BILL ANALYSIS
AB 2447
Page 1
Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2447 (Furutani) - As Amended: April 28, 2010
Policy Committee: Higher
EducationVote:6-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the Cal Grant C award to be adjusted annually upward
by to the change in the Consumer Price Index (CPI) for the
prior year, and provides that the award amount shall not be
decreased when there is a decrease in the CPI.
2)Requires the maximum Cal Grant A and B awards for students
attending non-public institutions and the Cal Grant B access
award to be adjusted for inflation as in (1).
FISCAL EFFECT
Based on the current number of grant recipients, the additional
GF cost in 2011-12 to provide the inflation adjustments
(assuming 2%) would be about $11 million. This cost would
increase by about $10 million annually thereafter. About 56% of
the cost increase relates to the adjustments for CalGrant A and
B awards at private institutions; 42% for the Cal Grant B access
grant adjustment; and the remaining 2% for the Cal Grant C
awards.
COMMENTS
1)Background . The two major Cal Grant programs-Cal Grant A and
Cal Grant B-each have an "entitlement" component that
guarantees a grant to all needy, eligible students, although
awards are generally restricted to students just leaving high
school or in their first year of college. The Entitlement Cal
Grant A is for students with family incomes ranging up to
AB 2447
Page 2
$92,700 (family of six) with at least a 3.0 high school grade
point average (GPA). The Entitlement Cal Grant B is for
disadvantaged students from much lower income families
(ranging up to $50,900 for a family of six), but students only
need a 2.0 GPA to qualify. Both Cal Grant A and B also have a
"competitive" component that offers a limited number of awards
that are generally available for older students. Cal Grant C
is for occupational or technical training in a course of not
less than four months.
2)Existing law requires the maximum award amounts for Cal Grant
awards to be identified in the annual Budget Act, as follows:
a) The maximum Cal Grant A award for students attending UC
or CSU equals the mandatory systemwide fees in each of
those segments.
b) The maximum Cal Grant B award for students attending UC
or CSU equals the mandatory systemwide fees in each of
those segments, although only 2% of Cal Grant B recipients
receive funds for their first year of fees. The Cal Grant B
awards also include an award for access costs (i.e. costs
for books, supplies, living expenses, and transportation)
in an amount not exceeding $1,551.
c) The maximum awards for students at nonpublic
institutions and for Cal Grant C awards equals the levels
established in the Budget Act of 2000 or the amount as
adjusted in subsequent annual budget acts. Currently the
maximum nonpublic award is $9,708, and the Cal Grant C
maximum is $576 at the community college, including books
and supplies, and $3,168 at private postsecondary
institutions-$576 for books and supplies and $2,592 for
tuition and fees.
3)Related Legislation . AB 1761 (Fong), pending on this
committee's Suspense File, phases in first-year tuition and
fee benefits for Cal Grant B students.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081