UNFINISHED BUSINESS  

Bill No: SB 150

Author: Beall (D), et al.

Amended: 9/5/19

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 4/10/19

AYES: Leyva, Wilk, Chang, Durazo, Glazer, McGuire, Pan

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SENATE FLOOR: 38-0, 5/23/19

AYES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASSEMBLY FLOOR: 79-0, 9/9/19 - See last page for vote

SUBJECT: Student financial aid: Chafee grant awards

SOURCE: John Burton Advocates for Youth

Los Angeles Area Chamber of Commerce

DIGEST:

This bill relaxes the eligibility requirements and appellate process for recipients of the Chafee Educational and Training Vouchers (Chafee) award, which provides financial aid to current and former foster youth who are enrolled in qualifying institutions of higher education.

Assembly Amendments

require the California Student Aid Commission (CSAC) to make award offers contingent upon available funding, authorize CSAC to adjust or withdraw offers to ensure that awards do not exceed available program funding, require CSAC to inform each reward offer recipient that an award is only to the extent that funding is available for that award cycle. Additional amendments authorize the University of California (UC), California State University (CSU), and California Community College (CCC), to use existing resources to implement specified provisions of the bill to the extent those resources may be lawfully expended for that purpose.

ANALYSIS: Existing federal law establishes the federal John H. Chafee Foster Care Independence Program to provide, among other benefits, education and training vouchers to qualifying current and former foster youth. (United States Code, Title 42, § 677)

Existing law:

1. Establishes the CSAC for the purpose of administering specified student financial aid programs. (Education Code § 69510 et seq.)
2. Establishes requirements for postsecondary education institutions to participate in the Cal Grant program, and requires, for the 2012-13 and subsequent academic years, an institution to maintain a graduation rate above 30 percent and a three-year cohort student loan default rate of less than 15.5 percent. (EC § 69432.7)
3. Requires the CSAC, through an interagency agreement with the Department of Social Services (DSS), to operate a federally-funded scholarship program that provides grant aid to California’s current and former foster youth. Existing law requires funds to be used to assist students who are current and former foster youth, for career and technical training or traditional college courses. (EC § 69519)
4. Requires, beginning with the 2017–18 award year, the CSAC to make a new Chafee grant award to a student only if the student attends either of the following:
   1. A qualifying institution that is eligible for participation in the Cal Grant program.
   2. An institution that is not located in California that satisfies the provisions of a qualifying institution that is eligible for participation in the Cal Grant program. (EC § 69519)
5. Expands eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorizes the CSAC to award grants to this population beginning with the 2019-20 award year. (EC § 69519)

This bill:

Flexible award offers

1. Authorizes the CSAC to:
   1. Make award offers contingent on available funding.
   2. To adjust or withdraw award offer amounts to ensure that total award payments do not exceed the total amount of available funding for that award cycle.
   3. To advise award recipients that the offer is payable to the extent that funding is available for that award cycle.

Academic improvement plans

1. Prohibits Chafee funds from being released to Chaffee awardees who have failed satisfactory academic progress (SAP) for two consecutive semesters, three consecutive quarters, or an equivalent enrollment period, unless the student has worked with a qualified college staff member, as specified, to develop and submit an academic progress improvement plan to the Office of Financial Aid.
2. Provides that if a student with an improvement plan fails to meet SAP for a third consecutive semester, a fourth consecutive quarter, or an equivalent enrollment period, the student shall update the academic improvement plan with an appropriate staff member to receive their remaining Chafee funds.
3. Provides that a student who fails to update their plan, or who fails to meet SAP for a fourth consecutive semester, a fifth consecutive quarter, or an equivalent enrollment period, shall lose Chafee eligibility.

Reinstating Chafee

1. Establishes processes for appeal and reinstatement of an awardee who loses eligibility for a Chafee grant. These processes require institutions to automatically reinstate a student’s Chafee eligibility in reviewing the appeal of a student if one of the following conditions applies:
   1. The student achieves a 2.0 grade point average (GPA) during the previous academic semester, quarter, or applicable period, or achieves a cumulative GPA of 2.0, irrespective whether the student otherwise met the institution’s SAP requirements.
   2. The student demonstrates that extenuating circumstances hindered their progress, but has since been resolved.
   3. The student is engaged in an academic support program.
2. Prohibits students from receiving the Chafee award for more than five years in total.
3. Requires that a student who loses Chafee eligibility due to failing SAP standards and subsequently un-enrolls for at least one semester, quarter, or other applicable period, is to regain Chafee eligibility upon re-enrollment at a qualifying postsecondary institution.

