CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1942Introduced by Assembly Member MuratsuchiFebruary 10, 2022 An act to amend Sections 84750.4 and 84750.5 of the Education Code, relating to community colleges.LEGISLATIVE COUNSEL'S DIGESTAB 1942, as introduced, Muratsuchi. Community colleges: funding: instructional service agreements with public safety agencies.Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain. Existing law provides for a formula for the calculation of general purpose apportionments of state funds to community colleges. Existing law provides a separate formula for the allocation of apportionments of state funds to community colleges, which uses the numbers of full-time equivalent students as its basis, for use for apportionments for noncredit instruction and instruction in career development and college preparation.This bill would require instruction provided by community college districts under instructional service agreements with public safety agencies, as defined, to be funded under the apportionment formula used for instruction in career development and college preparation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 84750.4 of the Education Code is amended to read:84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.SEC. 2. Section 84750.5 of the Education Code is amended to read:84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1942Introduced by Assembly Member MuratsuchiFebruary 10, 2022 An act to amend Sections 84750.4 and 84750.5 of the Education Code, relating to community colleges.LEGISLATIVE COUNSEL'S DIGESTAB 1942, as introduced, Muratsuchi. Community colleges: funding: instructional service agreements with public safety agencies.Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain. Existing law provides for a formula for the calculation of general purpose apportionments of state funds to community colleges. Existing law provides a separate formula for the allocation of apportionments of state funds to community colleges, which uses the numbers of full-time equivalent students as its basis, for use for apportionments for noncredit instruction and instruction in career development and college preparation.This bill would require instruction provided by community college districts under instructional service agreements with public safety agencies, as defined, to be funded under the apportionment formula used for instruction in career development and college preparation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1942
Introduced by Assembly Member MuratsuchiFebruary 10, 2022
Introduced by Assembly Member Muratsuchi
February 10, 2022
An act to amend Sections 84750.4 and 84750.5 of the Education Code, relating to community colleges.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1942, as introduced, Muratsuchi. Community colleges: funding: instructional service agreements with public safety agencies.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain. Existing law provides for a formula for the calculation of general purpose apportionments of state funds to community colleges. Existing law provides a separate formula for the allocation of apportionments of state funds to community colleges, which uses the numbers of full-time equivalent students as its basis, for use for apportionments for noncredit instruction and instruction in career development and college preparation.This bill would require instruction provided by community college districts under instructional service agreements with public safety agencies, as defined, to be funded under the apportionment formula used for instruction in career development and college preparation.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain. Existing law provides for a formula for the calculation of general purpose apportionments of state funds to community colleges. Existing law provides a separate formula for the allocation of apportionments of state funds to community colleges, which uses the numbers of full-time equivalent students as its basis, for use for apportionments for noncredit instruction and instruction in career development and college preparation.
This bill would require instruction provided by community college districts under instructional service agreements with public safety agencies, as defined, to be funded under the apportionment formula used for instruction in career development and college preparation.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 84750.4 of the Education Code is amended to read:84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.SEC. 2. Section 84750.5 of the Education Code is amended to read:84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 84750.4 of the Education Code is amended to read:84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
SECTION 1. Section 84750.4 of the Education Code is amended to read:
### SECTION 1.
84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.(2)(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(d) (1) The base allocation shall be computed for each community college district as follows:(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:(i) For the 201819 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).(ii) For the 201920 fiscal year, as follows:(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, four hundred forty dollars ($440).(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.(ic) The student does not have an enrollment record systemwide in the prior year.(id) The student enrolled in a four-year university in the prior year.(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:(I) For the 201819 fiscal year, one hundred eleven dollars ($111).(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:(i) Adopt goals for the community college district that meet the following requirements:(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.(II) Are measurable numerically.(III) Specify the specific timeline for achievement.(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.(iii) Submit the written item and summary of action to the chancellors office.(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.(n) For purposes of this section, the following terms have the following meanings:(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
84750.4. (a) (1) The board of governors, in accordance with this section, and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.
(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.
(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.
(4) It is the intent of the Legislature that for the 202021 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.
(b) (1) Commencing with the 201819 fiscal year, and each fiscal year thereafter, the chancellors office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.
(2) Instruction provided under an instructional service agreement between a community college district and a public safety agency shall be funded as specified in subdivision (i) of Section 84750.5. As used in this paragraph, a public safety agency includes, but is not necessarily limited to, a fire department, a police department, a sheriffs office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.
(2)
(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.
(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:
(1) For the 201819 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).
(2) For the 201920 fiscal year, four thousand nine dollars ($4,009).
