BILL ANALYSIS                                                                                                                                                                                                    



                                                                     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