AB 200: Student financial aid: Competitive Cal Grant A and B awards.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-05-28
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Among other things, the program requires that a total of 22,500 Competitive Cal Grant A and B awards be granted annually.
This bill would instead require that a total of 45,000 50,000 Competitive Cal Grant A and B awards be granted for each of the 201516 and 201617 academic year, years and that 80,000 60,000 be granted for the 201718 academic year, and that 100,000 be granted for the 201819 academic year and each academic year thereafter. The bill would also make conforming changes and delete an obsolete provision.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Among other things, the program requires that a total of 22,500 Competitive Cal Grant A and B awards be granted annually.
This bill would instead require that an unspecified a total number of 45,000 Competitive Cal Grant A and B awards be granted for the 201617 and 201718 academic years year, that 80,000 be granted for the 201718 academic year, and that 100,000 be granted for the 201819 academic year and each academic year thereafter. The bill would also make conforming changes and delete an obsolete provision.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Among other things, the program requires that a total of 22,500 Competitive Cal Grant A and B awards be granted annually.
This bill would instead require that an unspecified total number of Competitive Cal Grant A and B awards be granted for the 201617 and 201718 academic years and that 100,000 be granted for the 201819 academic year and each academic year thereafter. The bill would also make conforming changes and delete an obsolete provision.
(a)Commencing with the 200102 academic year, and each academic year thereafter, there shall be established the Competitive Cal Grant A and B award program for students who did not receive a Cal Grant A or B Entitlement award pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436). Awards made under this section are not entitlements. The submission of an application by a student under this section shall not entitle that student to an award. The selection of students under this article shall be determined pursuant to subdivision (c) and other relevant criteria established by the commission.
(b)Cal Grant A and B awards shall be granted annually under this article on a competitive basis for applicants who meet the general eligibility criteria established in Article 1 (commencing with Section 69430) and the priorities established by the commission pursuant to subdivision (c). The total number of awards granted annually under this article shall be 22,500 50,000 for each of the 201516 and 201617 academic year, 45,000 for the 201617 academic year, 80,000 years and 60,000 for the 201718 academic year, and 100,000 for the 201819 academic year and each academic year thereafter.
(1)Fifty percent of the awards referenced in this subdivision are available to all students, including California community college students, who meet the financial need and academic requirements established pursuant to this article. A student enrolling at a qualifying baccalaureate degree granting institution shall apply by the March 2 deadline. A California community college student is eligible to apply at the March 2 or the September 2 deadline.
(2)Fifty percent of the awards referenced in this subdivision are reserved for students who will be enrolled at a California community college. The commission shall establish a second application deadline of September 2 for community college students to apply for these awards effective with the fall term or semester of the 200102 academic year.
(3)If any awards are not distributed pursuant to paragraphs (1) and (2) upon initial allocation of the awards under this article, the commission shall make awards to as many eligible students as possible, beginning with the students with the lowest expected family contribution and highest academic merit, consistent with the criteria adopted by the commission pursuant to subdivision (c), as practicable without exceeding the applicable annual cumulative total of awards specified in this subdivision.
(c)(1)On or before February 1, 2001, acting pursuant to a public hearing process that is consistent with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), the commission shall establish selection criteria for Cal Grant A and B awards under the competitive program that give special consideration to disadvantaged students, taking into consideration those financial, educational, cultural, language, home, community, environmental, and other conditions that hamper a students access to, and ability to persist in, postsecondary education programs.
(2)Additional consideration shall be given to both of the following:
(A)Students pursuing Cal Grant B awards who reestablish their grade point averages.
(B)Students who did not receive awards pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436).
(d)All other students who meet the eligibility requirements pursuant to Article 1 (commencing with Section 69430) are eligible to compete for an award pursuant to this article.
SEC. 2.Section 69437.6 of the Education Code is amended to read:69437.6.(a)An applicant competing for an award under this article shall meet all the requirements of Article 1 (commencing with Section 69430).
(b)To compete for a competitive Cal Grant A award, an applicant shall, at a minimum, meet all of the requirements of Article 2 (commencing with Section 69434), with the exception of paragraphs (1) and (8) of subdivision (b) of Section 69434. However, in lieu of meeting the grade point average requirement set forth in paragraph (3) of subdivision (b) of Section 69434, an applicant may submit a community college or college grade point average of at least 2.4 on a 4.0 scale.
