BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 957
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 957 (Price) - As Amended:  June 29, 2010 

          Policy Committee:                              Higher  
          EducationVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          Noq    Reimbursable:               

           SUMMARY  

          This bill requires that Cal Grant C awards be prioritized for  
          students seeking training in fields based on specified criteria.  
          Specifically, this bill:

          1)Requires the California Student Aid Commission (CSAC), in  
            consultation with the Employment Development Department, to  
            determine the areas of occupational and technical training for  
            which students may utilize Cal Grant C awards.  CSAC must  
            update this determination at least every five years.

          2)Requires CSAC to give priority in granting Cal Grant C awards  
            to students pursuing occupational or technical training in  
            areas meeting at least two of the criteria below, and to  
            publish the list of such areas on the CSAC website:

             a)   High employment need;
             b)   High employment salary or wage projections; and/or,
             c)   High employment growth.

          3)Requires the Legislative Analyst's Office (LAO) to report, by  
            April 1, 2014 and biennially thereafter, on the outcomes of  
            the Cal Grant C Program, including information on the age,  
            gender, segment of attendance, the occupational and technical  
            training program categories prioritized, and the number and  
            percentage of students who received awards based on the  
            priorities established pursuant to (2).

           FISCAL EFFECT  

          1)Annual GF costs to CSAC of $40,000 for one-half position to  








                                                                  SB 957
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            administer the new Cal Grant C program requirements.

          2)Minor absorbable costs to the LAO for the biennial reporting  
            requirement. 

           COMMENTS  

           1)Background  . Cal Grant C awards assist with fees and tuition  
            and training-related costs such as special clothing or  
            required tools at occupational or vocational schools of four  
            months or longer and provides that grants may be renewed until  
            the completion of the training, up to a maximum of two years.  
            The total number of new annual Cal Grant C awards is  
            established in state law as the number awarded in the 2000-01  
            (7,761). About 16,500 new and renewal awards are offered  
            annually. The maximum award amount, which has not increased  
            since 2000-01, is $2,592 toward tuition and fees and $576 for  
            training-related costs. According to the commission, Cal Grant  
            C recipients are most likely to pursue a career technical  
            certificate or degree at the California Community Colleges  
            (63%) or at a private for-profit institution (35%).

           2)Purpose  . The author notes that current law is silent on how to  
            best prioritize the awarding of Cal Grant C funds, to ensure  
            that recipients are students seeking jobs that track well with  
            the state's most urgent labor and employment needs. SB 957  
            seeks to direct Cal Grant C funds to recipients seeking  
            occupations with high employment demand, growth potential,  
            wages, and/or importance to California's strategic  
            initiatives. The author asserts that this bill will maximize  
            the opportunities for Californians to acquire the necessary  
            job skills to gain and keep employment. 

            Effective with the 2009-10 grant cycle, CSAC selects  
            applicants for awards through a point scoring process that  
            examines educational history, occupational history, and GPA.   
            Point earners above a cut-off level receive award offers.   
            Under the provisions of this bill, student eligibility  
            requirements would not change, but CSAC would implement a  
            procedure whereby additional points would be awarded for  
            applicants in the high-growth, high-need, and high-wage  
            training programs.

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