; Board of Governors
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Board of Governors

VIEWS: 4 PAGES: 10

  • pg 1
									                                        Board of Governors
                                  California Community Colleges
                                      September 11-12, 2006



  2006-2008 NURSING PROGRAM                                                         13.1
  EXPENDITURE PLAN
  ACTION SCHEDULED
  Presentation:   Jose Millan, Vice Chancellor
                  Economic Development and Workforce Preparation Division




Issue
This item presents background information for a 2006-2008 Expenditure Plan for nursing funds
dedicated from the 2006-2007 State Budget. The new State Budget has appropriated an
additional $2.886 million in ongoing funding to the prior year’s $10 million for the Governor’s
Capacity Building Initiative. The intent of this Initiative has been revised to address student
attrition and retention and to increase the growth and capacity of California Community College
nursing programs. Three million dollars has also been provided for a pilot grant program
designed to recruit and retain existing full-time nursing faculty ($2.5 million) and to establish
online nursing student clinical placement registries, and an on-line community college nursing
faculty registry ($500,000).

Appendix A is a table of the proposed 2006-2008 Nursing Program Expenditure Plan.


Background
Public policy attention is increasingly being focused on the nursing shortage across the nation
and in California. The California Employment Development Department (EDD) forecasts a
need for 109,600 more registered nurses (RNs) between 2000 and 2010. This equates to almost
11,000 new RNs annually. Public and expert opinion shows the nursing shortage has serious
implications for California and its economy. This shortage has many roots and many solutions
need to be implemented to alleviate the situation.

The California Community Colleges system is mounting many responses to this nursing
shortage. This Expenditure Plan is focused on five areas — expansion, attrition and retention,
faculty shortage, a Nursing Student and Faculty Registry, and a Licensed Vocational Nurse
(LVN) to RN Start-Up Program.
2   Item 13.1


Expansion

In recognition of the nursing shortage, Governor Schwarzenegger’s 2005-2006 State Budget
―May Revise‖ funded a $10 million Nursing Program Capacity Building Initiative. This initiative
placed a priority on increasing the supply of employable nurses. These funds were designated
for providing additional support for nursing program infrastructure and equipment. In
subsequent years, the funds were to be ongoing and provide direct enrollment support to
supplement general apportionment funds paid per Full-Time Equivalent Student (FTES) for
nursing students. Beginning in April 2006, thirty-nine (39) nursing programs were funded.
Renovation and equipment purchases are to be accomplished in the first eight months of the
projects. Thereafter, student enrollments are increased by 1000 through June 2008. The original
intent was for these funds to continue to increase enrollments.

In the 2006-07 State Budget an additional $2.886 million was funded and the Budget Control
language modified as follows:

       For districts with attrition rates of 15 percent or more, new grant funding shall focus on
        attrition reduction. For districts with attrition rates below 15 percent, new grant funding
        shall focus on enrollment expansion.

Attrition and Retention

The best information on community college attrition rates indicates that only 10 of the 71
programs had an attrition rate below 15 percent. The attrition rate was calculated by looking at
the students who enrolled in 2002-03 and received an award by 2005. All 10 programs currently
have at least one of the two types of nursing expansion grants awarded by the System Office in
the spring of 2006. Two of the 10 programs have both types of expansion grants and System
Office staff question if any of these 10 will have the capacity to enroll additional students;
therefore, 2006-07 funds may not be used to further the expansion goals proposed by the System
Office last year. Since funds may be used to provide support services to increase student
retention, we believe that many of the 61 colleges with attrition rates in excess of 15 percent will
apply for funding to support existing students.

Senate Bill 1309 (Scott) provides specific criteria to address the reduction of attrition in the
Community College nursing programs. At this time, SB 1309 is in Assembly Appropriations. If
the bill passes and is signed by the Governor, the use of the $2.886 million funds and any
remaining funds unencumbered from the $10 million Capacity Building Program initiated last
year will be mandated, as specified in the language of the bill. Budget Control language, as
specified above, supports the more detailed language of the bill. The bill language provides the
criteria for the grant requirements and reports.




2006-2008 Nursing Program Expenditure Plan Process
                                                                                    Item 13.1       3


Nursing Faculty Shortage

In addition to the overall nursing shortage, there is also a shortage of qualified nursing faculty to
teach in nursing programs. The 2006-07 State Budget designated $2.5 million to fund a pilot
grant program designed to recruit and retain existing full-time nursing faculty. These funds are
available for three years through 2008-09. The System Office is to allocate these funds to
districts on a competitive basis.

Nursing Registries for Students and Faculty

Nursing programs are required to provide students with experience in hospital and clinical
settings and those placements are becoming scarce. In the current State Budget, $500,000 has
been designated to provide one-time grants to establish nursing student online clinical placement
registries in all regions of the state for the benefit of California Community Colleges, University
of California, and California State University students. Past experience shows that additional
clinical placements may be found through such registries.

These funds must also be used to establish an online Community College Nursing Faculty
Registry. Both types of projects must be self-sustaining through annual user fees following the
completion of the grants.

