Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state. Existing law requires community college district governing boards to charge students an enrollment fee of $46 per unit per semester. Existing law provides for the waiver of this fee under certain circumstances, including, among others, that the student either (1) at the time of enrollment is a recipient under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program, (2) demonstrates eligibility according to income standards established by regulation of the board of governors, or (3) demonstrates financial need in accordance with methodology set forth in federal law or regulation for determining the expected family contribution of students seeking aid.

This bill would lower the amount of unmet financial need a student needs to demonstrate to qualify for a fee waiver to at least one dollar. The bill would require the board of governors, by January 1, 2018, to ensure a fee waiver application is available to be completed and submitted electronically by students at each community college. The bill would require the board of governors to establish a need-based aid program to provide fee waiver recipients with financial resources, not to exceed $1,000 per student per year, for the purpose of offsetting a portion of the costs associated with the purchase of books, supplies, transportation, and other general living expenses. To the extent the bill would impose new duties on community college districts, it would constitute a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state. Existing law requires community college district governing boards to charge students an enrollment fee of $46 per unit per semester. Existing law provides for the waiver of this fee under certain circumstances, including, among others, that the student either (1) at the time of enrollment is a recipient under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program, (2) demonstrates eligibility according to income standards established by regulation of the board of governors, or (3) demonstrates financial need in accordance with methodology set forth in federal law or regulation for determining the expected family contribution of students seeking aid.

This bill would revise some of these circumstances by raising the amount of income a student can earn and still qualify for a fee waiver to no lower than three times the current federal poverty level and by lowering lower the amount of unmet financial need a student needs to demonstrate to qualify for a fee waiver to at least one dollar. The bill would require the board of governors, by January 1, 2018, to ensure a fee waiver application is available to be completed and submitted electronically by students at each community college. The bill would require the board of governors to establish a need-based aid program to provide fee waiver recipients with financial resources, not to exceed $1,000 per student per year, for the purpose of offsetting a portion of the costs associated with the purchase of books, supplies, transportation, and other general living expenses. To the extent the bill would impose new duties on community college districts, it would constitute a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state. Existing law requires community college district governing boards to charge students an enrollment fee of $46 per unit per semester. Existing law provides for the waiver of this fee under certain circumstances, including, among others, that the student either (1) at the time of enrollment is a recipient under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program, (2) demonstrates eligibility according to income standards established by regulation of the board of governors, or (3) demonstrates financial need in accordance with methodology set forth in federal law or regulation for determining the expected family contribution of students seeking aid.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

This bill would declare the intent of the Legislature to enact legislation that would establish a California Promise program to expand access to the California Community Colleges for California residents.

SENATE COMMITTEE ON EDUCATION

Senator Carol Liu, Chair

2015 - 2016 Regular

Bill No: AB 1583

Subject: Community colleges: enrollment fee waiver

SUMMARY

This bill statutorily establishes a criteria for determining income eligibility for a Board of Governor’s fee waiver by requiring that a waiver be granted to any student who demonstrates financial need of at least one dollar.

BACKGROUND

Existing law requires the Board of Governors (BOG) to charge each student a $46 per unit per semester fee. Existing law also requires a waiver of these fees (BOG fee waiver) for students who meet specified income requirements based on any of the following criteria:

1. At the time of enrollment, the student is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program.
2. Demonstrates eligibility according to income standards established by regulations of the BOG.
3. Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (Education Code § 76300)

ANALYSIS

This bill:

1. Modifies criteria for determining income eligibility for a Board off Governor’s fee waiver by statutorily requiring that a waiver be granted to any student who demonstrates financial need of at least one dollar, using federal financial aid methodology.
2. Deletes an obsolete provision.

