SB 167: Higher education budget trailer bill.

69436.

(a) A student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435) 69435), respectively, at the time of their high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program or upon matriculation into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award.

(b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree or who matriculates into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, is entitled to receive, and the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall award, a Cal Grant A or B award depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met:

(1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year.

(2) The student demonstrates financial need pursuant to Section 69433.

(3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree.

(4) The student’s household has an income and asset level not exceeding the limits set forth in Section 69432.7.

(5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution.

(6) The student is enrolled at least part time.

(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).

(8) (A) Except as provided in subparagraph (B), the student will not be 28 years of age or older by December 31 of the award year.

(B) Notwithstanding subparagraph (A), for the 2026–27 2027–28 award year through the 2030–31 2031–32 award year, inclusive, the student will not be 30 years of age or older by December 31 of the award year.

(9) The student graduated from a California high school or its equivalent during or after the 2000–01 academic year.

(10) (A) Except as provided for in subparagraph (B), the student attended a California community college in the academic year immediately preceding the academic year for which the award will be used.

(B) A student otherwise eligible to receive an award pursuant to this section, who attended a California community college in the 2011–12 academic year, may use the award for the 2012–13 and 2013–14 academic years.

(c) The amount and type of the award pursuant to this article shall be determined as follows:

(1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434).

(2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435).

(d) (1) A student meeting the requirements of paragraph (9) of subdivision (b) by means of high school graduation, rather than its equivalent, shall be required to have graduated from a California high school, unless that California resident graduated from a high school outside of California due solely to orders received from a branch of the United States Armed Forces by that student or by that student’s parent or guardian that required that student to be outside of California at the time of high school graduation.

(2) For the purposes of this article, all of the following are exempt from the requirements of paragraph (4) of subdivision (a) of Section 69433.9 and paragraph (9) of subdivision (b) of this section:

(A) A student for whom a claim under this article was paid before December 1, 2005.

(B) A student for whom a claim under this article for the 2004–05 award year or the 2005–06 award year was or is paid on or after December 1, 2005, but no later than October 15, 2006.

(C) Commencing with the 2017–18 academic year, a student who did not graduate from high school or its equivalent and was a California resident, as determined pursuant to Article 5 (commencing with Section 68060) of Chapter 1 of Part 41, on their 18th birthday.

(3) (A) The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall make preliminary awards to all applicants currently eligible for an award under this article. At the time an applicant receives a preliminary award, the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall require that applicant to affirm, in writing, under penalty of perjury, that they meet the requirements set forth in paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall notify each person who receives a preliminary award under this paragraph that their award is subject to an audit pursuant to subparagraph (B).

(B) The commission shall select, at random, a minimum of 10 percent of the new and renewal awards made under subparagraph (A), and shall require, before the disbursement of Cal Grant funds to the affected postsecondary institution, that the institution verify that the recipient meets the requirements of paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. An award that is audited under this paragraph and found to be valid shall not be subject to a subsequent audit.

(C) Pursuant to Section 69517.5, the commission shall seek repayment of any and all funds found to be improperly disbursed under this article.

(D) On or before November 1 of each year, the commission shall submit a report to the Legislature and the Governor, including, but not limited to, both of the following:

(i) The number of awards made under this article in the preceding 12 months.

(ii) The number of new and renewal awards selected, in the preceding 12 months, for verification under subparagraph (B), and the results of that verification with respect to students at the University of California, at the California State University, at independent nonprofit institutions, and at independent for-profit institutions.

69743.5.

The commission shall select, from the qualified applicants, the individuals who are eligible to participate in the program. After each year-long period of full-time, or full-time equivalent, employment in a public interest area of the law, the loan repayment of the eligible participant shall be made to the lender. participant or the lender, as elected by the participant, in accordance with this article.

69745.

(a) Loans from both government sources and financial institutions may be repaid by the program. Each participant shall agree to allow the commission access to loan records and to acquire information from lenders necessary to verify eligibility and to determine payments. Loans may not be renegotiated with lenders to accelerate repayment.

(b) Payments shall be made annually to the lender participant or the lender, as elected by the participant, until the loan is repaid, fulfilled, or until the required service obligation is fulfilled and eligibility discontinues, whichever comes first.

