BILL ANALYSIS �
SB 451
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SENATE THIRD READING
SB 451 (Price)
As Amended July 14, 2011
Majority vote
SENATE VOTE :35-0
HIGHER EDUCATION 8-1 APPROPRIATIONS 12-4
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|Ayes:|Block, Achadjian, |Ayes:|Fuentes, Blumenfield, |
| |Brownley, Fong, Galgiani, | |Bradford, Charles |
| |Lara, Miller, Portantino | |Calderon, Campos, Davis, |
| | | |Dickinson, Hall, Hill, |
| | | |Lara, Nielsen, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Donnelly |Nays:|Harkey, Donnelly, Norby, |
| | | |Wagner |
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SUMMARY : Requires the California Student Aid Commission (CSAC) to
prioritize Cal Grant C awards to students pursuing training in
fields meeting specified criteria. Specifically, this bill :
1)Requires CSAC to review and update the areas of occupational and
technical training for which students may utilize Cal Grant C
awards at least every five years, beginning in 2012.
2)Requires CSAC to give priority in granting 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; and/or,
c) High employment growth.
3)Requires CSAC to determine areas of occupational or technical
training that meet the aforementioned criteria in consultation
with the Employment Development Department using projections
available through the Labor Market Information Data Library.
4)Requires CSAC to examine graduation rates and job placement data
of eligible programs and, commencing in 2014-15, to give priority
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to Cal Grant C applicants seeking enrollment in programs rating
highly in these factors.
5)Requires the Legislative Analyst's Office (LAO) to submit a
report to the Legislature on the outcomes of the Cal Grant C
Program on or before April 1, 2015, and on or before each
odd-numbered year thereafter.
EXISTING LAW establishes the Cal Grant Program, administered by
CSAC, to provide grants to financially needy students to attend
college. 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.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
CSAC will incur ongoing General Fund costs of about $45,000 for
one-half position to fulfill all the requirements of this bill.
Costs to the LAO for the report will be minor and absorbable.
COMMENTS :
Purpose of this bill : According to the author, 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. This bill
seeks to require CSAC to strategically direct Cal Grant C funds to
recipients seeking occupations with high employment demand, growth
potential, wages, and/or importance to California's strategic
initiatives and students enrolling in programs with high rates of
student success. The author believes that this bill will maximize
the opportunities for Californians to acquire the necessary job
skills to gain and keep employment.
Background on Cal Grant C : The total number of Cal Grant C awards
is established in state law as the number awarded in the 2000-01
fiscal year (7,761). There are about 16,500 new and renewal awards
offered annually. The maximum award amount and the total amount of
funding are determined in the annual Budget Act. However, the
award amount has not increased since 2000-01, remaining at $2,592
toward tuition and fees and an allowance of $576 for
training-related costs. According to CSAC, Cal Grant C recipients
make up 5% of all current Cal Grants, have an average family income
of $21,792, are an average age of 31, and have an average entering
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grade-point average (GPA) of 2.75. 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.
Current process : Students who meet general eligibility criteria
(citizenship, residency, enrollment, academic progress, and income
standards, among other requirements) for Cal Grants may be
considered for Cal Grant C. In addition to general eligibility,
Cal Grant C applicants must submit a supplemental application
documenting that they are enrolling at an approved institution in a
recognized program lasting at least four months and leading to a
recognized occupational goal and listing information regarding the
program of enrollment and work history of the applicant. 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. In the 2010-11 cycle, about 14% of students
who submitted Cal Grant C supplements received award offers. Under
the provisions of this bill student eligibility requirements would
not change, instead CSAC would award additional points for
applicants in the ranked fields and programs.
Prior legislation : SB 957 (Price) of 2010, which was virtually
identical to this bill, passed the Assembly Higher Education
Committee in June of 2010 on a 9-0 vote. The bill was subsequently
vetoed by Governor Schwarzenegger, whose veto message read, in
pertinent part,
"I am concerned that this bill could limit students' choices or
eliminate the possibility of an award for lower income students,
simply because the occupational areas that they have chosen to
pursue were not deemed a priority by the state."
Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960
FN: 0001655
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