BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          Bill NO:       SJR 2
          AUTHOR:        Liu
          INTRODUCED:    February 25, 2009
          FISCAL COMM:   Yes            HEARING DATE:  April 1, 2009
          URGENCY:       No             CONSULTANT:Nancy Anton

           SUBJECT  :  Higher Education Tax Credit
          
           SUMMARY  

          This joint resolution calls on the State of California to  
          adopt, when the state's economic conditions improve, a  
          higher education tax credit similar to the federal American  
          Opportunity Tax Credit to make college more affordable for  
          all California citizens.

           BACKGROUND  

          The American Opportunity Tax Credit is currently being  
          proposed by President Obama to make college more affordable  
          by directly reducing the amount of money a person owes in  
          taxes.  This tax credit is intended to offset 2/3 of the  
          costs of a four-year public college education and would  
          effectively make community college free for most students.

           ANALYSIS
           
           This joint resolution  :

          1)   Commends the United States President and Congress for  
               including the American Opportunity Tax Credit in the  
               American Recovery and Reinvestment Act of 2009 thereby  
               making college more affordable by providing financial  
               relief to students and their families.

          2)   Calls for the State of California, when the state's  
               economic conditions improve, to adopt a similar higher  
               education tax credit measure that will support efforts  
               to make college more affordable.

          3)   Includes a variety of findings and declarations  




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               regarding college access, affordability, textbook  
               cost, and financial aid.

           STAFF COMMENTS
           
          In August 2008, The California State Auditor released a  
          Fact Sheet titled "Affordability of College Textbooks."   
          They found, in part, that textbook prices have risen  
          significantly in the last four years, but some strategies  
          may help to control these costs for students.  Some of  
          their key findings included that textbook price increase  
          have significantly outpaced median household income and  
          that textbook publishers charged retailers significantly  
          more than did publishers of all types of books.

           SUPPORT
           
          American Federation of State, County and Municipal  
          Employees

           OPPOSITION

           None received.