BILL ANALYSIS Ó AB 1583 Page 1 ASSEMBLY THIRD READING AB 1583 (Santiago) As Amended May 31, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Higher |9-2 |Medina, Bloom, Irwin, |Baker, Linder | |Education | | | | | | | | | | | | | | | | |Jones-Sawyer, Levine, | | | | |Low, Santiago, Weber, | | | | |Williams | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |14-6 |Gonzalez, Bloom, |Bigelow, Chang, | | | |Bonilla, Bonta, |Gallagher, Jones, | | | |Calderon, Daly, |Obernolte, Wagner | | | |Eggman, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 1583 Page 2 SUMMARY: Expands the California Community College (CCC) Board of Governors (BOG) Fee Waiver Program (BOGFW) to students with any financial need. Specifically, this bill: 1)Declares Legislative intent to establish a California affordability promise to ensure more Californians have the opportunity to access and afford community college in California. 2)Establishes the following findings and declarations: a) The BOGFW offsets tuition and fees for more than 60% of full-time CCC students and nearly half of all CCC students, with the only requirements being that students demonstrate financial need and meet reasonable academic progress standards. b) Despite the many strengths of the BOGFW, eligibility is currently limited to students with a minimum need of $1,104. c) It is the intent of the Legislature to ensure all Californians with financial need are eligible for the BOGFW. 3)Amends the BOGFW eligibility criteria to include students who demonstrate financial need of at least $1, in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. AB 1583 Page 3 4)Provides for reimbursement to local agencies and school districts if the Commission on State Mandates determines that this bill contains mandated state costs. EXISTING LAW: 1)Requires a BOGFW for any students who meet all of the following requirements: a) Meets minimum academic and progress standards, as adopted by BOG; b) Meets one of the following criteria: i) At the time of enrollment, is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program; or, ii) Demonstrates eligibility according to income standards established by regulations of the BOG; or, iii) Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (Education Code Section 76300). 2)The 2015-16 Budget Act provided $39 million to be distributed to students receiving the Cal Grant B Access Award and taking AB 1583 Page 4 12 units or more. The CCC Chancellor's Office was required to determine the number of students eligible for funding and distribute an equal amount of funding to each student. In September of 2015, the Chancellor's Office announced the Full-Time Student Success Grant to provide an additional $600 supplement to qualified students. The Governor's 2016-17 January Budget proposes to continue this program. FISCAL EFFECT: According to the Assembly Appropriations Committee, the CCC Chancellor's Office estimates that over 33,000 additional students would initially become eligible for a fee waiver, at a cost of about $23 million (General Fund Proposition 98 of 1988), from changing the financial need eligibility criteria to $1. COMMENTS: Purpose of this bill. According to the author, "in 2025, California faces an estimated shortage of 2.4 million college degree and certificate holders. To meet the demand, California has and must continue to invest significantly in need-based financial aid for CCC students. Despite the many strengths of the BOGFW, eligibility is currently limited to students who demonstrate financial need via various methods, and these methods can unfortunately exclude various students with low to lower-middle income and/or financial need. This bill strengthens and expands the BOGFW to ensure more Californians have the opportunity to access and afford community college." BOGFW income limitations. In 1984, California enacted the first CCC enrollment fee at $5 per unit, with a maximum of $50 per semester and $100 per year. Simultaneously, the BOG was required to establish a financial aid program to negate the effect of the introduction of enrollment fees on access for low income students (BOGFW). The program was designed to make sure that students with financial need did not face a barrier to enrollment. Until 2012, the BOGFW was awarded to any student demonstrating at least $1 of financial need. In 2012, in AB 1583 Page 5 response to a growing population of students applying for and receiving BOGFW, a policy change was made to require students to demonstrate full need for the aid awarded; $1104 based on current CCC fees. Approximately 21,000 students lost BOGFW in 2012-13 due to this change. This bill would return need eligibility to the $1 threshold. Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0003088