BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 957
AUTHOR: Price
AMENDED: February 5, 2010
FISCAL COMM: Yes HEARING DATE: March 24, 2010
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : Cal Grant C
KEY POLICY ISSUE
Should students pursuing occupational and technical
training in areas of high employment need, high salary or
wage projection, or high growth be granted priority in the
granting of a Cal Grant C?
SUMMARY
This bill requires the California Student Aid Commission
(CSAC) to develop and regularly update areas of
occupational and technical training that are eligible for
Cal Grant C awards, expands the entities with which CSAC is
required to consult in this process, and requires the CSAC
to give priority in granting the Cal Grant C to students
pursuing study in areas of high employment need, high
salary or wage projection, or high growth, as specified.
BACKGROUND
Current law authorizes the Cal Grant Program, administered
by the CSAC, to provide grants to financially needy
students to attend college.
Cal Grant C awards assist with tuition and training costs
at occupational or vocational programs and may be used for
institutional fees, charges, and other costs, including
tuition, plus training-related costs, such as special
clothing, local transportation, required tools, equipment,
supplies, and books. Current law establishes the total
number of Cal Grant C awards as the number awarded in the
2000-01 fiscal year (7,761) with the maximum award amount
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and the total amount of funding being determined in the
annual Budget Act.
Current law requires the CSAC to consult with appropriate
state and federal agencies order to determine areas of
occupational or technical training in which the Cal Grant C
can be awarded and authorizes the CSAC to use criteria it
deems appropriate to select students to receive grants.
The CSAC is also required to take into account other state
and federal programs available to the applicant. The Cal
Grant C may be renewed until the completion of the
training, up to a maximum of two calendar years.
(Education Code 69439)
ANALYSIS
This bill :
1) Requires the California Student Aid Commission (CSAC)
to develop and regularly update areas of occupational
and technical training for which students may use Cal
Grant C Awards.
2) Expands the number of entities with which the CSAC is
required to consult in order to develop and update
areas of occupational and technical training beyond
state and federal agencies to include:
a) Employers and businesses.
b) Representatives of organized labor.
c) Occupational and technical training
providers.
3) Requires the CSAC to prioritize the granting of Cal
Grant C awards to students pursuing occupational or
technical training in areas that meet at least two of
the following criteria:
a) High employment need.
b) High employment salary or wage projections.
c) High employment growth.
4) Requires the CSAC to consult with the Employment
Development Department and use projections available
through the Labor Market Information Data Library to
determine areas of occupational or technical training
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that meet the criteria outlined in (3).
STAFF COMMENTS
1) Need for the bill . According to the author, although
the Cal Grant C program awards almost 8,000 grants
annually for occupational and technical training,
these awards do not track well with the state's most
urgent labor needs. This bill has been introduced to
ensure that CSAC strategically directs Cal Grant C
funds to recipients seeking occupations in areas with
high employment demand, growth potential, wages and/or
importance to California's strategic initiatives.
This bill will maximize the opportunities for
Californians to acquire the necessary job skills to
gain and keep employment.
2) Current program . According to the California Student
Aid Commission (CSAC), eligible students receive a Cal
Grant C Supplement application in mid-April, which
must be completed and returned by May 15. Supplements
are scored based on the student's work experience,
educational history and vocational aptitude. Eligible
students must enroll at least half-time in a
vocational program at a California community or
independent college or vocational school that is at
least four months, but not more than two years.
CSAC reports that, as of the 2009-10 academic year,
Cal Grant C participating institutions included all
109 of the California Community Colleges, one
University of California program, six two-year
non-profit institutions, seven four-year for-profit
institutions, one hospital school, and 42 distinct
for-profit institutions. Although the vast majority
of students who receive the Cal Grant C are enrolled
in community college programs, almost two-thirds of
the total funds awarded are paid to students enrolled
in vocational for-profit programs. In order to
participate in the program, an institution must have
an approved Institutional Participation Agreement
(IPA), a document which details requirements for
participation as specified in statute, regulations,
and CSAC policy. In approving IPAs, CSAC considers
the length of a school's education programs and its
administrative capability.