(3) Commencing with the 202021 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.
(d) (1) The base allocation shall be computed for each community college district as follows:
(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 201516 fiscal year.
(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).
(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 201718 general purpose apportionments, the following rates shall be used to calculate their base allocations:
(i) For the 201819 fiscal year, as follows:
(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).
(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).
(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).
(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).
(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).
(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).
(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).
(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).
(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).
(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).
(ii) For the 201920 fiscal year, as follows:
(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).
(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).
(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).
(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).
(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).
(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).
(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).
(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).
(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).
(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).
(iii) Commencing with the 202021 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.
(2) To calculate the base allocation for each community college district, the chancellors office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year prior to before the prior year, as follows:
(A) Commencing with the 201819 fiscal year, the chancellors office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year prior to before the prior year, and divide the sum by three.
(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.
(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.
(C) The sum of a community college districts computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college districts applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college districts base allocation.
(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.
(E) For the calculation of the three-year rolling average for the base allocation for the 202021 fiscal year, the sum of funded credit FTES for the 201920 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 202021 fiscal year.
(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college districts applicable credit revenue rate computed for the 201718 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 201819 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.
(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:
(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 201516 fiscal year.
(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college districts supplemental allocation.
(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college districts student success allocation.
(e) Commencing with the 201819 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:
(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:
(A) For the 201819 fiscal year, nine hundred nineteen dollars ($919).
(B) For the 201920 fiscal year, nine hundred forty-eight dollars ($948).
(C) (i) Commencing with the 202021 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.
(ii) For the calculation of the supplemental allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 201920 fiscal year.
(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.
(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.
(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.
(5) For the purposes of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.
(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.
(f) Commencing with the 201819 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:
(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:
(I) For the 201819 fiscal year, four hundred forty dollars ($440).
(II) For the 201920 fiscal year, five hundred fifty-nine dollars ($559).
(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.
(ii) (I) Commencing with the 201920 fiscal year, to calculate the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.
(II) For the calculation of the three-year rolling average for the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 201920 fiscal year.
(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:
(i) Three points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(ii) Four points for each chancellors office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(iii) (I) Two points for each chancellors office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(II) Chancellors office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellors office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.
(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(ii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit colleges baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.
(iii) The chancellors office may reduce a community college districts transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.
(iv) (I) For the 201819 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.
(II) Commencing with the 201920 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:
(ia) The student has an enrollment record in a community college district in the year prior to before the prior year.
(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.
(ic) The student does not have an enrollment record systemwide in the prior year.
(id) The student enrolled in a four-year university in the prior year.
(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year prior to before the prior year.
(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:
(I) For the 201819 fiscal year, one hundred eleven dollars ($111).
(II) For the 201920 fiscal year, one hundred forty-one dollars ($141).
(III) Commencing with the 202021 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.
(ii) (I) Commencing with the 201920 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellors office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellors office shall compute the sum of data for that metric from the prior year, the year prior to before the prior year, and the year prior to before the year prior to before the prior year, and divide the sum by three.
(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 202021 fiscal year, data from the 201819 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 201920 fiscal year.
(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).
(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:
(I) Four and one-half points for each chancellors office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(II) Six points for each chancellors office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(III) Three points for each chancellors office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:
(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the students first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).
(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.
(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:
(1) For the 201819 and 201920 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 201718 fiscal year, defined as a districts final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.
(2) Commencing with the 202021 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college districts new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 201718 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year.
(3) (A) From the 201920 fiscal year to the 202526 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 201718 fiscal year multiplied by the 201819 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.
(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 201718 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201213 fiscal year, if there is a subsequent increase in FTES.
(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 201718 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.
(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 201718 fiscal year, if there is a subsequent increase in FTES.
(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.
(4) (A) Commencing with the 202021 fiscal year, decreases in a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.
(B) For the 201920 fiscal year, a community college districts total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 201819 and 201920.
(h) For the fiscal years 201819 to 202425, inclusive, each community college district whose increase in 201718 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 201718 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.
(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.
(j) (1) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation.
(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.
(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (h) in order to recognize increased operating costs and to improve instruction.
(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).
(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:
(i) Adopt goals for the community college district that meet the following requirements:
(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.
(II) Are measurable numerically.
(III) Specify the specific timeline for achievement.
(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.
(iii) Submit the written item and summary of action to the chancellors office.
(B) The chancellors office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.
(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.
(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellors office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the districts apportionments allocation on technical assistance and professional development to support efforts to meet the districts efforts towards their goals.
(4) (A) The chancellors office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellors office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.
