BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Alan Lowenthal, Chair 2011-12 Regular Session BILL NO: SB 1103 AUTHOR: Wright AMENDED: April 9, 2012 FISCAL COMM: Yes HEARING DATE: April 18, 2012 URGENCY: No CONSULTANT:Beth Graybill SUBJECT : Postsecondary education: Cal Grant Program. SUMMARY This bill requires the California Student Aid Commission to post annual reports submitted by institutions participating in the Cal Grant program and other information useful to students and parents. BACKGROUND Existing law establishes the Cal Grant program under the administration of the California Student Aid Commission (CSAC) and establishes eligibility requirements for students attending qualifying institutions. (Education Code § 69430 et seq.) Existing law requires, beginning in 2012, institutions participating in the Cal Grant Program to submit to CSAC annual enrollment, persistence, and graduation data for all students, including Cal Grant recipients, and requires institution to also provide job placement rate and salary and wage information for occupational and career programs as specified. (EC § 44932.2) ANALYSIS This bill requires the CSAC to provide on its Internet Web site: a) Annual report information submitted by institutions participating in the Cal Grant Program, and b) Other information and links useful to students and parents including but not limited to SB 1103 Page 2 local occupational profiles available through the Employment Development Department's Labor Market Information Data Library. STAFF COMMENTS 1) Need for the bill : According to the author, college is a significant investment for students and their families. While there are many Web sites that provide information about college programs and costs, there are few sites that easily enable students to compare programs and schools to help them make informed choices about their investment. Since the majority of college students participate in some type of financial aid program, and since each year approximately 250,000 students set up a Web Grant account where they can access information about and manage their Cal Grants, the CSAC Web site is a logical place to house information that would enable students and parents to do a side-by-side comparison of institutions or compare similar programs at different institutions. 2) Annual reporting . Trailer Bill language in the 2011 Budget Act (SB 70, Chapter 7, Statutes of 2011) requires the 430 institutions participating in the Cal Grant Program to report enrollment, persistence, graduation, job placement and wage data on an annual basis to the Student Aid Commission beginning in 2012. This bill would require the CSAC to make that information publicly available on its Web site along with other information and links that would be useful to students, such as labor market information through the state's Employment Development Department. The CSAC reports it expects to start the regulatory process for the reporting requirements this spring. Given that the first reports may not be submitted until late 2012, it may make sense to allow the first reporting cycle to be completed before requiring the CSAC to post the information on its Web site. Information provided by the author's office suggests the intent of the bill is to provide a searchable database that would enable students and families seeking information about college programs to compare information across colleges. The bill however does not so specify. Staff recommends the bill be amended to do the following: SB 1103 Page 3 a) Specify that in the year following the first reports submitted pursuant to § 69433.2(a), the commission shall provide the required information. b) Specify that institutional information be posted in a searchable database. 3) Fiscal impact . According to the CSAC, costs associated with posting the required information, would be minor and absorbable. 4) Prior legislation . SB 70 (Committee on Budget & Fiscal Review, Chapter 7, 2011) requires Cal Grant participating institutions to report enrollment, persistence, graduation, job placement and wage data to the Student Aid Commission. SUPPORT California Business Education Association California Manufacturers and Technology Association OPPOSITION None received.