STAFF COMMENTS

1. Rationale for the bill. This bill is prompted by the national debate over President Obama’s College Promise, which proposes two years of free community college for eligible students. This bill, rather than implement free community college tuition would reduce the amount of unmet need students must demonstrate in order to qualify for the BOG fee waiver program. The requirements for eligibility established by the bill would reflect a policy under which the BOG fee waiver program operated prior to 2012.
2. History. In 2012, citing the significant growth in the Board of Governors (BOG) fee waiver program both in the number of recipients and the dollar value (1.13 million recipients and $410 million) the California Community College Chancellor’s Office made an administrative change to the methodology for conducting a needs analysis. Up to that time a student with $1 of need was able to qualify for the full BOG fee waiver. Because an eligible student has all enrollment fees waived regardless of the amount of financial need, students had been able to receive fee waivers in excess of their financial need. This policy was changed to ensure that awards do not exceed need and to conform the BOG fee waiver program to the standards used for other financial aid program, such as the Cal Grant.

Under the current policy, students whose financial need is less than the fees charged for full-time enrollment do not receive an award. The annual threshold for eligibility for the BOG waiver under the current policy is $1,104. Students remain eligible for a BOG fee waiver to cover any number of units as long as they demonstrate financial need equal to or greater than this minimum. The chancellor’s office estimated a loss of eligibility for about 21,000 fee waiver recipient’s systemwide as a result of this change in policy.

1. Who is in/out? According to information provided by the Chancellor’s Office, recipients at the upper end of the income spectrum were affected by the BOG fee waiver policy change. Because financial need takes into account a variety of factors, it is difficult to identify an exact income cut-off for eligibility. However, the chancellor’s office provides the following examples of students who were eligible under the old policy, but were no longer eligible after the change in 2012:
   1. A single student over the age of 24 with no children, an annual income of $71,500 per year, and $2,000 in savings.
   2. A married student with one child and a combined annual income of $100,000 and $500 in savings.
   3. An 18 year old student living with parents in a family of four with parental annual income of $85,000 per year and $12,000 in assets.
2. Is this bill necessary? Under current law, the Chancellor’s Office has the authority to administratively set the financial need threshold for the BOG fee

waivers. The Chancellor’s Office reports that prior adjustments to the policy were based upon direction and guidance from the Legislature and the Department of Finance.

In light of the system’s past responsiveness, is it necessary or prudent to limit the flexibility of the Board of Governors (BOG) to adjust fee waiver policy to respond to changing fiscal conditions or legislative/administrative direction?

1. Policy trade-offs? According to the Chancellor’s Office, of the 2.1 million California Community College students, 55 percent receive a BOG fee waiver. Since the inception of the program in 1984, more than 5.1 million students have been exempted from fees and the state has invested more than $5 billion in the program. The Chancellor’s Office also reports that in the past decade, participation in the program has grown by 86 percent and this year the program is projected to cover $803 million in fees.

The Chancellor's Office estimates that the provisions of this bill would result in over 33,000 additional students becoming eligible for a fee waiver, at a cost of about $23 million. Affected districts would receive additional general fund for the fee’s waived for these students. However, using general fund monies for this purpose could mean a reduction in the amount of funding available for other legislative priorities.

According to the US Department of Education’s College Affordability and Transparency Center, California’s Community college fees are well below the national average of $3,141 per year. In addition, in a 2016 College Affordability Diagnosis for California, the Institute for Research on Higher Education notes the community colleges have become more affordable since 2008, as the percent of family income to enroll has declined (ranking 13^th nationally). The Chancellor’s Office reports that many students still struggle to pay for “access” costs which make up 90 percent of the total costs of college attendance, and as a result, have focused their legislative efforts on increasing Cal Grant B access awards and increasing the number of Competitive Cal Grants.

The Committee may wish to consider:

1. Is the provision of a benefit that exceeds a student’s calculated need this Committee’s highest priority for general fund apportionments to the community colleges?
2. Would the expanded tuition relief proposed by this bill come at the expense of efforts to expand other financial aid programs to address the total cost of attendance?
3. What would be the impact on the students with the greatest financial need?

