Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education, and the University of California comprises 10 institutions of higher education, and these institutions are located throughout the state.

This bill would express legislative findings and declarations relating to the reporting of estimates of off-campus housing costs to students. The bill would require each campus of the California State University, and request each campus of the University of California, to post on its Internet Web site, on or before February 1, 2018, and on or before February 1 of each year thereafter, information about the market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside. The bill would require or request the campuses, in reporting information pursuant to this bill, to exercise due diligence and consult bona fide and reliable sources of current information about local housing market costs, as specified.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education, and the University of California comprises 10 institutions of higher education, and these institutions are located throughout the state.

This bill would express legislative findings and declarations relating to the reporting of estimates of off-campus housing costs to students. The bill would require each campus of the California State University, and request each campus of the University of California, to post on its Internet Web site, on or before February 1, 2018, and on or before February 1 of each year thereafter, information about the market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside. The bill would require or request the campuses, in reporting information pursuant to this bill, to exercise due diligence and consult bona fide and reliable sources of current information about local housing market costs, as specified.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education, and the University of California comprises 10 institutions of higher education, and these institutions are located throughout the state.

This bill would express legislative findings and declarations relating to the reporting of estimates of off-campus housing costs to students. The bill would require each campus of the California State University, and request each campus of the University of California, to post on its Internet Web site timely site, on or before February 1, 2018, and on or before February 1 of each year thereafter, information about the current market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside. The bill would require or request the campuses, in reporting information pursuant to this bill, to exercise due diligence and consult bona fide and reliable sources of current information about local housing market costs, as specified.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education, and the University of California comprises 10 institutions of higher education, and these institutions are located throughout the state.

This bill would express legislative findings and declarations relating to the reporting of estimates of off-campus housing costs to students. The bill would require each campus of the California State University, and request each campus of the University of California, to post on its Internet Web site timely information about the current market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside. The bill would require or request the campuses, in reporting information pursuant to this bill, to exercise due diligence and consult bona fide and reliable sources of information about local housing market costs, as specified.

 CONSENT  

Bill No: AB 990

Author:

:

Vote:

SENATE EDUCATION COMMITTEE: 6-0, 7/5/17

AYES: Allen, Wilk, Galgiani, Leyva, Pan, Vidak

NO VOTE RECORDED: Mendoza

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 75-0, 5/30/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires each campus of the California State University (CSU), and requests each campus of the University of California (UC), to annually post on its Web site information about the market cost of a one-bedroom apartment in the areas surrounding the campus.

ANALYSIS:

Existing law:

1. Requires, pursuant to federal law, the United States Secretary of Education to make publicly available on the College Navigator Web site specified information about each institution of higher education that participates in federal financial aid programs, among many other things, the cost of attendance for first-time, full-time undergraduate students who live on campus and for those who live off-campus. Existing regulations also require, for public institutions of higher education, information on those costs for residents and non-residents. (United States Code, Title 20, § 1015a)
   
2. Defines, pursuant to federal law, “cost of attendance” as:
   
   1. Tuition and fees normally assessed, including costs for required equipment, materials or supplies.
      
   2. An allowance for books, supplies, transportation, and miscellaneous personal expenses including a computer.
      
   3. An allowance, as determined by the institution, for room and board costs, as specified.
      
   4. For students enrolled less than half-time, tuition and fees and an allowance for specified costs.
      
   5. Allowances for students who are engaged in work study, are incarcerated, have dependents or are disabled. (20 USC § 1087ll)
      
3. Requires, pursuant to state law, the UC to report biennially to the Legislature and the Department of Finance, by October 1 of each even-numbered year, on the total costs of education at the UC. (Education Code § 92670)
   
4. Requires the report to identify the costs of undergraduate education, graduate academic education, graduate professional education, and research activities. Existing law requires all four of these categories to be reported in total and disaggregated separately by specified disciplines. (EC § 92670)
   
5. Requires the costs to be reported on both a systemwide and campus-by-campus basis for any report submitted after January 1, 2017. Existing law requires a report prepared after January 1, 2017, to include information on costs, disaggregated by campus, based on the methodology developed by the National Association of College and University Business Officers in its February 2002 report, and other methodologies determined by the UC. (EC § 92670)
   
6. Requires the Regents of the UC and the Trustees of the CSU to annually provide the Legislature, by February 1 of each year, with detailed information regarding expenditures of revenues derived from student fees and uses of institutional financial aid, and provide information regarding the systemwide average total cost of attendance per student. (EC § 66028.6)
   
7. Defines “cost of attendance” as the mandatory systemwide fees, books and supplies, room and board, transportation, and miscellaneous personal expenses for an undergraduate California resident student, as used in determining financial aid eligibility. (EC § 66028.1)

This bill:

1. Requires each campus of the CSU, and requests each campus of the UC, to post on its Web site, on or before February 1, 2018, and annually thereafter, information about the market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside.
   