(B) The chancellors office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.
(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college districts audit report pursuant to this subparagraph.
(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellors office shall report to the Legislature, consistent with Section 9795 of the Government Code, on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.
(6) (A) On or before July 1, 2022, the chancellors office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the systems strategic vision plan.
(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.
(7) Commencing with the 201920 fiscal year, the chancellors office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellors office. The chancellors office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.
(n) For purposes of this section, the following terms have the following meanings:
(1) Career development and college preparation means courses in programs that conform to the requirements of Section 84760.5.
(2) Chancellors office means the Office of the Chancellor of the California Community Colleges.
(3) Primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
SEC. 2. Section 84750.5 of the Education Code is amended to read:84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
SEC. 2. Section 84750.5 of the Education Code is amended to read:
### SEC. 2.
84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.
84750.5. (a) The board of governors, in accordance with the statewide requirements contained in paragraphs (1) to (9), inclusive, of subdivision (d), and in consultation with institutional representatives of the California Community Colleges and statewide faculty and staff organizations, so as to ensure their participation in the development and review of policy proposals, shall develop criteria and standards for the purpose of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and for the purpose of allocating the state general apportionment revenues.
(b) In developing the criteria and standards, the board of governors shall use and strongly consider the recommendations and work product of the System Office Recommendations Based on the Report of the Work Group on Community College Finance that was adopted by the board at its meeting of March 7, 2005. The board of governors shall complete the development of these criteria and standards, accompanied by the necessary procedures, processes, and formulas for using its criteria and standards, by March 1, 2007, and shall submit on or before that date a report on these items to the Legislature and the Governor.
(c) (1) It is the intent of the Legislature in enacting this section to improve the equity and predictability of general apportionment and growth funding for community college districts in order that the districts may more readily plan and implement instruction and related programs, more readily serve students according to the policies of the states master plan for higher education, and enhance the quality of instruction and related services for students.
(2) It is the intent of the Legislature to determine the amounts to be appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority either of the Governor to propose, or the Legislature to approve, appropriations for California Community Colleges programs or purposes.
(d) The board of governors shall develop the criteria and standards within the following statewide minimum requirements:
(1) The calculations of each community college districts revenue level for each fiscal year shall be based on the level of general apportionment revenues, state and local, the community college district received for the prior year plus any amount attributed to a deficit from the adopted standards to be developed pursuant to this section, with revenue adjustments being made for increases or decreases in full-time equivalent students (FTES), for equalization of funding per credit FTES, for necessary alignment of funding per FTES between credit and noncredit programs, for inflation, and for other purposes authorized by law.
(2) Commencing with the 200607 fiscal year, the funding mechanism developed pursuant to this section shall recognize the need for community college districts to receive an annual allocation based on the number of colleges and comprehensive centers in the community college district. In addition to this basic allocation, the marginal amount of credit revenue allocated per FTES shall be funded at a rate not less than four thousand three hundred sixty-seven dollars ($4,367), as adjusted for the change in the cost of living in subsequent annual budget acts.
(A) To the extent that the Budget Act of 2006 contains an appropriation of one hundred fifty-nine million four hundred thirty-eight thousand dollars ($159,438,000) for community college equalization, the Legislature finds and declares that community college equalization for credit FTES has been effectively accomplished as of March 31, 2007.
(B) The chancellor shall develop criteria for the allocation of one-time grants for those community college districts that would have qualified for more equalization under prior law than pursuant to this section and the Budget Act of 2006, and for those community college districts that would have qualified for more funding under a proposed rural college access grant than pursuant to this section and the Budget Act of 2006, as determined by the chancellor. Appropriations for the one-time grants shall be provided pursuant to paragraph (24) of subdivision (a) of Section 43 of Chapter 79 of the Statutes of 2006.
(3) Noncredit instruction shall be funded at a uniform rate of two thousand six hundred twenty-six dollars ($2,626) per FTES, as adjusted for the change in the cost of living provided in subsequent annual budget acts.
(4) Funding for instruction in career development and college preparation, as authorized pursuant to Section 84760.5, shall be provided as follows:
(A) (i) Beginning in the 200607 fiscal year, career development and college preparation FTES may be funded at a rate of three thousand ninety-two dollars ($3,092) per FTES for courses in programs that conform to the requirements of Section 84760.5. This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.
(ii) Beginning in the 201516 fiscal year, career development and college preparation FTES shall be funded at the same level as the credit rate specified in paragraph (2). This rate shall be adjusted for the change in the cost of living or as otherwise provided in subsequent annual budget acts.
