BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 200


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          Date of Hearing:  March 25, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          200 (Alejo) - As Amended March 11, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill increases the number of authorized new Competitive Cal  
          Grant awards from 22,500 currently to 45,000 in 2016-17, 80,000  
          in 2017-18 and 100,000 in 2018-19 and annually thereafter.









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          FISCAL EFFECT:


          Based on current average award amounts and the distribution of  
          awards to students at each of the public postsecondary segments  
          and students at non-public institutions, General Fund costs  
          would be around $55 million in 2016-17, $190 million in 2017-18,  
          $340 million in 2018-19, and over $550 million by 2021-22. 


          COMMENTS:


          1)Background. The majority of Cal Grant recipients in 2013-14  
            (211,300) received an award under the Cal Grant Entitlement  
            Program, which guarantee awards to students who meet specified  
            GPA and income-related criteria and apply within deadlines.  
            The majority of Cal Grant applicants, however, do not qualify  
            for an entitlement award because they are more than a year out  
            of high school, decide to go to college after the entitlement  
            application deadline, or do not meet age or other requirements  
            when they transfer.



            Competitive Cal Grant A and B awards are available to middle  
            and low income applicants who are not eligible for entitlement  
            awards. The number of new competitive awards has been limited  
            by statute to 22,500 since 2000, and the program is now  
            extremely oversubscribed. In 2012-13, almost 300,000 eligible  
            applicants were denied a competitive award.





          2)Purpose. This bill proposes to increase the number of  
            Competitive Program awards from 22,500 for the 2015-16  








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            academic year, to 100,000 by the 2018-19 academic year.   
            According to supporters, this increase will help California's  
            neediest students take more classes, go to school full-time,  
            and ultimately complete their college degree in a timely  
            manner. According to The Institute for College Access and  
            Success (TICAS), denied Competitive Program applicants have an  
            average family income of less than $21,000, a family size of  
            three, and GPA of 2.9.



          3)Related legislation.  SB 15 (Block), pending in the Senate  
            Education Committee, in part increases the number of  
            Competitive Cal Grant awards to 30,000.



          4)Budget Issue. Since 2001, there have been several unsuccessful  
            legislative attempts to increase the authorized number of  
            Competitive Program awards, most of which have been held in  
            the appropriations committees. Notwithstanding the great need  
            to expand this program, it ultimately is a question of budget  
            priorities.



          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081



















                                                                     AB 200


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