BILL ANALYSIS �
AB 1781
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1781 (Linder) - As Introduced: February 18, 2014
Policy Committee: Higher
EducationVote:13-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill revises the eligibility conditions of the California
National Guard (CNG) Education Assistance Award Program (EAAP)
to allow participating students to also use the award for
enrollment in summer and intersession terms.
FISCAL EFFECT
1)No additional program costs from providing participants with
the flexibility to attend during summer or intersession. The
California Military Department (CMD) is concerned, however,
that more program funds will go unused as a result. The
department reports that, on average, approximately 8.6% of
encumbered EAAP funds are returned to the General Fund at the
end of each academic year. For 2013-14, about $2,560,000 is
budgeted for the program, including $115,000 for
administration. CMD indicates it has thus far paid out $1.5
million in awards to 345 participants.
2)Minor absorbable one-time reprogramming costs to the
California Student Aid Commission (CSAC), which issues EAAP
awards on behalf of the CMD.
COMMENTS
1)Background . The CNG EAAP, which went into effect on January 1,
2010, is a State-funded grant for up to eligible service
members in the California National Guard, State Military
Reserve, or the Naval Militia. Participants can receive up to
the amount of the Cal Grant A award for attending the
University of California (UC) or the California State
AB 1781
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University (CSU), up to the Cal Grant B award for attending a
community college, or up to the UC Cal Grant A amount for
attending a non-public institution. CNG EAAP graduate school
students may receive an additional $500.00 for books and
supplies.
In order to qualify for an award, and applicant must agree, in
part, to obtain a certificate, degree, or diploma that her or
she does not already hold and to enroll in at least three
academic units per semester.
2)Purpose . According to the author, because summer and
intersession terms are not a part of the CNG EAAP eligibility
formula, student soldiers do not have the flexibility to take
courses on their own schedule if they happen to have a free
summer, extra time in winter, or if they have some sort of
hardship keeping them from enrolling during the traditional
spring and fall semester/quarters. The author contends that
this bill would help fulfill the mission of California's
postsecondary institutions, to reduce costs on students, help
alleviate the risk of debt and, ultimately expedite the time
to graduation.
3)Department Concerns . The CMD anticipates that a larger amount
of encumbered EAAP funds will not be able to be recouped and
reallocated to another CNG EAAP participant at the end of the
academic year. According to the department, this is because
(a) schools have to be contacted between two to four times by
our EAAP program coordinator before they enter enrollment
information for the term; (b) students do not inform the
program coordinator that they will not be attending a term;
and (c) schools neglect to report that a student is not
enrolled even when they request payment for the students who
are attending. By the time these students are reported as "not
enrolled," it is too late for the program to accept new
applicants. The department is concerned that the option of
attending in summer or intercession will exacerbate the
situation described above.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081