BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SJR 2| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SJR 2 Author: Liu (D) Amended: As introduced Vote: 21 SENATE EDUCATION COMMITTEE : 8-0, 4/1/09 AYES: Romero, Huff, Alquist, Hancock, Liu, Maldonado, Padilla, Wyland NO VOTE RECORDED: Simitian SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Higher education tax credit SOURCE : Author DIGEST : 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. ANALYSIS : 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. CONTINUED SJR 2 Page 2 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 regarding college access, affordability, textbook cost, and financial aid. 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. FISCAL EFFECT : Fiscal Com.: Yes SUPPORT : (Verified 4/20/09) California Postsecondary Education Committee American Federation of State, County and Municipal Employees DLW:do 4/20/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****