2. Requires the campus, in reporting this information, to exercise due diligence, and consult bona fide and reliable sources of current information about local housing market costs, including, but not limited to, information received from students of that campus, local newspapers and bulletin boards, and Internet Web sites on which notices regarding local rental vacancies are posted.
   
3. Requires the information to be posted in the same location on the campus Web site where the housing cost estimates for off-campus students are posted.
   
4. States legislative intent to ensure that each campus of the CSU, and request each campus of the UC, provides the timely and accurate estimates of housing costs that its students need to plan for their educational futures.
   
5. States legislative findings and declarations relative to the need for accurate estimated housing costs for the calculation of a student’s needs for financial aid.

Comments

1. Student Expenses and Resources Survey (SEARS). SEARS was a triennial survey conducted by the California Student Aid Commission (CSAC) to assess the financial circumstances, attendance costs, and expenses of California’s college students. This survey was carried out in cooperation with the California Community Colleges, the UC, the CSU, the Association of Independent California Colleges and Universities, and the California Association of Private Postsecondary Schools. CSAC administered this survey to students attending postsecondary educational institutions across the state. The survey contained questions that are considered “core” subjects, such as dependency status, expenses, resources, and housing arrangements. Due to budget constraints, the SEARS survey has not been conducted since 2006-07. The data currently available is based on the 2006-07 survey and is adjusted for inflation. [http://www.csac.ca.gov/pubs/forms/grnt_frm/studentexpensebudget.pdf]
   
   SEARS yielded data that accounted for costs and expenses across all systems of postsecondary education in California but was not system- or campus-specific and therefore did not account for regional differences in costs. According to CSAC’s 2017-18 Student Budget Expense Budgets, the cost of off-campus housing per month is $1,030.
   
2. College Navigator. Existing federal law requires the United States Secretary of Education to make publicly available on the College Navigator Web site specified information about each institution of higher education that participates in federal financial aid programs, among many other things, the cost of attendance for first-time, full-time undergraduate students who live on campus and for those who live off-campus. The College Navigator provides campus-specific data, and federal law defines “cost of attendance” to include allowances for housing. However, the author notes that federal statutes do not state how the cost of attendance is to be established. [https://nces.ed.gov/college navigator/]
   
3. Current Practices. The CSU determines student expenses using data from the 2006-07 Student Expenses and Resources Survey SEARS report and adjusts for inflation. The CSU publishes a summary of standard student expense budget, the annual Campus Cost of Attendance. [http://www.calstate.edu/SAS/costof attendance/documents/17-18COA.pdf] While this data is provided by campus, it is based on data that does not take regional costs into consideration.
   
   The UC distributes a Cost of Attendance Survey every three years to a random sample of UC students to ask about their actual indirect costs. Those survey responses are used to inform campus-specific student budgets. The total cost of attendance, or student expense budget, includes tuition and fees, room and board, books and supplies, transportation, health care, and personal expenses. The most recent survey was released in February 2017, and is based on responses from over 14,000 students. According to the UC, moving forward, this survey will be administered biennially rather than triennially. [http://regents.universityofcalifornia.edu/regmeet/mar17/a1attach.pdf]
4. Bill takes a different approach. The CSU’s cost of attendance estimates are based on student survey results from 2006-07 and adjusted for inflation. The UC’s cost of attendance estimates are based on student survey results. This bill requires campuses to consult bona fide and reliable sources of current information about local housing market costs, which may include information from students and other sources such as the Internet. The author notes that survey results can be misleading, do not always represent actual market costs, and often respondents to the survey are not representative of a diverse student population.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 7/17/17)

California State Student Association

University of California Student Association

OPPOSITION: (Verified 7/17/17)

None received

ASSEMBLY FLOOR: 75-0, 5/30/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Chau, Choi, Cunningham, Eggman, Muratsuchi

Prepared by:

7/19/17 15:33:48

**** END ****

SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: Hearing Date: July 5, 2017

Subject:

SUMMARY

This bill requires each campus of the California State University (CSU), and requests each campus of the University of California (UC), to annually post on its website information about the market cost of a one-bedroom apartment in the areas surrounding the campus.

