General Session - Legislative Update

2014: A Year of Recovery and Opportunities CSU Business Conference March 12, 2014

Overview  2014 in Sacramento – State Fiscal Picture – Elections and Changes

 Opportunities and Issues – Budget Advocacy – Issues – Elections at Home 2

2014-15 Budget

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“Despite the recent improvements in our budget situation, there remain a number of major risks… including the remaining budgetary debt and hundreds of billions of dollars in longer term liabilities… That is why wisdom and prudence should be the order of the day.” - Governor Jerry Brown

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Proposed CA Budget Breakdown

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Revenues and Expenditure Way Up  Revenue is up $4.5 billion and expenditures proposed over $8 billion  Largest shares to: – – – –

“Wall of debt” Proposition 98 (K-12 and community colleges) Medi-Cal and Cal Works State Deferred Maintenance 6

Governor’s Proposal for Higher Ed  Second year of Governor’s Plan – Increase; no more reductions – $142 million increase over last year – No increase in student tuition fees  4th year in a row

 Theme: Innovation, efficiency, improvement – Online courses – Streamline time to degree – Improve graduation rates 7

It’s Not a Money Problem…. It’s About Priorities  General Fund revenues way up – Proposition 30 revenues for all education

 Permanent budget increases abound – Double digit in some cases

Real question: Is higher education really a priority? 8

2014 Elections: Change and Stability?

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For the People’s Consideration…  This Election – All state officers – New class of freshman legislators

 Propositions, propositions, propositions… – Competing interests will affect elections, priorities

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Governor’s Last Ride  Governor will run for 4th and final term

 Other candidates: – Tim Donnelly – Neel Kashkari

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How Does the Governor Fare?  Governor Brown* – 60% favorable rating – 7% of voters aware of race

 Secretary of State Campaign shows $15+ million in hand *PPIC Report “Californians and their Government” – January 2014

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Neel Kashkari Vs. Tim Donnelly

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PPIC Statewide Survey January 2014 Satisfaction with Governor Candidates*

*Poll was taken prior to Kashkari announcing

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Statewide Races: Contested Races  Controller – John Perez v. Betty Yee v. Ashley Swearengin

 Secretary of State – Alex Padilla v. Leland Yee v. Dan Schnur

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Statewide Races: Downticket Seats  Superintendent of Public Instruction – Tom Torlakson  Insurance Commissioner – Dave Jones  Lt. Governor – Gavin Newsom – Ron Nehring

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Statewide Races: Downticket Races  State Treasurer – John Chiang (Current State Controller)  Attorney General – Kamala Harris – Phil Wyman? – Orly Taitz? 17

Current Legislative Make-up  Democrats control both houses  “Super” majority achieved last election – and keeping it drives everyone

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2013-14 Assembly 80 members Total - 2/3 Threshold is 54

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Assembly Leadership Departing  Speaker John Perez  Republican Leader Connie Conway  Budget Chair Nancy Skinner

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New Speaker: Unlike Senate An Actual Election  Toni Atkins (San Diego) – Termed out in two years – Close ally of Speaker Perez

 Freshmen Class Candidates – Gomez, Rendon, Eggman, Holden

 New Class – Candidates in 2016? – Role in selecting new Speaker 21

Republican Leaders Too  Connie Conway termed out  Caucus members positioning all year – Chavez, Melendez, Olsen – Maienschein, Bigelow, Wilk

 New Republican Caucus Chair – Scott Wilk – Future leader?

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Freshmen Class Composition  42 new Assembly members – Democrats 32, Republican Members 10  On top of 30 new members from 2012

 This CLASS can serve 12 YEARS

 Largest Freshmen class since the 19th century

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Assembly’s Composition

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Assembly Make-up by Class and Party

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2013-14 Senate 40 Members Total – 2/3 Threshold is 27*

*Calderon and Wright are on Leave from the Senate

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Key Senate Leaders Departing  Leaders: – President Pro Tempore Darrell Steinberg

 Friends and Allies – Alex Padilla – Lou Correa

 Less Than…. – Leland Yee

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Senate Leadership  New Pro Tempore has NOT been selected, yet – Kevin de Leon has been endorsed by Steinberg

 Interim Candidate – Mark DeSaulnier – now to Congress

 Others in the Wings – Holly Mitchell – Bob Hertzberg 28

Key Races to Watch: The Fight for Supermajority

 Assembly: – Steve Fox (Palmdale) – Jeff Gorrell* (Camarillo) – Sharon Quirk-Silva (Fullerton)

 Senate: – Anthony Cannella (Ceres) – Lou Correa* (Santa Ana) – Andy Vidak (Fresno) *Open Seat 29