(d) If the participant discontinues practicing in a public interest area of the law, payments to the participant or the lender made against the loans of the participant issued pursuant to subdivision (b) shall cease to be effective on the date that the participant discontinues service.

69746.

The commission is not responsible for any outstanding payments on principal and interest to any participant or lender once a participant’s eligibility expires.

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 2020–21 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 2018–19 fiscal year, and each fiscal year thereafter, the chancellor’s 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) (A) As used in this paragraph, a public safety agency includes, but is not limited to, a fire department, a police department, a sheriff’s office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.

(B) Commencing with the 2022–23 academic year, each community college district with an instructional service agreement with a public safety agency may annually submit a copy of its most up-to-date instructional service agreement to the chancellor’s office for review. If an agreement is renewed or updated it may be submitted to the chancellor’s office at the time it is renewed or updated.

(C) Beginning January 1, 2024, each community college district with an instructional service agreement with a public safety agency may annually submit data to the chancellor’s office on course offerings, student enrollment and FTES, and course completion, including data from the 2020–21, 2021–22, and 2022–23 academic years.

(D) On or before December 31, 2024, upon review and analysis of the community college district agreements and program data submitted pursuant to subparagraphs (B) and (C), the chancellor’s office shall issue a recommendation to the Department of Finance and the Legislature, consistent with Section 9795 of the Government Code, on the instructional service agreement FTES apportionment that community college districts are eligible to claim.

(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 2018–19 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).

(2) For the 2019–20 fiscal year, four thousand nine dollars ($4,009).

(3) Commencing with the 2020–21 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 2015–16 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 2017–18 general purpose apportionments, the following rates shall be used to calculate their base allocations:

(i) For the 2018–19 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 2019–20 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 2020–21 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 chancellor’s office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year before the prior year, as follows:

(A) Commencing with the 2018–19 fiscal year, the chancellor’s office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year 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 district’s computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college district’s applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college district’s 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 2020–21 fiscal year, the sum of funded credit FTES for the 2019–20 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 2020–21 fiscal year.

(F) Notwithstanding subparagraph (A), for purposes of calculating the base allocation pursuant to this subdivision for the 2026–27 fiscal year and each fiscal year thereafter, a community college district’s funded credit FTES shall be the greater of the following:

(i) The three-year rolling average of funded credit FTES calculated pursuant to subparagraph (A).

(ii) The community college district’s current year credit FTES that are eligible for funding pursuant to this section. paragraph.

(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 district’s applicable credit revenue rate computed for the 2017–18 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 2018–19 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 2015–16 fiscal year.

(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college district’s supplemental allocation.

(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college district’s student success allocation.

(e) Commencing with the 2018–19 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 2018–19 fiscal year, nine hundred nineteen dollars ($919).

(B) For the 2019–20 fiscal year, nine hundred forty-eight dollars ($948).

(C) (i) Commencing with the 2020–21 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 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 2019–20 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 purpose 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 2018–19 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 2018–19 fiscal year, four hundred forty dollars ($440).

(II) For the 2019–20 fiscal year, five hundred fifty-nine dollars ($559).

(III) Commencing with the 2020–21 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 2019–20 fiscal year, to calculate the student success allocation for each community college district, the chancellor’s 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 chancellor’s office shall compute the sum of data for that metric from the prior year, the year before the prior year, and the year before the year 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 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 2019–20 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 chancellor’s 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 chancellor’s 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 chancellor’s 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) Chancellor’s office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellor’s 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 student’s 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 chancellor’s office may reduce a community college district’s 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 college’s baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.

(iii) The chancellor’s office may reduce a community college district’s 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 2018–19 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 2019–20 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 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 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 2018–19 fiscal year, one hundred eleven dollars ($111).

(II) For the 2019–20 fiscal year, one hundred forty-one dollars ($141).

(III) Commencing with the 2020–21 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 2019–20 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellor’s 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 chancellor’s office shall compute the sum of data for that metric from the prior year, the year before the prior year, and the year before the year 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 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 2019–20 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 chancellor’s 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 chancellor’s 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 chancellor’s 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 student’s 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 2018–19 and 2019–20 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 2017–18 fiscal year, defined as a district’s final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.

