BILL ANALYSIS Ó AB 1361 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1361 (Burke) - As Amended May 20, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill: Exempts, from the age limitations (must be age 28 or younger) of AB 1361 Page 2 the California Community College (CCC) Transfer Cal Grant Entitlement Program, a current or former member of the Armed Forces of the United States, unless the individual received a dishonorable discharge. Stipulates that a veteran cannot use a Cal Grant awarded per (1) and the veteran's GI Bill benefits in the same academic year. FISCAL EFFECT: Likely minor ongoing General Fund costs for additional Cal Grants. Because GI Bill benefits are more generous that Cal Grants, which only cover tuition costs (plus a stipend under Cal Grant B), veterans eligible for both benefit would be more likely to use the former. Examples where this bill might apply would be a transferring veteran who elects to use their Cal Grant to obtain their bachelor's degree and then uses their GI Bill benefits for graduate school, or a veteran who depletes their GI Bill benefits at a private institution, then attends and completes lower division work at a community college, and finally uses their Cal Grant to get their bachelor's degree. COMMENTS: 1)Background. The CCC Transfer Entitlement Program provides Cal Grant A and B awards to qualified students transferring from a CCC to a qualified baccalaureate-degree granting institution. Students are required to meet specified criteria, including that the student will not yet be 28 years of age by December 31 of the award year. In 2014-15, CSAC estimated 60,000 - 75,000 CCC transfer students were potentially eligible for the award, made offers to 17,745, and paid 14,491 awards. According to CSAC, the remaining students (up to 58,000) that were not offered an award may have been disqualified for a AB 1361 Page 3 variety of reasons, including exceeding the age limit. 2)GI Bill. The Post-9/11 GI Bill provides the following annual educational benefits (when fully eligible) to current and former members of the Armed Forces: a) Paying in-state tuition and fees (up to $17,500 annually) for students attending California schools. b) Monthly housing allowance based on zip code of school, including for students enrolled solely in distance learning. c) Up to $1,000 annually for books and supplies. (Cal Grants do not provide assistance specifically for books and supplies.) d) Up to $1,200 for tutoring assistance. (Cal Grants do not provide tutoring assistance.) e) Selected opportunities to transfer these benefits to a spouse or dependent child. (Cal Grants are nontransferable.) 3)Purpose. According to the author, the age eligibility requirement presents a barrier for veterans who are attending college later in life. According to The Million Records Project by the Student Veterans of America, nationwide 85 percent of veteran students are older than 24 years of age, 47 percent of veterans students are supporting a family, and 46 percent of veterans students are 25 years of age or older when they first enroll in college. This bill assists veterans by removing the age eligibility requirement for current or former members of the Armed Forces of the United States for the CCC Transfer Entitlement Program. AB 1361 Page 4 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081