BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1357 (Block) - Community colleges:
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act: California
Community Colleges Assistance Grant Program
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|Version: March 29, 2016 |Policy Vote: ED. 8 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: April 25, 2016 |Consultant: Jillian Kissee |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: This bill requires, contingent upon funding provided
in the annual budget act that the California Student Aid
Commission (Commission) annually augment the award amount of Cal
Grant B recipients enrolled at the California Community Colleges
(CCC) beginning in the 2017-18 award year.
Fiscal
Impact:
New CCC Assistance Grant Program: Additional costs of up to
about $162 million annually, assuming a total of 108,104
recipients. (General Fund)
SB 1357 (Block) Page 1 of
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Administrative costs: The Commission indicates that this bill
will result in additional contract costs of about $58,000 to
make appropriate changes to the grant delivery system.
(General Fund)
The CCC Chancellor's Office indicates minor and absorbable
costs to implement this bill since systems are already in
place that pays out awards to Cal Grant B recipients.
Background: Current law authorizes the Cal Grant program, administered by
the CSAC, 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 - § 69439)
The Cal Grant B High School Entitlement Program provides funds
to eligible low-income high school graduates who have at least a
2.0 GPA on a four-point scale and apply within one year of
graduation. The award provides up to $1,656 for the 2015-16
fiscal year for books and living expenses for the first year and
each year following for up to four years. After the first year,
the award also provides tuition fee funding at qualifying
postsecondary institutions. As of the Budget Act of 2015, full
systemwide tuition and fees at the University of California are
$12,240 and at the California State University are $5,472. A
fixed amount of $9,084 is provided for students at nonprofit or
Western Association of Schools and Colleges -accredited
for-profit colleges and $4,000 at other for-profit colleges.
The Cal Grant Competitive Award Program provides 22,500 Cal
Grant A and B awards available 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.
The Budget Act of 2015 included funding for a new grant program
for California Community College Cal Grant B recipient. AB 93
(Weber, Budget Act of 2015) provided $39 million in ongoing
Proposition 98 funds for purposes of the Full-Time Student
Success Grant Program, to be distributed to students who are
receiving the Cal Grant B Access Award and are taking 12 units
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or more. This funding provides a supplemental grant for these
particular award recipients, in which allocations are determined
by the CCC Chancellor's Office. The Chancellor's Office has
determined that this award shall not exceed $600 per student
annually in 2015-16.
Proposed Law:
This bill establishes the California Community Colleges
Assistance Grant Program. Beginning in the 2017-18 award year,
contingent upon funding provided in the annual budget act, the
Commission is required to annually augment the awards of all
recipients of Cal Grant B Entitlement awards and Competitive Cal
Grant B awards who are enrolled as at the CCC by $1,500. This
amount is required to supplement, and not supplant, the Cal
Grant B awards and other student financial aid received by
community college students.
Staff
Comments: Increasing a Cal Grant B recipient's award by $1,500
would result in additional costs of up to about $162 million
annually, with ongoing costs depending upon the number of award
recipients. This increase appears to be in addition to the
funding being provided by the Full-Time Student Success Grant
Program.
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