BILL ANALYSIS �
AB 1364
Page 1
Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 1364 (Ting) - As Amended: April 2, 2013
SUBJECT : Student financial aid: Cal Grant Program.
SUMMARY : Increases the Cal Grant B access award amount to no
less than $5,900 and annually adjusts the minimum award amount
by the percentage increase in the California Consumer Price
Index (CCPI), as specified. Specifically, this bill :
1)Increases the Cal Grant B access award amount to $5,900.
2)Annually adjusts the minimum amount of the Cal Grant B access
award to include the percentage increase in the CCPI, as
determined by the Department of Industrial Relations,
commencing with the 2014-15 academic year.
3)Prohibits any adjustment to the minimum award amount in the
event that the CCPI decreases in any year.
EXISTING LAW defines "access costs" in the Cal Grant B Program
to include books, supplies, living expenses and transportation
and provides that the maximum grant for such costs shall be in
an annual amount not to exceed $1,551. Statute provides this
amount may be adjusted in the annual Budget Act.
FISCAL EFFECT : Unknown but potentially significant.
COMMENTS : Background . The Cal Grant B program began as the
"College Opportunity Grant" (COG) in the late 1960s. At that
time policymakers acknowledged that the lowest income students
needed assistance with other college costs, such as living
expenses, textbooks, and supplies. In 1969-70, the first
stipend was set at $900. The stipend was approximately 20% of
the indirect costs in 1989-90, as determined by the California
Student Aid Commission (CSAC). Since that time it has declined
in relative terms each year; last year the Governor used his
veto authority to reduce the access award by 5% to $1,473, which
does not pay for the average cost of books and supplies ($1,656)
estimated by CSAC in 2011-12.
Need for the bill . According to the author, "AB 1364 will help
AB 1364
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to ensure fairness and allow California students to achieve
their goals by bringing the amount of the Cal Grant access award
to where it should be today if it had rightfully kept pace with
inflation. Further AB 1364 ties the award to the Consumer Price
Index (CPI) going forward. If this award had kept pace with
inflation, it would be valued at around $6,000 today."
Recent budget actions . As a result of recent budget deficits
and growing costs to the program, several changes to the Cal
Grant program over recent years reduced eligibility and
benefits, including annual student needs assessments to maintain
eligibility, a reduction in the Cal Grant B stipend amount,
institutional graduation and student loan default rate
thresholds for program eligibility, and a reduction in the award
amount for students attending private institutions. Combined
with actions taken in the 2011-12 Budget Act, these cuts
affected more than 170,000 students and reduced the Cal Grant
program by almost $200 million.
Other measures to expand Cal Grant eligibility . Other measures
before this Committee to increase Cal Grant eligibility or
benefits include:
1)AB 303 (Calderon) would extend eligibility to the Cal Grant
Entitlement program to California residents who are current or
former members of the United States Armed Forces.
2)AB 1085 (Gaines and Morrell) would increase the Cal Grant
award for students attending private postsecondary educational
institutions to $9,708, restoring it to the level it was prior
to reductions implemented in the Budget Act of 2012.
3)AB 1241 (Weber) would extend the Cal Grant Entitlement program
period of eligibility from one to three years.
4)AB 1285 (Fong) would expand Cal Grant B funding by eliminating
the 2% cap on the number of Cal Grant B awards that cover the
first year of tuition and fees.
5)AB 1287 (Quirk-Silva) would remove statutory provisions
requiring renewing Cal Grant recipients to meet annual income
and asset criteria to maintain eligibility.
6)AB 1318 (Bonilla), would link the Cal Grant award amount for
students attending private nonprofit colleges and universities
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to the average cost of educating students in the public
sector.
Previous legislation . AB 175 (Price) of 2007, which was held in
the Assembly Appropriations Committee, would have indexed the
Cal Grant B stipend to student costs.
REGISTERED SUPPORT / OPPOSITION :
Support
California Community College Association of Student Trustees
California Community Colleges Chancellor's Office
California Competes
California State Conference of the National Association for the
Advancement of Colored People
California State Student Association
Community College League of California
NAACP Los Angeles
National Council of La Raza
Public Advocates Inc.
Southern California College Access Network
Student Senate for California Community Colleges
The Education Trust-West
The Institute for College Access & Success
University of California Student Association
Young Invincibles
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960