BILL ANALYSIS Ó AB 1091 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1091 (Eduardo Garcia) - As Amended April 30, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill: 1)Authorizes the California Student Aid Commission (CSAC) to AB 1091 Page 2 require that verification of high school graduation or its equivalent be electronically submitted for those who graduated from public schools in the prior academic year, except for those who opted out of having their information sent to the commission during their senior year, and declares legislative intent that this be accomplished by districts within established deadlines. 2)Declares legislative intent that the commission make available to each school district listing seniors who have and have not completed a (Free Application for Federal Student Aid) FAFSA or Dream Act application. FISCAL EFFECT: 1)For graduation verification, CSAC will need $120,000 GF for an additional position to program and implement the additional data system function. (CSAC has an aging Grants Delivery System, and the Governor's 2015-16 budget proposal includes $840,000 and three positions for a system upgrade.) CSAC indicates that the FAFSA and Dream Act application information can be provided to districts within existing resources. 2)To the extent CSAC requires districts to submit verification data, this will create a state-reimbursable mandate. At least some districts could incur additional programming costs to be able to provide the information electronically in a format specified by the commission. These one-time costs could exceed $150,000 statewide. [GF-Prop 98] COMMENTS: 1)Background. To apply for a Cal Grant award, students (or AB 1091 Page 3 parents of dependent students) are required, by March 2nd, to: (1) complete and submit the FAFSA; and, (2) file a verified GPA with CSAC. In 2013, the Education Trust-West (ETW) issued a report finding that only 54% of California's 12th graders completed a FAFSA in 2012, and only 50% completed both steps of the requirements to apply for a Cal Grant by the March 2nd deadline. ETW found that districts' use of electronic GPA verification and other data-driven practices resulted in a 15% increase in Cal Grant completion. In 2014, AB 2160 (Ting), Chapter 679, required all high schools to submit GPAs for all high school seniors to CSAC electronically. 2)Purpose. Currently, students are required to submit graduation verification at the back-end of the Cal Grant process to ensure that they in fact graduated, yet many fail to complete this important step that makes a difference in their eligibility for state financial aid. This bill builds on AB 2160 by requiring school districts to also verify a student's graduation. In addition, through CSAC's Webgrants system, high schools can identify which students have or have not completed the FAFSA or California Dream Act. However, particularly as it relates to the FAFSA, the list accessible to the high schools contains the names of all students in the state, as well as those who graduated as long as five to ten years ago. This creates a tedious and costly task for schools when trying to identify their senior who have or have not completed their FAFSA. AB 1091, by requiring a list containing only those seniors within a particular district, will allow high schools to more effectively following-up with students who have not completed their financial aid applications. AB 1091 Page 4 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081