BILL ANALYSIS �
AB 1364
Page 1
ASSEMBLY THIRD READING
AB 1364 (Ting)
As Amended May 24, 2013
Majority vote
HIGHER EDUCATION 9-3 APPROPRIATIONS 12-0
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|Ayes:|Williams, Bloom, Fong, |Ayes:|Gatto, Bocanegra, |
| |Fox, | |Bradford, |
| |Jones-Sawyer, Levine, | |Ian Calderon, Campos, |
| |Medina, Quirk-Silva, | |Eggman, Gomez, Hall, |
| |Weber | |Ammiano, Pan, Quirk, |
| | | |Weber |
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|Nays:|Waldron, Olsen, Wilk |
| | |
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SUMMARY : Reverses a budget-related 5% reduction (from $1,551 to
$1,473) to the Cal Grant B access award-resulting from a
Governor's veto-and instead increases this stipend to $1,710
(the most recent estimated average cost of books and supplies)
and requires adjustment of the stipend annually thereafter based
on changes in the California Consumer Price Index for All Urban
Consumers (CPI-U), as specified. Specifically, this bill :
1)Increases the Cal Grant B access award amount to $1,710.
2)Annually adjusts the minimum amount of the Cal Grant B access
award to include the percentage increase in the CPI-U, as
determined by the Department of Industrial Relations,
commencing with the 2014-15 academic year.
3)Specifies that no later than January 15, 2014, for the 2014-15
academic year, no later than September 1, 2014, for the
2015-16 academic year, and no later than September 1 of the
year prior to each academic year thereafter, the commission
(or a qualifying institution) shall calculate and certify the
percentage change using the data from the two most recent June
indices.
4)Specifies that in the event that the CPI-U decreases from the
prior academic year, the award amount shall remain at its most
AB 1364
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recently certified level.
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 : According to the Assembly Appropriations
Committee, General Fund costs of about $37 million in 2014-15,
with similar ongoing costs that will depend on changes in the
number of Cal Grant B recipients and the annual inflation
adjustment.
COMMENTS : 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. The most recent
estimated average cost of books and supplies is $1,710.
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. Several measures
have been introduced to restore these cuts and/or expand access
to the Cal Grant program.
Analysis Prepared by : Jeanice Warden / HIGHER ED. / (916)
319-3960
AB 1364
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FN: 0000985