Licensed Vocational Nurse (LVN) to Registered Nurse (RN) Start-Up Nursing Program

In the past, nursing program funds allocated to the System Office appeared in several places
within the State Budget, including the Economic Development Program. In the 2006-07 State
Budget, all funds for community college nursing programs were placed in Schedule 23, Nursing
Program Support and will appear in one place in future budgets. Therefore, a revision to last
year’s Enrollment Growth for Nursing Program Expenditure Plan needs to occur. Funds were
awarded as outlined in the Plan, but not all funds were allocated. The System Office proposes
that the unallocated funds be used for a competitive grant process to establish a new Licensed
Vocational Nurse (LVN) to Registered Nurse (RN) Start-Up Nursing Program.


Analysis
The System Office has devised allocation methodologies which partly continue last year’s
methodology as well as a new methodology for allocating funds for student retention for existing
students that are not part of any enrollment growth efforts. The allocation system focuses on
maximizing return on investment as measured by increased enrollment capacity for nursing
students or increased retention and completion rates, while minimizing administrative burdens
upon the colleges and the System Office. For example, funds will be awarded based on a
competitive or non-competitive process and on certain qualifying factors for a two- to three-year
performance period with continued funding based on measured outcome elements.




                                                    2006-2008 Nursing Program Expenditure Plan Process
4   Item 13.1


Allocation of $2.886 Million (plus any unencumbered funds from $10 million Capacity
Building Initiative) The allocation of the $2.886 million funds (plus unencumbered funds,
currently $4,290,714 for a total of $7,176,714) shall be conducted as follows:

       Expansion Grants - A competitive process to award five, three-year grants for building
        capacity to expand enrollments at $300,000 each for a total of $1.5 million. Colleges
        receiving these awards must have retention rates of 85 percent or better as determined by
        the System Office through the use of Management Information Systems (MIS) or Board
        of Registered Nursing data.

            o These grants will be awarded for a three-year performance period. The Request
              for Application specifications will require an increase in program enrollment
              capacity in the two years subsequent to the initial infrastructure development year.
              In those subsequent two years, colleges will receive $5,555 in addition to the
              funds received for FTES through apportionment for each additional student
              enrolled above the college’s baseline 2004-05 program enrollment capacity.

            o If there are not sufficient applicants to fund five grants, the funds will be used to
              address attrition as described below.

       Retention Grants - Based on the analyses of attrition rates, the System Office proposes
        the following non-competitive process to award grants to improve retention:

            o Sixty one (61) awards to nursing programs across the state; funding amounts will
              be based on an amount per FTES who are not part of any expansion grant efforts.

                       Each college must specify the number of current enrollments in the first
                        and second years of the Associate Degree Nursing - Registered Nurse
                        program, excluding any student numbers currently funded with expansion
                        grants.
                       The total funds available ($5,676,714) shall be divided by the total number
                        of existing students statewide currently enrolled in the first and second
                        years of the nursing program (excluding expansion students) as
                        determined by the FTES numbers submitted by college applicants.
                       Colleges will receive funds as specified for student enrollments in the first
                        and second years of the nursing program (excluding expansion students).
                        For example, if the total number of enrollments for existing students in
                        California is 10,000, the available funds will be divided by 10,000.
                        $5,676,714/10,000 = $567. For each of the year of the grant, each
                        participating college will receive $567 multiplied by the number of
                        students enrolled in the first and second years of the nursing program –
                        excluding expansion students. For example, 60 students x $567 = $34,020
                        for each year.

            o These grants will be awarded for a two-year performance period.



2006-2008 Nursing Program Expenditure Plan Process
                                                                                  Item 13.1       5



In the second year of the plan, any unallocated funds will be used to augment these retention
grants.

Allocation of $2.5 Million for a Pilot Program to Recruit and Retain Faculty

As noted earlier, the 2006-2007 State Budget allocated $2.5 million to fund a pilot grant program
designed to recruit and retain existing full-time nursing faculty. These one-time funds are
available for three years through FY 2008-09. The System Office is required to allocate the
funds on a competitive basis. The System Office is also required to submit the grant criteria
developed as part of the Request for Application specifications to the Department of Finance and
the Legislature. If signed into law, SB 1309 requires the funds to be disbursed among first-
through fifth-year CCC nursing instructors. Grants may not exceed a total of $20,000 over a five-
year period or $6,000 in any one year per full-time instructor. (See Appendix B for bill
language). The System Office proposes to use these criteria to award the grants.

Allocation of $500,000 for the Establishment or Expansion of Online Clinical Placement
Registries and to Establish an Online Faculty Registry

The System Office proposes to conduct a competitive grant process to award a grant in each
region of the state to establish or expand on-line clinical placement registries. A maximum of 10
awards at $47,500 each will be made available for the clinical placement registries. One project
will receive $25,000 to establish an Online Nursing Faculty Registry.

Enrollment Growth for Nursing

As noted earlier, a revision to last year’s Enrollment Growth for Nursing Program Expenditure
Plan needs to occur. Funds were awarded as outlined in the plan, but not all funds were
allocated. There is $51,872 unallocated for FY 2006-07 and $486,804 unallocated for FY 2007-
08. The System Office proposes these funds be used to conduct a competitive grant process to
develop a new LVN to RN Start-Up Program at a college that does not currently have an
Associate Degree Nursing – RN Program.

