BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1091


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1091 (Eduardo Garcia) - As Amended April 30, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill: 


          1)Authorizes the California Student Aid Commission (CSAC) to  








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            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  








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            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.










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