BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1091 (Eduardo Garcia) - Student financial aid: Cal Grant Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 1, 2015 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill authorizes the California Student Aid Commission (CSAC) to require verification of high school graduation to be electronically submitted for high school graduates for the purpose of determining financial aid eligibility, and requires the electronic submission of grade point average information on a standardized form. Fiscal Impact: The CSAC indicates one position and $120,000 will be needed to design, implement, and provide support to schools and school districts for the new tool within its existing Grant Delivery System. (General Fund) Unknown, potentially significant reimbursable state mandate costs if the Commission on State Mandates determines this bill to impose a mandate should the CSAC require verification of AB 1091 (Eduardo Garcia) Page 1 of ? high school graduation to be electronically submitted for all former grade 12 students who graduated. The potential for it to be determined a mandate is unclear. If so determined, it could create pressure to increase funding for the K-12 Mandate Block Grant, to reflect the inclusion of the new mandate. See staff comments. (Proposition 98) Background:1) Existing law authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average (GPA), California residency, and other criteria. (Education Code § 69430-69433) Existing law, requires GPAs for Cal Grant A and B applicants to be electronically submitted to CSAC except for students that have opted out; requires GPAs to include a certification by a school official that the GPA is accurately reported; authorizes CSAC to establish grace periods for the receipt of GPAs and corrections; and, establishes Legislative intent that high schools and institutions of higher education certify GPAs of students in time to meet Cal Grant application deadlines. (EC § 69432.9) Proposed Law: This bill authorizes the CSAC to require verification of high school graduation to be electronically submitted for high school graduates, including from charter schools, except for students that opted out. This bill requires that when submitting GPAs electronically to the CSAC for Cal Grant A or B awards, that they use a standardized form. This bill also provides Legislative intent that the CSAC make available to each high school and school district a report identifying all grade 12 students who have not completed the Free Application for Federal Student Aid or the California Dream Act Application. Staff AB 1091 (Eduardo Garcia) Page 2 of ? Comments: It is unclear whether this bill will result in a new reimbursable state mandate. The determination will depend on the interpretation of the Commission on State Mandates. Schools might claim reimbursement for any start-up activities to meet the new requirement such as training on the tool that the CSAC develops to upload the information. Some schools may have to make changes to their electronic data systems to enable uploading required information. To the extent each high school trains one staff member for two hours, reimbursable costs to the state could run in the hundreds of thousands. Increased operational efficiency in the application process for Cal grants could result in savings for both school districts and the CSAC and potentially reduce barriers in students applying for grants, which could in turn increase state Cal Grant costs. Staff notes that the Budget Act of 2015 provided the CSAC $840,000 and three positions to support the modernization of the Grant Delivery System. -- END --