BACKGROUND

Existing law:

1. Requires, pursuant to federal law, the United States Secretary of Education to make publicly available on the College Navigator website specified information about each institution of higher education that participates in federal financial aid programs, among many other things, the cost of attendance for first-time, full-time undergraduate students who live on campus and for those who live off-campus. Existing regulations also require, for public institutions of higher education, information on those costs for residents and non-residents. (United States Code, Title 20, § 1015a)
   
2. Defines, pursuant to federal law, “cost of attendance” as:
   
   1. Tuition and fees normally assessed, including costs for required equipment, materials or supplies.
      
   2. An allowance for books, supplies, transportation, and miscellaneous personal expenses including a computer.
      
   3. An allowance, as determined by the institution, for room and board costs, as specified.
      
   4. For students enrolled less than half-time, tuition and fees and an allowance for specified costs.
      
   5. Allowances for students who are engaged in work study, are incarcerated, have dependents or are disabled. (20 USC § 1087ll)
      
3. Requires, pursuant to state law, the University of California (UC) to report biennially to the Legislature and the Department of Finance, by October 1 of each even-numbered year, on the total costs of education at the UC. (Education Code § 92670)
   
4. Requires the report to identify the costs of undergraduate education, graduate academic education, graduate professional education, and research activities. Existing law requires all four of these categories to be reported in total and disaggregated separately by specified disciplines. (EC § 92670)
   
5. Requires the costs to be reported on both a systemwide and campus-by-campus basis for any report submitted after January 1, 2017. Existing law requires a report prepared after January 1, 2017, to include information on costs, disaggregated by campus, based on the methodology developed by the National Association of College and University Business Officers in its February 2002 report, and other methodologies determined by the UC. (EC § 92670)
   
6. Requires the Regents of the UC and the Trustees of the California State University (CSU) to annually provide the Legislature, by February 1 of each year, with detailed information regarding expenditures of revenues derived from student fees and uses of institutional financial aid, and provide information regarding the systemwide average total cost of attendance per student. (EC § 66028.6)
   
7. Defines “cost of attendance” as the mandatory systemwide fees, books and supplies, room and board, transportation, and miscellaneous personal expenses for an undergraduate California resident student, as used in determining financial aid eligibility. (EC § 66028.1)
   

ANALYSIS

This bill requires each campus of the CSU, and requests each campus of the UC, to annually post on its website information about the market cost of a one-bedroom apartment in the areas surrounding the campus. Specifically, this bill:

1. Requires each campus of the CSU, and requests each campus of the UC, to post on its website, on or before February 1, 2018, and annually thereafter, information about the market cost of a one-bedroom apartment in the areas surrounding that campus where its students commonly reside.
   
2. Requires the campus, in reporting this information, to exercise due diligence, and consult bona fide and reliable sources of current information about local housing market costs, including but not limited to information received from students of that campus, local newspapers and bulletin boards, and Internet websites on which notices regarding local rental vacancies are posted.
   
3. Requires the information to be posted in the same location on the campus website where the housing cost estimates for off-campus students are posted.
   
4. States legislative intent to ensure that each campus of the California State University (CSU), and request each campus of the University of California (UC), provides the timely and accurate estimates of housing costs that its students need to plan for their educational futures.
   
5. States legislative findings and declarations relative to the need for accurate estimated housing costs for the calculation of a student’s needs for financial aid.

STAFF COMMENTS

1. Need for the bill. According to the author, “When determining where to attend college, it is important for students and parents to have complete and accurate information to make fully informed decisions about which campus to attend. Costs of tuition, books, housing, and food are all important factors as students and parents evaluate their budgets and also explore financial aid options that are available. Most CSU and UC campuses post cost of attendance estimates on their websites, including estimated cost of housing to live off-campus. However, there is no clear information available to students on how that information is obtained; what type of living situation it applies to and what timeframe the estimate covers. Equally as concerning, the estimated cost to live off-campus in many cases does not seem to accurately reflect local market value.”
   
