BILL ANALYSIS Ó SB 1314 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1314 (Block) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill provides that California Community College (CCC) students participating in a baccalaureate degree pilot program, who meet all other eligibility criteria, are eligible to receive a Cal Grant award covering upper division coursework fees or a Middle Class Scholarship for two years of full-time upper division coursework. FISCAL EFFECT: SB 1314 Page 2 1)Estimated General Fund costs of $1.4 million in 2016-17, $2.7 million in 2017-18, and $3.1 million in 2018-19 for Cal Grants and Middle Class Scholarship awards, based on an estimated 381,702, and 803 total recipients, respectively. Costs will continue until the pilot program sunsets in 2022-23. Cost will continue if the program is extended and will increase if the program is expanded to additional districts. 2)CSAC will have annual administrative costs (General Fund) of about $90,000 for one position. COMMENTS: Background and Purpose. CCC students who meet income and other eligibility requirements can have their student fees waived under the Board of Governors Fee Waiver (BOGFW) program. Cal Grants awarded to CCC students therefore do not cover tuition and fees. Additionally, the Middle Class Scholarship program is specifically limited to support students at CSU and UC. SB 850 (Block), Chapter 747, Statutes of 2014, authorized the CCC to establish a statewide baccalaureate degree pilot program at not more than 15 districts. In addition to the $46 per unit statutory enrollment fee at the CCC, SB 850 authorized these districts to charge an $84 per unit fee for upper division coursework in the pilot program. Therefore, students enrolled in the pilot program will be assessed tuition and fees not currently covered by the BOGFW. This bill provides CSAC the authority to disperse Cal Grant and Middle Class Scholarship awards to CCC upper division students who meet all other SB 1314 Page 3 qualifications of these financial aid programs. According to the author, "The lack of clarity in current law could create issues of inequity in that some upper division students would not be able to receive state financial assistance as other students and thereby would reduce the possibility of completing a four-year course of study because of financial need. This bill would remove any ambiguity in statute and ensure that all students enrolled in a four-year course of study at a CCC would enjoy access to California's financial aid programs." Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081