BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 451|
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UNFINISHED BUSINESS
Bill No: SB 451
Author: Price (D)
Amended: 7/14/11
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
SENATE FLOOR : 35-0, 5/12/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Cannella,
Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson,
Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff,
Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete
McLeod, Padilla, Price, Rubio, Simitian, Steinberg,
Strickland, Vargas, Wolk, Wright, Wyland
NO VOTE RECORDED: Calderon, Pavley, Runner, Walters, Yee
ASSEMBLY FLOOR : 72-4, 8/25/11 - See last page for vote
SUBJECT : Student financial aid: Cal Grant C awards
SOURCE : Author
DIGEST : This bill requires the California Student Aid
Commission (CSAC) to prioritize Cal Grant C awards to
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students pursuing study in areas of high employment need,
high salary or wage protection, or high growth, and
establishes related authority and requirements.
Assembly Amendments (1) specifies that a determination by
CSAC for a subsequent award year that the program under
which a Cal Grant C was initially awarded is no longer
deemed to receive priority shall not affect an award
recipient's renewal, (2) requires CSAC to examine
graduation rates and job placement data of eligible
programs and, commending in 2014-15, give priority to Cal
Grant C applicants seeking enrollment in programs rating
highly in these factors, and (3) requires the Legislative
Analyst's Office report to the Legislature to contain
specified information,
ANALYSIS : Current law authorizes the Cal Grant Program,
administered by 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 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 requires CSAC to prioritize Cal Grant C awards to
students pursuing training in fields meeting specified
criteria. Specifically, this bill:
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1.Requires CSAC to review and update the areas of
occupational and 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.
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
20-14-15, 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) 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.
Comments
Background on Cal Grant C . The total number of Cal Grant C
awards is established in state law as the number awarded in
the 2000-0l fiscal year (7,761). There are approximately
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
has not been 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 five percent of all current Cal Grants,
have an average family income of $21,792, are an average
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age of 31, and have an average entering 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-yea non-profit
institutions, seven four-year-for-profit institutions, one
hospital school, and 42 district 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 carriers above a cut-off level
receive award offers. In the 2010-11 cycle, about 14
percent of students who submitted Cal Grant C supplements
received award offers. Under the provisions of this bill,
student eligibility requirements do not change, instead
CSAC will award additional points for applicants in the
ranked fields and programs.
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
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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 8/23/11)
Community College League of California
ARGUMENTS IN SUPPORT : According to the author's office,
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 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. The
author's office believes that this bill will maximize the
opportunities for Californians to acquire the necessary job
skills to gain and keep employment.
ASSEMBLY FLOOR : 72-4, 8/25/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Campos, Carter, Cedillo, Chesbro,
Conway, Davis, Dickinson, Eng, Feuer, Fletcher, Fong,
Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto,
Gordon, Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Nestande, Nielsen,
Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Donnelly, Grove, Morrell, Norby
NO VOTE RECORDED: Bonilla, Charles Calderon, Cook, Gorell
CPM:cm 8/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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