SUPPORT

California Community College League

California Health+ Advocates

Lieutenant Governor Gavin Newsom

Western Association for College Admission Counseling

OPPOSITION

None received.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Carol Liu, Chair

2015 - 2016 Regular

Bill No: AB 1583

Subject: Community colleges: enrollment fee waiver

SUMMARY

This bill statutorily establishes a criteria for determining income eligibility for a Board of Governor’s fee waiver by requiring that a waiver be granted to any student who demonstrates financial need of at least one dollar.

BACKGROUND

Existing law requires the Board of Governors (BOG) to charge each student a $46 per unit per semester fee. Existing law also requires a waiver of these fees (BOG fee waiver) for students who meet specified income requirements based on any of the following criteria:

1. At the time of enrollment, the student is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program.
2. Demonstrates eligibility according to income standards established by regulations of the BOG.
3. Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (Education Code § 76300)

ANALYSIS

This bill:

1. Modifies criteria for determining income eligibility for a Board off Governor’s fee waiver by statutorily requiring that a waiver be granted to any student who demonstrates financial need of at least one dollar, using federal financial aid methodology.
2. Deletes an obsolete provision.

STAFF COMMENTS

1. Rationale for the bill. This bill is prompted by the national debate over President Obama’s College Promise, which proposes two years of free community college for eligible students. This bill, rather than implement free community college tuition would reduce the amount of unmet need students must demonstrate in order to qualify for the BOG fee waiver program. The requirements for eligibility established by the bill would reflect a policy under which the BOG fee waiver program operated prior to 2012.
2. History. In 2012, citing the significant growth in the Board of Governors (BOG) fee waiver program both in the number of recipients and the dollar value (1.13 million recipients and $410 million) the California Community College Chancellor’s Office made an administrative change to the methodology for conducting a needs analysis. Up to that time a student with $1 of need was able to qualify for the full BOG fee waiver. Because an eligible student has all enrollment fees waived regardless of the amount of financial need, students had been able to receive fee waivers in excess of their financial need. This policy was changed to ensure that awards to not exceed need and to conform the BOG fee waiver program to the standards used for other financial aid program, such as the Cal Grant.

Under the current policy, students whose financial need is less than the fees charged for full-time enrollment do not receive an award. The annual threshold for eligibility for the BOG waiver under the current policy is $1,104. Students remain eligible for a BOG fee waiver to cover any number of units as long as they demonstrate financial need equal to or greater than this minimum. The chancellor’s office estimated a loss of eligibility for about 21,000 fee waiver recipient’s systemwide as a result of this change in policy.

1. Who is in/out? According to information provided by the Chancellor’s Office, recipients at the upper end of the income spectrum were affected by the BOG fee waiver policy change. Because financial need takes into account a variety of factors, it is difficult to identify an exact income cut-off for eligibility. However, the chancellor’s office provides the following examples of students who were eligible under the old policy, but were no longer eligible after the change in 2012:
   1. A single student over the age of 24 with no children, an annual income of $71,500 per year, and $2,000 in savings.
   2. A married student with one child and a combined annual income of $100,000 and $500 in savings.
   3. An 18 year old student living with parents in a family of four with parental annual income of $85,000 per year and $12,000 in assets.
2. Is this bill necessary? Under current law, the Chancellor’s Office has the authority to administratively set the financial need threshold for the BOG fee

waivers. The Chancellor’s Office reports that prior adjustments to the policy were based upon direction and guidance from the Legislature and the Department of Finance.

In light of the system’s past responsiveness, is it necessary or prudent to limit the flexibility of the BOG to adjust fee waiver policy to respond to changing fiscal conditions or legislative/administrative direction?

1. Policy trade-offs? According to the Chancellor’s Office, of the 2.1 million California Community College students, 55 percent receive a BOG fee waiver. Since the inception of the program in 1984, more than 5.1 million students have been exempted from fees and the state has invested more than $5 billion in the program. The Chancellor’s Office also reports that in the past decade, participation in the program has grown by 86 percent and this year the program is projected to cover $803 million in fees.

