BILL ANALYSIS
Appropriations Committee Fiscal Summary
540 (Firebaugh)
Hearing Date: 9/6/01 Amended: 7/3/01
Consultant: Bob Franzoia Policy Vote: Ed 11-2
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BILL SUMMARY: AB 540 would require that a person, including
an alien precluded from establishing California residency
because of federal law, who meets certain eligibility
requirements, be exempted from paying nonresident tuition
at the California Community Colleges (CCC) or the
California State University (CSU). The bill would request
the Regents of the University of California to also exempt
these persons from paying nonresident tuition. In
addition, the bill extends, to these persons, eligibility
for financial aid programs.
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03
2003-04 Fund
Tuition exemption Unknown, major loss of revenueGeneral
Expanded Cal Grant Unknown, major
costsGeneral
eligibility
STAFF COMMENTS: SUSPENSE FILE.
Nonresident tuition at CSU is $7,380 for two semesters.
Resident tuition is $1,428 for two semesters beginning fall
2001. Nonresident tuition at CCCs is $135 per unit ($4,050
for 30 units). Resident tuition is $11.00 per unit.
It is unknown how many students would be affected by this
bill. For AB 1197 (Firebaugh), which contained the same
general provisions as this bill, less the Cal Grant
eligibility, it was estimated that between 750 and 1,500
students might enroll in CSU under the provisions of that
bill. In response to inquiries relating to this bill, CSU
has recently reviewed its enrollment data and indicates
that up to 500 students might enroll in CSU under the
provisions of this bill. To the CSU, and to the CCC, the
bill would have no cost impact beyond the marginal cost
funding usually provided in the budget.
For the purposes of estimating a state fiscal impact, 500
CSU resident students would pay $714,000 in tuition. The
same number of CSU nonresident students would pay
$3,690,000 or a difference of $2,976,000. However, it is
highly unlikely the same number of students would enroll if
they were required to pay nonresident tuition.
Cal Grant A awards (equivalent to CSU tuition) are $1,428
and require a 3.00 GPA. Cal Grant B awards (access or
subsistence) are $1,551 and require a 2.00 GPA. For the
purposes of estimating a fiscal impact, it is assumed 90
percent of eligible students would be from lower-income
families and would qualify for a Cal
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AB 540 (Firebaugh)
Grant B award (450 x $1,551 = $697,950) and ten percent of
the students would
be eligible for Cal Grant A awards (50 x $1,428 = $71,400)
for additional eligibility award costs of $769,350 in the
first year. Those students receiving Cal Grant B awards in
the first year would be eligible to receive Cal Grant A
awards in the second, third, and fourth years for total
eligibility award costs of up to $4,021,650. Those
students receiving Cal Grant A awards in the first year
would continue to receive that award for the remaining
three years of eligibility for costs of up to $214,200.
The fiscal impact may vary because the number of students
utilizing the provisions of this bill may be less beginning
in the second year and subsequent years as the result of
normal attrition or the failure to maintain the required
GPA or because of changes in Cal Grant funding.
The veto message for AB 1197 stated the following:
This bill would exempt any person who has filed a petition
for lawful immigration status and meets other specified
criteria, from paying nonresident fees for attending the
California Community Colleges, the California State
University, or the University of California.
Pursuant to the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (IIRIRA), undocumented aliens
are ineligible to receive postsecondary education benefits
based on state residence unless a citizen or national of
the United States would be eligible for the same benefits
without regard to their residence (Title VIII, Section
1623).
In order for undocumented students to be exempt from paying
non-resident tuition charges as called for in this
legislation, IIRIRA would require that all out-of-state
legal residents be eligible for this same benefit. Based
on Fall 1998 enrollment figures at the University of
California and the California State University alone, this
legislation could result in a revenue loss of over $63.7
million to the state.
For the reasons outlined above, I cannot support AB 1197.
I believe the State's priorities and funding must be
focused on higher education attainment for California legal
residents, both present and future.