BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 15|
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THIRD READING
Bill No: SB 15
Author: Block (D), et al.
Amended: 3/25/15
Vote: 21
SENATE EDUCATION COMMITTEE: 8-0, 4/8/15
AYES: Liu, Huff, Block, Hancock, Leyva, Mendoza, Pan, Vidak
SENATE APPROPRIATIONS COMMITTEE: 5-0, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
SUBJECT: Postsecondary education: financial aid: Graduation
Incentive Grant program
SOURCE: Author
DIGEST: This bill statutorily establishes the Cal Grant award
at $9,084 for recipients attending private postsecondary
education institutions accredited by Western Association of
Schools and Colleges (WASC), increases the number of statutorily
authorized competitive Cal Grant awards from 22,500 to 30,000,
and establishes a Graduation Incentive Grant program for
undergraduate students at the California State University (CSU).
ANALYSIS:
Existing law:
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1)Authorizes the Cal Grant Program, administered by the
California Student Aid Commission, to provide grants to
financially needy students to attend college. The program
consists of the Cal Grant A, Cal Grant B, and Cal Grant C
programs, and eligibility is based upon financial need, grade
point average, California residency, and other eligibility
criteria, as specified in Education Code § 69433.9. (Education
Code 69430-69433.9)
2)Includes both the Entitlement and the Competitive Cal Grant
awards. Under the Competitive program, the state provides a
maximum of 22,500 Cal Grant A and B awards to applicants who
meet financial, academic, and general program eligibility
requirements. Half of these awards are reserved for students
enrolled at a community college and who met the September 2
application deadline. (Education Code § 69437-§ 69437.7)
3)Provides for a long-term Cal Grant policy that requires that
the maximum Cal Grant A award and the Cal Grant B award, for
students attending each respective segment, equal the amount
of the mandatory systemwide fees at the University of
California (UC) and the CSU, as specified. This policy also
requires that the maximum Cal Grant award for students
attending nonpublic institutions equal the tuition award level
established in the Budget Act of 2000, or the amount as
adjusted in subsequent annual budget acts. (EC § 66021.2)
4)Sets, notwithstanding the provisions of EC 66021.2, current
law, enacted through the 2012 budget, the maximum amount of
the Cal Grant award for students who attend private
postsecondary institutions. Beginning in the 2013-14 award
year, this amount is $4,000 for new recipients attending
private for-profit institutions. For new recipients attending
private non-profit or for-profit institutions accredited by
WASC, the amount is set at $9,084 for the 2013-14 award year
and $8,056 for 2014-15. The scheduled reduction in 2014-15
was postponed for one year but is currently proposed to be
reduced to $8,056 for the 2015-16 budget year. (EC § 69432)
This bill:
1)Permanently restores the Cal Grant annual award amount to $9,084
for recipients attending a private postsecondary education
institution accredited by WASC and deletes the scheduled
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reduction to $8,056 for new recipients in the 2015-16 award
year.
2)Increases the number of statutorily authorized competitive Cal
Grant Awards from 22,500 to 30,000 annually.
3)Establishes the Graduation Incentive Grant (GIG) Program to be
awarded beginning in the 2015-16 academic year to matriculated
undergraduate students with financial need at the CSU.
Specifically it:
a) Clarifies that the purpose of the award is to
provide additional financial aid to offset the total cost
of education, including the cost of housing, textbooks and
transportation.
b) Requires, in order to be eligible, that a
student:
i) Be a matriculated undergraduate at the CSU.
ii) Be a California resident or be exempt from
non-resident tuition as the result of the provisions of
AB 540 (Firebaugh, Chapter 814, Statutes of 2001).
iii) Have an expected family contribution (EFC) of no
more than $12,000, to be determined as specified.
iv) Be enrolled in at least 12 semester units (or
equivalent), have a declared major and maintain
satisfactory academic progress at the participating
institution.
v) Not be incarcerated, in default on any student
loan, or have failed to repay a state or federal grant if
so required.
c) Outlines the specific grant amounts and unit
requirements for an award annually as $1,000 if 30 semester
units (45 quarter units) are completed the first year,
$1,500 if 60 semester units (90 quarter units) are
completed the second year, $2,000 if 90 semester units (135
quarter units) are completed the third year.
