BILL ANALYSIS                                                                                                                                                                                                    Ó






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       AB 1781
          AUTHOR:        Linder
          AMENDED:       May 23, 2014
          FISCAL COMM:   Yes            HEARING DATE:  June 4, 2014
          URGENCY:       No             CONSULTANT:Daniel Alvarez

           SUBJECT  :  California National Guard Education Assistance  
          Award Program.
          
           SUMMARY  

          This bill permits a person who receives a California  
          National Guard (CNG) Education Assistance Award Program  
          (EAAP) grant to use the grant in summer sessions or  
          intersessions.  

           BACKGROUND  

          Current law establishes the CNG EAAP to enhance retention  
          within the CNG by providing grant awards to obtain a  
          certificate, degree, or diploma and sets specific  
          conditions of eligibility for participation in the program,  
          including, but not limited to the following:

             a)   The person is a resident of California, as  
 
               specified in current law;  

             b)   The person is an active member of, and has served  
               two years in, the CNG, the State Military Reserve  
               (SMR), or the Naval Militia; 

             c)   The person has been accepted or registered at,  
               enrolled in, a qualifying institution, as specified in  
               current law;

             d)   The person agrees to use the award to obtain a  
               certificate, degree, or diploma that he or she does  
               not hold at the time they apply for an award, and  
               enrolls as specified; 







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             e)   The person has submitted the Free Application for  
               Federal Student Aid (FAFSA) to the U. S. Department of  
               Education.

          Current law specifies that the academic terms specifies  
          that the California Student Aid Commission (CSAC) is  
          responsible for issuing the awards upon receipt of a  
          certificate from the Adjutant General verifying that the  
          applicant meets the eligibility requirements and requires  
          CSAC to report annually to the Legislature regarding the  
          EAAP participants, as specified.  And further specifies  
          that qualifying members shall not receive both a CNG EAAP  
          and any Cal Grant award in the same academic year and  
          specifies the amount of an award generally consistent with  
          the Cal Grant program, as specified.

          Tasks the Legislative Analyst's Office (LAO), on or before  
          January 1, 2016, to prepare and submit to the Legislature a  
          report on the CNG EAAP, including recommendations for  
          modifying or extending the CNG EAAP; and, specifies that  
          the CNG EAAP, as of July 1, 2019, shall become inoperative,  
          and on 
          January 1, 2020, is repealed. (Education Code § 69999.16,  
          et seq.).

           ANALYSIS
           
          This bill permits a person who receives a California  
          National Guard (CNG) Education Assistance Award Program  
          (EAAP) grant to use the grant in summer sessions or  
          intersessions.  In addition, the bill:

          1)   Finds and declares the CNG EAAP is a highly effective  
               student-soldier assistance program emphasizing  
               certification, program, and degree completion.  And  
               those student-soldiers are strongly encouraged to seek  
               available academic advising services to create their  
               academic schedule and program with the goal of working  
               towards a certificate or degree.

          2)   State legislative intent to build upon the success of  
               the CNG EAAP by providing student-soldiers more  
               flexibility in achieving their academic goals.








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           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author's office  
               because summer and intersession terms are not part of  
               the EAAP eligibility formula, student-soldiers don't  
               have the flexibility to take courses on their own  
               schedule if they happen to have a free summer, extra  
               time in winter, or if they have some sort of hardship  
               keeping them from enrolling during the traditional  
               spring and fall semester/quarters.  The CNG students  
               will not be allocated any more money than they are  
               now, instead they will simply be able to extend  
               whatever EAAP money they currently receive to  
               intersession and summer school terms, if they chose  
               to.

           2)   The purpose of the CNG EAAP is a recruitment and  
               retention via educational attainment  .  This measure,  
               by allowing the use of CNG EAAP awards for summer  
               sessions from an educational attainment perspective is  
               admirable; however, the program is a recruitment and  
               retention tool, not a traditional grant program based  
               mainly on income level of grantees.  The current CNG  
               EAAP balances the desire, understandably, of  
               educational attainment in a timely and affordable  
               manner, by providing access to education during the  
               majority of a fiscal year, but it also must be weighed  
               against maintaining the requirements that come with  
               commitment to serve in the CNG.  Permitting the use of  
               CNG EAAP awards during summer sessions generally  
               conflicts with a service member's military commitment  
               to the California National Guard, as most service  
               members must typically perform their mandatory annual  
               training period during the summer months.  The program  
               is an inducement for maintaining required strength of  
               the CNG - clearly with intent to retain the most  
               qualified and experienced CNG members.  Generally, a  
               service member has ample time for planning their  
               academic courses and not run into conflict with annual  
               and periodic training requirements of the CNG.   
               However, conflicts can occur and a blanket allowance  
               to attend summer sessions calls into question the  
               underlying priorities of service member's commitment  
               when joining the CNG.







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           3)   Other unintended consequences  .  According to the  
               California Military Department a larger portion of CNG  
               EAAP funds may be lost for reversion to the General  
               Fund at the end of the academic year, if funds for  
               summer sessions are encumbered but not used; mainly as  
               a result, of practical considerations.  First,  
               colleges, universities, and for-profit schools usually  
               have to be contacted multiple times before they  
               provide enrollment information for any academic term  
               thereby delaying critical information about CNG  
               members and their uses of EAAP funding.  Second, CNG  
               members do not always inform program coordinators that  
               they will not be attending a particular term this in  
               turn limits the CNG from being able to "reallocate"  
               funds to other qualifying members in a timely manner -  
               colleges, universities, and for-profit schools  
               sometimes neglect to report that is student is not  
               enrolled even when they request payment for the  
               student.  Finally, by the time these students are  
               reported as "not enrolled," it is too late for the  
               program to accept new applicants. The department is  
               concerned that the option of attending in summer or  
               intersessions will exacerbate the situations described  
               above.
                