2. Student Expenses and Resources Survey (SEARS). SEARS was a triennial survey conducted by the California Student Aid Commission (CSAC) to assess the financial circumstances, attendance costs, and expenses of California’s college students. This survey was carried out in cooperation with the California Community Colleges, the UC, the CSU, the Association of Independent California Colleges and Universities, and the California Association of Private Postsecondary Schools. CSAC administered this survey to students attending postsecondary educational institutions across the state. The survey contained questions that are considered “core” subjects, such as dependency status, expenses, resources, and housing arrangements. Due to budget constraints, the SEARS survey has not been conducted since 2006-07. The data currently available is based on the 2006-07 survey and is adjusted for inflation. http://www.csac.ca.gov/pubs/forms/grnt_frm/studentexpensebudget.pdf
   
   SEARS yielded data that accounted for costs and expenses across all systems of postsecondary education in California but was not system- or campus-specific and therefore did not account for regional differences in costs. According to CSAC’s 2017-18 Student Budget Expense Budgets, the cost of off-campus housing per month is $1,030.
   
3. College Navigator. Existing federal law requires the United States Secretary of Education to make publicly available on the College Navigator website specified information about each institution of higher education that participates in federal financial aid programs, among many other things, the cost of attendance for first-time, full-time undergraduate students who live on campus and for those who live off-campus. The College Navigator provides campus-specific data, and federal law defines “cost of attendance” to include allowances for housing. However, the author notes that federal statutes do not state how the cost of attendance is to be established. https://nces.ed.gov/collegenavigator/
   
4. Current Practices. The California State University (CSU) determines student expenses using data from the 2006-07 Student Expenses and Resources Survey SEARS report and adjusts for inflation. The CSU publishes a summary of standard student expense budget, the annual Campus Cost of Attendance. http://www.calstate.edu/SAS/costofattendance/documents/17-18COA.pdf While this data is provided by campus, it is based on data that does not take regional costs into consideration and therefore results in data showing the cost of food and housing while living off campus, for example, as follows:
   
   1. $14,502 at Channel Islands, Fullerton, Los Angeles, Northridge, San Francisco, San Jose and Sonoma.
      
   2. $13,923 at East Bay.
      
   3. $13,770 at San Bernardino.
      
   4. $13,500 at Dominguez Hills.
      
   5. $13,486 at Long Beach.
      
   6. $13,294 at Fresno and Sacramento.
      
   7. $13,293 at San Marcos.
      
   8. $13,292 at Monterey Bay.
      
   9. $13,134 at San Luis Obispo.
      
   10. $13,061 at Bakersfield.
       
   11. $13,016 at Humboldt.
       
   12. $12,761 at San Diego.
       
   13. $12,588 at Pomona.
       
   14. $11,900 at Stanislaus.
       
   15. $11,862 at Chico.
       

The University of California (UC) distributes a Cost of Attendance Survey every three years to a random sample of UC students to ask about their actual indirect costs. Those survey responses are used to inform campus-specific student budgets. The total cost of attendance, or student expense budget, includes tuition and fees, room and board, books and supplies, transportation, health care, and personal expenses. The most recent survey was released in February 2017, and is based on responses from over 14,000 students. According to the UC, moving forward, this survey will be administered biennially rather than triennially. http://regents.universityofcalifornia.edu/regmeet/mar17/a1attach.pdf

University of California’s (UC’s) 2016 Cost of Attendance Survey: Average Off‐campus Rent, by Number of Housemates and Campus

1. Bill takes a different approach. The California State University’s (CSU’s) cost of attendance estimates are based on student survey results from 2006-07 and adjusted for inflation. The UC’s cost of attendance estimates are based on student survey results. This bill requires campuses to consult bona fide and reliable sources of current information about local housing market costs, which may include information from students and other sources such as the Internet. The author notes that survey results can be misleading, do not always represent actual market costs, and often respondents to the survey are not representative of a diverse student population.
   
   Information provided by the author’s office:

1. Related legislation. AB 1064 (Calderon) requires the CSU to conduct a survey every three years at each campus to determine the average student’s annual discretionary expenses, excluding tuition and fees, to attend the campus. AB 1064 is scheduled to be heard by this Committee on July 5.
   
   SB 307 (Nguyen) requests the UC to convene a task force, consisting of three representatives from the UC, CSU and California Community Colleges, selected by the governing boards of each segment for the purpose of conducting a study to determine the extent, causes, and effects of housing insecurity and homelessness of current and future students.
   

