BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 62  
          (Pavley) - As Amended February 1, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill makes various modifications to the Assumption Program  
          of Loans for Education (APLE), including:


          1)Amending the definition of "eligible school" to mean a school  
            serving a percentage of students classified as an English  
            learner, eligible for a free or reduced-price meal, or is a  
            foster youth, as determined by the Superintendent of Public  
            Instruction (SPI), and eliminating the requirement that an  
            eligible school must rank in the lowest two deciles on the  
            Academic Performance Index (API).









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          2)Eliminating the requirement that an applicant has received or  
            is approved to receive a loan under the Federal Family  
            Education Loan Program, and instead requiring that an  
            applicant has demonstrated financial need.


          3)Removing the provision allowing up to 400 APLE loan assumption  
            agreements to go to credentialed teachers, as specified, each  
            year.


          4)Amending the provision allowing loan forgiveness of $1,000 per  
            year for those who teach math, science or special education by  
            eliminating the requirement that the school for such teachers  
            is in the lowest 60 percentile of the API.

          This bill also authorizes the California Student Aid Commission  
          (CSAC) to continue to implement APLE as it read on January 1,  
          2015, for the allocation of funds for loan agreements made  
          before that date and for the purpose of collecting payments from  
          former program participants.



          FISCAL EFFECT:


          Administrative costs for the SPI and CSAC to adopt the program  
          modifications of this bill should be minor and absorbable. There  
          have been no authorizations for new APLE warrants for several  
          years. Since current law already requires new warrants to be  
          authorized through the Budget Act, this bill does not impose any  
          new cost pressures.


          COMMENTS:










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          1)Background. The APLE program, established in 1983, provides  
            loan assumption benefits to credentialed teachers. Generally,  
            APLE warrants are given to credential candidates and then  
            redeemed for the loan assumption benefit once the candidate  
            has earned a credential and completed a year of eligible  
            teaching. The program, which is designed to increase the  
            number of qualified teachers in disadvantaged schools or  
            high-priority subject areas, "forgives" up to $11,000 of  
            college loan debt for a person who teaches for four  
            consecutive years in a qualifying school or subject  
            area--$2,000 for the first year of teaching and $3,000 for  
            each of the next three years.


            Additional loan forgiveness of $1,000 per year over the four  
            years (a total of $15,000) is provided for those who teach  
            math, science or special education, and an additional $1,000  
            is provided (a total of $19,000) for those who teach math,  
            science or special education in schools with an academic  
            performance index (API) of 1 or 2 (for a total of $19,000).


          2)Purpose. According to the California Commission on Teacher  
            Credentialing (CTC), enrollment in teacher preparation  
            programs has fallen from almost 78,000 a decade ago to less  
            than 20,000 in 2013. The number of newly-issued CTC  
            credentials has fallen every year for the past decade.  The  
            California Teachers Association contends that one-third of  
            California's teachers are at or near retirement age.  


            According to the author, many reasons exist as to why the  
            state has a shortage of teachers; from the costs of obtaining  
            a college degree, to the low salaries teachers make.  The  
            author contends, "Eliminating California's teacher recruitment  
            and financial aid programs over the past decade has not helped  
            matters."










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            As mentioned above, no new APLE warrants have been authorized  
            for several years. The 2015 Budget Act (AB 93, Weber), as  
            enacted by the Legislature on June 15, authorized 1,000 new  
            warrants. However, SB 97 (Senate Budget and Fiscal Review),  
            which provided subsequent amendments to AB 93, deleted this  
            authorization. The 2016 Budget Act similarly does not  
            authorize any new APLE warrants.


          3)Prior Legislation. SB 1264 (Pavley) of 2014, which was held in  
            the Senate Appropriations, proposed to establish the Educator  
            Excellence Program, an assumption loan program for up to 6,500  
            teachers who satisfied specified criteria.  
            SB 212 (Pavley) of 2013, which was also held in the Senate  
            Appropriations, sought to appropriate $5 million, from an  
            unspecified funding source, for 7,200 new warrants for the  
            assumption of school loans for teachers in areas with  
            identified teacher shortages.  


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