(c)To compete for a competitive Cal Grant B award, an applicant shall, at a minimum, meet all of the requirements of Article 3 (commencing with Section 69435), with the exception of paragraphs (1) and (8) of subdivision (a) of Section 69435.3. However, in lieu of meeting the grade point average requirements of paragraph (3) of subdivision (a) of Section 69435.3, a student may do either of the following:
(1)Demonstrate attainment of a community college or college grade point average of at least 2.0 on a 4.0 scale.
(2)Reestablish his or her grade point average by completing at least 16 cumulative units of credit for academic coursework at an accredited California community college, as defined by the commission, by regulation, with at least a 2.0 community college grade point average.
(d)To compete for a competitive California Community College Transfer Cal Grant award, an applicant shall, at a minimum, meet the requirements of Article 4 (commencing with Section 69436), with the exception of paragraphs (8) and (9) of subdivision (b) of Section 69436.
(e)All other competitors shall, at a minimum, comply with all of the requirements of subdivision (b) of Section 69432.9.
(f)An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commissions judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual shall be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request, the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be used for the purposes of this section. A recipients years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution. An award so held in reserve shall only be counted once toward the number of awards authorized by subdivision (b) of Section 69437.
(a)Commencing with the 200102 academic year, and each academic year thereafter, there shall be established the Competitive Cal Grant A and B award program for students who did not receive a Cal Grant A or B entitlement Entitlement award pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436). Awards made under this section are not entitlements. The submission of an application by a student under this section shall not entitle that student to an award. The selection of students under this article shall be determined pursuant to subdivision (c) and other relevant criteria established by the commission.
(b)Cal Grant A and B awards shall be granted annually under this article on a competitive basis for applicants who meet the general eligibility criteria established in Article 1 (commencing with Section 69430) and the priorities established by the commission pursuant to subdivision (c). The total number of awards granted annually under this article shall be 22,500 for the 2015-16 201516 academic year, ____ 45,000 for the 201617 academic year, ____ 80,000 for the 201718 academic year, and 100,000 for the 201819 academic year and each academic year thereafter.
(1)Fifty percent of the awards referenced in this subdivision are available to all students, including California community college students, who meet the financial need and academic requirements established pursuant to this article. A student enrolling at a qualifying baccalaureate degree granting institution shall apply by the March 2 deadline. A California community college student is eligible to apply at the March 2 or the September 2 deadline.
(2)Fifty percent of the awards referenced in this subdivision are reserved for students who will be enrolled at a California community college. The commission shall establish a second application deadline of September 2 for community college students to apply for these awards effective with the fall term or semester of the 200102 academic year.
(3)If any awards are not distributed pursuant to paragraphs (1) and (2) upon initial allocation of the awards under this article, the commission shall make awards to as many eligible students as possible, beginning with the students with the lowest expected family contribution and highest academic merit, consistent with the criteria adopted by the commission pursuant to subdivision (c), as practicable without exceeding the applicable annual cumulative total of awards specified in this subdivision.
(c)(1)On or before February 1, 2001, acting pursuant to a public hearing process that is consistent with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), the commission shall establish selection criteria for Cal Grant A and B awards under the competitive program that give special consideration to disadvantaged students, taking into consideration those financial, educational, cultural, language, home, community, environmental, and other conditions that hamper a students access to, and ability to persist in, postsecondary education programs.
(2)Additional consideration shall be given to both of the following:
(A)Students pursuing Cal Grant B awards who reestablish their grade point averages.
(B)Students who did not receive awards pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436).
(d)All other students who meet the eligibility requirements pursuant to Article 1 (commencing with Section 69430) are eligible to compete for an award pursuant to this article.
SEC. 2.Section 69437.6 of the Education Code is amended to read:69437.6.(a)An applicant competing for an award under this article shall meet all the requirements of Article 1 (commencing with Section 69430).