(2) Commencing with the 2020–21 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 district’s new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 2017–18 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 2017–18 fiscal year.

(3) (A) From the 2019–20 fiscal year to the 2025–26 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 2017–18 fiscal year multiplied by the 2018–19 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 2017–18 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 2012–13 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 2017–18 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 2017–18 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 2020–21 fiscal year, decreases in a community college district’s 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 2019–20 fiscal year, a community college district’s 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 2017–18 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 2018–19 and 2019–20.

(h) (1) For the fiscal years 2018–19 to 2024–25, inclusive, each community college district whose increase in 2017–18 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 2017–18 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.

(2) For the 2025–26 fiscal year, each community college district shall receive the greater of either of the following:

(A) A community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f) for that fiscal year.

(B) A community college district’s general purpose apportionment funding computed for the 2024–25 fiscal year, including the greater of discretionary resources received by the district pursuant to paragraph (1) for the 2024–25 fiscal year or revenue received by the district pursuant to paragraph (4) of subdivision (g) for the 2024–25 fiscal year.

(3) Commencing with the 2026–27 fiscal year, each community college district shall receive the greater of either of the following:

(A) A community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f) for that fiscal year.

(B) A community college district’s general purpose apportionment funding computed for the 2024–25 fiscal year, including the greater of discretionary resources received by the district pursuant to paragraph (1) for the 2024–25 fiscal year adjusted to reflect the application of a 1.44 percent discretionary cost-of-living adjustment or revenue received by the district pursuant to paragraph (4) of subdivision (g) for the 2024–25 fiscal year adjusted to reflect the application of a 1.44 percent discretionary cost-of-living adjustment. The total amount associated with providing the 1.44 percent discretionary cost-of-living adjustment shall not exceed the amount identified in Section 84750.8 specifically for hold harmless funding levels.

(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 (i) 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 district’s budget formula, on a per FTES basis by modifying each district’s 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 chancellor’s office.

(B) The chancellor’s 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 chancellor’s office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the district’s apportionments allocation on technical assistance and professional development to support efforts to meet the district’s efforts towards their goals.

(4) (A) The chancellor’s office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellor’s 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 chancellor’s 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 district’s 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 chancellor’s 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 chancellor’s 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 system’s 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 2019–20 fiscal year, the chancellor’s 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 chancellor’s office. The chancellor’s 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) “Chancellor’s 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.

89526.

(a) For purposes of this section, the following definitions apply:

(1) “Campus” means a campus of the California State University.

(2) “Chancellor’s office” means the office of the Chancellor of the California State University.

(b) The chancellor’s office shall annually develop enrollment targets for each campus. These enrollment targets shall be informed by the campus’s actual enrollment history, demographics, funding, and other factors determined by the chancellor’s office.

(c) On or before February March 15 of each year, the chancellor’s office shall report the enrollment targets developed under subdivision (b) for the following fiscal year to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Department of Finance.

(d) The chancellor’s office shall include, in the report described in subdivision (c), enrollment data trends that provide a comparison of actual enrollment and the enrollment targets under subdivision (b), disaggregated by campus.

(e) If the chancellor’s office determines that a campus has experienced an unusual decline in enrollment, cannot meet enrollment the targets under subdivision (b), or has failed to meet past enrollment targets under subdivision (b), the chancellor’s office may require a campus to complete a turnaround plan that details how the campus’s budget may be adjusted to reflect the campus’s actual enrollment. The chancellor’s office shall provide a copy of all data collected and reported under this section to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Department of Finance.

(f) A report submitted under this section shall be submitted in compliance with Section 9795 of the Government Code.

15820.200.

For purposes of this chapter, the following definitions apply:

(b) “Board of governors” means the Board of Governors of the California Community Colleges.

(d) “Disposition” means entering into leases, subleases, or agreements for any property or approved student housing project pursuant to Section 15820.203.

(e) “Participating college” means any college with a student housing project financed under this chapter, including, but not limited to, all of the following community colleges, including their governing districts, or community college district:

(1) Bakersfield College.

(2) Cerritos College.

(3) College of San Mateo.