BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1080
                                                                  Page  1

          Date of Hearing: May 16, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                    AB 1080 (Kehoe) - As Amended:  April 23, 2001 

          Policy Committee:                              Higher  
          EducationVote:11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Student Aid Commission (SAC) to seek to  
          establish a continuous Cal Grant C application process.  The  
          bill requires the SAC to establish a September 2 deadline for  
          the Cal Grant C program, if there are awards not granted during  
          the March 2 application deadline.  

           FISCAL EFFECT  

          According to the SAC, this measure would result in additional  
          General Fund costs of approximately $100,000 in 2002-03.  This  
          amount declines to approximately $40,000 annually thereafter.

           COMMENTS  

           1)Purpose  .  According to the author, between 10 to 15 percent of  
            all awarded Cal Grant C's are not fully utilized, and  
            therefore budgeted funds revert to the General Fund.  Because  
            of high demand for Cal Grant C's, a second deadline will  
            ensure needy eligible students will have an opportunity to  
            access these  funds.

           2)Cal Grant C awards  . These awards cover up to $2,592 in fees at  
            vocational schools, and up to $576 for books and supplies.  In  
            2000-01, 9,286 students are receiving Cal Grant C awards,  
            worth approximately $14.8 million.


           Analysis Prepared by  : Daniel Alvarez / APPR. / (916) 319-2081