdivision (a) of
Section 70022. The University of California and the California State
University shall provide the commission with any financial aid data
that are necessary for the determination of these amounts.
(b) The commission shall annually determine if the amounts
appropriated under this section in each fiscal year are sufficient to
cover the costs of the scholarships as projected to be awarded
pursuant to the program. If those amounts are not sufficient for this
purpose, the scholarships shall be reduced proportionately by an
equal percentage for all recipients of scholarships under this
article.
(c) The commission may adopt regulations necessary to carry out
the purposes of this article under subdivision (b) as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of the Administrative Procedure Act, including Section
11349.6 of the Government Code, the adoption of those regulations
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, notwithstanding subdivision (e) of Section 11346.1 of the
Government Code. Notwithstanding subdivision (e) of Section 11346.1
of the Government Code, any regulation adopted pursuant to this
section shall not remain in effect more than 180 days unless the
commission complies with all provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, as required by subdivision (e) of Section 11346.1 of
the Government Code.
(d) The unencumbered balance, as of June 30 of each fiscal year,
of the amount appropriated from the Middle Class Scholarship Fund
pursuant to paragraph (1) of subdivision (e) shall revert to the
General Fund.
(e) (1) Upon order of the Director of Finance, the following
amounts shall be transferred from the General Fund to the Middle
Class Scholarship Fund, and are hereby appropriated to the commission
for allocation pursuant to this article:
(A) For the 2014-15 fiscal year, one hundred seven million dollars
($107,000,000).
(B) For the 2015-16 fiscal year, one hundred fifty-two million
dollars ($152,000,000).
(C) For the 2016-17 fiscal year, two hundred twenty-eight million
dollars ($228,000,000).
(D) For the 2017-18 fiscal year and for each fiscal year
thereafter, three hundred five million dollars ($305,000,000).
(2) An annual appropriation to the commission is hereby
established in the amounts and for the fiscal years described in
paragraph (1) to carry out the purposes of this section and Section
70022.
(3) The funds transferred and appropriated pursuant to paragraph
(1) shall only be available for encumbrance in the fiscal year in
which they are transferred, and the General Fund shall have no
liability or any obligation beyond the transfers explicitly
authorized in paragraph (1) unless a subsequent transfer or
allocation is required pursuant to statute.
(4) In any fiscal year, additional appropriations may be enacted
pursuant to statute to carry out the purposes of this article.
(5) (A) Beginning with the Governor's Budget proposal for the
2014-15 fiscal year, and in the Governor's Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the two immediately preceding
fiscal years prepared in accordance with existing law.
(B) Upon order of the Director of Finance and commencing with the
2013-14 fiscal year, if the May Revision projects a budget deficit
for the next fiscal year, the amount specified in paragraph (1) for
the fiscal year for which the budget deficit is projected may be
reduced by up to 33 percent. Upon order of the Director of Finance,
beginning with the 2016-17 fiscal year, and each year thereafter, if
the May Revision projects a deficit for the next fiscal year, the
amount specified in paragraph (1) may be reduced to an amount greater
than or equal to two hundred million dollars ($200,000,000).
(f) Subject to an appropriation in the annual Budget Act for its
purposes, the commission may begin implementation of, and establish
outreach services relating to, this article.
SEC. 3. Article 10 (commencing with Section 89290)
is added to Chapter 2 of Part 55 of Division 8 of Title 3
of the Education Code , to read:
Article 10. Expenditures for Undergraduate and Graduate
Instruction and Research Activities
89290. (a) The California State University shall report
biennially to the Legislature and the Department of Finance, on or
before October 1, 2014, and on or before October 1 of each
even-numbered year thereafter, on the total costs of education at the
California State University.
(b) The report prepared under this section shall identify the
costs of undergraduate education, graduate academic education,
graduate professional education, and research activities. All four
categories listed in this subdivision shall be reported in total and
disaggregated separately by health sciences disciplines, disciplines
included in paragraph (10) of subdivision (b) of Section 89295, and
all other disciplines. The university shall also separately report on
the cost of education for postbaccaulaureate teacher education
programs. For purposes of this report, research for which a student
earns credit toward his or her degree program shall be identified as
undergraduate education or graduate education, as appropriate.