The Chancellor's Office estimates that the provisions of this bill would result in over 33,000 additional students becoming eligible for a fee waiver, at a cost of about $23 million. Affected districts would receive additional general fund for the fee’s waived for these students. However, using general fund monies for this purpose could mean a reduction in the amount of funding available for other legislative priorities.

According to the US Department of Education’s College Affordability and Transparency Center, California’s Community college fees are well below the national average of $3,141 per year. In addition, in a 2016 College Affordability Diagnosis for California, the Institute for Research on Higher Education notes the community colleges have become more affordable since 2008, as the percent of family income to enroll has declined (ranking 13^th nationally). The Chancellor’s Office reports that many students still struggle to pay for “access” costs which make up 90 percent of the total the total costs of college attendance, and as a result, have focused their legislative efforts on increasing Cal Grant B access awards and increasing the number of Competitive Cal Grants.

The committee may wish to consider:

1. Is the provision of a benefit that exceeds a student’s calculated need this committee’s highest priority for general fund apportionments to the community colleges?
2. Would the expanded tuition relief proposed by this bill come at the expense of efforts to expand other financial aid programs to address the total cost of attendance?
3. What would be the impact on the students with the greatest financial need?

SUPPORT

California Community College League

California Health+ Advocates

Lieutenant Governor Gavin Newsom

Western Association for College Admission Counseling

OPPOSITION

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:

Author:(Santiago)

As Amended Ver:May 31, 2016

Majority vote

SUMMARY: Expands the California Community College (CCC) Board of Governors (BOG) Fee Waiver Program (BOGFW) to students with any financial need. Specifically, this bill:

1. Declares Legislative intent to establish a California affordability promise to ensure more Californians have the opportunity to access and afford community college in California.
2. Establishes the following findings and declarations:
   1. The BOGFW offsets tuition and fees for more than 60% of full-time CCC students and nearly half of all CCC students, with the only requirements being that students demonstrate financial need and meet reasonable academic progress standards.
   2. Despite the many strengths of the BOGFW, eligibility is currently limited to students with a minimum need of $1,104.
   3. It is the intent of the Legislature to ensure all Californians with financial need are eligible for the BOGFW.
3. Amends the BOGFW eligibility criteria to include students who demonstrate financial need of at least $1, in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid.
4. Provides for reimbursement to local agencies and school districts if the Commission on State Mandates determines that this bill contains mandated state costs.

EXISTING LAW:

1. Requires a BOGFW for any students who meet all of the following requirements:
   1. Meets minimum academic and progress standards, as adopted by BOG;
   2. Meets one of the following criteria:
      1. At the time of enrollment, is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program; or,
      2. Demonstrates eligibility according to income standards established by regulations of the BOG; or,
      3. Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (Education Code Section 76300).
2. The 2015-16 Budget Act provided $39 million to be distributed to students receiving the Cal Grant B Access Award and taking 12 units or more. The CCC Chancellor's Office was required to determine the number of students eligible for funding and distribute an equal amount of funding to each student. In September of 2015, the Chancellor's Office announced the Full-Time Student Success Grant to provide an additional $600 supplement to qualified students. The Governor's 2016-17 January Budget proposes to continue this program.

FISCAL EFFECT: According to the Assembly Appropriations Committee, the CCC Chancellor's Office estimates that over 33,000 additional students would initially become eligible for a fee waiver, at a cost of about $23 million (General Fund Proposition 98 of 1988), from changing the financial need eligibility criteria to $1.

COMMENTS: Purpose of this bill. According to the author, "in 2025, California faces an estimated shortage of 2.4 million college degree and certificate holders. To meet the demand, California has and must continue to invest significantly in need-based financial aid for CCC students. Despite the many strengths of the BOGFW, eligibility is currently limited to students who demonstrate financial need via various methods, and these methods can unfortunately exclude various students with low to lower-middle income and/or financial need. This bill strengthens and expands the BOGFW to ensure more Californians have the opportunity to access and afford community college."

