BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
646 (Denham)
Hearing Date: 05/28/2009 Amended: 05/06/2006
Consultant: Dan Troy Policy Vote: V.A. 7-0, ED 7-0
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BILL SUMMARY: SB 646 would prohibit campuses of the University
of California (UC), the California State University (CSU), and
the California Community Colleges (CCC) from charging any
mandatory system fees to California members of the armed
services who were honorably discharged and have no more
remaining months of GI Bill eligibility. The bill would provide
that these fee waivers would be operative only in those fiscal
years in which funds are appropriated for the purpose.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
UC $8 million for every 1,000 General
CSU $3.4 million for every 1,000 General
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STAFF COMMENTS: SUSPENSE FILE.
The federal GI Bill provides up to 36 months of education
benefits to eligible veterans for college, business, technical
or vocational school. 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
program further requires that veterans are eligible for benefits
only if they opted in while they were enlisted. The monthly
benefit paid is based on the type of training taken, length of
military service and other factors. Generally, benefits must be
initiated within 10 years of discharge from duty.
This bill would enact the Golden State GI Bill of Rights for
Higher Education. The bill would provide fee waivers to any
undergraduate or graduate student who was honorably discharged
from the US Armed Forces and who enlisted as a California
resident or who has been on active duty as a member of the
California National Guard, the State Military Reserve of the
Naval Militia. Further, the bill would require that the
beneficiary has participated in and used all of their federal
education benefits. 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 program.
It is unknown how many veterans could benefit and who would take
advantage of these fee waivers. Generally, qualifying veterans
may receive four years of fee coverage through the GI Bill, so
it is likely that the bill would cover those that need more than
four years to complete an undergraduate degree or those who
pursue graduate work. Annual fees at UC are $7,778 for
undergraduates and can be as high as $22,000 for
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SB 646 (Denham)
those pursuing MBAs. Even assuming only 1,000 veterans take
advantage of the waiver at an undergraduate fee rate, the annual
cost for UC would be approximately $7.8 million and $3.4 million
for CSU. Costs would vary depending on participation rates, but
as tens of thousands of California veterans utilize federal
education benefits, the cost exposure is high. Given that the
federal benefit covers 3 or 4 years of tuition and fees, it is
unlikely that this program will result in costs relating to CCC
students.