BILL ANALYSIS                                                                                                                                                                                                    Ó



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         SENATE THIRD READING
         SB 451 (Price)
         As Amended  July 14, 2011
         Majority vote 

          SENATE VOTE  :35-0  
          
          HIGHER EDUCATION    8-1         APPROPRIATIONS      12-4        
          
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         |Ayes:|Block, Achadjian,         |Ayes:|Fuentes, Blumenfield,     |
         |     |Brownley, Fong, Galgiani, |     |Bradford, Charles         |
         |     |Lara, Miller, Portantino  |     |Calderon, Campos, Davis,  |
         |     |                          |     |Dickinson, Hall, Hill,    |
         |     |                          |     |Lara, Nielsen, Solorio    |
         |     |                          |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |Nays:|Donnelly                  |Nays:|Harkey, Donnelly, Norby,  |
         |     |                          |     |Wagner                    |
          ----------------------------------------------------------------- 
          SUMMARY  :  Requires the California Student Aid Commission (CSAC) to 
         prioritize Cal Grant C awards to students pursuing training in 
         fields meeting specified criteria.  Specifically,  this bill  :  

         1)Requires CSAC to review and update the areas of occupational and 
           technical training for which students may utilize Cal Grant C 
           awards at least every five years, beginning in 2012.

         2)Requires CSAC to give priority in granting 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; and/or,

            c)   High employment growth.

         3)Requires CSAC to determine areas of occupational or technical 
           training that meet the aforementioned criteria in consultation 
           with the Employment Development Department using projections 
           available through the Labor Market Information Data Library.

         4)Requires CSAC to examine graduation rates and job placement data 
           of eligible programs and, commencing in 2014-15, to give priority 







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           to Cal Grant C applicants seeking enrollment in programs rating 
           highly in these factors.

         5)Requires the Legislative Analyst's Office (LAO) to submit a 
           report to the Legislature on the outcomes of the Cal Grant C 
           Program on or before April 1, 2015, and on or before each 
           odd-numbered year thereafter.

          EXISTING LAW  establishes the Cal Grant Program, administered by 
         CSAC, to provide grants to financially needy students to attend 
         college.  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.  

          FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
         CSAC will incur ongoing General Fund costs of about $45,000 for 
         one-half position to fulfill all the requirements of this bill.  
         Costs to the LAO for the report will be minor and absorbable.
          
         COMMENTS  :

          Purpose of this bill  :  According to the author, 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.  This bill 
         seeks to require CSAC to strategically direct Cal Grant C funds to 
         recipients seeking occupations with high employment demand, growth 
         potential, wages, and/or importance to California's strategic 
         initiatives and students enrolling in programs with high rates of 
         student success.  The author believes that this bill will maximize 
         the opportunities for Californians to acquire the necessary job 
         skills to gain and keep employment.

          Background on Cal Grant C  :  The total number of Cal Grant C awards 
         is established in state law as the number awarded in the 2000-01 
         fiscal year (7,761).  There are about 16,500 new and renewal awards 
         offered annually.  The maximum award amount and the total amount of 
         funding are determined in the annual Budget Act.  However, the 
         award amount has not increased since 2000-01, remaining at $2,592 
         toward tuition and fees and an allowance of $576 for 
         training-related costs.  According to CSAC, Cal Grant C recipients 
         make up 5% of all current Cal Grants, have an average family income 
         of $21,792, are an average age of 31, and have an average entering 







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         grade-point average (GPA) of 2.75.  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. 

         Current process  :  Students who meet general eligibility criteria 
         (citizenship, residency, enrollment, academic progress, and income 
         standards, among other requirements) for Cal Grants may be 
         considered for Cal Grant C.  In addition to general eligibility, 
         Cal Grant C applicants must submit a supplemental application 
         documenting that they are enrolling at an approved institution in a 
         recognized program lasting at least four months and leading to a 
         recognized occupational goal and listing information regarding the 
         program of enrollment and work history of the applicant.  Effective 
         with the 2009-10 grant cycle, CSAC 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.  In the 2010-11 cycle, about 14% of students 
         who submitted Cal Grant C supplements received award offers.  Under 
         the provisions of this bill student eligibility requirements would 
         not change, instead CSAC would award additional points for 
         applicants in the ranked fields and programs.  

          Prior legislation  :  SB 957 (Price) of 2010, which was virtually 
         identical to this bill, passed the Assembly Higher Education 
         Committee in June of 2010 on a 9-0 vote.  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."

          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916) 319-3960 
                                                           FN: 0001655











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