BILL ANALYSIS �
AB 606
Page 1
Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 606 (Williams) - As Amended: April 11, 2013
Policy Committee: Higher
EducationVote:12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a three-year pilot program to increase
participation among community college students and state and
federal financial aid programs. Specifically, this bill:
1)Requires the Chancellor's Office of the California Community
Colleges (CCCCO) to establish the pilot program and select up
to 10 community college campuses to voluntarily participate in
the program.
2)States that the particular goals of the pilot program include:
a) Identifying best practices for increasing the number of
students who complete a Free Application for Federal
Student Aid (FAFSA).
b) Developing strategies for increasing student
participation in state and federal financial aid beyond
just the CCC Board of Governor's student fee waiver (BOG
waiver), including the federal American Opportunity Tax
Credit.
3)Requires the CCCCO to provide specified information and data
on the pilot program to the Legislative Analyst's Office (LAO)
by January 10, 2016, and requires the LAO to report to the
Legislature on the results of the program and recommendations
regarding statewide expansion.
FISCAL EFFECT
1)Assuming 10 participating campuses are representative of the
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entire system, and assuming increases, by the third year of
the pilot program, in new financial aid awards to students at
these campuses of 10% for the High School Entitlement Cal
Grant B and 5% for the Transfer Entitlement Cal Grant A and B,
General Fund costs would be about $200,000 in 2014-15 and
about $600,000 in 2015-16.
2)To the extent the pilot program leads to increases in federal
financial aid awards to students at the participating
colleges, and further implementation leads to increased state
and federal financial aid awards to students throughout the
community college system, this could result in overall gains
in student success and reductions in the average time for
students to complete their educational goals, with resulting
efficiency benefits to CCC.
3)The CCCCO will incur annual costs of around $75,000 to
administer the pilot program.
COMMENTS
1)Background and Purpose . The FAFSA is used to determine
eligibility for all major federal and state financial aid
programs, including Cal Grants, Pell Grants, institutional aid
at the University of California and the California State
University, work-study awards, scholarships, and federal
student loans. The CCC Board of Governors (BOG) Fee Waiver
program provides relief for financially needy students from
the CCC $46 per unit fee. A CCC student may apply for a BOG
fee waiver by submitting a FAFSA or by submitting a Short
Form, which requires less information and is simpler to
complete than the FAFSA. Approximately 1.1 million (46%) of
CCC students received a BOG fee waiver in 2011-12-an increase
of 43% since 2007-08. Community college financial aid
officials indicate that about 80% of these students fill out a
FAFSA.
Several reports have highlighted the fact that CCC students
have significant financial need but are the least likely to
take advantage of the federal financial aid support that is
available to them. The author believes that all needy CCC
students should be filling out a FAFSA as a matter of course.
2)Prior Legislation . In 2011, AB 91 (Portantino), which was
substantially similar to this bill, was vetoed, with the
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Governor arguing that a statute was unnecessary, as the CCCCO
could work with the districts to meet the bill's objectives.
In 2010, AB 1997 (Portantino), another almost identical bill,
was vetoed by Governor Schwarzenegger for the same reason.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081