BILL ANALYSIS Ó AB 91 Page 1 ASSEMBLY THIRD READING AB 91 (Portantino) As Introduced January 10, 2011 Majority vote HIGHER EDUCATION 9-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Block, Donnelly, |Ayes:|Fuentes, Harkey, | | |Achadjian, Brownley, | |Blumenfield, Bradford, | | |Fong, Galgiani, Lara, | |Charles Calderon, Campos, | | |Miller, Portantino | |Davis, Donnelly, Gatto, | | | | |Hall, Hill, Lara, | | | | |Mitchell, Nielsen, Norby, | | | | |Solorio, Wagner | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Establishes a three-year pilot program to increase participation among community college students and state and federal financial aid programs. Specifically, this bill : 1)Requires the Chancellor's Office of the California Community Colleges (CCCCO) to establish the pilot program and select up to 10 community college campuses to voluntarily participate in the program. 2)States that the particular goals of the pilot program include: a) Identifying best practices for increasing the number of students who complete a Free Application for Federal Student Aid (FAFSA); b) Developing strategies for increasing student participation in financial aid beyond just the CCC Board of Governor's student fee waiver (BOG waiver); and, c) Encouraging the CCCCO to pursue private and federal funding to support the pilot program. 3)Requires the CCCCO to provide specified information and data on the pilot program to the Legislative Analyst's Office (LAO) by January 10, 2013, and requires the LAO to report to the Legislature on the results of the program and recommendations AB 91 Page 2 regarding statewide expansion. 4)Repeals these provisions as of January 1, 2015. FISCAL EFFECT : According to the Assembly Appropriations Committee, assuming 10 participating campuses are representative of the entire system and assuming increases by the third year of the pilot program in new financial aid awards to students at these campuses of 10% for the High School Entitlement Cal Grant B and 5% for the Transfer Entitlement Cal Grant A and B, General Fund costs would be about $200,000 in 2013-14 and about $600,000 in 2014-15. COMMENTS : The FAFSA is used to determine eligibility for all major federal and state financial aid programs, including Cal Grants, Pell Grants, institutional aid at the University of California and the California State University, work-study awards, scholarships, and federal student loans. Approximately 900,000 CCC students receive a BOG fee waiver, based on their financial need. A CCC student may apply for a BOG fee waiver by submitting a FAFSA or by submitting a simple short form. Studies have shown that CCC students are the least likely to take full advantage of federal financial aid opportunities, and are thus not accessing an estimated $500 million in federal aid annually. Moreover, a recent study by the Institute for Higher Education Policy and Leadership found that enrollment patterns are related to student success, specifically that success was in part more likely for students who attended full-time and enrolled continuously without taking time off. To the extent students are unable to enroll in this manner due to their financial circumstances, getting more students the state and/or federal financial aid for which they are otherwise eligible should increase overall student success rates and shorten completion time, thus freeing up community college enrollment slots for other students. Analysis Prepared by : Sandra Fried / HIGHER ED. / (916) 319-3960 FN: 0000899 AB 91 Page 3