BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 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.

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                                                                 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

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