(c) The costs shall also be reported by fund source, including all
of the following:
(1) State General Fund.
(2) Systemwide tuition and fees.
(3) Nonresident tuition and fees and other student fees.
(d) For any report submitted under this section before January 1,
2017, the costs shall, at a minimum, be reported on a systemwide
basis. For any report submitted under this section on or after
January 1, 2017, the costs shall be reported on both a systemwide and
campus-by-campus basis.
(e) A report to be submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
(f) Pursuant to Section 10231.5 of the Government Code, the
requirement for submitting a report under this section shall be
inoperative on January 1, 2021, pursuant to Section 10231.5 of the
Government Code.
SEC. 4. Article 10.5 (commencing with Section
89295) is added to Chapter 2 of Part 55 of Division 8 of
Title 3 of the Education Code , to read:
Article 10.5. Reporting of Performance Measures
89295. (a) For purposes of this section, the following terms are
defined as follows:
(1) The "four-year graduation rate" means the percentage of a
cohort that entered the university as freshmen that successfully
graduated within four years.
(2) The "six-year graduation rate" means the percentage of a
cohort that entered the university as freshmen that successfully
graduated within six years.
(3) The "two-year transfer graduation rate" means the percentage
of a cohort that entered the university as junior-level transfer
students from the California Community Colleges that successfully
graduated within two years.
(4) The "three-year transfer graduation rate" means the percentage
of a cohort that entered the university as junior-level transfer
students from the California Community Colleges that successfully
graduated within three years.
(5) "Low-income students" means students who receive a Pell Grant
at any time during their matriculation at the institution.
(b) Commencing with the 2013-14 academic year, the California
State University shall report, by March 1 of each year, on the
following performance measures for the preceding academic year, to
inform budget and policy decisions and promote the effective and
efficient use of available resources:
(1) The number of transfer students enrolled annually from the
California Community Colleges, and the percentage of transfer
students as a proportion of the total undergraduate student
population.
(2) The number of low-income students enrolled annually and the
percentage of low-income students as a proportion of the total
student population.
(3) The systemwide four-year and six-year graduation rates for
each cohort of students and, separately, for low-income students.
(4) The systemwide two-year and three-year transfer graduation
rates for each cohort of students and, separately, for each cohort of
low-income students.
(5) The number of degree completions annually, in total and for
the following categories:
(A) Freshman entrants.
(B) Transfer students.
(C) Graduate students.
(D) Low-income students.
(6) The percentage of first-year undergraduates who have earned
sufficient course credits by the end of their first year of
enrollment to indicate they will complete a degree in four years.
(7) For all students, the total amount of funds received from all
sources identified in subdivision (c) of Section 89290 for the year,
divided by the number of degrees awarded that same year.
(8) For undergraduate students, the total amount of funds received
from all sources identified in subdivision (c) of Section 89290 for
the year expended for undergraduate education, divided by the number
of undergraduate degrees awarded that same year.
(9) The average number of course credits accumulated by students
at the time they complete their degrees, disaggregated by freshman
entrants and transfers.
(10) (A) The number of degree completions in science, technology,
engineering, and mathematics (STEM) fields, disaggregated by
undergraduate students, graduate students, and low-income students.
(B) For purposes of subparagraph (A), "STEM fields" include, but
are not necessarily limited to, all of the following: computer and
information sciences, engineering and engineering technologies,
biological and biomedical sciences, mathematics and statistics,
physical sciences, and science technologies.
SEC. 5. Section 89762 is added to the
Education Code , to read:
89762. (a) The contributions of the California State University
to the Public Employees' Retirement Fund, as provided by Section
20822 of the Government Code, shall be based on pensionable
compensation and the rates set forth in the Budget Act, and shall be
paid out of the California State University total appropriation in
the annual Budget Act.