BOGFW income limitations. In 1984, California enacted the first CCC enrollment fee at $5 per unit, with a maximum of $50 per semester and $100 per year. Simultaneously, the BOG was required to establish a financial aid program to negate the effect of the introduction of enrollment fees on access for low income students (BOGFW). The program was designed to make sure that students with financial need did not face a barrier to enrollment. Until 2012, the BOGFW was awarded to any student demonstrating at least $1 of financial need. In 2012, in response to a growing population of students applying for and receiving BOGFW, a policy change was made to require students to demonstrate full need for the aid awarded; $1104 based on current CCC fees. Approximately 21,000 students lost BOGFW in 2012-13 due to this change. This bill would return need eligibility to the $1 threshold.

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0003088

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1583

Author:(Santiago) – As Amended Ver:April 14, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill expands eligibility for the California Community College (CCC) Board of Governors Fee Waiver (BOGFW), based on financial need, and establishes an additional need-based program to provide additional aid to students receiving a BOGFW to offset other costs of education. Specifically, this bill:

1. Amends the BOGFW eligibility criteria to include students who demonstrate financial need of at least one dollar, in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid.
2. Requires the BOG, by January 1, 2018, to ensure a fee waiver application can be completed and submitted electronically.
3. Requires the BOG to establish a need-based program to provide fee waiver recipients up to $1,000 in additional aid per year to offset a portion of the costs of textbooks, supplies, transportation, and other living expenses.
4. Stipulates that eligibility for the additional aid per (3) would be determined using the student's Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application, as applicable.

FISCAL EFFECT:

1. The Chancellor's Office estimates that over 33,000 additional students would initially become eligible for a fee waiver, at a cost of about $23 million (GF Prop 98), from changing the financial need eligibility criteria to one dollar.
2. With over one million CCC students receiving a BOGFW, a supplemental grant of up to $1,000 would cost up to $1 billion. (GF-Prop 98)
3. It is estimated that requiring students to complete a FAFSA or Dream Act application in order to qualify for the supplemental grant would increase the number of applications completed by 20% to 25%. The resulting workload impact on financial aid offices at the 113 campuses would cost in the range of $10 million (GF- Prop 98) statewide. Increased completion of these applications would likely lead to increased Cal Grant Entitlement program awards, resulting in significant increased costs in this program.
4. The Chancellor's Office would incur one-time General Fund costs of around $3 million for programming to provide for online BOGFW applications and for the change in the financial need eligibility criteria.

COMMENTS:

1. Purpose. According to the author, "… Despite the many strengths of the BOGFW, eligibility is currently limited to students who demonstrate financial need via various methods, and these methods can unfortunately exclude various students with low to lower-middle income and/or financial need. Furthermore, CCC access and affordability are not exclusively tied to tuition and fees; for instance, non-tuition costs can represent more than 90 percent of the total cost of attending community college…This bill strengthens and expands the BOGFW to ensure more Californians have the opportunity to access and afford community college."
2. BOGFW Background. In 1984, California enacted the first CCC enrollment fee at $5 per unit, with a maximum of $50 per semester and $100 per year. Simultaneously, the BOG was required to establish a financial aid program to negate the effect of the introduction of enrollment fees on access for low income students (BOGFW). The program was designed to make sure that students with financial need did not face a barrier to enrollment. Approximately 60% of full-time CCC students receive a BOGFW. There are three income-based pathways to qualify for the BOGFW. This bill increases eligibility pools under one of these pathways as follows:

Until 2012, the BOGFW was awarded to any student demonstrating at least $1 of financial need. In 2012, in response to a growing population of students applying for and receiving BOGFW, a policy change was made to require students to demonstrate full need for the aid awarded, which is $1,104 based on current CCC fees. Approximately 21,000 students lost the fee waiver in 2012-13 due to this change. This bill returns need eligibility to the $1 threshold.