(b)To compete for a competitive Cal Grant A award, an applicant shall, at a minimum, meet all of the requirements of Article 2 (commencing with Section 69434), with the exception of paragraphs (1) and (8) of subdivision (b) of Section 69434. However, in lieu of meeting the grade point average requirement set forth in paragraph (3) of subdivision (b) of Section 69434, an applicant may submit a community college or college grade point average of at least 2.4 on a 4.0 scale.
(c)To compete for a competitive Cal Grant B award, an applicant shall, at a minimum, meet all of the requirements of Article 3 (commencing with Section 69435), with the exception of paragraphs (1) and (8) of subdivision (a) of Section 69435.3. However, in lieu of meeting the grade point average requirements of paragraph (3) of subdivision (a) of Section 69435.3, a student may do either of the following:
(1)Demonstrate attainment of a community college or college grade point average of at least 2.0 on a 4.0 scale.
(2)Reestablish his or her grade point average by completing at least 16 cumulative units of credit for academic coursework at an accredited California community college, as defined by the commission, by regulation, with at least a 2.0 community college grade point average.
(d)To compete for a competitive California Community College Transfer Cal Grant award, an applicant shall, at a minimum, meet the requirements of Article 4 (commencing with Section 69436), with the exception of paragraphs (8) and (9) of subdivision (b) of Section 69436.
(e)All other competitors shall, at a minimum, comply with all of the requirements of subdivision (b) of Section 69432.9.
(f)An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commissions judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual shall be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request, the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be used for the purposes of this section. A recipients years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution. An award so held in reserve shall only be counted once toward the number of awards authorized by subdivision (b) of Section 69437.
(a)Commencing with the 200102 academic year, and each academic year thereafter, there shall be established the Competitive Cal Grant A and B award program for students who did not receive a Cal Grant A or B entitlement award pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436). Awards made under this section are not entitlements. The submission of an application by a student under this section shall not entitle that student to an award. The selection of students under this article shall be determined pursuant to subdivision (c) and other relevant criteria established by the commission.
(b)A total of 22,500 Cal Grant A and B awards shall be granted annually under this article on a competitive basis for applicants who meet the general eligibility criteria established in Article 1 (commencing with Section 69430) and the priorities established by the commission pursuant to subdivision (c). The total number of awards granted annually under this article shall be 22,500 for the 2015-16 academic year, ____ for the 201617 academic year, ____ for the 201718 academic year, and 100,000 for the 201819 academic year and each academic year thereafter.
(1)Fifty percent of the awards referenced in this subdivision are available to all students, including California community college students, who meet the financial need and academic requirements established pursuant to this article. A student enrolling at a qualifying baccalaureate degree granting institution shall apply by the March 2 deadline. A California community college student is eligible to apply at the March 2 or the September 2 deadline.
(2)Fifty percent of the awards referenced in this subdivision are reserved for students who will be enrolled at a California community college. The commission shall establish a second application deadline of September 2 for community college students to apply for these awards effective with the fall term or semester of the 200102 academic year.
(3)If any awards are not distributed pursuant to paragraphs (1) and (2) upon initial allocation of the awards under this article, the commission shall make awards to as many eligible students as possible, beginning with the students with the lowest expected family contribution and highest academic merit, consistent with the criteria adopted by the commission pursuant to subdivision (c), as practicable without exceeding an the applicable annual cumulative total of 22,500 awards. awards specified in this subdivision.
(c)(1)On or before February 1, 2001, acting pursuant to a public hearing process that is consistent with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), the commission shall establish selection criteria for Cal Grant A and B awards under the competitive program that give special consideration to disadvantaged students, taking into consideration those financial, educational, cultural, language, home, community, environmental, and other conditions that hamper a students access to, and ability to persist in, postsecondary education programs.
(2)Additional consideration shall be given to each both of the following:
(A)Students who graduated from high school or its equivalent prior to the 200001 academic year. This subparagraph shall not be applicable after the 200405 academic year.
(B)
(A)Students pursuing Cal Grant B awards who reestablish their grade point averages.
(C)
(B)Students who did not receive awards pursuant to Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), or Article 4 (commencing with Section 69436).
(d)All other students who meet the eligibility requirements pursuant to Article 1 (commencing with Section 69430) are eligible to compete for an award pursuant to this article.
