BILL ANALYSIS Ó SB 451 Page 1 SENATE THIRD READING SB 451 (Price) As Amended July 14, 2011 Majority vote SENATE VOTE :35-0 HIGHER EDUCATION 8-1 APPROPRIATIONS 12-4 ----------------------------------------------------------------- |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 SB 451 Page 2 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 SB 451 Page 3 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 SB 451 Page 4