(b) Beginning in the 2013-14 fiscal year and each fiscal year
thereafter, annual adjustments to the budget allocation for
California State University pension contributions shall be based on
the university's actual 2013-14 fiscal year pensionable payroll, as
identified by the Controller's office, by funding source and state
member categories, and the incremental change in the rates set forth
in the annual Budget Act.
(c) Budget adjustments under this section shall not be made for
subsequent changes in payroll.
(d) Pension funding for the university shall be identified
annually in the Budget Act.
SEC. 6. Section 92493 is added to the
Education Code , to read:
92493. (a) The University of California may pledge, along with
its other revenues, its annual General Fund support appropriation
less the amount of that appropriation that is required to fund
general obligation bond payments and the State Public Works Board
rental payments, to secure the payment of any of the university's
general revenue bonds or commercial paper associated with the general
revenue bond program. To the extent the university pledges any part
of its support appropriation as a source of revenue securing any
obligation, it shall provide that this commitment of revenue is
subject to annual appropriation by the Legislature. The university
may fund debt service for capital expenditures defined in subdivision
(b) from its General Fund support appropriation pursuant to Sections
92495 and 92495.5. The state hereby covenants with the holders of
the university's obligations secured by the pledge of the university
permitted by this section that, so long as any of the obligations
referred to in this subdivision remain outstanding, the state will
not impair or restrict the ability of the university to pledge any
support appropriation or support appropriations that may be enacted
for the university. The university may include this covenant of the
state in the agreements or other documents underlying the university'
s obligations to this effect.
(b) For purposes of this section, "capital expenditures" shall
mean (1) the costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion of
infrastructure to serve academic programs, or (2) the debt service
amount associated with refunding, defeasing, or retiring State Public
Works Board lease revenue bonds.
(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.
(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future
increases in student tuition, additional employee layoffs, or
reductions in employee compensation at the University of California.
SEC. 7. Section 92494 is added to the
Education Code , to read:
92494. (a) The University of California may fund pay-as-you-go
capital outlay projects from its General Fund support appropriation
pursuant to Sections 92495 and 92495.5.
(b) For purposes of this section, "capital outlay project" shall
mean the costs to design, construct, or equip academic facilities to
address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion of
infrastructure to serve academic programs.
SEC. 8. Section 92495 is added to the
Education Code , to read:
92495. (a) Commencing with the 2013-14 fiscal year and for each
fiscal year thereafter, if the University of California plans to use
any of its support appropriation in the annual budget for the
subsequent fiscal year for capital expenditures pursuant to Section
92493, as defined in paragraph (1) of subdivision (b) of that
section, or for capital outlay projects pursuant to Section 92494, it
shall simultaneously submit, on or before September 1 nine months
before the commencement of that fiscal year, a report to the Joint
Legislative Budget Committee and the Department of Finance. This
report shall detail the scope of each capital outlay project or
expenditure and how it will be funded, and it shall provide the same
level of detail as a capital outlay budget change proposal. The
Department of Finance shall review the report and submit a list of
preliminarily approved projects to the Joint Legislative Budget
Committee by February 1. The Department of Finance shall submit a
final list of approved projects to the University of California no
earlier than April 1, three months before the commencement of the
fiscal year of the planned expenditures. The University of California
shall not proceed with any capital expenditures pursuant to Section
92493, as defined in paragraph (1) of subdivision (b) of that
section, or capital outlay projects pursuant to Section 92494, prior
to receiving approval from the Department of Finance pursuant to this
subdivision.