                In addition, it could be argued that allowing for  
               funding of intersessions - which generally are highly  
               concentrated very short-term courses that typically do  
               not exceed two or three weeks - could (1) negatively  
               impact the total award eligibility period (i.e., up to  
               four years of full-time equivalent enrollment) an  
               eligible CNG member has, because intersessions will  
               count against the member's eligibility period without  
               fruitful completion toward an academic goal, and (2)  
               intersessions terms do not typically incorporate the  
               high value courses that most students need to graduate  
               within their desired educational program.

               It is understandable that students may desire to  
               complete their education goals in an expedient manner;  
               however it is important to (1) keep in mind the  
               purpose of the program and the needs of the CNG as a  
               whole, (2) ensure that students have the funds they  







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               need to actually complete their desired program and  
               that any unused funds within a given fiscal year can  
               get reallocated to other qualifying persons within the  
               CNG, and (3) try to achieve workable efficiencies of  
               educational attainment where possible.

               Therefore, staff recommends amendments to be refined  
               with Legislative Counsel, as follows:

                  a)        On page 2, strike Section 1, findings and  
                    declarations - an LAO report is due in January 1,  
                    2016, the report will look at the CNG EAAP with  
                    recommendations for modification or extension; an  
                    evaluation of program effectiveness need to occur  
                    - to date there is no clear information cohort  
                    completion or program effectiveness.

                  b)        On page 2, lines 35 and 36 strike ", or  
                    per summer session or intersession term"

                  c)        On page 2, line 36, after the period  
                    insert:

                    (A) Persons enrolled in an institution or program  
                    with a mandatory summer session may receive an  
                    award to cover the academic term.

                    (B) To be eligible to use the award for summer  
                    session, the person must submit a letter from  
                    their unit commander verifying that the person's  
                    enrollment in summer session will not adversely  
                    impact the person's attendance at mandatory  
                    military training.

           1)   Background.  The CNG EAAP, which went into effect on  
               January 1, 2010, is a State-funded grant for up to  
               1,000 eligible service members in the California  
               National Guard, State Military Reserve, or the Naval  
               Militia. Participants can receive up to the amount of  
               the Cal Grant A award for attending the University of  
               California (UC) or the California State University  
               (CSU), up to the Cal Grant B award for attending a  
               community college, or up to the UC Cal Grant A amount  
               for attending a non-public institution.  CNG EAAP  







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               graduate school students may receive an additional  
               $500.00 for books and supplies.

               In order to qualify for an award an applicant must  
               agree, in part, to obtain a certificate, degree, or  
               diploma that he or she does not already hold and to  
               enroll in at least three academic units per semester.

               How many participants?  According to the California  
               Military Department, since the enactment of the CNG  
               EAAP, to date, the program has not exceeded 1,000  
               awards in one academic year.  To note, thus far in the  
               2013-14 academic year (AY), there are 345  
               participants.  The chart below shows the number of  
               participants in the CNG EAAP over the course of four  
               years:

                   --------------------------------------------- 
                  |Fiscal Year   |Number of CNG EAAP            |
                  |              |Participants                  |
                  |--------------+------------------------------|
                  |2009-10       |243                           |
                  |--------------+------------------------------|
                  |2010-11       |450                           |
                  |--------------+------------------------------|
                  |2011-12       |322                           |
                  |--------------+------------------------------|
                  |2012-13       |292*                          |
                   --------------------------------------------- 

               *For the 2012-13 AY, 156 previously qualifying  
               institutions became ineligible because of a change to  
               the definition of a qualifying institution for the Cal  
               Grant program.  Due to this change, 59 new applicants  
               who had submitted completed applications had to be  
               turned away. 


               Award dollars?  According to the California Military  
               Department, in the 2013-14 fiscal year approximately  
               $2.5 million (the total amount appropriated), has been  
               budgeted for CNG EAAP awards.  To date, the CNG EAAP  
               has paid out $1,532,485.00 in awards for 2013-14.  To  
               note, the California Military Department is projected  







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               to use all the funds for this fiscal year.  The chart  
               below shows the dollar amount that has been awarded to  
               eligible participants over the course of four years:

                   ---------------------------------------------- 
                  |Fiscal Year          |Distributed Award       |
                  |                     |Dollars                 |
                  |---------------------+------------------------|
                  |2009-10              |$795,759.00             |
                  |---------------------+------------------------|
                  |2010-11              |$2,472,246.00           |
                  |---------------------+------------------------|
                  |2011-12              |$2,418,392.00           |
                  |---------------------+------------------------|
                  |2012-13              |$1,988,534.00*          |
                  |                     |                        |
                   ---------------------------------------------- 

               *For the 2012-13 AY, 156 previously qualifying  
               institutions became ineligible because of a change to  
               the definition of a qualifying institution for the Cal  
               Grant program.  Due to this change, 59 new applicants  
               who had submitted completed applications had to be  
               turned away. 

           SUPPORT  

          California State Student Association
          California State University
          Community College League of California
          Veterans Caucus of the California Democratic Party

           OPPOSITION

           None on file.