Propositions “The ballot initiative process remains one of the strengths of California’s system of government.” - LA Daily News

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Current Potential Ballot Count  Two qualified for June Ballot – Public Records Act for local govt – Veterans bond restructuring

 Four qualified for November Ballot – Rainy Day Fund; from 5% to 10% – Water Bond; $50 million for CSU

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Propositions in Process  Over 50 in various stages – 23 initiatives with the Attorney General – 32 initiatives out for gathering signatures

 Minimum Wage Proposal – Increase wage to $12 by 2016

 High Quality Teachers Act of 2014 – Termination based on performance not seniority

 Oil severance, tobacco taxes – Policy and politics 32

Last Year of Session: What Will 2014 Bring?

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2014 Legislative Introduction Deadline

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Bill Count – 2013-14 1st Year

2nd Year

Total

Assembly

1585

1343

2928

Senate

955

659

1614

Total

2540

2002

4542

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Legislative Trends Over Last Decade Session

Assembly

Senate

Total

2005-2006

3229

2311

5540

2007-2008

3112

2419

5531

2009-2010

3068

2266

5334

2011-2012

2719

2127

4836

2013-2014

2540

2002

4542

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Issues for Today and Tomorrow  Bonds – $11 billion bond or not? – Education bond in 2014, 2016?

 K-12 Reform Continues – Common Core, Transitional Kindergarten

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Election Related Issues  Prison Overcrowding – New prison construction v. reforms by 2016

 Pension and health care costs – Employer and employee share of cost, benefits

 High-Speed Rail – Legacy issue for governor 38

Higher Education Specific  Campus Climate – Sexual assault reporting – Hate Crimes and overall climate

 Community college bachelors degree – Nursing or other applied degrees

 Performance measures and accountability – More defined, directive 39

Campus Climate  AB 1433 (Gatto) – Reporting of Hate and Sexual Crimes to Local Jurisdiction

 AB 1549 (Rendon) – Requires Sexual Harassment Policy be Posted on Internet

 AB 2168 (Campos) – Taskforce Investigation on Discrimination and Violence

 SB 967 (deLeon) – “Affirmative Consent” as part of campus investigation of possible sexual assault 40

Financial Aid and Fees  AB 1976 (Quirk-Silva) – Expands the new number of Cal Grants offered to 50,000

 AB 2566 (Weber) – Extends the Period of Time you can Apply for Cal Grant by One Year

 AB 1456 (Jones-Sawyer) – Pay it Forward Measure 41

Accountability and Oversight  AB 1348 (J. Perez) - Postsecondary education: California Higher Education Authority

 SB 1196 (Liu) - Public higher education: state goals  SB 1022 (Huff) - Labor market outcome information

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Making the Year Count for CSU

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PPIC Statewide Survey January 2014 Key Issues Facing California

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PPIC Statewide Survey January 2014 Preference for State Spending

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More Money, More Competition  Budget is opportunity and challenge – More money means more demand for support – Election year, political allies, local communities

 Competition requires proactive effort – Time to match rhetoric with reality  Engage beyond the university, issue for campaign  Make the ask for investment and redesign  Hold them accountable 46

CSU as a Good Investment  Up against varying and competing priorities – Harder to seek new money than manage cuts – Election year shifts focus

 CSU must show value as a partner, innovator – What we are doing today, what we are prepared to do for the future – Ability to improve, willingness to change 47

Tell the Story  CSU is valuable investment because… – Assist in meeting the workforce gap  Local and statewide needs  Employers, industry, community leaders

– Value of college degree  To state and local economy  Employment opportunities, job development

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Tell the Story  Innovation and efficiencies our way of life – Online teaching and learning – Innovative programs and partnerships

 Improvement is a goal – Graduation Initiative  Results to date, future efforts

– Transfer Reform  Implementation of SB 1440, other efforts 49

Being Ready to Make the Case  New Chancellor values advocacy – Active partner already – Expectation of campus leadership focus

 Advocacy Plan to guide our work – All university responsibility – Common goals and objectives, unique campus approaches 50

Summary  Budget, elections: challenges and opportunities – New investment, redesign; not restoration – Improvement, completion and access – Role in state’s economy, successful residents

 Changes require ongoing advocacy efforts – Competition for revenue – Last term with governor, more than 65% legislators new 51

Summary  Budget proposal increase funds for CSU – But falls short of Board request by $95 million  Not a money problem, a priority issue

– Stakeholders must make case together  Making higher education a real priority

– Our real friends must step up  Beyond rhetoric, be held accountable 52

www.calstate.edu

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