SUPPORT

California State Student Association

University of California Student Association

OPPOSITION

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:

Author:(Rodriguez)

As Amended Ver:March 27, 2017

Majority vote

SUMMARY: Requires the California State University (CSU) campuses, and requests University of California (UC) campuses, to annually post on their respective Web sites the cost of a one-bedroom apartment in the area surrounding the campus. Specifically, this bill:

1. Makes legislative findings and declarations that reporting of off-campus housing costs by UC and CSU lacks uniformity and clarity, often seems unreflective of current market costs, and that having accurate information is essential, since housing costs are an important part of calculating a student's need for financial aid.
2. Requires each CSU campus, by February 1, 2018 and annually thereafter, to post on the campus website information about the market cost of a one-bedroom apartment in the area surrounding the campus where students commonly reside.
3. Requires the campuses, in reporting the above, to consult bona fide and reliable sources of current information about local housing market costs, as specified.
4. Requests each UC campus to comply with the above requirements.

EXISTING LAW:

1. Provides that statutes related to UC (and most other aspects of the governance and operation of UC) are applicable only to the extent that the UC Regents make such provisions applicable. (Education Code (EC) Section 67400.)
2. Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, and control of the CSU system. (EC Sect. 66606.)

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. No additional cost to CSU campuses to compile the data and post the information to each campus.
2. UC has identified no additional cost to implement this bill. UC notes that some UC's already have this data available.

COMMENTS: Purpose. The author observes that students and parents need complete and accurate information to make a fully-informed decision about which college to attend. A major consideration, as students and parents evaluate their budgets and also explore financial aid options, is the expected costs, including for tuition, books, housing and food. The author notes that most CSU and UC campuses post cost of attendance estimates on their Web sites, including the estimated cost of housing to live off-campus. According to the author, however, "there is no clear information available to students on how that information is obtained; what type of living situation it applies to and what timeframe the estimate covers. Equally as concerning, the estimated cost to live off-campus in many cases does not seem to accurately reflect local market value."

The author cites the following examples: "The University of California Berkeley website states that a student should budget only $7,546 to live off-campus. A 2015 study by Trulia found that it would cost $12,375, assuming two people shared a two bedroom apartment for nine months. California State University East Bay estimates students should spend $13,884 whereas CSU Bakersfield estimates off-campus housing costs to be $13,780; a difference of only $104 in vastly different housing markets."

This bill is intended to give prospective UC and CSU students an idea of the potential rental costs for a one-bedroom apartment close to each campus, based on current rental market conditions. To ensure this information is timely, the information would be updated annually, by February 1 of each year – just prior to the time when many students and their families are involved with college selection. The information would be displayed on the same location on the campus website where the estimated costs of attendance, which includes room and board as well as tuition and fees, books and supplies, transportation, and miscellaneous expenses, are itemized.

Current UC/CSU Practices. UC distributes a Cost of Attendance Survey every three years to a random sample of UC students to ask them about their actual indirect costs. Those survey responses are used to inform campus-specific student budgets. The most recent survey was released in February, and is based on responses from over 14,000 students.

CSU determines student budgets using data from the Student Expenses and Resources Survey (SEARS) from 2006-07 and adjusting for inflation. Each CSU Campus is encouraged to conduct regular assessments of expenses students incur.

Related Legislation. AB 1064 (Calderon) of the current legislative session, requires CSU to conduct a cost of attendance survey every three years.

Analysis Prepared by: Chuck Nicol / HIGHER ED. / (916) 319-3960 FN: 0000553

Date of Hearing: May 3, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 990

Author:(Rodriguez) – As Amended Ver:March 27, 2017

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

SUMMARY:

This bill requires the California State University (CSU) campuses, and requests University of California campuses, to annually post on their respective websites the cost of a one-bedroom apartment in the area surrounding the campus.

FISCAL EFFECT:

1. No additional cost to CSU campuses to compile the data and post the information to each campus.
2. UC has identified no additional cost to implement this bill. UC notes that some UC’s already have this data available.