(iii) The Legislative Analyst shall report to the Legislature on or before March 1, 2017, regarding the change in funding specified in clause (ii), including whether community colleges offered additional classes or programs related to career development or college preparation, and whether there was any change in FTES.
(iv) (I) The requirement for submitting a report imposed under clause (iii) is inoperative on March 30, 2019, pursuant to Section 10231.5 of the Government Code.
(II) A report submitted pursuant to clause (iii) shall be submitted in compliance with Section 9795 of the Government Code.
(B) Changes in career development and college preparation FTES shall result in adjustments to revenues as follows:
(i) Increases in career development and college preparation FTES shall result in an increase in revenues in the year of the increase and at the average rate per career development and college preparation FTES, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.
(ii) Decreases in career development and college preparation FTES shall result in a revenue reduction in the year following the decrease at the average rate per career development and college preparation FTES.
(5) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled students programs and services, shall continue to be funded separately through the annual Budget Act, and shall not be assumed under the budget formula otherwise specified by this section.
(6) For credit and noncredit instruction, changes in FTES shall result in adjustments in community college district revenues as follows:
(A) Increases in FTES shall result in an increase in revenues in the year of the increase and at the amount per FTES provided for in paragraph (2) or (3), as appropriate, including any cost-of-living adjustment authorized by statute or by the annual Budget Act.
(B) Decreases in FTES shall result in revenue reductions beginning in the year following the initial year of decrease in FTES, and at the districts marginal funding per FTES.
(C) Community college districts shall be entitled to the restoration of any reductions in apportionment revenue due to decreases in FTES during the three years following the initial year of decrease in FTES if there is a subsequent increase in FTES.
(7) Revenue adjustments shall be made to reflect cost changes, using the same inflation adjustment as required for school districts pursuant to paragraph (2) of subdivision (d) of Section 42238.02. These revenue adjustments shall be made to the college and center basic allocations, credit and noncredit FTES funding rates, and career development and college preparation FTES funding rates.
(8) The statewide requested increase in budgeted workload FTES shall be based, at a minimum, on the sum of the following computations:
(A) Determination of an equally weighted average of the rate of change in the states population of persons between 19 and 24 years of age and the rate of change in the states population of persons between 25 and 65 years of age, both as determined by the Department of Finances Demographic Research Unit as determined for the preceding fiscal year.
(B) To the extent the states unemployment rate exceeds 5 percent for the most recently completed fiscal year, that positive difference shall be added to the rate computed in subparagraph (A). In no event shall that positive difference exceed 2 percent.
(C) The chancellor may also add to the amounts calculated pursuant to subparagraphs (A) and (B) the number of FTES in the areas of transfer, vocational education, and basic skills that were unfunded in the current fiscal year. For this purpose, the following computation shall be determined for each community college district, and a statewide total shall be calculated:
(i) Establish the base level of FTES earned in the prior fiscal year for transfer courses consisting of courses meeting the California State University breadth or Intersegmental General Education Transfer Curriculum requirements or major course prerequisites accepted by the University of California or the California State University.
(ii) Establish the base level of FTES earned in the prior fiscal year for vocational education courses consisting of courses defined by the chancellors office Student Accountability Model codes A and B that are consistent with the courses used for measuring success in this program area under the accountability system established pursuant to Section 84754.5.
(iii) Establish the base level of FTES in the prior fiscal year for basic skills courses, both credit and noncredit.
(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.
(v) Multiply the result of the calculation made under clause (iv) by one plus the community college districts funded growth rate in the current fiscal year. This figure shall represent the maintenance of effort level for the budget year.
(vi) FTES in transfer, vocational education, and basic skills that are in excess of the total calculated pursuant to clause (v), shall be considered in excess of the maintenance of effort level, and shall be eligible for overcap growth funding if the community college district exceeds its overall funded FTES.
(vii) In no event shall the amount calculated pursuant to clause (vi) exceed the total unfunded FTES for that fiscal year. To the extent the computation specified in subdivision (c) requires the reporting of additional data by community college districts, that reporting shall be a condition of the receipt of apportionment for growth pursuant to this section and those funds shall be available to offset any and all costs of providing the data.
(9) Except as specifically provided in statute, regulations of the board of governors for determining and allocating the state general apportionment to the community college districts shall not require community college district governing boards to expend the allocated revenues in specified categories of operation or according to the workload measures developed by the board of governors.