Support

1. Requires the CCC and the CSU, requests the UC, to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an education plan. This bill requires these institutions to strongly encourage Chafee grant recipients to use these services.

Comments

1. What is the Chafee Grant? The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states. In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.
2. Need for the bill. Foster youth typically experience extraordinary hardships while trying to complete both high school higher education. By relaxing Chafee eligibility requirements, establishing a more lenient appellate process for Chafee reinstatement if eligibility is lost, and linking struggling students with structured academic support, this bill helps former foster youth retain a critical source of financial aid for their higher education.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Assembly Appropriations Committee:

1. Potential, unknown General Fund cost pressures in the short-term, were grants to exceed Chafee program grant funding available in a given year. (These costs would be reimbursed from the program allocation in the following year.) Were CSAC to award grants at this bill’s maximum of 200% of program funding and all grants were accepted by students, cost pressures could be as high as $17.7 million. This, however, is very unlikely, due to the low take-up rate of Chafee grants (described in more detail below) and because those over-awarded funds would come out of the next year’s grant allocation.
2. Minor General Fund costs to CSAC and DSS to make adjustments necessary to administer the requirements of this bill. These include (a) changes to CSAC’s grant delivery system, (b) amendments to contracts between DSS and CSAC, (c) establishment of a process for monitoring compliance with academic improvement plan requirements and (d) establishment of a process in the event of over-awarding grants in a given year.
3. Minor General Fund costs to UC and CSU and Proposition 98 General Fund costs to CCC to provide Chafee awardees with information about support services and to work with students to develop academic improvement plans.

The state would need to reimburse these costs to CCC, if the Commission on State Mandates determines the bill’s requirements to be a reimbursable state mandate.

SUPPORT: (Verified 9/9/19)

John Burton Advocates for Youth (co-source)

Los Angeles Area Chamber of Commerce (co-source)

AdvanED Consulting, LLC

Alameda County Office of Education, Foster Youth Services Coordinating Program

American River College, YESS/ILP Program

Aspiranet

Bunker Wilson

Butte College Inspiring Scholars

Cal Poly Pomona Renaissance Scholars

California Alliance of Child and Family Services

California EDGE Coalition

California State University, Bakersfield, Guardians Scholar Program

California State University, Chico, PATH Scholars Program

California Youth Connection

Casa de Amparo

Cerritos College, Leaders Involved in Creating Change

Children Now

City College of San Francisco Guardian Scholars Program

College of the Canyons, Resources for Individual Success in Education

Creative Alternatives

David & Margaret Youth and Family Services

Diablo Valley College, START Program

El Dorado County Office of Education, Foster Youth Services Coordinating Program

Family Care Network

First Place for Youth

Fred Finch Youth Center

Frontier High School

GRACE

Guardian Scholars Program

Hillsides

Imperial Valley Regional Occupational Program

Journey House

League of Women Voters of California

Los Angeles Area Chamber of Commerce

Los Angeles County Department of Children and Family Services

Los Angeles County Office of Education

Los Angeles Harbor College EOPS

Los Medanos College Student Success & Retention Programs

Mission College Student Enrollment & Financial Services

Monterrey County Office of Education, Foster Youth Service Coordinating Program

Mt. San Antonio College, REACH Foster Youth Program

National Association of Social Workers, California Chapter

National Center for Youth Law

New Alternatives

Norco College, Grants and Student Equity Initiatives

One Day, Inc.

