BILL ANALYSIS �
AB 684
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 684 (Medina) - As Amended: March 21, 2013
Policy Committee: Higher
EducationVote:12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the Workforce Investment Board (WIB) to
provide grants, from state and federal funds available to the
board for this purpose, to accredited institutions providing
instruction to students preparing for the General Educational
Development (GED) test. The board is required to adopt
regulations and procedures for administering the grant program.
FISCAL EFFECT
One-time costs for the board to establish the program would be
around $120,000 for one position, and ongoing program
administration would require at least a half-time position at
$60,000. Annual costs for the grants are unknown, but would
probably be at least up to several hundred thousand or low
millions of dollars annually for a meaningful grant program.
Notwithstanding the above, the availability of any funding for a
new grant program through the federal Workforce Investment Act
(WIA) is questionable. For 2012-13, the state is receiving about
$411 million in WIA funds, the vast majority of which is
distributed to 49 local WIBs on a formula basis. About $20
million remains with the state and funds the coordination and
policy-setting functions of the WIB ($3 million), with the
remainder used by the Employment Development Department for
compliance and monitoring activities.
COMMENTS
1)Background . Until recently, students who wanted to attend
college, but didn't have a high school diploma or GED, could
AB 684
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become eligible for federal grants and loans by either taking
a basic skills test, to prove their ability to benefit (ATB)
from a college education, or successfully completing six
credits. As part of an omnibus spending bill enacted in
December 2011, Congress eliminated the ATB test, thus reducing
one avenue for such students to access federal
aid-specifically the loss of eligibility, effective July 1,
2012, for Pell Grants and other financial aid for enrollment
in an accredited post-secondary training center to prepare for
the GED.
The California Workforce Investment Act established the
workforce investment boards in every state to provide a
comprehensive range of workforce development activities
through statewide and local organizations.
2)Purpose . Allocation of state Workforce Investment Act funds
for adults pursuing a GED while attending accredited training
education centers will facilitate in the ability of low-income
individuals having the ability to receive their GED, enabling
them to qualify for Pell Grants and other forms of federal
financial aid.
According to the Western Association of Schools and Colleges
(WASC) Accrediting Commission for Schools, there are 197
WASC-accredited training centers in the state.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081