(b) For the 2013-14 fiscal year only, if the University of
California plans to use any of its support appropriation in the
annual budget for the 2013-14 fiscal year for capital expenditures
pursuant to Section 92493, as defined in paragraph (1) of subdivision
(b) of that section, or for capital outlay projects pursuant to
Section 92494, it shall simultaneously submit,
on or before August 1 of that fiscal year, a
report to the Joint Legislative Budget Committee and the Department
of Finance. This report shall detail the scope of each capital outlay
project or expenditure and how it will be funded, and it shall
provide the same level of detail as a capital outlay budget change
proposal. The Department of Finance shall review the report and
submit a list of preliminarily approved projects to the Joint
Legislative Budget Committee by November 1 of that fiscal year. The
Department of Finance shall submit a final list of approved projects
to the University of California no earlier than December 1 of that
fiscal year. The University of California shall not proceed with any
capital expenditures pursuant to Section 92493, as defined in
paragraph (1) of subdivision (b) of that section, or capital outlay
projects pursuant to Section 92494, prior to receiving approval from
the Department of Finance pursuant to this subdivision.
(c) Notwithstanding subdivision (b), the University of California
may use the authority provided in Section 92493 for the Merced
Classroom and Academic Office Building, as specified in Provision 3
of Item 6440-001-0001 of Section 2.00 of the Budget Act of 2013.
(d) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2014-15 fiscal year, on or before February 1 of
each fiscal year, the University of California shall simultaneously
submit a progress report to the Joint Legislative Budget Committee
and the Department of Finance detailing the scope, funding, and
current status of each capital expenditure undertaken pursuant to
Section 92493, as defined in paragraph (1) of subdivision (b) of that
section, and for each capital outlay project undertaken pursuant to
Section 92494.
SEC. 9. Section 92495.5 is added to the
Education Code , to read:
92495.5. The university shall manage its general revenue bond
program in a manner so that not more than 15 percent of its General
Fund support appropriation, less the amount of that appropriation
that is required to fund general obligation bond payments and State
Public Works Board rental payments, is used for the total of all of
the following:
(a) Debt service for capital expenditures pursuant to Section
92493.
(b) Pay-as-you-go capital outlay pursuant to Section 92494.
(c) State Public Works Board rental payments.
SEC. 10. Section 92496 is added to the
Education Code , to read:
92496. If the university is able to reduce annual debt service
costs by refunding, defeasing, or retiring general obligation bonds
or State Public Works Board lease revenue bonds, as described in
Section 92493, the university shall annually contribute an equal
amount to reduce the existing unfunded liability of the University of
California Retirement Plan.
SEC. 11. Article 7.5 (commencing with Section
92670) is added to Chapter 6 of Part 57 of Division 9 of
Title 3 of the Education Code , to read:
Article 7.5. Expenditures for Undergraduate and Graduate
Instruction and Research Activities
92670. (a) The University of California shall report biennially
to the Legislature and the Department of Finance, on or before
October 1, 2014, and on or before October 1 of each even-numbered
year thereafter, on the total costs of education at the University of
California.
(b) The report shall identify the costs of undergraduate
education, graduate academic education, graduate professional
education, and research activities. All four categories listed in
this subdivision shall be reported in total and disaggregated
separately by health sciences disciplines, disciplines included in
paragraph (10) of subdivision (b) of Section 92675, and all other
disciplines. For purposes of this report, research for which a
student earns credit toward his or her degree program shall be
identified as undergraduate education or graduate education.
(c) The costs shall also be reported by fund source, including all
of the following:
(1) State General Fund.
(2) Systemwide tuition and fees.
(3) Nonresident tuition and fees and other student fees.
(4) University of California General Funds, including interest on
General Fund balances and the portion of indirect cost recovery and
patent royalty income used for core educational purposes.
(d) For any report submitted under this section before January 1,
2017, the costs shall, at a minimum, be reported on a systemwide
basis. For any report submitted under this section on or after
January 1, 2017, the costs shall be reported on both a systemwide and
campus-by-campus basis.
(e) A report to be submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
(f) Pursuant to Section 10231.5 of the Government Code, the
requirement for submitting a report under this section shall be
inoperative on January 1, 2021, pursuant to Section 10231.5 of the
Government Code.
