BILL ANALYSIS Ó
AB 2506
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CONCURRENCE IN SENATE AMENDMENTS
AB
2506 (Thurmond)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: | |(June 1, 2016) |SENATE: | 39-0 |(August 25, |
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(vote not relevant)
Original Committee Reference: HIGHER ED.
SUMMARY: Requires, commencing with the 2017-18 academic year,
the California Student Aid Commission (CSAC) to ensure that
postsecondary institutions meet eligibility requirements
consistent with the Cal Grant Program in order to participate in
the Chafee Educational and Training Voucher (Chafee) Program.
The Senate amendments delete the Assembly version of this bill,
and recast the provisions related to institutional eligibility
for Chafee. Specifically, the Senate amendments:
1)Delete findings and declarations.
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2)Delete the entitlement portion of this bill, which would have
required an eligible current or foster youth receive a Chafee
award.
3)Require out-of-state institutions to meet the same eligibility
requirements as California institutions.
4)Delete the requirements that CSAC provide Chafee grant
recipients seeking to attend, or attending, an ineligible
institution with a complete list of all California
postsecondary institutions at which the student would be
eligible to receive an award.
EXISTING LAW:
1)Establishes the CSAC for the purpose of administering
specified student financial programs. (Education Code Section
69510, et seq.)
2)Establishes requirements for postsecondary education
institutions to participate in the Cal Grant program, and
requires, for the 2017-18 and subsequent academic years, an
institution to maintain a graduation rate above 30% and a
three-year cohort student loan default rate of less than
15.5%. (EC Section 69432.7)
3)Establishes the federal John H. Chafee Foster Care
Independence Program to provide, among other benefits,
education and training vouchers to qualifying current and
former foster youth. (United States Code, Title 42, Section
677)
FISCAL EFFECT: According to the Senate Appropriations
Committee, CSAC indicates that verifying institutions'
eligibility for the use of Chafee grant awards by its students
would impose minor and absorbable costs.
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COMMENTS: The federal John H. Chafee Foster Care Independence
Program (CFCIP) was created in 1999 to offer assistance to
current and former foster care youths in achieving
self-sufficiency. Federal grants are offered to States who
submit a plan to assist youth in a wide variety of areas
designed to support a successful transition to adulthood. The
Educational and Training Vouchers Program (ETV) for Youths Aging
out of Foster Care was added to the CFCIP in 2002. ETV provides
resources specifically to meet the education and training needs
of youth aging out of foster care.
In California, the Chafee Grant for Foster Youth provides up to
$5,000 in grants to foster youth. The budget for the program is
about $11.5 million, which is evenly split between federal funds
($5.6 million) and the state General Fund. State funding for
the program is accounted for in the Department of Social
Services (DSS) budget, the funding is distributed to CSAC
through a Memorandum of Understanding (MOU) that outlines
program operations; CSAC then directs money to students pursuant
to the requirements of the MOU. Current or former foster youth
qualify for the Chafee if they are under age 22 and were in
foster care in out-of-home placement at any time between the
ages of 16 and 18. The maximum grant is $5,000 per academic
year; the average awarded grant in 2014-15 was $3,251. The
program serves about 2,228 students.
The 2016 Budget Act includes an additional $3 million for the
Chafee ETV.
Analysis Prepared by:
Laura Metune / HIGHER ED. / (916) 319-3960 FN:
0004767
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