1. Related Legislation. AB 1721 (Medina), pending on this committee's Suspense File, in part increases the Cal Grant B access award, which helps offset non-tuition related costs, to $3,000.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 12, 2016

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 1583 (

Author:Santiago) – As Amended Ver:March 15, 2016

SUBJECT: Community colleges: enrollment fee waiver and additional assistance

SUMMARY: Expands the California Community College (CCC) Board of Governors (BOG) Fee Waiver Program (BOGFW) to include specified categories of students, and establishes a need-based aid program to cover access costs for CCC students. Specifically, this bill:

1. Declares Legislative intent to establish the California Promise to ensure more Californians have the opportunity to access and afford community college in California.
2. Establishes the following findings and declarations:
   1. California’s 1960 Master Plan for Higher Education affirmed the state’s commitment to a system of higher education combining exceptional quality with broad access.
   2. The CCC system is the largest system of higher education in the U.S., offering associate degrees and certificates in more than 175 fields to 2.1 million students on 113 campuses.
   3. For every dollar California invests to get students into and through college, the state receives a $4.50 net return on investment.
   4. In 2025, California faces an estimated shortage of one million college degree and certificate holders needed to sustain the state’s workforce.
   5. To meet the demand for college degree and certificate holders, California has and must continue to invest significantly in need-based financial aid for CCC students, including the Board of Governors Enrollment Fee Waiver Program (BOG Fee Waiver Program) and the Cal Grant Program.
   6. The BOGFW offsets tuition and fees for more than 60% of full-time CCC students and nearly half of all CCC students, with the only requirements being that students demonstrate financial need and meet reasonable academic progress standards.
   7. Despite the many strengths of the BOGFW, eligibility is currently limited to students with a minimum need of $1,104.
   8. CCC access and affordability are not exclusively tied to tuition and fees; for instance, nontuition costs such as textbooks, transportation, food, housing, and other college-related expenses can represent more than 90% of the total cost of attending CCC, thereby preventing students from successfully enrolling in and completing CCC.
   9. Although California has devoted considerable resources to need-based aid at the CCC, not every student with need is able to access or receive aid to offset tuition or non-tuition expenses.
   10. It is the intent of the Legislature to ensure all Californians with financial need are able to access and afford CCC.
3. Amends the BOGFW eligibility criteria to include:
   1. Students who demonstrate eligibility according to income standards established by regulations of the BOG, with income standards set no lower than three times the current federal poverty level; and,
   2. Students who demonstrate financial need of at least one dollar, in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid.
4. Requires, by January 1, 2018, BOG to ensure a fee waiver application is available to be completed and submitted electronically by students at each CCC.
5. Requires BOG to establish a need-based aid program to provide fee waiver recipients with financial resources, not to exceed one thousand dollars ($1,000) per student per year, to offset a portion of the costs of textbooks, supplies, transportation, and other living expenses.
6. Provides for reimbursement to local agencies and school districts if the Commission on State Mandates determines that this bill contains mandated state costs.

EXISTING LAW:

1. Requires a BOGFW for any students who meet all of the following requirements:
   1. Meets minimum academic and progress standards, as adopted by BOG;
   2. Meets one of the following criteria:
      1. At the time of enrollment, is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program; or,
      2. Demonstrates eligibility according to income standards established by regulations of the BOG; or,
      3. Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (Education Code Section 76300).
2. The 2015-16 Budget Act provided $39,000,000 to be distributed to students receiving the Cal Grant B Access Award and taking 12 units or more. The CCC Chancellor's Office was required to determine the number of students eligible for funding and distribute an equal amount of funding to each student. In September of 2015, the Chancellor's Office announced the Full-Time Student Success Grant to provide an additional $600 supplement to qualified students. The Governor's 2016-17 January Budget proposes to continue this program.

FISCAL EFFECT: Unknown.

