BILL ANALYSIS Ó
AB 91
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Date of Hearing: March 15, 2011
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 91 (Portantino) - As Introduced: January 10, 2011
SUBJECT : Community colleges: student financial aid: financial
aid.
SUMMARY : Requires the California Community College
Chancellor's Office (CCCCO) to establish a voluntary pilot
program to increase student participation in state and federal
financial aid programs, outlines the parameters of the pilot,
and requires the Legislative Analyst's Office (LAO) to report to
the Legislature on the results of the pilot program and to make
recommendations for its statewide expansion. Specifically, this
bill :
1)Requires the CCCCO to establish a voluntary pilot program to
increase student participation in state and federal financial
aid programs. More specifically it:
a) Requires the CCC Chancellor to select no more than 10
campuses from those that volunteer to participate;
b) Requires, to the extent possible, that the geographic,
economic and demographic diversity of participating
campuses be ensured;
c) Establishes the following two target populations of
potentially eligible students to be identified for
participation in the pilot program:
i) Those who complete an application for either a CCC
Board of Governors (BOG) fee waiver but not a Free
Application for Federal Student Aid (FAFSA), and,
ii) Those who do not receive any campus, state, or
federal aid.
d) Establishes the goal of the pilot program to increase
student participation in both state and federal financial
aid programs by actions that include, but are not limited
to:
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i) Identifying strategies and best practices for
increasing the number of students who submit the FAFSA,
and,
ii) Examining and developing strategies for increasing
student participation in financial aid programs beyond
the BOG Fee Waiver program.
2)Encourages the CCCCO to pursue both private and federal
funding to support implementation and operation of the pilot
program.
3)Requires the Legislative Analyst's Office (LAO) to report to
the Legislature by January 10, 2014, as specified, based on
information provided by the CCCCO on the strategies and
techniques employed by participating campuses and data on
student participation in state and federal financial aid
programs.
4)Repeals these provisions as of January 1, 2015.
FISCAL EFFECT : In an analysis of an identical bill last year,
the Senate Appropriations Committee determined that greater
participation in aid programs will result in more federal aid
for CCC students but will also lead to increased state costs
through increased access to Cal Grant B awards. Assuming a 10%
increase in student participation in aid for 10 representative
CCC campuses, this bill would drive new General Fund costs of
approximately $440,000. Further, the activities for
administering the pilot would likely result in costs of
approximately $60,000 to $80,000. There would also be
undetermined costs for implementation at the campus level,
though the local districts would undertake the activities at
their own discretions. CCCCO is hopeful of receiving federal
grants or private donations to assist with costs.
COMMENTS : Background : The FAFSA is the core document used to
determine eligibility for all major federal and state financial
aid programs, including Cal Grant, Pell Grant, institutional aid
at the University of California and the California State
University, work-study awards, scholarships, and federal student
loans. The BOG Fee Waiver program provides relief from CCC fees
for financially needy students. Approximately 900,000 (30% of)
CCC students receive a BOG fee waiver. A CCC student may apply
for a BOG fee waiver by submitting a FAFSA or by submitting a
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Short Form, which requires less information and is simpler to
complete than the FAFSA.
CCC students eligible for more federal aid than they receive :
CCC students have significant financial need but are the least
likely to take full advantage of federal financial aid
opportunities. The Institute for College Success & Access
(TICAS) issued a report (March 2010) stating that only 33% of
CCC students apply for federal financial aid compared to 46% of
community college students in other states. TICAS argued that
CCC students are less likely than those in other states to
complete the FAFSA. It is possible that CCC students are
therefore not accessing an estimated $500 million in federal aid
that would otherwise be available to them.
Increased Pell Grant awards : Funding for Pell Grants has
doubled since 2008-the award is $5,550 for the 2010-2011 award
year, and starting with the 2013-2014 academic year, the maximum
grant will automatically increase by the Consumer Price Index
rate. These increased Pell Grant awards will provide additional
direct aid to low-income students and families in future years.
Student success : The Institute for Higher Education Leadership
& Policy (IHELP) in its report, Rules of the Game: Barriers to
Completion (February 2007), found that enrollment patterns are
related to student success. In particular, completion was more
likely among those who: attended full time in a majority of
terms enrolled; enrolled continuously without taking time off;
completed an orientation course; dropped few of their courses;
or registered on time for most of their courses. Only about 33%
of students enrolled full time (12+ units) in a majority of the
terms they attended, yet these students were four times more
likely to complete than the two-thirds who enrolled part-time in
most terms.
According to IHELP, "Because access to the CCC has been
historically framed around low fees, financial aid policy has
emphasized low fees and fee waivers, rather than overall college
affordability. This gives students a false sense of opportunity
since fees account for only 5% to 7% of the total cost of
college attendance (items like room, board, textbooks,
childcare, and transportation need to be considered). Students
are advised to apply for fee waivers but efforts to steer them
to other forms of federal and state aid fall short, leaving
California's community college students with more unmet need
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(after financial aid) than community college students
nationally. With inadequate financial aid, students work more
hours and attend on a more part-time basis, both of which are
factors in low completion."
Previous legislation : AB 1997 (Portantino) of 2010, which
contained identical provisions to this bill, was vetoed by
Governor Schwarzenegger as unnecessary since CCC can work with
local CCCs to meet the objectives of this bill. AB 668
(Portantino), Chapter 607, Statutes of 2007, required CCC to
develop statements for students regarding the availability of
federal financial aid. As introduced, this bill would have
provided a financial incentive to CCC campuses for every student
who received a Pell Grant.
REGISTERED SUPPORT / OPPOSITION :
Support
California Community Colleges Chancellor's Office
California Postsecondary Education Commission
Community College League of California
Kern Community College District
Los Angeles Community College District
West Kern Community College District
Yosemite Community College District
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960