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; AB 1781 Page 2 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CNG EAAP; and, specifies that the CNG EAAP, as of July 1, 2019, shall become inoperative, and on January 1, 2020, is repealed.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. AB 1781 Page 3 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. AB 1781 Page 4 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 AB 1781 Page 5 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 AB 1781 Page 6 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 AB 1781 Page 7 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.