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CSAC does not currently restrict awards by
occupational area, nor has it consulted recently with
other agencies regarding occupational areas.
Additionally, a recent LAO analysis reveals that in
2008-09, only 43% of students awarded a Cal Grant
reported the occupational area which they were
pursuing.
3) Who currently receives the Cal Grant ? According to
the Legislative Analyst's Office (LAO), students
meeting the general eligibility for the Cal Grant
award may be considered for the Cal Grant C. There is
no high school graduation requirement, minimum grade
point average or maximum age for recipients. However,
students must be California residents, have United
States or eligible noncitizen status, complete US
selective service requirements, enroll at least
half-time at an eligible California institution,
maintain satisfactory academic progress (defined by
the institution) once enrolled, meet family income and
asset ceilings, and not be in default on any student
loan or owe any federal or state grant refund.
According to the CSAC, approximately 50% of eligible
applicants receive the limited number of awards.
According to the LAO, about 80 percent of Cal Grant C
recipients are independent students. In 2008-09,
nearly 60 percent earned less than $18,000 annually,
and 80 percent earned less than $30,000 annually.
Two-thirds of the recipients were male, with nearly
three quarters age 25 and over.
According to an analysis provided by the author, the
most recent data available (2008-09 application cycle)
indicates that, of those Cal Grant awardees who
reported the occupational area which they were
pursuing, only 38% were in areas found by the
Employment Development Department to be among the
highest wage occupations in the state, 64% among the
highest need occupations, and 35% in the fastest
growing occupations
4) What is the Labor Market Information Data Library ? The
Labor Market Information Division (LMID) of the
California Labor and Workforce Development Agency is
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the primary source of labor market and occupational
information for the state. It maintains current labor
market data as well as employment projections and wage
data. Projections of employment by occupation are
typically for a ten-year period.
The Library provides access to several regularly
generated reports, including reports detailing the
information required by this bill for purposes of
prioritizing Cal Grant C awards. In addition, Labor
Market Consultants are available to assist workforce
partners (such as Workforce Investment Act boards and
staff, educators, and those engaged in economic
development) and employers find, access, and use labor
market information and services, and can assist in the
development of customized reports, if necessary, for a
nominal fee.
5) Who should be consulted ? This bill expands the
consultation process for identifying eligible
occupational and training programs to include
employers and businesses, representatives of organized
labor, and occupational and technical training
providers. While the objective appears to include
the perspective of industry partners, arguably, as
drafted, the bill could compel consultation with
entities motivated by the interests of the groups or
individuals they represent, rather than an interest in
meeting the state's workforce needs.
Staff recommends the bill be amended to delete
"employers and businesses, representatives of
organized labor, and occupational and technical
training providers" and to insert, after the period,
"The Commission shall also consult with
non-governmental stakeholders that develop or provide
workforce training or employ graduates of occupational
and technical training programs for this purpose" in
order to provide the CSAC with the flexibility to
identify entities best able to assist in the process
of reviewing and updating areas of training for which
the Cal Grant C may be used.
6) Regular review and reporting . Current law authorizes
the CSAC to determine areas of occupational or
technical training eligible for the Cal Grant C.
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Arguably, under this authority the CSAC could have
more regularly updated the list of occupations to
reflect contemporary workforce needs.
Staff recommends the bill be amended to require that
the areas of eligible occupational and technical
training and their prioritization be reviewed and
updated, as appropriate, at least every 10 years
beginning in 2011, in order to ensure the results
anticipated by this legislation.
Staff further recommends the bill be amended to
require the California Student Aid Commission (CSAC)
to report on the outcomes of the
Cal Grant C program beginning April 1, 2014, and every
two years thereafter, and that the report include, but
not be limited to, information on the age, gender,
segment of attendance, the occupational and technical
training program categories prioritized, and the
number/proportion of students who received selection
priority as defined in paragraph (2) of subsection
(f).
SUPPORT
None received.
OPPOSITION
None received.