BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1976|
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THIRD READING
Bill No: AB 1976
Author: Quirk-Silva (D), et al.
Amended: 5/23/14 in Assembly
Vote: 21
SENATE EDUCATION COMMITTEE : 6-0, 6/25/14
AYES: Liu, Wyland, Correa, Hancock, Huff, Monning
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 74-1, 5/29/14 - See last page for vote
SUBJECT : Competitive Cal Grant A and B awards
SOURCE : Author
DIGEST : This bill requires the California Student Aid
Commission (CSAC), beginning in the 2015-16 award year, to award
Competitive Cal Grants using data from the three award years
immediately preceding an award year to calculate a "take rate"
to estimate the number of awards to be granted to achieve a
target of 22,500 awards, and then reduces the target number of
awards in the subsequent year by the number of awards granted
over 22,500.
ANALYSIS : Existing law authorizes the Cal Grant Program,
administered by the California Student Aid Commission, to
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provide grants to financially needy students to attend college.
The Cal Grant programs include both the entitlement and the
competitive Cal Grant awards. The program consists of the Cal
Grant A, Cal Grant B, and Cal Grant C programs, and eligibility
is based upon financial need, grade point average, California
residency, and other eligibility criteria, as specified.
Existing law provides for the Cal Grant A and B Entitlement
programs. The Cal Grant A High School Entitlement Program
provides tuition fee funding for the equivalent of four
full-time years at qualifying postsecondary institutions to
eligible lower and middle income high school graduates who have
at least a 3.0 grade point average (GPA) on a four-point scale
and apply within one year of graduation.
The Cal Grant B High School Entitlement Program provides funds
to eligible low-income high school graduates who have at least a
2.0 GPA on a four-point scale and apply within one year of
graduation. The award provides up to $1,551 for books and
living expenses for the first year and each year following for
up to four years (or equivalent of four full-time years). After
the first year, the award also provides tuition fee funding at
qualifying postsecondary institutions. Current law authorizes up
to 2% of new Cal Grant B recipients to be eligible for payment
of tuition or fees or both in their first academic year of
attendance.
Existing law also establishes the Cal Grant Competitive Award
Program and provides 22,500 Cal Grant A and B awards to
applicants who meet financial, academic, and general program
eligibility requirements. Half of these awards are reserved for
students enrolled at a California Community College and who met
the September 2 application deadline.
This bill:
1.Requires the CSAC, beginning in the 2015-16 award year to:
A. Establish a target of 22,500 Competitive Cal Grant
awards to be paid.
B. Estimate the "take rate" for awards by calculating an
average of the number of awards offered and taken for the
three years immediately prior.
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C. Use the calculated "take rate" to estimate the number of
awards to be granted to achieve the target of 22,500
awards.
D. For awards granted in the 2016-17 award year and
subsequent, requires an adjustment of the target rate and
the take rate to consider and adjust for the total amount
of awards paid in the prior year.
1.Authorizes the CSAC to exceed the 22,500 award limit if
acceptances exceed that amount provided that the CSAC uses a
specified adjustment formula in 2016-17, and subsequent award
years to grant awards.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Competitive Cal Grants: Approximately $5.2 million (General
Fund) in 2015-16 in increased "new" awards. Additional costs of
$9.1 million in 2016-17, $11.8 million in 2017-18, and $13.3
million in 2018-19 and each year thereafter, in increased new
and renewal awards.
SUPPORT : (Verified 8/15/14)
Alliance for a Better Community
American Civil Liberties Union
American Federation of State, County and Municipal Employees
California Community College Chancellors Office
California Competes
California Faculty Association
California State Student Organization
California Student Aid Commission
California Teachers Association
Californians for Shared Prosperity Coalition
Earned Assets Resource Network
Greater Long Beach Interfaith Community Organization
Los Angeles, Kern, Yosemite and South Orange County Community
College Districts
National Association of Social Workers
North Orange County Community College District
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People and Congregations Together
San Jose Evergreen Valley College District
Student Senate for California Community Colleges
The Campaign for College Opportunity
The Institute for College Access and Success
University of California Student Association
Young Invincibles
ARGUMENTS IN SUPPORT : According to the author, in 2012-13,
while the pool of qualified applicants for the competitive Cal
Grant exceeded 317,500, fewer than 20,000 of the 22,500
authorized awards were actually paid. In most years the CSAC
only pays about two-thirds of their offers (17,000). According
to the author, the CSAC is concerned about making grant offers
that result in a take rate that exceeds the statutorily imposed
cap, creating a liability that the CSAC cannot fulfill.
ASSEMBLY FLOOR : 74-1, 5/29/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bloom, Bocanegra,
Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,
Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Medina,
Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan,
Patterson, Perea, John A. P�rez, V. Manuel P�rez, Quirk,
Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, Atkins
NOES: Bigelow
NO VOTE RECORDED: Donnelly, Harkey, Logue, Mansoor, Vacancy
PQ:nl 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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