SB 285, as introduced, De León. Student financial aid: Cal Grant Program.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program), establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Under the Cal Grant B Entitlement Program, awards may be made for access costs, defined as living expenses and expenses for transportation, supplies, and books, in an amount not to exceed $1,551 annually, as adjusted in the annual Budget Act.
This bill would appropriate, without regard to fiscal years, an amount certified by the Student Aid Commission as available for expenditure from the College Access Tax Credit Fund to the commission for distribution to students to supplement Cal Grant B access cost awards to bring those students’ total annual awards for access costs to not more than $5,000.
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) In addressing California’s fiscal crisis, state budget solutions
4over the last several fiscal years have included deep cuts and
5payment deferrals that have resulted in the loss of billions of dollars
6in funding for all segments of postsecondary education.
7(b) In the 2011-12 fiscal year, the state contributed $16.4 billion
8to postsecondary education. However, the share of expenditures
9borne by California State University students in the form of fees
10has nearly doubled, from 18 percent in 2007-08, to 30 percent in
112011-12. A public postsecondary education has become
12unaffordable for the middle class. Most students
are leaving school
13thousands of dollars in debt, and they end up sending monthly
14payments to out-of-state banks rather than contributing to the local
15economy.
16(c) With less access to postsecondary education due to courses
17being cut, each year students are taking longer and longer to
18graduate. It now takes the average student seven years to graduate
19from a California Community College campus, six and one-half
20years to graduate from a California State University campus, and
21four and one-half years to graduate from a University of California
22campus.
23(d) Educational attainment levels predict the overall economic
24performance of states and nations. California was always among
25the top states in degree-completion rates, but it now ranks among
26the bottom 10 states.
27(e) By 2018, 63 percent of all jobs in the United States will
28
require some form of postsecondary education or training,
29according to estimates by the Georgetown University Center on
30Education and the Workforce. The United States is on track to
31deliver only a fraction of this education. Currently, only 38 percent
32of America’s young adults have a college degree, compared to 58
33percent in South Korea.
34(f) California’s postsecondary education system has helped
35build and sustain an entrepreneurial spirit that has shaped new
36sectors of the state’s economy. During tough times like these, we
37need novel approaches to steer the state back on track.
P3 1(g) Estimates show that the College Access Tax Credit Fund
2will be fully subscribed for each of the three years of the program,
3allowing the California Student Aid Commission to fund larger
4access grants to California’s neediest students.
5(h) All Californians deserve access to an affordable
6postsecondary education.
Section 69431.7 is added to the Education Code, to
8read:
(a) As used in this section, “fund” means the College
10Access Tax Credit Fund created by Section 17053.86 of the
11Revenue and Taxation Code.
12(b) Any moneys that may be appropriated from the fund for
13purposes of this section shall be in addition to, and are intended
14to supplement, other moneys appropriated for the Cal Grant
15Program. Upon the creation of the fund, and during its existence,
16the amount of the Cal Grant B access award as established in the
17annual Budget Act shall not be adjusted below the amount set forth
18in the Budget Act of 2012.
19(c) On April 1, 2015, and on April 1 annually thereafter, the
20commission shall certify the amount of moneys available for
21distribution from
the fund for the academic year commencing the
22following July 1. The amount available for distribution in any
23academic year shall not exceed 85 percent of the certified fund
24balance. Notwithstanding any other law, the commission shall
25thereafter determine the amount of the supplemental awards to be
26granted. The amount certified by the commission under this
27subdivision is hereby appropriated to the commission, without
28regard to fiscal years, for the purpose of making awards to students
29in accordance with this section.
30(d) If, after making supplemental awards pursuant to subdivision
31(e), moneys remain in the fund, those moneys shall remain in the
32fund for allocation in future fiscal years.
33(e) Disbursements shall be made under this section to
34supplement awards made for access costs under Article 3
35(commencing with Section 69435), Article 4 (commencing with
36Section 69436), and
Article 5 (commencing with Section 69437).
37The amount of the supplemental award, when added to the amount
38of the award made for access costs established by the annual
39Budget Act, shall not exceed five thousand dollars ($5,000). An
40award under this section is payable only to the extent that moneys
P4 1are available from the fund. The commission shall inform each
2recipient of an award under this section that the award is for one
3academic year only, is not an entitlement, and that future
4supplemental awards are subject to the availability of moneys in
5the fund.
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