SEC. 2.Section 69437.6 of the Education Code is amended to read:69437.6.(a)An applicant competing for an award under this article shall meet all the requirements of Article 1 (commencing with Section 69430).
(b)To compete for a competitive Cal Grant A award, an applicant shall, at a minimum, meet all of the requirements of Article 2 (commencing with Section 69434), with the exception of paragraphs (1) and (8) of subdivision (b) of Section 69434. However, in lieu of meeting the grade point average requirement set forth in paragraph (3) of subdivision (b) of Section 69434, an applicant may submit a community college or college grade point average of at least 2.4 on a 4.0 scale.
(c)To compete for a competitive Cal Grant B award, an applicant shall, at a minimum, meet all of the requirements of Article 3 (commencing with Section 69435), with the exception of paragraphs (1) and (8) of subdivision (a) of Section 69435.3. However, in lieu of meeting the grade point average requirements of paragraph (3) of subdivision (a) of Section 69435.3, a student may do either of the following:
(1)Demonstrate attainment of a community college or college grade point average of at least 2.0 on a 4.0 scale.
(2)Reestablish his or her grade point average by completing at least 16 cumulative units of credit for academic coursework at an accredited California community college, as defined by the commission, by regulation, with at least a 2.0 community college grade point average.
(d)To compete for a competitive California Community College Transfer Cal Grant Award, award, an applicant shall, at a minimum, meet the requirements of Article 4 (commencing with Section 69436), with the exception of paragraphs (8) and (9) of subdivision (b) of Section 69436.
(e)All other competitors shall, at a minimum, comply with all of the requirements of subdivision (b) of Section 69432.9.
(f)An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commissions judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual shall be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request, the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be utilized used for the purposes of this section. A recipients years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution. Any An award so held in reserve shall only be counted once toward the 22,500 number of awards authorized by this article. subdivision (b) of Section 69437.
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Date
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Status
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|---|---|
| Jan 29, 2015 | Read first time. To print. |
| Jan 30, 2015 | From printer. May be heard in committee March 1. |
| Feb 9, 2015 | Referred to Com. on HIGHER ED. |
| Mar 11, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Mar 12, 2015 | Re-referred to Com. on HIGHER ED. |
| Mar 17, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (March 17). Re-referred to Com. on APPR. |
| Mar 25, 2015 | In committee: Set, first hearing. Referred to suspense file. |
| May 28, 2015 | From committee: Amend, and do pass as amended. (Ayes 17. Noes 0.) (May 28). |
| May 28, 2015 | Read second time and amended. Ordered returned to second reading. |
| Jun 1, 2015 | Read second time. Ordered to third reading. |
| Jun 2, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1798.) |
| Jun 11, 2015 | Referred to Com. on ED. |
| Jun 18, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
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Date
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Description
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Location
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Votes
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| Jun 2, 2015 | AB 200 ALEJO Assembly Third Reading | Assembly Floor |
Passed |
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| May 28, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
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| Mar 17, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
|
Date
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|---|---|---|
| California Community College Association of Student Trustees | ** Support | Jun 2, 2015 |
| California Competes | ** Support | Jun 2, 2015 |
| California EDGE Coalition | ** Support | Jun 2, 2015 |
| California State Conference of the NAACP | ** Support | Jun 2, 2015 |
| Californians for Shared Prosperity Coalition | ** Support | Jun 2, 2015 |
| Campaign For College Opportunity | ** Support | Jun 2, 2015 |
| Community College League of California | ** Support | Jun 2, 2015 |
| Earn | ** Support | Jun 2, 2015 |
| MALDEF | ** Support | Jun 2, 2015 |
| NAACP Los Angeles | ** Support | Jun 2, 2015 |
| National Council Of La Raza | ** Support | Jun 2, 2015 |
| Southern California College Access Network | ** Support | Jun 2, 2015 |
| Student Senate for California Community Colleges. | ** Support | Jun 2, 2015 |
| University Of California Student Association | ** Support | Jun 2, 2015 |
| Young Invincibles | ** Support | Jun 2, 2015 |
AB 200
Page 2
ASSEMBLY THIRD READING
AB 200
(Alejo and Jones-Sawyer)
As Amended May 28, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Higher Education |
12-0 |
Medina, Baker, Bloom, Chávez, Harper, Irwin, Levine, Linder, Low, Santiago, Weber, Williams |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Establishes the number of Competitive Cal Grant A and B awards to be 22,500 for the 2015-16 academic year, 50,000 for the 2016-17 academic year, 60,000 for the 2017-18 academic year and each year thereafter.
