BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1997 (Portantino)
Hearing Date: 08/02/2010 Amended: 06/30/2010
Consultant: Dan Troy Policy Vote: ED 7-0
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BILL SUMMARY: AB 1997 would establish a voluntary pilot
program to increase student participation in state and federal
financial aid programs at the California Community Colleges
(CCCs). The pilot would include up to ten CCC campuses and
would be administered by the Chancellor's Office. The
Legislative Analyst's Office (LAO) would be required to report
to the Legislature on the results of the pilot program and make
recommendations for statewide expansion of the pilot program.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Cal Grant B $440 $440
General
Administration $60 to $80 General
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Current law establishes the Cal Grant program and requires that
eligibility for a Cal Grant and the determination of financial
need be accomplished using the federal financial need
methodology and application (the Federal Application for Student
Assistance, or FAFSA), and that this application be used for all
programs funded by the state or a public institution of
post-secondary education as well as all federal programs
administered by a postsecondary educational institution. An
exception to this requirement is made for the CCC Board of
Governors Fee Waiver Program, which uses a simplified
alternative form.
Current law requires the Chancellor's Office to develop a
statement that individual students will be asked to sign, which
acknowledges that federal and state funds are available to
assist with the costs of college and that information regarding
these programs, and assistance in applying for those funds can
be obtained at the financial aid office. Similarly, current law
also requires the Chancellor's Office to develop a statement to
individual students receiving a BOG fee waiver, who did not
apply for federal student aid, informing them about the benefits
of the federal programs, the application process, and the
availability of assistance with an application.
This bill would establish a voluntary pilot program to increase
student participation in state and federal financial aid
programs at the California Community Colleges (CCCs). The
Chancellor's Office would administer the pilot and would be
required to select up to 10 campuses for participation.
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AB 1997 (Portantino)
The program would endeavor to identify two target populations:
1) Students potentially eligible for financial aid who complete
a BOG fee waiver application but do not complete a FAFSA, and 2)
Students potentially eligible for financial aid who receive no
aid at all. The program would attempt to identify strategies
and best practices for increasing FAFSA applications and for
examining and developing strategies for increasing student
participation in state and federal aid programs beyond fee
waivers.
The Chancellor's Office would be required to submit specified
information to the LAO by January 10, 2013 for use in a report
that would describe the results of the pilot and make
recommendations for statewide expansion of the program.
Greater participation in aid programs will result in more
federal for students in participating CCCs, but will also lead
to increased state costs through increased access to Cal Grant B
awards. Assuming a 10 percent increase in student participation
in aid for 10 representative CCC campuses, this bill would drive
new General Fund costs of approximately $440,000. Further, the
activities for administering the pilot would likely result in
costs of approximately $60,000 to $80,000. There would also be
undetermined costs for implementation at the campus level,
though the local districts would undertake the activities at
their own discretions. The Chancellor's Office is hopeful of
receiving federal grants or private donations to assist with
costs.