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d) Establishes specific eligibility requirements for
transfer students. Specifically it:
i) Requires that a student who transfers with an
Associate Degree for Transfer be eligible to receive an
award in the first academic year of enrollment at the
CSU.
ii) Makes other transfer students eligible to
receive an award after completing their first college
year at the CSU.
e) Requires awarding of the GIG Program at the same
time as the overall financial aid package, clarifies that
the GIG is a supplemental grant, prohibits its supplanting
of any other grants or scholarships, and prohibits the GIG
from resulting in total grant or scholarship aid from
exceeding a student's total cost of attendance.
f) Authorizes the CSU Trustees to adopt regulations
to administer the GIG.
g) Requires, by April 1, 2017, annual reporting on
the GIG program, and specifically requires that the CSU:
i) Report to the Legislature on the number of
students overall completing the required number of units
in the year prior, the number of first-time freshman and
transfer students (disaggregated by Associate for
Transfer degree recipients and other transfer degree
recipients) successfully completing the required units
and qualifying for the GIG award, the number of eligible
students who successfully meet the unit requirements of
the program, as well as the average grade point average
of GIG recipients.
ii) Disaggregate the data by discipline, race,
ethnicity, gender and socioeconomic status.
h) Provides that the program requirements are not
operative in a fiscal year unless the Trustees determine
that sufficient funding has been provided for the program,
and requires that funding for the program be considered
supplemental to the CSU's operating budget.
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4)Declares the Legislature's intent to appropriate funds in the
2015-16 fiscal year to:
a) Eliminate the 5 percent tuition increase adopted
by the UC Regents in 2014.
b) Provide additional course offerings and support
services for students to complete a bachelor's degree in
four years or less at both the CSU and UC.
Comments
1)Need for the bill. In December 2014, the Senate announced a
comprehensive plan for higher education in California. The
stated purpose of the plan is to establish higher education
policies that promote affordability, access, and completion
for California students. In addition to providing direct
assistance to students to afford college and finish their
degrees, the plan includes additional funding for the UC and
the CSU to support enrollment growth, provide more course
offerings, and increase student support services. While
several of these objectives are proposed to be met through the
budget process, this bill contains the policy changes
necessary to implement and support the plan. These include
the elimination of the cut to the Cal Grant award for
recipients attending WASC accredited non-public institutions
in California, an increase in the total number of annual
competitive Cal Grant awards, and the establishment of a new
grant program to incentivize timely degree completion at the
CSU.
2)Intent language. Successful implementation of the GIG Program
requires the availability of courses in which students can
enroll. In addition, support services are necessary to ensure
that students can successfully complete the increased unit
loads, and that they understand the importance of their course
taking patterns and the degree applicability of the units they
complete. This bill declares the intent of the Legislature to
appropriate funding in the 2015-16 fiscal year to ensure the
provision of course sections and support services for CSU
students to complete their degrees within four years
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
This bill results in increased annual state costs in the
hundreds of millions General Fund.
According to the author's office, this bill reflects a portion
of a broader higher education plan that is estimated to result
in General Fund costs of $158 million in 2015-16; $111 million
in 20016-17; and $66 million in 2017-18 after taking into
account other items being proposed and discussed in the budget
process.
SUPPORT: (Verified 5/28/15)
American Federation of State, County and Municipal Employees,
AFL-CIO
Asian Americans Advancing Justice
Association of Independent California Colleges and Universities
California Baptist University
California Community United Institute
California Federation of Teachers
California State University
Campaign for College Opportunity
Education Trust West
Hispanas Organized for Political Equity
LA's Promise
Los Angeles Area Chamber of Commerce
Los Angeles Community College District
Los Rios Community College District
National Association of Social Workers, California Chapter
North Bay Leadership Council
San Diego Christian College
San Francisco Chamber of Commerce
South Orange Community College District
Southern California College Access Network
The Education Trust-West
University of San Diego
University of Southern California
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University of the Pacific
OPPOSITION: (Verified 5/28/15)
None received
Prepared by:Kathleen Chavira / ED. / (916) 651-4105
5/31/15 11:26:04
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