BILL ANALYSIS Ó AB 1961 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1961 (Baker) - As Amended April 21, 2016 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 1961 Page 2 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 AB 1961 Page 3