BILL ANALYSIS Ó
SB 451
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Date of Hearing: July 13, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 451 (Price) - As Amended: June 30, 2011
Policy Committee: Higher
EducationVote:8-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Student Aid Commission to give
priority for Cal Grant C awards to students pursuing training in
fields meeting specified criteria. Specifically, this bill:
1)Requires the commission, at least every five years beginning
in 2012, to review and update the areas of occupational and
technical training for which students may utilize Cal Grant C
awards.
2)Requires the commission to give priority in granting Cal Grant
C awards to students pursuing occupational or technical
training in areas meeting at least two of the following
criteria:
a) High employment need.
b) High employment salary or wage projections.
c) High employment growth.
3)Requires the commission to determine areas of occupational or
technical training that meet the above criteria in
consultation with the Employment Development Department and
using projections available through the Labor Market
Information Data Library.
4)Requires the commission to examine graduation rates and job
placement data of eligible programs and, commencing in
2014-15, to give priority to Cal Grant C applicants seeking
enrollment in programs rating highly in these factors.
5)Requires the Legislative Analyst's Office (LAO), by April 1,
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2015 and biennially thereafter, to report specified
information regarding Cal Grant C program outcomes to the
governor and the Legislature.
FISCAL EFFECT
1)The commission will incur ongoing General Fund costs of about
$45,000 for one-half position to fulfill all the requirements
of this bill.
2)Costs to the LAO for the report will be minor and absorbable.
COMMENTS
1)Background . Cal Grant C awards assist with fees and tuition
and training-related costs such as special clothing or
required tools at occupational or vocational schools of four
months or longer and provides that grants may be renewed until
the completion of the training, up to a maximum of two years.
The total number of new annual Cal Grant C awards is
established in state law as the number awarded in 2000-01
(7,761). About 16,500 new and renewal awards are offered
annually. The maximum award amount, which has not increased
since 2000-01, is $2,592 toward tuition and fees and $576 for
training-related costs. As of 2009-10, Cal Grant C
participating institutions included all 109 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 colleges,
almost two-thirds of the awarded funds are paid to students
enrolled in vocational for-profit programs.
2)Purpose . The author notes that current law is silent on how to
best prioritize the awarding of Cal Grant C funds, to ensure
that recipients are students seeking jobs that track well with
the state's most urgent labor and employment needs. SB 451
seeks to direct Cal Grant C funds to recipients seeking
occupations with high employment demand, growth potential,
wages, and/or importance to California's strategic
initiatives. The author asserts that this bill will maximize
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the opportunities for Californians to acquire the necessary
job skills to gain and keep employment.
Effective with the 2009-10 grant cycle, the commission selects
applicants for awards through a point scoring process that
examines educational history, occupational history, and GPA.
Point earners above a cut-off level receive award offers.
Under the provisions of this bill, student eligibility
requirements would not change, but CSAC would implement a
procedure whereby additional points would be awarded for
applicants in the high-growth, high-need, and high-wage
training programs.
3)Prior Legislation . In 2010, a similar bill (SB 451, Price) was
vetoed by Governor Schwarzenegger, who expressed concern that
the bill could limit a student's possibility for an award
simply because their chosen occupation was not deemed a
priority by the state.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081