SEC. 12. Article 7.7 (commencing with Section
92675) is added to Chapter 6 of Part 57 of Division 9 of
Title 3 of the Education Code , to read:
Article 7.7. Reporting of Performance Measures
92675. (a) For purposes of this section, the following terms are
defined as follows:
(1) The "four-year graduation rate" means the percentage of a
cohort that entered the university as freshmen that successfully
graduated within four years.
(2) The "two-year transfer graduation rate" means the percentage
of a cohort that entered the university as junior-level transfer
students from the California Community Colleges that successfully
graduated within two years.
(3) "Low-income students" means students who receive a Pell Grant
at any time during their matriculation at the institution.
(b) Commencing with the 2013-14 academic year, the University of
California shall report, by March 1 of each year, on the following
performance measures for the preceding academic year, to inform
budget and policy decisions and promote the effective and efficient
use of available resources:
(1) The number of transfer students enrolled annually from the
California Community Colleges, and the percentage of transfer
students as a proportion of the total undergraduate student
population.
(2) The number of low-income students enrolled annually and the
percentage of low-income students as a proportion of the total
student population.
(3) The systemwide four-year graduation rates for each cohort of
students and, separately, for each cohort of low-income students.
(4) The systemwide two-year transfer graduation rates for each
cohort of students and, separately, for each cohort of low-income
students.
(5) The number of degree completions annually, in total and for
the following categories:
(A) Freshman entrants.
(B) Transfer students.
(C) Graduate students.
(D) Low-income students.
(6) The percentage of first-year undergraduates who have earned
sufficient course credits by the end of their first year of
enrollment to indicate they will complete a degree in four years.
(7) For all students, the total amount of funds received from all
sources identified in subdivision (c) of Section 92670 for the year,
divided by the number of degrees awarded that same year.
(8) For undergraduate students, the total amount of funds received
from the sources identified in subdivision (c) of Section 92670 for
the year expended for undergraduate education, divided by the number
of undergraduate degrees awarded that same year.
(9) The average number of course credits accumulated by students
at the time they complete their degrees, disaggregated by freshman
entrants and transfers.
(10) (A) The number of degree completions in science, technology,
engineering, and mathematics (STEM) fields, disaggregated by
undergraduate students, graduate students, and low-income students.
(B) For purposes of subparagraph (A), "STEM fields" include, but
are not necessarily limited to, all of the following: computer and
information sciences, engineering and engineering technologies,
biological and biomedical sciences, mathematics and statistics,
physical sciences, and science technologies.
SEC. 13. Section 13313 is added to the
Government Code , to read:
13313. (a) Notwithstanding any other law, in order to achieve
effective cash management of state resources, the Director of Finance
may defer payment of General Fund moneys, in a cumulative amount not
to exceed two hundred fifty million dollars ($250,000,000) annually,
appropriated to the California State University in the annual Budget
Act.
(b) The payment of the amount deferred shall be in May or June, as
established by the Director of Finance, of the same fiscal year that
the original payment would have been made.
SEC. 14. (a) Three hundred seventy-five thousand
dollars ($375,000) is hereby appropriated from the 1996 Higher
Education Capital Outlay Bond Fund to the University of California
for the purpose of funding the Merced Campus (1) 99.11.050-Science
and Engineering Building 2--Equipment phase during the 2013-14 fiscal
year, with this appropriation to be available for encumbrance until
June 30, 2016, if the requirements of subdivision (b) are met.
(b) The funds appropriated under subdivision (a) shall only be
available for expenditure if the Regents of University of California
act, by resolution, to require the payment of prevailing wage rates
by the contractors and subcontractors working on this project, and
all other capital outlay projects undertaken by the University of
California that are funded using nonstate funds or are otherwise not
financed with the funds appropriated for this project, during the
2013-14 fiscal year.
SEC. 15. (a) The University of California shall
allocate and encumber from the appropriation made pursuant to Item
6440-001-0001 of Section 2.00 of the Budget Act of 2013 the amount
necessary to pay in full all amounts that are reasonably anticipated
to become due and payable during the fiscal year for lease revenue
and general obligation bond debt service.