EXISTING LAW: Establishes the Cal Grant program awards to provide tuition and access cost assistance to eligible students attending qualified institutions. Students who are not eligible for entitlement awards may compete for a Cal Grant A or B Competitive award. The award benefits and eligibility requirements are the same as the entitlement program, but awards are not guaranteed. Annually, 22,500 Cal Grant Competitive awards are available. Of these, 50% are for students who do not qualify for a Cal Grant Entitlement award, but who otherwise meet the Cal Grant requirements. The remaining awards are set aside for eligible California Community College students. Maximum award amounts for California State University and University of California are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or Western Association of Schools and Colleges-accredited for-profit institutions is $8,056 (commencing 2015-16).
FISCAL EFFECT: According to the Assembly Appropriations Committee, based on current average award amounts and the distribution of awards to students at each of the public postsecondary segments and students at non-public institutions, General Fund costs would be around $70 million in 2016-17, $150 million in 2017-18, $220 million in 2018-19, and $270 million in 2019-20 and thereafter.
COMMENTS: A student's ability to pay for college is a major factor in enrollment and completion of a degree program; significant unmet need results in students being less likely to enroll and, once enrolled, low-income students are also less likely to complete their degree program. Financial aid plays a vital role in increasing access, retention, and completion rates. California has made a substantial commitment to affordability through the Cal Grant Program; still, there is room for improvement. Higher education affordability experts have consistently encouraged an increase in the number of awards provided in the Competitive Cal Grant Program.
As previously noted, the Cal Grant Entitlement Programs guarantee awards to students who meet specified grade point average (GPA) and income-related criteria and apply within deadlines. The majority of Cal Grant recipients (211,300 in 2013-14) receive this type of award. The majority of Cal Grant applicants, however, do not qualify for an Entitlement award because they are more than a year out of high school, decide to go to college after the Entitlement application deadline, or do not meet age or other requirements when they transfer.
Competitive Cal Grant A and B awards are available to middle and low income applicants who did not receive an entitlement award. Established in statute are minimum income/asset and academic performance requirements; generally aligned with the Entitlement requirements. However, because over 300,000 applicants compete for only 22,500 awards annually, Competitive Program award recipients must significantly exceed minimum requirements.
In 2012-13, California Student Aid Commission reported that the typical Competitive Program award recipient was 31 years old, with a GPA of 3.41, a family size of 3.1, and a household income of $14,262. According to The Institute for College Access and Success (TICAS), hundreds of thousands of Competitive Program applicants meet eligibility requirements but are denied grants. TICAS notes that denied Competitive Program applicants have an average family income of less than $21,000, a family size of three, and GPA of 2.9. TICAS calculates that in 2001-02, at the inception of the Competitive Program, eligible applicants had a one in four chance of receiving a Competitive Program award. By 2014-15, the chances of a qualified applicant receiving a Competitive Program award decreased to one in 17.
This bill proposes to increase the number of Competitive Program awards from 22,500 for the 2015-16 academic year, to 60,000 by the 2017-18 academic year. According to supporters, this increase will help California's neediest students take more classes, go to school full-time, and ultimately complete their college degree in a timely manner.
There is no opposition on file.
Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0000688
AB 200
Page 2
Date of Hearing: March 25, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 200
(Alejo) – As Amended March 11, 2015
Policy Committee: |
Higher Education |
Vote: |
12 - 0 |
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|
|
|
|
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill increases the number of authorized new Competitive Cal Grant awards from 22,500 currently to 45,000 in 2016-17, 80,000 in 2017-18 and 100,000 in 2018-19 and annually thereafter.
FISCAL EFFECT:
Based on current average award amounts and the distribution of awards to students at each of the public postsecondary segments and students at non-public institutions, General Fund costs would be around $55 million in 2016-17, $190 million in 2017-18, $340 million in 2018-19, and over $550 million by 2021-22.
