BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 91
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          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
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            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









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