(b) Notwithstanding Section 16326 of the Government Code, the
Controller shall transfer funds appropriated pursuant to Item
6440-001-0001 of Section 2.00 of the Budget Act of 2013 in accordance
with schedules to be submitted as follows:
(1) The State Public Works Board shall submit a schedule or
schedules for rental, fees, and insurance associated with its lease
revenue bonds issued on behalf of the University of California.
Notwithstanding the payment dates in any related facility lease or
indenture, a schedule may provide for an earlier transfer of funds to
ensure debt requirements are met and base rental payments are paid
in full when due.
(2) (A) The Department of Finance shall submit a schedule or
schedules to reimburse the General Fund in an amount equal to the
required general obligation bond debt service costs attributed to the
University of California. Notwithstanding the payment dates in any
related debt service schedule for a bond issuance, a schedule
submitted by the Department of Finance may provide for an earlier
transfer of funds to ensure debt requirements are paid in full when
due.
(B) The Department of Finance shall submit a revised schedule of
reimbursements, as needed, to authorize the return of any funds to
Item 6440-001-0001 of Section 2.00 of the Budget Act of 2013 that
were previously transferred pursuant to this act and that are not
needed to fully reimburse debt service costs in the 2013-14 fiscal
year. Any funds returned pursuant to this subparagraph may be carried
over and expended in the 2014-15 fiscal year.
SEC. 16. (a) Of the moneys appropriated in Item
6440-001-0001 of Section 2.00 of the Budget Act of 2013, the sum of
fifteen million dollars ($15,000,000) is allocated to the Regents of
the University of California for the School of Medicine at the
University of California, Riverside.
(b) Funds provided pursuant to subdivision (a) shall be available
for planning and startup costs associated with academic programs to
be offered by the School of Medicine at the University of California,
Riverside, including all of the following:
(1) Academic planning activities, support of academic program
offerings, and faculty recruitment.
(2) The acquisition of instructional materials and equipment.
(3) Ongoing operating support for faculty, staff, and other annual
operating expenses for the School of Medicine at the University of
California, Riverside.
(c) The additional funds provided by this section for the School
of Medicine at the University of California, Riverside, shall only be
used for the purposes specified in subdivision (b), and shall not be
redirected or otherwise expended, nor shall these funds be used to
supplant other funding of that school.
(d) On or before April 1 of each year, the University of
California shall provide progress reports to the relevant policy and
fiscal committees of the Legislature pertaining to funding,
recruitment, hiring, and outcomes for the School of Medicine at the
University of California, Riverside. Specifically, the report shall
include, but not be limited to, information consistent with the
published mission and vision for the School of Medicine at the
University of California, Riverside, in all of the following areas:
(1) The number of students who have applied, been admitted, or
been enrolled, broken out by race, ethnicity, and gender.
(2) The number of full-time faculty, part-time faculty, and
administration, broken out by race, ethnicity, and gender.
(3) Funding and progress of ongoing medical education pipeline
programs, including the UCR/UCLA Thomas Haider Program in Biomedical
Sciences.
(4) Operating and capital budgets, including detail by funding
source. The operating budget shall include a breakdown of research
activities, instruction costs, administration, and executive
management.
(5) Efforts to meet the health care delivery needs of California
and the inland empire region of the state, including, but not limited
to, the percentage of clinical placements, graduate medical
education slots, and medical school graduates in primary care
specialties who are providing service within California's medically
undeserved areas and populations.
(6) A description of faculty research activities, including
information regarding the diversity of doctoral candidates, and
identifying activities that focus on high priority research needs
with respect to addressing California's medically undeserved areas
and populations.
SEC. 17. The absence of language in the Budget Act
of 2013 specifying that the University of California and the
Hastings College of the Law shall use budgeted funds for retirement
costs is not an indication of legislative support for, or acceptance
of, increased retirement costs being paid for by employees of the
University of California and the Hastings College of the Law.
SEC. 18. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2013.
