BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           2489 (Leno)
          
          Hearing Date:  8/17/06          Amended: 5/26/06
          Consultant:  Bob Franzoia       Policy Vote: Ed 9-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2489 would enact the Foster Youth Higher  
          Education Preparation and Support Act of 2006.  The act would:
          - Authorize, notwithstanding an existing two percent limitation,  
          new Cal Grant B award recipients who are currently foster youth  
          to be eligible for payments of tuition and fees in their first  
          academic year of attendance.
          - Require state universities give priority to foster youth to  
          university housing.  The provisions of the bill would apply to  
          the University of California to the extent the Regents adopt a  
          resolution to make it applicable.
          - Express legislative intent that all current and former foster  
          youth who are current residents have their systemwide and campus  
          fees covered by grant funds in their package of student  
          financial aid.
          - Express legislative intent that, to the extent that a student  
          of the California State University (CSU) who is a foster youth  
          does not receive a Cal Grant award sufficient to cover those  
          fees, the CSU shall grant funds to cover all those fees.
          - Require the DSS to notify in writing foster youth 13 years of  
          age and older of the educational support available pursuant to  
          this bill.
          - Express legislative intent that new and renewal payments be  
          made to eligible foster youth in the California Higher Education  
          Chafee Grants Program by 10/1/2006.
          - Allow county offices of education and school districts to  
          elect to apply to the Superintendent of Public Instruction for  
          grant funding, to the extent funds are available, to operate an  
          education based foster youth services program to provide  
          educational and support services.
          - Require the Student Aid Commission (SAC) to make a specified  
          report by 3/1/2007.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Increased Cal Grant     $2,091     $4,181      $4,181   General










          eligibility

          SAC administration                   Up to $240 in the first  
          year, decreasing to      General
                                           $100 in future years

          CSU housing priority                 Unknown likely major cost  
          pressure                    General 
          and fee backfilling                     annually
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          
          Under current law, the Student Aid Commission may not award to  
          more than two percent of new Cal Grant B award recipients  
          enrolling for the first time in an institution of
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          Page 2
          AB 2489 (Leno)

          postsecondary education access grants ($1,551) and awards for  
          the payment of tuition
          and fees in their first academic year of attendance.  This bill  
          would allow foster youth to receive both grants and awards.   
          Awards for tuition and fees would be $2,520 for CSU, $6,141 for  
          UC, and $8,322 for independent colleges.  A foster youth  
          attending a California Community College would receive $1,551  
          but not an award for tuition and fees as the youth would qualify  
          for a Board of Governors fee waiver.

          Currently, approximately 2,200 foster youth receive Chafee grant  
          payments.  If one half of these youth were added to the two  
          percent, the Cal Grant program would have costs of $4,181,000  
          (1,100 x ($1,551 + $2,250) annually.   Attendance at UC or an  
          independent college would increase Cal Grant costs accordingly.

          The proposed amendments would delete the FYS expansion and add  
          consistent accountability provisions for all FYS programs.