BILL ANALYSIS
AB 1997
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1997 (Portantino)
As Amended June 30, 2010
Majority vote
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|ASSEMBLY: | |(May 10, 2010) |SENATE: |36-0 |(August 23, |
| | | | | |2010) |
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(vote not relevant)
Original Committee Reference: HIGHER ED.
SUMMARY : Requires the California Community College Chancellor's
Office (CCCCO) to establish a voluntary pilot program to increase
student participation in state and federal financial aid programs,
outlines the parameters of the pilot, and requires the Legislative
Analyst's Office (LAO) to report to the Legislature on the results
of the pilot program and to make recommendations for its statewide
expansion. Specifically, this bill :
1)Requires the CCCCO to establish a voluntary pilot program to
increase student participation in state and federal financial aid
programs. More specifically it:
a) Requires the CCC Chancellor to select no more than 10
campuses from those that volunteer to participate;
b) Requires, to the extent possible, that the geographic,
economic and demographic diversity of participating campuses be
ensured;
c) Establishes the following two target populations of
potentially eligible students to be identified for
participation in the pilot program:
i) Those who complete an application for either a CCC Board
of Governors (BOG) fee waiver but not a Free Application for
Federal Student Aid (FAFSA), and,
ii) Those who do not receive any campus, state, or federal
aid.
d) Establishes the goal of the pilot program to increase
student participation in both state and federal financial aid
programs by actions that include, but are not limited to:
AB 1997
Page 2
i) Identifying strategies and best practices for increasing
the number of students who submit the FAFSA, and,
ii) Examining and developing strategies for increasing
student participation in financial aid programs beyond the
BOG Fee Waiver program.
2)Encourages the CCCCO to pursue both private and federal funding to
support implementation and operation of the pilot program.
3)Requires the CCCCO to provide information on the strategies and
techniques employed by participating campuses and data on student
participation in state and federal financial aid programs to the
Legislative Analyst's Office (LAO) by January 10, 2013.
4)Requires the LAO, based upon the information received, to:
a) Report to the Legislature on the results of the pilot
program,
b) Make recommendations for statewide expansion of the pilot,
and,
c) Include in its report a statistical analysis of financial
aid applications and awards before and after the pilot and a
summary of the major strategies and techniques employed by
participating campuses.
5)Repeals these provisions as of January 1, 2014.
The Senate amendments deleted the contents of the bill and, instead,
established a pilot program to accomplish the goal of increased
student participation in federal financial aid programs.
AS PASSED BY THE ASSEMBLY , authorized CCC to use the FAFSA when
awarding the CCC BOG fee waiver to students, except on a
case-by-case basis as determined by a campus authority with
responsibility for student financial aid programs.
FISCAL EFFECT : Greater participation in aid programs will result
in more federal for CCC students but will also lead to increased
state costs through increased access to Cal Grant B awards.
Assuming a 10% 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
AB 1997
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costs for implementation at the campus level, though the local
districts would undertake the activities at their own discretions.
CCCCO is hopeful of receiving federal grants or private donations to
assist with costs.
COMMENTS : The FAFSA is the core document used to determine
eligibility for all major federal and state financial aid programs,
including Cal Grant, Pell Grant, institutional aid at the University
of California and the California State University, work-study
awards, scholarships, and federal student loans. The BOG fee waiver
provides relief from CCC fees for financially needy students.
Approximately 900,000 (30% of) CCC students receive a BOG fee
waiver. A CCC student may apply for a BOG fee waiver by submitting
a FAFSA or by submitting a Short Form.
Several recent reports have highlighted the fact that CCC students
are not receiving all of the federal financial aid support that is
available to them. A research brief issued by MPR Associates, Inc.
in October 2009 (and based upon 2006-07 enrollment data) noted that
fewer than 230,000 (about 10 percent) of degree-seeking CCC students
received federal Pell Grants. The most common form of financial aid
was a BOG fee waiver, given to 540,000 students (26% of enrolled
students). About 305,000 of these students received only a fee
waiver and of those, 110,000 applied for federal aid but did not
receive it, with the most common reasons for not qualifying being:
1) they were part-time; 2) their income or expected family
contribution was too high; or, 3) they did not meet citizenship,
academic, or other requirements for federal financial aid.
This bill attempts to gather specific information on the reasons and
strategies specific to California to determine why this state's CCC
students do not submit the FAFSA in greater numbers and to identify
intervention strategies to increase their participation in state and
federal financial aid programs.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960FN: 0006088