BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 646
AUTHOR: Denham
INTRODUCED: February 27, 2009
FISCAL COMM: Yes HEARING DATE: April 29, 2009
URGENCY: No CONSULTANT:Nancy Anton
SUBJECT : Higher Education Fee Waiver for California
Veterans
SUMMARY
This bill prohibits the University of California (UC), the
California State University (CSU) and the California
Community Colleges (CCCs) from charging mandatory
systemwide tuition or fees to California members of the
armed services who were honorably discharged and have used
all of their Montgomery Bill GI benefits. These provisions
would apply to UC only to the extent that the Regents adopt
a resolution to so do.
BACKGROUND
The federal Montgomery GI Bill provides up to 36 months of
education benefits to eligible veterans for college,
business, technical or vocational school. This program has
an "opt-in" requirement; this means that veterans are not
eligible for these benefits unless they specifically opted
in while they were enlisted. Additional eligibility
requirements include having entered active duty after June
30, 1985, earned an honorable discharge and served a
minimum of two years of active duty. The monthly benefit
paid is based on the type of training taken, length of
military service and other factors. Typically, individuals
have ten years from separation of service to use their
benefits. The full-time rate for those with three or more
years of service is approximately $1,075 per month.
ANALYSIS
This bill prohibits California public colleges and
universities (UC, CSU and the CCCs) from charging any
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mandatory systemwide tuition or fees to any undergraduate
or graduate student who:
1) Is an honorably discharged veteran of the US Armed
Forces who enlisted as a California resident; OR
2) Is or has been on active duty as a member of the
California National Guard, the State Military Reserve
of the Naval Militia; AND
3) Has participated in and used all of their federal
Montgomery GI Bill education benefits. In addition,
the number of semesters for which a fee waiver could
be received would be limited to the number which the
individual received under the federal Montgomery GI
Bill.
The provisions of this bill would apply to UC only to the
extent that the Regents adopt a resolution to so do.
STAFF COMMENTS
1) How many will benefit under this bill ? It is unknown
how many veterans could benefit from the provisions of
this bill. CSU estimated in 2007 that there were
about 2,900 students enrolled in their system using GI
benefits. Based on CSU fees at that time, if each of
these students had used the fee waiver authority
proposed by this bill for only two semesters (one
academic year) at the undergraduate level (graduate is
more costly), CSU would have foregone an estimated
$9.2 million. It is unknown what the potential
veteran participation rate and corresponding revenue
loss would be for UC or the CCCs.
2) No funding provided . The bill does not provide
funding to backfill for the loss of fee revenue that
would result from this bill. Instead, its "costs" -
the corresponding revenue loss - would be borne by the
UC, CSU and the individual CCCs, respectively. Does
this make sense? Staff recommends that the bill be
amended to include either an appropriation to backfill
for the revenue loss or to make the bill operative
only to the extent that funding is provided in the
annual Budget Act to backfill for the revenue loss.
Staff notes because the CCCs are independent entities
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of local government, one district with a large number
of veteran enrollees would incur significantly larger
revenue losses than a district with relatively few or
no veteran enrollees.
3) Who's a California resident? One of the eligibility
requirements to receive the fee waiver authorized by
this bill is for the participant to have been a
California resident at the time of enlisting.
However, it is not clear if it will be possible to
determine if the individual was a California resident
at the time they enlisted. Many individuals may have
enlisted five, ten or even 20 years prior to enrolling
in school. Would it make more sense to require that
the individual be a California resident at the time of
enrollment or the time of discharge rather than at the
time of enlisting? Staff recommends that this be
discussed.
4) What about other veteran's? The federal Department of
Veteran's Affairs administers a variety of other
veteran's education benefits programs. What is the
rationale for excluding veterans who may have
exhausted their benefits under one of these other
programs from receiving the benefits proposed under
this bill?
5) Prior identical bill . This bill is identical to AB
767 (Walters) from the
2007-08 session. It was set to be heard in the Senate
Education Committee on July 11, 2007, but the bill was
removed from the agenda at the request of the author
prior to it being heard.
6) Previously heard . This bill was previously heard and
passed (7-0) by the Senate Veteran's Committee on
April 14, 2009.
SUPPORT
American Legion Department of California
Faculty Association of California Community Colleges
Vietnam Veterans of America, California State Council
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OPPOSITION
None received.