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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