Orange Coast College, Guardian Scholars Program

Power to Soar Foundation

Public Counsel

Redwood Community Action Agency

Reedley College NextUp

Regional Economic Association Leaders Coalition

Rio Hondo College

Riverside City College Guardian Scholars Program

San Bernardino Valley College Guardian Scholars Program

San Jose Evergreen Community College District

San Jose State University Guardian Scholars Program

Santa Cruz County Office of Education, Foster Youth Services

Sonoma County Medical Association Alliance

Student Senate for California Community Colleges

Student Success Partnership Foundation

Swipe Out Hunger

TLC Child & Family Services

United Friends of the Children

University of California Student Association

University of San Diego, Student Affairs

University of San Francisco Student Financial Aid Services

University of Southern California, Race and Equity Center

University of Southern California, Rossier School of Education, Pullias Center for Higher Education

VOICES

Walden Family Services

OPPOSITION: (Verified 9/9/19)

None received

ASSEMBLY FLOOR: 79-0, 9/9/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos,

Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

Prepared by: Chanel Matney / ED. /

9/9/19 22:52:01

**** END ****

SENATE THIRD READING

STR Bill Id:SB 150

Author:(Beall)

As Amended Ver:September 5, 2019

Majority vote

SUMMARY:

Revises a component of the eligibility requirements for the Chafee Educational and Training Vouchers (ETV) program to allow recipients to continue to be eligible for the award while failing to demonstrate satisfactory academic progress for two consecutive years. If a student is failing to meet satisfactory academic progress after the second semester or third academic quarter, or an equivalent time period, this bill requires students to work with an appropriate staff member to develop an educational improvement plan as a condition of Chafee funds being released for that semester. This bill also establishes processes for appeal and reinstatement for an awardee who loses Chafee eligibility. This bill authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee ETV program that totals up to 200% of the total program funds available for all awards.

Major Provisions

Please see the Assembly Higher Education Committee analysis for a detailed description of the major provisions of this legislation.

COMMENTS:

Amendments. Amendments taken in the Assembly Appropriations Committee would require CSAC to make award offers contingent upon available funding, and would authorize CSAC to adjust or withdraw offers to ensure that awards do not exceed available program funding. Amendments would also require that CSAC inform each award offer recipient that their offer may be withdrawn or adjusted before payment and that an award is payable to an eligible student only to the extent that funding is available.

Additional amendments authorize the University of California (UC), California State University (CSU), and California Community College (CCC), to use existing resources to implement specified provisions of the bill, to the extent those resources may be lawfully expended for that purpose.

Background. The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. These represent foster youth who, between these ages, were not permanently housed, not reunited with legal parents or guardians, and not adopted. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states.

In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

Need for the bill. This bill recognizes that foster youth typically experience extraordinary hardships while trying to complete higher education. This bill relaxes eligibility requirements, establishes a more lenient appellate process facilitating Chafee reinstatement if eligibility is lost, and enables Chafee funds to be dispersed to more awardees in a timelier manner. This bill improves the ability of Chafee recipients to stay enrolled in college, to re-access Chaffee funds if they lose eligibility by establishing a framework for appeals, and to be linked to academic support services, especially if they are struggling.

According to the Author:

According to the author, "…several issues with the administration of the award present many eligible students from receiving their awards in a timely fashion or even at all. The state's current award process is cumbersome, and delays leave many students without their award until late in the school year. Additionally, the state's current award process adds requirements for meeting satisfactory academic progress (SAP) benchmarks that are not required by federal law and that do not appropriately account for the unique circumstances of foster youth."

Arguments in Support:

The John Burton Advocates for Youth write that "…While California's foster care system has made important strides in the last five years for older youth, one area where it continues to struggle is post-secondary achievement. By age 26, just 4% of former foster youth have achieved a college degree, compared to 36% of same-age young adults."

"Evidence shows that receiving financial aid is a strong predictor of degree attainment, positively impacting grade point average, transfer rates, and undergraduate degree attainment; however, many students who qualify for these funds do not receive them in a timely manner, and many lose the funds when they often need them most. SB 150 would improve access to the state's only financial aid source dedicated to foster youth."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Assembly Appropriations Committee, minor General Fund costs to CSAC, the California Department of Social Services (DSS), and the UC and CSU, and Proposition 98 General Fund costs to the California Community Colleges.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM HIGHER EDUCATION: 11-0-1

YES: Medina, Choi, Arambula, Bloom, Gabriel, Irwin, Kiley, Levine, Low, Santiago, Weber

ABS, ABST OR NV: Patterson

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: September 5, 2019

CONSULTANT: Kevin Powers / HIGHER ED. / (916) 319-3960 FN: 0001908

SENATE THIRD READING

STR Bill Id:SB 150

Author:(Beall)

As Amended Ver:September 3, 2019

Majority vote

SUMMARY:

Revises a component of the eligibility requirements for the Chafee Educational and Training Vouchers (ETV) program to allow recipients to continue to be eligible for the award while failing to demonstrate satisfactory academic progress for two consecutive years. If a student is failing to meet satisfactory academic progress after the second semester or third academic quarter, or an equivalent time period, this bill requires students to work with an appropriate staff member to develop an educational improvement plan as a condition of Chafee funds being released for that semester. This bill also establishes processes for appeal and reinstatement for an awardee who loses Chafee eligibility. This bill authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee ETV program that totals up to 200% of the total program funds available for all awards.

