BILL ANALYSIS Ó
AB 206
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
206 (Mark Stone) - As Amended April 14, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the California DREAM Work-Study Program,
to be administered by the University of California (UC) and the
California State University (CSU). Specifically, this bill:
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1)Establishes the program commencing in 2016-17 for
undergraduate UC and CSU students who have made a timely
application to the California Student Aid Commission for
financial aid under the state's Dream Act and who meet are
specified eligibility criteria, including having federal
authorization to work in accordance through federal law or
executive order (such as through Deferred Action for Childhood
Arrivals (DACA)).
2)Requires UC and CSU to provide the following funding levels
for a work-study grant received under the program:
a) 100% of the cost for a student whose work is accomplish
on campus or other university facility, or at a K-12 school
or community college.
b) 50% of the cost for a student whose work is accomplished
at any other location.
FISCAL EFFECT:
Cost would depend on the number of students meeting all
eligibility requirements and electing to participate in the
work-study grant program. While the number of UC/CSU students
currently receiving benefits under the Dream Act is known, the
universities do not ascertain whether such students are under
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DACA. The estimates below assume that (a) in two years
enrollment of Dream Act students will be roughly double current
enrollment, as the Dream Act will then be fully phased in, (b)
25% of Dream Act students are DACA, which according to CSU is
the national average among those eligible for DACA, (c) 75% of
the work study grants are fully-funded and 25% are half-funded,
and (d) participants work 10 hours per week on average.
1)UC. In 2017-18, 3,800 Dream Act students; 950 are DACA. Total
General Fund cost would therefore be $2.1 million in 2016-17
and $2.8 million in 2017-18, and annually thereafter.
2)CSU. In 2017-18, 6,400 Dream Act students; 1,600 are DACA;
75%, or 1,200 apply for aid (similar to other CSU students).
Total General Fund cost would therefore be $2.9 million in
2016-17 and $3.8 million in 2017-18, and annually thereafter.
While the above assumptions are open to debate, this new program
will likely cost up to several million dollars annually. The
author is proposing amendments to clarify that operation of the
grant program would be contingent on funding being provided
specifically for this purpose in annual Budget Act.
COMMENTS:
1)Background. In 2012, the Secretary of Homeland Security, under
the direction of President Obama, announced the DACA policy,
providing certain people who came to the United States as
children and meet several guidelines authority to request
consideration of deferred action for a period of two years,
subject to renewal. They are also eligible for work
authorization. Deferred action is a use of prosecutorial
discretion to defer removal action against an individual for a
certain period of time. Deferred action does not provide
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lawful status.
The Federal Work Study (FWS) Program provides funds for
part-time employment to help needy students finance higher
education. Postsecondary institutions must apply annually to
the US Department of Education (USDE) to participate, and the
department allocates funds based on prior year funding levels
and the aggregate need of prior year eligible students.
Generally, the school or employer pays up to 50% share of the
student's wages; however, in some cases, the federal share of
the wages may be as high as 100%. Currently, all campuses of
the CSU and UC participate in FWS, and both segments indicate
that existing funding does not provide sufficient support to
meet all students' needs.
2)Purpose. According to the author, federal law currently
excludes undocumented students from any federal financial aid,
including the FSW Program. Some UC campuses have been able to
develop institutional work-study grants for AB 540 students
beginning in the fall of 2014, but lack an ongoing funding
source. This bill aims to ensure that UC and CSU students have
access to grants for work-study.
For 2014-15, seven UC campuses are offering institutionally
funded work-study awards to AB 540 students with DACA status,
and awards are typically about $2,000 for the year. Three of
the seven campuses offered these programs for the first time
in the current year and at least two of the campuses did so
with one-time moneys, so it is unclear if these programs will
be able to continue in future years. There are no comparable
work-study programs for AB 540 students at any CSU campuses.
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Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081