Upon implementation, the System Office will oversee the grants and coordinate all
administrative and programmatic requirements. System Office monitoring, technical assistance,
and accountability procedures will continue in subsequent program years. Annual awards to
colleges for enrollment support and accountability will be dependent on prior performance, and
continued program oversight will occur to ensure the colleges fulfill additional enrollment
requirements.




                                                  2006-2008 Nursing Program Expenditure Plan Process
6    Item 13.1


Recommended Action
The Board of Governors approve the proposed plan for the distribution of funds for the Nursing
Program, as presented.


Staff:   Barbara Whitney, Specialist
         Career and Technical Education




2006-2008 Nursing Program Expenditure Plan Process
                                   APPENDIX A
                            2006-2008 Nursing Program
                                 Expenditure Plan


                                                              2006-07       2007-08
Expansion Grants                                            $1,500,000    $1,500,000
Retention Grants (Includes unencumbered funds)              $5,676,714    $5,419,897
                                                            $7,176,714    $6,919,897
Pilot Grant Program to Recruit and Retain Existing
Full-Time Faculty                                           $2,500,000    One-Time
Establishment of a Nursing Student On-Line Clinical
Placement Registry and                                        $475,000
Establishment of a Community College
On-Line Faculty Registry                                       $25,000
                                                              $500,000    One-Time
LVN to RN Start-Up Program
(Unencumbered funds from Enrollment Growth for Nursing)        $51,872     $486,804

                                                      Total $10,228,586   $7,406,701
                                        APPENDIX B

                            California Community Colleges
                        Associate Degree Nursing (RN) Programs
                                Nursing Program Grants

                                              SB 1309
   Article 3.51. Nursing Faculty

    78260. (a) (1) In order to further the state's interests in a major expansion in the number of
educated nurses in California, the Legislature finds that it is necessary to ensure a significant
expansion in the number of qualified nursing faculty at California Community Colleges.
Therefore, the Legislature hereby creates the California Community Colleges Nursing Faculty
Recruitment and Retention Program in the Chancellor's Office of the California Community
Colleges for purposes of facilitating the recruitment and retention of qualified nursing faculty.
The Chancellor of the California Community Colleges shall allocate funds on a competitive
grant basis to community college districts that commit to sustained increases in the number of
full-time equivalent students taught in the district's nursing programs, as specified by the
chancellor, and that also commit to the terms and conditions specified in this section.
    (2) It is the intent of the Legislature that the grants awarded under this article should be one-
time grants and that the total amount of the funding for this article in any fiscal year should be
limited to the amount appropriated for that purpose in the annual Budget Act.
    (b) (1) The grant amount to each participating district shall be based on the number of full-
time faculty at the district who are in their first through fifth year of service as an instructor in a
California Community College nursing program in the fiscal year for which funds are disbursed.
Except as provided in paragraph (3), the amount granted to any person under this article shall not
exceed a total of twenty thousand dollars ($20,000) disbursed over a five-year period with a
maximum of six thousand dollars ($6,000) in any one year.
    (2) Disbursements under this section shall be based on the following schedule:
    (A) Six thousand dollars ($6,000) for each instructor in his or her first year.
    (B) Five thousand dollars ($5,000) for each instructor in his or her second year.
    (C) Four thousand dollars ($4,000) for each instructor in his or her third year.
    (D) Three thousand dollars ($3,000) for each instructor in his or her fourth year.
    (E) Two thousand dollars ($2,000) for each instructor in his or her fifth year.
    (3) Notwithstanding the amounts listed in paragraph (2), the amount granted to a person
under this article may be supplemented, in any year of the five-year cycle of disbursements under
paragraph (2), by up to one thousand dollars ($1,000) in local matching funds, plus an equal
amount of funds disbursed pursuant to this program.
    (4) A person who receives a grant under this article shall not be eligible for participation in
the State Nursing Assumption Program of Loans for Education (Article 5.3 (commencing with
Section 69616)).
    (c) Each district is authorized, through its shared governance and collective bargaining
relationships, to allocate actual payments to faculty in their first through fifth years of service as
2   Item 13.1–Appendix B


a nursing instructor on a different basis if the district finds that its ability to recruit and retain
nursing faculty is thereby enhanced. In addition, the
    (d) Each district may use a portion of the grant proceeds to offer incentives to either full-
time or part-time nursing instructors for the purpose of instruction in clinical settings during
weekends and evenings. As a condition of receiving grant fundsThis subdivision shall not
construed to be limited to faculty in their first through fifth years of service as nursing
instructors.
    (e) As a condition of receiving grant funds under this article, each district agrees to provide
the chancellor with all data requested by the chancellor on the expenditure of funds and program
outcomes.
    (d)
    (f) The chancellor shall report annually by March 1 to the Legislature and the Governor on
program expenditures and outcomes by participating district and college.




2006-2008 Nursing Program Expenditure Plan Process

								
To top