BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 451|
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THIRD READING
Bill No: SB 451
Author: Price (D)
Amended: As introduced
Vote: 21
SENATE EDUCATION COMMITTEE : 7-1, 3/23/11
AYES: Lowenthal, Alquist, Huff, Liu, Price, Simitian,
Vargas
NOES: Runner
NO VOTE RECORDED: Blakeslee, Hancock, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Student financial aid: Cal Grant C awards
SOURCE : Author
DIGEST : This bill requires the California Student Aid
Commission to give priority in granting the Cal Grant C to
students pursuing study in areas of high employment need,
high salary or wage projection, or high growth and
establishes related authority and requirements.
ANALYSIS : Current law authorizes the Cal Grant Program,
administered by the California Student Aid Commission
(CSAC), to provide grants to financially needy students to
attend college.
Cal Grant C awards assist with tuition and training costs
at occupational or vocational programs and may be used for
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institutional fees, charges, and other costs, including
tuition, plus training-related costs, such as special
clothing, local transportation, required tools, equipment,
supplies, and books. Current law establishes the total
number of Cal Grant C awards as the number awarded in the
2000-01 fiscal year (7,761) with the maximum award amount
and the total amount of funding being determined in the
annual Budget Act.
Current law requires CSAC to consult with appropriate state
and federal agencies in order to determine areas of
occupational or technical training in which the Cal Grant C
can be awarded and authorizes CSAC to use criteria it deems
appropriate to select students to receive grants. CSAC is
also required to take into account other state and federal
programs available to the applicant. The Cal Grant C may
be renewed until the completion of the training, up to a
maximum of two calendar years.
This bill:
1.Authorizes CSAC to consult with nongovernmental
stakeholders that develop or provide workforce training
or employ graduates of occupational and technical
training programs for the purpose of developing areas of
occupational and technical training for which students
may use Cal Grant C awards.
2.Requires CSAC, at least every five years beginning in
2012, to regularly review and update the areas of
occupational and technical training in which students may
use Cal Grant C awards.
3.Requires CSAC to prioritize the granting of Cal Grant C
awards to students pursuing occupational or technical
training in areas that meet at least two of the following
criteria:
A. High employment need.
B. High employment salary or wage projections.
C. High employment growth.
4.Requires CSAC to consult with the Employment Development
Department (EDD) and use projections available through
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the Labor Market Information Data Library to determine
areas of occupational or technical training that meet the
criteria outlined in #4 above.
5.Requires CSAC to publish and retain on its Internet web
site a current list of the areas of occupational or
technical training that meet the criteria outlined in #3
above and to update this list as necessary.
6.Requires the Legislative Analyst's Office (LAO) to submit
a report to the Governor and the Legislature by April 1,
2015, and every two years thereafter, and that the report
include, but not be limited to, information on the age,
gender, segment of attendance, the occupational and
technical training program categories prioritized, and
the number/percentage of students who received selection
priority established by the bill.
Comments
Current Program . According to CSAC, eligible students
receive a Cal Grant C Supplement application in mid-April,
which must be completed and returned by May 15.
Supplements are scored based on the student's work
experience, educational history and vocational guidelines.
Eligible students must enroll at least half-time in a
vocational program at a California community or independent
college or vocational school that is at least four months,
but not more than two years.
CSAC reports that, as of the 2009-10 academic year, Cal
Grant C participating institutions included all 109 of the
California Community Colleges, one University of California
program, six two-year non-profit institutions, seven
four-year for-profit institutions, one hospital school, and
42 distinct for-profit institutions. Although the vast
majority of students who receive the Cal Grant C are
enrolled in community college programs, almost two-thirds
of the total funds awarded are paid to students enrolled in
vocational for-profit programs. In order to participate in
the program, an institution must have an approved
Institutional Participation Agreement (IPA), a document
which details requirements for participation as specified
in statute, regulations, and CSAC policy. In approving
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IPAs, CSAC considers the length of a school's education
programs and its administrative capability.
CSAC does not currently restrict awards by occupational
area, nor has it consulted recently with other agencies
regarding occupational areas. Additionally, a recent LAO
analysis reveals that in 2008-09, only 43 percent of
students awarded a Cal Grant reported the occupational area
which they were pursuing.
Who currently receives the Cal Grant ? According to the
LAO, students meeting the general eligibility for the Cal
Grant award may be considered for the Cal Grant C. There
is no high school graduation requirement, minimum grade
point average or maximum age for recipients. However,
students must be California residents, have United States
or eligible noncitizen status, complete US selective
service requirements, enroll at least half-time at an
eligible California institution, maintain satisfactory
academic progress (defined by the institution) once
enrolled, meet family income and asset ceilings, and not be
in default on any student loan or owe any federal or state
grant refund. According to CSAC, approximately 50 percent
of eligible applicants receive the limited number of
awards.
According to the LAO, about 80 percent of Cal Grant C
recipients are independent students. In 2008-09, nearly 60
percent earned less than $18,000 annually, and 80 percent
earned less than $30,000 annually. Two-thirds of the
recipients were male, with nearly three-quarters age 25 and
over.
According to an analysis provided by the author's office,
the most recent data available (2008-09 application cycle)
indicates that, of those Cal Grant awardees who reported
the occupational area which they were pursuing, only 38
percent were in areas found by EDD to be among the highest
wage occupations in the state, 64 percent were among the
highest need occupations, and 35 percent in the fastest
growing occupations.
What is the Labor Market Information Data Library ? The
Labor Market Information Division (LMID) of the California
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Labor and workforce Development Agency is the primary
source of labor market and occupational information for the
state. It maintains current labor market data, as well as
employment protections and wage data. Projections of
employment by occupation are typically for a ten-year
period.
The Library provides access to several regularly generated
reports, including reports detailing the information
required by this bill for purposes of prioritizing Cal
Grant C awards. In addition, Labor Market Consultants are
available to assist workforce partners (such as Workforce
Investment Act boards and staff, educators, and those
engaged in economic development) and employers find,
access, and use labor market information and services, and
can assist in the development of customized reports, if
necessary, for a nominal fee.
Prior Legislation
SB 957 (Price), 2009-10 Session, was substantially
similar to this bill. Passed the Senate with a vote of
32-0 on August 26, 2010. The bill was subsequently
vetoed by Governor Schwarzenegger, whose veto message
read, in pertinent part:
"I am concerned that this bill could limit students'
choices or eliminate the possibility of an award for
lower income students, simply because the occupational
areas that they have chosen to pursue were not deemed a
priority by the state."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 4/11/11)
Community College League of California
ARGUMENTS IN SUPPORT : According to the author's office,
although the Cal Grant C program awards almost 8,000 grants
annually for occupational and technical training, these
awards do not track well with the state's most urgent labor
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needs. This bill has been introduced to ensure that CSAC
strategically directs Cal Grant C funds to recipients
seeking occupations in areas with high employment demand,
growth potential, wages and/or importance to California's
strategic initiatives. This bill will maximize the
opportunities for Californians to acquire the necessary job
skills to gain and keep employment.
CPM:cm 4/12/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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