BILL ANALYSIS �
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: AB 1862
AUTHOR: Melendez
AMENDED: April 3, 2014
FISCAL COMM: No HEARING DATE: June 4, 2014
URGENCY: No CONSULTANT:Daniel Alvarez
SUBJECT : Postsecondary education: financial aid.
SUMMARY
This bill moves the due date of a Legislative Analyst
office (LAO) report on the status of the California
National Guard Education Assistance Award Program (CNG
EAAP) that may include recommendations for modifying or
extending the program, from on or before January 1, 2016,
to on or before January 31, 2015.
BACKGROUND
Current law establishes the CNG EAAP to enhance retention
within the CNG by providing grant awards to obtain a
certificate, degree, or diploma and sets specific
conditions of eligibility for participation in the program,
including, but not limited to the following:
a) The person is a resident of California, as
specified in current law;
b) The person is an active member of, and has served
two years in, the CNG, the State Military Reserve
(SMR), or the Naval Militia;
c) The person has been accepted or registered at,
enrolled in, a qualifying institution, as specified in
current law;
d) The person agrees to use the award to obtain a
certificate, degree, or diploma that he or she does
not hold at the time they apply for an award, and
enrolls as specified;
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e) The person has submitted the Free Application for
Federal Student Aid (FAFSA) to the U. S. Department of
Education.
Tasks the Legislative Analyst's Office (LAO), on or before
January 1, 2016, to prepare and submit to the Legislature a
report on the CNG EAAP, including recommendations for
modifying or extending the CNG EAAP; and, specifies that
the CNG EAAP, as of July 1, 2019, shall become inoperative,
and on
January 1, 2020, is repealed. (Education Code � 69999.16,
et seq.)
ANALYSIS
This bill changes the due date of a Legislative Analyst
office (LAO) report on the status of the California
National Guard Education Assistance Award Program (CNG
EAAP) from on or before January 1, 2016, to on or before
January 31, 2015.
STAFF COMMENTS
1) Need for the bill . According to the author's office,
this measure would require the LAO to complete the
required report on the CNG EAAP by January 31, 2015,
eleven months sooner than required by current law.
Once this report is received, the Legislature can then
decide what improvements, if any, can be made prior to
extending the program indefinitely.
2) Unclear on need to move up reporting date . The bill
proposes to move the date of a required LAO report,
but it is unclear as to the rationale for such a shift
in the reporting dates.
Further, another measure up for consideration by this
Committee is AB 1781 (Linder) which would allow for
CNG EAAP grants to be used during summer sessions and
intersessions, if AB 1781 is passed by the Committee
it would create a new option for CNG members to pursue
their educational goals. If it is the desire of the
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committee to move this measure, staff recommends the
following amendments:
a) Require enactment of AB 1781 as a
condition of enactment of this measure -- this
will ensure that there is a change to the
underlying CNG EAAP program that warrants a
change to the LAO evaluation date.
b) Change the LAO report date to January 1,
2017 - this will provide ample time to consider
any potential changes to the CNG EAAP program for
purposes of a thorough evaluation.
1) Background. The CNG EAAP, which went into effect on
January 1, 2010, is a State-funded grant for up to
1,000 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 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 an applicant must
agree, in part, to obtain a certificate, degree, or
diploma that he or she does not already hold and to
enroll in at least three academic units per semester.
How many participants? According to the California
Military Department, since the enactment of the CNG
EAAP, to date, the program has not exceeded 1,000
awards in one academic year. To note, thus far in the
2013-14 academic year (AY), there are 345
participants. The chart below shows the number of
participants in the CNG EAAP over the course of four
years:
---------------------------------------------
|Fiscal Year |Number of CNG EAAP |
| |Participants |
|--------------+------------------------------|
|2009-10 |243 |
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|--------------+------------------------------|
|2010-11 |450 |
|--------------+------------------------------|
|2011-12 |322 |
|--------------+------------------------------|
|2012-13 |292* |
---------------------------------------------
*For the 2012-13 AY, 156 previously qualifying
institutions became ineligible because of a change to
the definition of a qualifying institution for the Cal
Grant program. Due to this change, 59 new applicants
who had submitted completed applications had to be
turned away.
Award dollars? According to the California Military
Department, in the 2013-14 fiscal year approximately
$2.5 million (the total amount appropriated), has been
budgeted for CNG EAAP awards. To date, the CNG EAAP
has paid out $1,532,485.00 in awards for 2013-14. To
note, the California Military Department is projected
to use all the funds for this fiscal year. The chart
below shows the dollar amount that has been awarded to
eligible participants over the course of four years:
----------------------------------------------
|Fiscal Year |Distributed Award |
| |Dollars |
|---------------------+------------------------|
|2009-10 |$795,759.00 |
|---------------------+------------------------|
|2010-11 |$2,472,246.00 |
|---------------------+------------------------|
|2011-12 |$2,418,392.00 |
|---------------------+------------------------|
|2012-13 |$1,988,534.00* |
| | |
----------------------------------------------
*For the 2012-13 AY, 156 previously qualifying
institutions became ineligible because of a change to
the definition of a qualifying institution for the Cal
Grant program. Due to this change, 59 new applicants
who had submitted completed applications had to be
turned away.
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2) Related legislation . AB 1781 (Linder) provides for
California National Guard Education Assistance Award
Program grants for use in summer sessions or
intersessions. This bill is being heard in Senate
Education Committee on June 4.
SUPPORT
None on this version of the bill.
OPPOSITION
None on this version of the bill.