BILL ANALYSIS Ó AB 206 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 206 (Mark Stone) - As Amended April 14, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|9 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 206 Page 2 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 AB 206 Page 3 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 AB 206 Page 4 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. AB 206 Page 5 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081