(e) (1) The Chancellor of the California Community Colleges shall develop, and the board of governors shall adopt, a revised apportionment growth formula for use commencing with the 201516 fiscal year. The chancellor shall allocate apportionments pursuant to the revised formula only after the revised formula, and any formulas for adjustment pursuant to paragraph (2), have been adopted by the board of governors. The revised apportionment growth formula shall support the primary missions of the segment, and shall be based on each communitys need for access to the community colleges, as determined by local demographics. In developing the revised formula, the chancellor shall consider multiple factors in determining need; however, the primary factors shall be:
(A) (i) The number of persons under 25 years of age without a college degree, within a community college districts boundaries, and the number of persons 25 to 64 years of age, inclusive, without a college degree, within a community college districts boundaries.
(ii) Notwithstanding clause (i), the chancellor may use alternative age ranges depending on the availability of data.
(B) The number of persons who are unemployed, have limited English skills, who are in poverty, or who exhibit other signs of being disadvantaged, as determined by the chancellor, within a community college districts boundaries.
(2) Beginning with the 201617 fiscal year, the chancellor shall adjust upward the need determination based on each community colleges effectiveness in serving residents of neighborhoods, within or outside of the community college districts boundaries, that exhibit the highest levels of need in the state.
(3) The chancellor shall calculate each community college districts proportionate share of the statewide need for access to the community colleges based on the application of this formula described in paragraph (1), as adjusted pursuant to paragraph (2).
(4) The chancellor shall calculate the difference between each community college districts proportionate share of the statewide need for access to the community colleges, as calculated pursuant to paragraph (3), and its current proportionate share of statewide enrollment in the community colleges.
(5) (A) Until a community college district reaches its highest level of apportionment revenues previously received, its apportionment revenues shall be eligible to increase by the lesser of 1 percent of its current apportionment base, or one-half of the statewide growth allocation on a proportionate basis, regardless of need.
(B) After a community college district reaches its highest level of apportionment revenues previously received, it is eligible to increase its apportionment revenues by the lesser of one-half of 1 percent of its current apportionment base, or one-quarter of the statewide growth allocation on a proportionate basis, regardless of its need.
(6) The remainder of the apportionment growth funding shall be allocated to allow each community college district to grow its apportionment revenues based on its relative share of the difference between the amounts calculated in paragraph (4), up to a maximum of its apportionment base for the preceding fiscal year appropriate to ensure that community college district is advancing the primary missions of the segment. The maximum established by the chancellor shall not be less than 5 percent nor greater than 10 percent of a community college districts apportionment base for the preceding fiscal year.
(7) Unless otherwise agreed upon by the board of governors, apportionment reductions shall be allocated proportionally based on the most recent levels of apportionment revenues.
(8) (A) It is the intent of the Legislature, consistent with direction provided in the 201415 Budget Act, that apportionment growth funding be expended for purposes of increasing the number of FTES in courses or programs that support the primary missions of the segment.
(B) (i) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2015, and each year thereafter, the chancellor shall report to the Legislature on the course sections and FTES added at each community college that received apportionment growth funding in the prior fiscal year, including the number of course sections and if any course sections and FTES were added that are within the primary missions of the segment and those that are not within the primary missions of the segment.
(ii) A report submitted to the Legislature pursuant to clause (i) shall be submitted in compliance with Section 9795 of the Government Code.
(C) For purposes of this section, primary missions of the segment means credit courses and those noncredit courses specified in paragraphs (2) to (6), inclusive, of subdivision (a) of Section 84757.
(f) (1) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) to (d), inclusive, in order to recognize increased operating costs and to improve instruction.
(2) (A) If the annual Budget Act identifies funds appropriated specifically for the purposes of this subdivision, the chancellor shall adjust the budget request formula to allocate those funds without altering any of the adjustments described in subdivision (d). At least 30 days before allocating any state general apportionment revenues using a budget request formula revised pursuant to this subdivision, the chancellor shall submit to the Department of Finance and the Legislature a description of the specific adjustments made to the budget request formula.
(B) A report to the Legislature pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
(g) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated pursuant to paragraph (1) of subdivision (e) of provision 2 of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11, Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the districts budget formula, on a per FTES basis by modifying each districts budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (f).
(h) Commencing with the 201819 fiscal year, this section shall only be used to allocate revenue pursuant to subparagraph (A) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution, to compute allocations for noncredit instruction and career development and college FTES, and to compute allocations to community college districts for fiscal years prior to before the 201819 fiscal year.
(i) Commencing with the 202223 fiscal year, the funding rate calculated pursuant to clause (ii) of subparagraph (A) of paragraph (4) of subdivision (d) shall be used to compute allocations for instruction provided under an instructional service agreement between a community college district and a public safety agency.