COMMENTS:
Background. The majority of Cal Grant recipients in 2013-14 (211,300) received an award under the Cal Grant Entitlement Program, which guarantee awards to students who meet specified GPA and income-related criteria and apply within deadlines. The majority of Cal Grant applicants, however, do not qualify for an entitlement award because they are more than a year out of high school, decide to go to college after the entitlement application deadline, or do not meet age or other requirements when they transfer.
Competitive Cal Grant A and B awards are available to middle and low income applicants who are not eligible for entitlement awards. The number of new competitive awards has been limited by statute to 22,500 since 2000, and the program is now extremely oversubscribed. In 2012-13, almost 300,000 eligible applicants were denied a competitive award.
Purpose. This bill proposes to increase the number of Competitive Program awards from 22,500 for the 2015-16 academic year, to 100,000 by the 2018-19 academic year. According to supporters, this increase will help California's neediest students take more classes, go to school full-time, and ultimately complete their college degree in a timely manner. According to The Institute for College Access and Success (TICAS), denied Competitive Program applicants have an average family income of less than $21,000, a family size of three, and GPA of 2.9.
Related legislation. SB 15 (Block), pending in the Senate Education Committee, in part increases the number of Competitive Cal Grant awards to 30,000.
Budget Issue. Since 2001, there have been several unsuccessful legislative attempts to increase the authorized number of Competitive Program awards, most of which have been held in the appropriations committees. Notwithstanding the great need to expand this program, it ultimately is a question of budget priorities.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
AB 200
Page 4
Date of Hearing: March 17, 2015
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
AB 200
Alejo – As Amended March 11, 2015
SUBJECT: Student financial aid: Competitive Cal Grant A and B awards
SUMMARY: Establishes the number of Competitive Cal Grant A and B awards to be 22,500 for the 2015-16 academic year, 45,000 for the 2016-17 academic year, 80,000 for the 2017-18 academic year, and 100,000 for the 2018-19 academic year and each year thereafter.
EXISTING LAW:
Establishes the Cal Grant program awards to provide tuition and access cost assistance to eligible students attending qualified institutions:
Cal Grant A Entitlement Awards. Students that meet income, asset and other eligibility requirements, have at least a 3.0 grade point average, and apply either the year they graduate from high school or the following year are entitled to an award that provides coverage for tuition and fees.
Cal Grant B Entitlement Awards. Students that meet income and asset (lower thresholds than Cal Grant A) and other eligibility requirements, have at least a 2.0 GPA and apply either the year they graduate from high school or the following year are entitled to a living allowance and tuition and fee assistance. Awards for first-year students are limited to an allowance for books and living expenses ($1,473). In the second and subsequent years, the award provides tuition and fee support.
California Community College (CCC) Transfer Entitlement Awards. Cal Grant A and B awards are guaranteed to every student who graduated from a California high school after June 30, 2000, was a California resident at the time of high school graduation, transferred to a qualifying baccalaureate-degree granting institution from a CCC during the award year, was under the age of 28 at the time of the transfer, and had a minimum California Community College GPA of 2.4.
Competitive Cal Grant A and B Awards. Students who are not eligible for entitlement awards may compete for a Cal Grant A or B Competitive award. The award benefits and eligibility requirements are the same as the entitlement program, but awards are not guaranteed. Annually, 22,500 Cal Grant Competitive awards are available. Of these, 50 percent are for students who do not qualify for a Cal Grant Entitlement award, but who otherwise meet the Cal Grant requirements. The remaining awards are set aside for eligible CCC students.
Cal Grant C Awards. Students attending qualifying occupational, technical, and vocational programs are eligible for up to $547 for books and equipment and $2,462 for tuition and fees. In 2013-14, applicants competed for 7,761 grants; applicants are ranked by work experience, educational history, vocational aptitude, and occupational goal.
Maximum award amounts for CSU and UC are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. The maximum tuition award for Cal Grant A and B for students attending private for-profit colleges is $4,000 (commencing 2013-14), and for students attending non-profit or WASC-accredited for-profit institutions is $8,056 (commencing 2015-16).
FISCAL EFFECT: Unknown.
