Copyright© 1999 by School Services of California, Inc.

December 3, 1999


Now is the Time to Repeal the 50% Law
- A Commentary

Background

Current law governing community colleges defines the minimum amount of funds that a district must spend on classroom instruction. These provisions of existing law can be found in Education Code Section 84362 and are commonly referred to as the "50% law."

California community colleges are required to comply with the "50% law" (sometimes called the Salary of Classroom Instructors and the Current Expense of Education), which applies to the Unrestricted General Fund only. This calculation deals with activity and object codes laid out by the budget and accounting manual. The salaries of classroom instructors' equation contains full-time and part-time instructional aides that work in the classroom. The fringe benefits are added for these classroom instructors and instructional aides. Instructors that have assignments outside the classroom are excluded from the calculation of classroom instructors but are included in administrative and support costs.

Administrative and support activities not included in the "50% Law" equation are the following: community services; ancillary services; auxiliary operations; physical property and related acquisitions; long-term debt; transfer, and payments to/for students and appropriations for contingencies.

If a district spends less than 50% of the current expense of education for salaries of classroom instructors, the local governing board must file an application for exemption which is due in the Chancellor's Office by September 15 after the fiscal year has ended. The district must also provide a copy of the application to the exclusive representative of the district's faculty employees and the district or college academic senate not less than thirty days preceding a public hearing.

The governing board of the district is required to hold a public hearing to determine the basis for the district's application for exemption. Notice of the meeting must be given to the public at least 30 days prior to the meeting. The governing board must provide interested parties a reasonable opportunity to be heard. The governing board then determines whether expenditure of the required amount would have resulted in serious hardship to the district or in the payment of salaries of classroom instructors in excess of the salaries of classroom instructors paid by other districts of comparable type and functioning under comparable conditions.

The district must then transmit the findings of the governing board to the Chancellor's Office. The final figures used by the Chancellor's Office as the basis for determining the degree of compliance with Education Code Section 84362 are those submitted by the district. Failure to comply with the provisions of this section void the district's application for exemption.

Within two weeks of the public hearing or by the date the district is required to transmit its findings to the Chancellor's Office, whichever is later, the academic employee organization(s) is required to be notified pursuant to Title 5 regulations. The organization may submit an additional written statement opposing the application to the Chancellor's Office and requesting a hearing by the Chancellor.

Commentary

The California community colleges are a postsecondary education system and as such should be operated in a similar manner as other higher education entities. For more than 30 years, California community college system has been mired in it's K-12 roots. The community college funding system is the major link to the K-12 system, as a result of Proposition 98. Depending on one's point of view, this has been a blessing or hindrance to achieving complete autonomy with no strings to K-12.

The "50% Law" is another one of those vestiges to the K-12 system that does not ensure any added quality of service or instruction to the system. In the K-12 system, the law was originally intended to ensure that adequate resources were earmarked for classroom instruction. This is not a necessity for community colleges. Better than 80% of local district expenses are in the area of salary and benefits for employees. The collective bargaining process determines salary levels and benefit structures.

Now is the time for the California Community College Board of Governors to review the need for the 50% law, as it is applicable to community colleges. It is appropriate that they take a leadership position in determining whether or not E.C. Section 84362 enhances the community college system or is simply a law the faculty organizations choose to hold onto because of the perception that they may otherwise have fewer dollars on the table for bargaining.

As long as there is a collective bargaining process and revenues are earmarked for various programs, employees will receive their fair share and students will be the benefactors. Change can be difficult, but in this case it could be for the better.

-- Arnold Bray