COMMENTS:

1. Purpose. The author observes that students and parents need complete and accurate information to make a fully-informed decision about which college to attend. A major consideration, as students and parents evaluate their budgets and also explore financial aid options, is the expected costs, including for tuition, books, housing and food. The author notes that most CSU and UC campuses post cost of attendance estimates on their websites, including the estimated cost of housing to live off-campus. According to the author, however, "there is no clear information available to students on how that information is obtained; what type of living situation it applies to and what timeframe the estimate covers. Equally as concerning, the estimated cost to live off-campus in many cases does not seem to accurately reflect local market value."
2. Background. Currently, UC distributes a Cost of Attendance Survey every three years to a random sample of UC students to ask them about their actual indirect costs. Those survey responses are used to inform campus-specific student budgets. The most recent survey was released in February, and is based on responses from over 14,000 students. CSU determines student budgets using data from the Student Expenses and Resources Survey (SEARS) from 2006-07 and adjusting for inflation. Each CSU Campus is encouraged to conduct regular assessments of expenses students incur.

Analysis Prepared by: Daisy Gonzales / APPR. / (916) 319-2081

Date of Hearing: April 18, 2017

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 990 (

Author:Rodriguez) – As Amended Ver:March 27, 2017

SUBJECT: Public postsecondary education: California State University: University of California: estimates of off-campus housing costs

SUMMARY: Requires the California State University (CSU) campuses, and requests University of California campuses, to annually post on their respective websites the cost of a one-bedroom apartment in the area surrounding the campus. Specifically, this bill:

1. Makes legislative findings and declarations that reporting of off-campus housing costs by UC and CSU lacks uniformity and clarity, often seems unreflective of current market costs, and that having accurate information is essential, since housing costs are an important part of calculating a student's need for financial aid.
2. Requires each CSU campus, by February 1, 2018 and annually thereafter, to post on the campus website information about the market cost of a one-bedroom apartment in the area surrounding the campus where students commonly reside.
3. Requires the campuses, in reporting the above, to consult bona fide and reliable sources of current information about local housing market costs, as specified.
4. Requests each UC campus to comply with the above requirements.

EXISTING LAW:

1. Provides that statutes related to UC (and most other aspects of the governance and operation of UC) are applicable only to the extent that the UC Regents make such provisions applicable. (Education Code (EC) Section 67400.)
2. Confers upon the CSU Trustees the powers, duties, and functions with respect to the management, administration, and control of the CSU system. (EC Sect. 66606.)

FISCAL EFFECT: Unknown

COMMENTS: Purpose. The author observes that students and parents need complete and accurate information to make a fully-informed decision about which college to attend. A major consideration, as students and parents evaluate their budgets and also explore financial aid options, is the expected costs, including for tuition, books, housing and food. The author notes that most CSU and UC campuses post cost of attendance estimates on their websites, including the estimated cost of housing to live off-campus. According to the author, however, "there is no clear information available to students on how that information is obtained; what type of living situation it applies to and what timeframe the estimate covers. Equally as concerning, the estimated cost to live off-campus in many cases does not seem to accurately reflect local market value."

The author cites the following examples: "The University of California Berkeley website states that a student should budget only $7,546 to live off-campus. A 2015 study by Trulia found that it would cost $12,375, assuming two people shared a two bedroom apartment for nine months. California State University East Bay estimates students should spend $13,884 whereas CSU Bakersfield estimates off-campus housing costs to be $13,780; a difference of only $104 in vastly different housing markets."

AB 990 is intended to give prospective UC and CSU students an idea of the potential rental costs for a one-bedroom apartment close to each campus, based on current rental market conditions. To ensure this information is timely, the information would be updated annually, by February 1 of each year—just prior to the time when many students and their families are involved with college selection. The information would be displayed on the same location on the campus website where the estimated costs of attendance, which includes room and board as well as tuition and fees, books and supplies, transportation, and miscellaneous expenses, are itemized.

Current UC/CSU Practices. UC distributes a Cost of Attendance Survey every three years to a random sample of UC students to ask them about their actual indirect costs. Those survey responses are used to inform campus-specific student budgets. The most recent survey was released in February, and is based on responses from over 14,000 students.

CSU determines student budgets using data from the Student Expenses and Resources Survey (SEARS) from 2006-07 and adjusting for inflation. Each CSU Campus is encouraged to conduct regular assessments of expenses students incur.

Related Legislation. AB 1064 (Calderon), pending in this committee, requires CSU to conduct a cost of attendance survey every three years.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Chuck Nicol / HIGHER ED. / (916) 319-3960