COMMENTS: A student's ability to pay for college is a major factor in enrollment and completion of a degree program; significant unmet need results in students being less likely to enroll and, once enrolled, low-income students are also less likely to complete their degree program. Financial aid plays a vital role in increasing access, retention, and completion rates. California has made a substantial commitment to affordability through the Cal Grant Program; still, there is room for improvement. Higher education affordability experts have consistently encouraged an increase in the number of awards provided in the Competitive Cal Grant Program.
As previously noted, the Cal Grant Entitlement Programs guarantee awards to students who meet specified GPA and income-related criteria and apply within deadlines. The majority of Cal Grant recipients (211,300 in 2013-14) receive this type of award. The majority of Cal Grant applicants, however, do not qualify for an Entitlement award because they are more than a year out of high school, decide to go to college after the Entitlement application deadline, or do not meet age or other requirements when they transfer.
Competitive Cal Grant A and B awards are available to middle and low income applicants who did not receive an entitlement award. Established in statute are minimum income/asset and academic performance requirements; generally aligned with the Entitlement requirements. However, because over 300,000 applicants compete for only 22,500 awards annually, Competitive Program award recipients must significantly exceed minimum requirements.
In 2012-13, CSAC reported that the typical Competitive Program award recipient was 31 years old, with a GPA of 3.41, a family size of 3.1, and a household income of $14,262. According to The Institute for College Access and Success (TICAS), hundreds of thousands of Competitive Program applicants meet eligibility requirements but are denied grants. TICAS notes that denied Competitive Program applicants have an average family income of less than $21,000, a family size of three, and GPA of 2.9. TICAS calculates that in 2001-02, at the inception of the Competitive Program, eligible applicants had a one in four chance of receiving a Competitive Program award. By 2014-15, the chances of a qualified applicant receiving a Competitive Program award decreased to one in seventeen.
This bill proposes to increase the number of Competitive Program awards from 22,500 for the 2015-16 academic year, to 100,000 by the 2018-19 academic year. According to supporters, this increase will help California's neediest students take more classes, go to school full-time, and ultimately complete their college degree in a timely manner.
Related legislation. SB 15 (Block), pending in the Senate Education Committee, would, among other changes to higher education financing and financial aid programs, increase the number of Competitive Cal Grant awards to 30,000.
Prior legislation. AB 1976 (Quirk-Silva) of 2014, which was vetoed by Governor Brown, as passed by the Assembly Higher Education Committee, would have authorized 50,000 Competitive Cal Grant awards, and authorized CSAC to exceed the cap, as specified, in order to maximize the take-rate for Competitive Cal Grant awards. The bill was subsequently amended to remove the increase in Competitive Cal Grant awards.
SB 1751 (Speier) of 2006, which was held in the Senate Education Committee, would have increased, from 22,500 to 34,000, the number of Competitive Cal Grant awards annually.
SB 1264 (Alquist) of 2006, which was held in the Assembly Appropriations Committee, would have increased, from 22,500 to 23,000, the number of Competitive Cal Grant awards annually.
AB 1399 (Garcia) of 2006, which was held in the Assembly Appropriations Committee, would have increased the number of Competitive Cal Grant awards by 200, to 22,700, to provide awards to specified members of the California National Guard and State Military Reserve.
AB 1501 (Escutia) of 2004, which was not heard in policy committee, would have redirected proceeds associated with a tax credit and used them to fund Competitive Cal Grant awards.
AB 726 (Correa) of 2001, which was held in the Assembly Appropriations Committee, would have increased the number of Competitive Cal Grant awards from 22,500 to 42,500, through July 1, 2005.
SB 1644 (Ortiz), Chapter 409, Statutes of 2000, established the Cal Grant Entitlement awards and established 22,500 Competitive Cal Grant awards for those who did not receive the guaranteed award.
REGISTERED SUPPORT / OPPOSITION:
Support
California Community College Association of Student Trustees
California Competes
California EDGE Coalition
Californians for Shared Prosperity Coalition
California State Conference of the NAACP
Community College League of California
EARN
MALDEF
NAACP Los Angeles
National Council of La Raza
Public Advocates Inc.
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 & Success
University of California Student Association
Young Invincibles
Opposition
None on File
Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960
Bill Co-Author(s):