COMMENTS: Purpose of this bill. According to the author, "in 2025, California faces an estimated shortage of 2.4 million college degree and certificate holders. To meet the demand, California has and must continue to invest significantly in need-based financial aid for CCC students. Despite the many strengths of the BOGFW, eligibility is currently limited to students who demonstrate financial need via various methods, and these methods can unfortunately exclude various students with low to lower-middle income and/or financial need. Furthermore, CCC access and affordability are not exclusively tied to tuition and fees; for instance, non-tuition costs can represent more than 90 percent of the total cost of attending community college. These costs can prevent students from successfully enrolling in and completing community college. This bill strengthens and expands the BOGFW to ensure more Californians have the opportunity to access and afford community college."

BOGFW income limitations. In 1984, California enacted the first CCC enrollment fee at $5 per unit, with a maximum of $50 per semester and $100 per year. Simultaneously, the BOG was required to establish a financial aid program to negate the effect of the introduction of enrollment fees on access for low income students (BOGFW). The program was designed to make sure that students with financial need did not face a barrier to enrollment. As previously outlined, there are three income-based pathways to qualify for the BOGFW. This bill increases eligibility pools under two of these existing pathways:

1. Demonstrating income eligibility. BOG regulations (5 CCR §58620) establish income standards that require students (or families) to have total income in the prior year of equal or less than 150% of the U.S. Department of Health and Human Services Poverty Guidelines. In 2016, for a family of four, this amount is $36,450. This bill would require the BOG to establish an income standard of no less than three times the federal poverty level. In 2016, this amount, for a family of four, would be $72,900.
2. Demonstrating need eligibility. Until 2012, the BOGFW was awarded to any student demonstrating at least $1 of financial need. In 2012, in response to a growing population of students applying for and receiving BOGFW, a policy change was made to require students to demonstrate full need for the aid awarded; $1104 based on current CCC fees. Approximately 21,000 students lost BOGFW in 2012-13 due to this change. This bill would return need eligibility to the $1 threshold.

Approximately 60% of full-time CCC students receive a BOGFW. The rationale for increasing the income limitation (#1 above) to three times the federal poverty level is unclear. The author and committee may wish to consider whether this change could inadvertently encourage students to complete a BOGFW and forgo the Free Application for Federal Student Aid (FAFSA) or Cal Grant application (which may provide students additional financial aid). Other changes in the bill (#2 above) would provide students with any need above $1 eligibility for a BOGFW.

In the absence of clear justification for doubling the income threshold for the BOGFW, committee staff recommends removing this provision.

BOGFW non-tuition award. In addition to the aforementioned changes, this bill would require the BOG to establish a need-based aid program to provide BOGFW recipients with financial resources, not to exceed $1,000 per student per year, to offset a portion of the costs of textbooks, supplies, transportation, and other living expenses. Currently, the bill does not provide guidance to the BOG in establishing this grant. Details may largely be dependent on the amount of funding available for the program; the bill is currently silent on whether funding would come from the Proposition 98 funding guarantee provided to CCC.

Committee staff recommends including a requirement that, to be eligible for the non-tuition award, students file a FAFSA. Moving forward, the author may wish to establish additional criteria such as full-time enrollment or minimum academic performance criteria. Additionally, the author may wish to clarify how this grant is intended to work with the Full-Time Success Grants funded in the 2015-16 Budget Act.

Related legislation. This bill is a part of a package of bills introduced by Assembly Members to establish a CCC Promise Program to ensure affordability and success for CCC students. Other bills in the package include: AB 1721 (Medina), pending in this Committee, which would expand the Cal Grant Program to increase aid to CCC students; and, AB 1741 (Rodriguez), pending in this Committee, to provide funds to CCC districts to implement California Promise Partnerships between school districts, California's public universities, and community stakeholders.

REGISTERED SUPPORT / OPPOSITION:

Support

California Primary Care Association

Opposition

None on File

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960