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