BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 285
Author: De León (D), et al.
Amended: 5/21/13
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 4/17/13
AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,
Jackson, Monning
SENATE APPROPRIATIONS COMMITTEE : 6-0, 5/20/13
AYES: De León, Walters, Gaines, Hill, Padilla, Steinberg
NO VOTE RECORDED: Lara
SUBJECT : Student financial aid: Cal Grant Program
SOURCE : Author
DIGEST : This bill provides for the use of funds from the
College Access Tax Credit Fund (CATC) to increase the amount of
the Cal Grant B Access Award up to a maximum of $5000 per award
per academic year; authorizes the California Student Aid
Commission (CSAC) to be reimbursed from the CATC for all
administrative costs incurred in connection with its duties; and
becomes operative only if SB 284 (Senator De León, 2013) is
enacted and becomes operative on or before January 1, 2014.
ANALYSIS : Existing law authorizes the Cal Grant Program,
administered by CSAC, to provide grants to financially needy
students to attend college. The Cal Grant programs include both
the entitlement and the competitive Cal Grant awards. The
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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. These programs currently operate as
follows:
1. 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.
2. 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.
3. Community College Transfer Program provides a Cal Grant A or
B to eligible high school graduates who have a community
college GPA of at least 2.4 on a four point scale and
transfer to a qualifying baccalaureate degree granting
college or university.
4. Cal Grant Competitive Award Program provides 22,500 Cal
Grant A and B awards available to applicants who meet
financial, academic, and general program eligibility
requirements. Half of these awards are reserved for students
enrolled at a community college and who met the September 2
application deadline.
5. Cal Grant C Program provides funding for financially
eligible lower income students preparing for occupational or
technical training. The authorized number of new awards is
7,761. For new and renewal recipients, the current tuition
and fee award is up to $2,592 and the allowance for
training-related costs is $576.
Existing law also authorizes the Cal Grant T program to provide
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assistance to individuals who attend teacher credential programs
at colleges and universities approved by the California
Commission on Teacher Credentialing. According to the CSAC, the
Governor and the California State Legislature have not permitted
new awards for the Cal Grant T program since the 2002-2003
academic year.
This bill provides for the use of funds from the CATC Fund for
purposes of increasing the Cal Grant B access award.
Specifically it:
1. Declares the intent that CATC Funds supplement other funds
appropriated for the Cal Grant Program and, once the CATC
Fund is established, prohibits the adjustment of the Cal
Grant B Access Award below the level set in the Budget Act of
2012 ($1,473).
2. Requires the Treasurer to certify the amount of moneys
available for distribution from the CATC fund beginning April
1, 2015, and annually thereafter by April 1.
3. Prohibits the amount available for distribution in any year
from exceeding 85% of the certified fund balance.
4. Requires the CSAC to thereafter determine the amount of the
supplemental awards to be granted, and requires CSAC to
include that amount in its budget change proposals submitted
to the Legislature.
5. Requires that any funds remaining after all supplemental
awards are made be retained in the CATC for allocation in
future fiscal years.
6. Requires that supplemental awards be made for "access costs"
as defined under the provisions of the Cal Grant Program.
7. Caps the amount of the supplemental award, when combined with
the annual award amount established in the annual Budget Act,
at $5,000.
8. Provides that these awards are only payable to the extent
moneys are available from the CATC Fund.
9. Requires CSAC to inform award recipients that the award is
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for one academic year only, is not an entitlement, and that
future supplemental awards are subject to the availability of
moneys in the CATC.
10.Authorizes the CSAC to be reimbursed from the CATC for all
administrative costs incurred in connection with its duties.
11.Becomes operative only if SB 284 is enacted and becomes
operative on or before January 1, 2014.
Comments
Cal Grant A versus Cal Grant B . Cal Grant A awards are provided
to students to cover the cost of tuition or fees at public
colleges and to assist with these costs at private colleges and
some private career colleges. Under Cal Grant B, a student is
awarded a grant for purposes of access costs for the first year.
After the freshman year, the Cal Grant B award may also cover
tuition and fees in the same amount as a Cal Grant A. Existing
law provides that the amount of the award for access costs
cannot exceed $1,551, but provides that this amount may be
adjusted in the annual Budget Act.
Traditionally, the amount of the Cal Grant A award, as well as
the portion of the Cal Grant B which covers tuition and fees,
has been set at a level which covers the tuition/fees at
California's public postsecondary institutions. In 2013-14,
the maximum awards for Cal Grants A and B are equal to the
mandatory systemwide tuition fees at a University of California
($12,192) and California State University ($5,472), $9,084 at
independent non-profit institutions and Western Association of
Schools and Colleges-accredited private for-profit institutions,
and $4,000 at all other private for-profit institutions.
The Cal Grant B access award is statutorily capped at $1,555,
but was reduced by 5%, to $1473 in the 2012-13 Budget Act.
According to CSAC, in 2010-11, the average income for new Cal
Grant B recipients was $17,407, versus $45,735 for new Cal Grant
A recipients. There were a total of 35,747 new recipients for
Cal Grant A and 94,710 new recipients of Cal Grant B. The
largest number and percentage of Cal Grant B recipients were at
the California Community Colleges (53%) while the largest number
and percentage of Cal Grant A recipients were at the University
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of California (21%).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
$140,000 in staffing costs to CSAC to administer the program
expansion.
To the extent that expanded Cal Grant Access Awards provide
additional funding to students in California's public
postsecondary institutions, it may supplant some
institutional aid from the segments.
SUPPORT : (Verified 5/21/13)
AFSCME
Association of Independent California Colleges and Universities
California Catholic Conference
California Community College Association of Student Trustees
California Competes
California State Student Association
California Student Aid Commission
Los Angeles Area Chamber of Commerce
Los Angeles Community College District
NAACP California
National Council of La Raza
Public Advocates
Southern California College Access Network
Student Senate for California Community Colleges
The Campaign for College Opportunity
The Education Trust - West
The Institute for College Access and Success
University of California Student Association
Young Invincibles
ARGUMENTS IN SUPPORT : According to the author's office,
adjusted for inflation, a Cal Grant B award today should be
$5,900. Instead, it has lost most of its purchasing power over
time and is currently only $1,473. Receiving more financial aid
to cover non-tuition costs will enable students to limit their
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work hours while enrolled, reduce their need to borrow, and
ensure that they can focus on their studies and graduate.
PQ:d 5/22/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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