BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1961


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1961 (Baker) - As Amended April 21, 2016


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          |Policy       |Higher Education               |Vote:|12 - 0       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill:


          1)Increases, from $8,056 to no less than $10,000, the maximum  
            Cal Grant award, for 2017-18 and thereafter, for private,  
            nonprofit postsecondary educational institutions.


          2)Requires private, nonprofit postsecondary educational  
            institutions, as a condition for the funding of Cal Grants to  
            its students, to annually report specified student performance  
            metrics to the Association of Independent Colleges and  








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            Universities (AICCU), which must submit a cumulative report to  
            the Legislature, Governor, Department of Finance, and  
            Legislative Analyst's Office by March 15 of each year.


          FISCAL EFFECT:


          General Fund costs, for increase grant awards, of about $15  
          million in 2017-18, increasing to $50 million in 2020-21. 


          COMMENTS:


          Background and Purpose. Under current law, the maximum Cal Grant  
          award amount, for students attending private non-profit  
          institutions or private for-profit WASC accredited institutions,  
          is set at $9,084 for 2015-16 and reduces to $8,056 beginning in  
          2017-18. According to the author, "this bill would bring more  
          parity to Cal Grant students attending private nonprofit  
          universities with those at California's public institutions.   
          Also, stopping the 11.3% cut slated for 2017-18 will prevent  
          further access limits to higher education opportunities for  
          California students at a time when public colleges and  
          universities are already admitting fewer Californians."


          In addition, the reporting requirements in this bill mirror  
          reports provided by the California State University and the  
          University of California. AB 831 (Bonilla), which in part  
          included these same reporting requirements, was held on this  
          committee's Suspense file.


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










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