BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2159
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2159 (Anderson) - As Amended:  April 8, 2010 

          Policy Committee:                              Higher  
          EducationVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires that veterans of the armed forces who become  
          students at one of the state's public higher education  
          institutions within one year after moving to California are  
          immediately eligible for in-state tuition and fees, provided  
          that these veterans are also eligible for receiving federal  
          education assistance benefits.

          FISCAL EFFECT  

          The segments do not know how many student veterans would benefit  
          from this bill, but each segment would incur revenue losses from  
          the reduced fee payments.  These losses could grow over time as  
          awareness grows of this benefit.

           1)UC  indicates that, in 2007-08, 253 incoming students  
            identified themselves as veterans.  Applying the systemwide  
            percentage of domestic out-of-state students (3.6%) yields  
            nine first-year out-of-state veterans who would pay in-state  
            tuition, at a revenue loss to UC of $204,000.

           2)CSU  does not know its veteran enrollment, however, less than  
            1% of CSU's total enrollment constitutes students from other  
            states, thus about 500 of CSU's 50,000 incoming freshman are  
            assumed to be out-of-state students.  Assuming 5% (25) of  
            these students are veterans, the revenue loss to CSU would be  
            $178,000.

          3)CCC also does not know its veteran enrollment.  For every 50  
            full-time equivalent veteran students taking advantage of the  
            resident tuition benefit, the revenue loss to the districts  








                                                                  AB 2159
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            would be $246,000.

           COMMENTS  

           1)Background and Purpose  .  To qualify for the lower college fees  
            charged to California residents, students generally are  
            required to have resided in the state for more than one year  
            immediately preceding the residence determination date and to  
            undertake other specified actions such as registering to vote  
            or registering one's car in California.  Tuition and fees for  
            a full-time undergraduate student in 2008-09, not including  
            registration and education fees, are: 




                       ---------------------------------- 
                      |        |         |               |
                      |        |Resident |Out-of-State   |
                      |        |         |               |
                      |--------+---------+---------------|
                      |        |         |               |
                      |UC      |$7,473   |$30,110        |
                      |        |         |               |
                      |--------+---------+---------------|
                      |        |         |               |
                      |CSU     |$4,026   |$11,160        |
                      |        |         |               |
                      |--------+---------+---------------|
                      |        |         |               |
                      |CCC     |$26 per  |$190 per unit  |
                      |        |unit     |for 30 unit    |
                      |        |         |academic year  |
                      |        |         |               |
                       ---------------------------------- 



            Veterans from other states are thus charged the higher fees  
            above during their first year of enrollment at UC, CSU, or the  
            CCC.  AB 2159 essentially requires the segments to provide  
            these veterans a subsidy equaling the difference between the  
            resident and non-resident fees for that first year.  (The new  
            federal Post-9/11 Veterans Educational Assistance Act of 2008  
            provides specified assistance, to veterans who have served on  








                                                                  AB 2159
                                                                  Page  3

            active duty since September 11, including paying the cost of  
            in-state tuition and fees.)
           
          2)Prior Legislation  .  Last year, AB 38 (Salas), which was  
            substantially similar to this bill, was held on this  
            committee's Suspense file.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081