Major Provisions

Please see the Assembly Higher Education Committee analysis for a detailed description of the major provisions of this legislation.

COMMENTS:

Amendments. Amendments taken in the Assembly Appropriations Committee would require CSAC to make award offers contingent upon available funding, and would authorize CSAC to adjust or withdraw offers to ensure that awards do not exceed available program funding. Amendments would also require that CSAC inform each award offer recipient that their offer may be withdrawn or adjusted before payment and that an award is payable to an eligible student only to the extent that funding is available.

Background. The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. These represent foster youth who, between these ages, were not permanently housed, not reunited with legal parents or guardians, and not adopted. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states.

In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

Need for the bill. This bill recognizes that foster youth typically experience extraordinary hardships while trying to complete higher education. This bill relaxes eligibility requirements, establishes a more lenient appellate process facilitating Chafee reinstatement if eligibility is lost, and enables Chafee funds to be dispersed to more awardees in a timelier manner. This bill improves the ability of Chafee recipients to stay enrolled in college, to re-access Chaffee funds if they lose eligibility by establishing a framework for appeals, and to be linked to academic support services, especially if they are struggling.

According to the Author:

According to the author, "…several issues with the administration of the award present many eligible students from receiving their awards in a timely fashion or even at all. The state's current award process is cumbersome, and delays leave many students without their award until late in the school year. Additionally, the state's current award process adds requirements for meeting satisfactory academic progress (SAP) benchmarks that are not required by federal law and that do not appropriately account for the unique circumstances of foster youth."

Arguments in Support:

The John Burton Advocates for Youth write that "…While California's foster care system has made important strides in the last five years for older youth, one area where it continues to struggle is post-secondary achievement. By age 26, just four percent of former foster youth have achieved a college degree, compared to 36 percent of same-age young adults."

"Evidence shows that receiving financial aid is a strong predictor of degree attainment, positively impacting grade point average, transfer rates, and undergraduate degree attainment; however, many students who qualify for these funds do not receive them in a timely manner, and many lose the funds when they often need them most. SB 150 would improve access to the state's only financial aid source dedicated to foster youth."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Assembly Appropriations Committee, minor General Fund costs to CSAC, the California Department of Social Services (DSS), and the University of California (UC) and California State University (CSU), and Proposition 98 General Fund costs to the California Community Colleges.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM HIGHER EDUCATION: 11-0-1

YES: Medina, Choi, Arambula, Bloom, Gabriel, Irwin, Kiley, Levine, Low, Santiago, Weber

ABS, ABST OR NV: Patterson

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: September 3, 2019

CONSULTANT: Kevin Powers / HIGHER ED. / (916) 319-3960 FN: 0001714

Date of Hearing: June 26, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 150

Author:(Beall) – As Amended Ver:June 13, 2019

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

SUMMARY:

This bill makes several changes to a post-secondary financial aid grant program for foster youth, known as the Chafee Educational and Training Vouchers Program (Chafee program). Specifically, this bill:

1. Authorizes, beginning in the 2021-22 academic year, the California Student Aid Commission (CSAC) to make initial Chafee program grant offers of up to 200% of program funding. Should the acceptance rate exceed available funds in a given year, the bill requires the CSAC to deduct the amount of the “over-awarded” grants from the program’s allocation in the following year.
2. Changes a component of Chafee program eligibility to allow an awardee to not make satisfactory academic process at their institution of higher education for two consecutive years and still maintain grant eligibility, conditional on the awardee developing an academic improvement plan with a campus advisor.
3. Requires the California Community Colleges (CCC) and the California State University (CSU), and requests the University of California (UC), to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an academic improvement plan and to strongly encourage Chafee grantees to use these services.

FISCAL EFFECT:

1. Potential, unknown General Fund cost pressures in the short-term, were grants to exceed Chafee program grant funding available in a given year. (These costs would be reimbursed from the program allocation in the following year.) Were CSAC to award grants at the bill’s maximum of 200% of program funding and all grants were accepted by students, cost pressures could be as high as $17.7 million. This, however, is very unlikely, due to the low take-up rate of Chafee grants (described in more detail below) and because those over-awarded funds would come out of the next year’s grant allocation.
2. Minor General Fund costs to CSAC and the California Department of Social Services (DSS) to make adjustments necessary to administer the requirements of this bill. These include (a) changes to CSAC’s grant delivery system, (b) amendments to contracts between DSS and CSAC, (c) establishment of a process for monitoring compliance with academic improvement plan requirements and (d) establishment of a process in the event of over-awarding grants in a given year.
3. Minor General Fund costs to UC and CSU and Proposition 98 General Fund costs to CCC to provide Chafee awardees with information about support services and to work with students to develop academic improvement plans.

The state would need to reimburse these costs to CCC, if the Commission on State Mandates determines the bill’s requirements to be a reimbursable state mandate.

COMMENTS:

1. Background. The Chafee program provides up to $5,000 per year in financial aid to low-income foster youth and former foster youth. The award may be used for expenses associated with post-secondary education at qualified post-secondary institutions. Qualifying post-secondary institutions include public and private colleges and universities and trade schools.

Under current law, Chafee awardees may become ineligible for Chafee grants if they do not make satisfactory academic progress, as defined in law. This leads to some foster youth losing their award. According to the bill’s supporters, the loss of the award can have especially serious consequences for a foster youth’s post-secondary success, given the other financial and academic challenges many foster youth face.

The Chafee program is funded from a mix of state and federal funds, which both flow from the DSS to the CSAC through an interagency agreement. The 2018-19 state budget provided $17.7 million for the program (an increase of about $4 million General Fund above the 2017-18 program funding level). The Department of Finance estimated 4,231 award recipients for the 2018-19 program year (about 800 recipients more than in 2017-18). The recently approved 2019-20 state budget holds funding levels and estimated award recipients constant. Average award amounts per recipient are about $3,500 annually.

Under current law, CSAC may offer 100% of the Chafee funding to foster youth as grants. That is, CSAC only sends offer letters to foster youth collectively totaling the amount allocated in the budget act for that year. In the 2017-18 academic year, CSAC reports 57% of Chafee awardees did not receive awards designated for the fall 2017 academic term until January 2018 or later. This typically is because many eligible foster youth who receive initial award offers are later determined to be ineligible, most often because the individuals do not enroll in qualifying post-secondary institutions. In these cases, CSAC repackages unused funds and then disperses them to a waiting list, sometimes many times over. This process can take several months. Typically, CSAC does not award all funds allocated for the program in the annual budget act. These unused funded revert to the General Fund. In the 2018-19 academic year, preliminary estimates show unused funds for the program of about $750,000.

According to the bill’s supporters, allowing CSAC to over-award grant funds up to 200% annually would speed up award receipt and allow more grant utilization. They cite the success of the over-awarding of another state financial aid program: the competitive Cal Grant. The state recently made changes to allow CSAC to over-award competitive Cal Grants. Results indicate greater speed in award receipt and higher annual utilization. To date, awarded amounts have not exceeded available funding.

1. Prior Legislation. AB 1811 (Committee on Budget) Chapter 35, Statutes of 2018, expanded eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years and authorized the CSAC to award grants to this population beginning with the 2019-20 academic year.

SB 840 (Mitchell) Chapter 29, Statutes of 2018, authorized the CSAC to over-award the competitive Cal Grant.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: June 11, 2019

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

SBPCA Bill Id:SB 150

Author:(Beall) – As Amended Ver:April 1, 2019

SENATE VOTE: 38-0

SUBJECT: Student financial aid: Chafee grant awards

SUMMARY: Revises a component of the eligibility requirements for the Chafee Educational and Training Vouchers (ETV) program to allow recipients to continue to be eligible for the award while failing to demonstrate satisfactory academic progress for two consecutive years. If a student is failing to meet satisfactory academic progress after the second or third academic semester, this bill requires students to work with an advisor to develop an educational improvement plan as a condition of Chafee funds being released for that semester. This bill also establishes processes for appeal and reinstatement for an awardee who loses Chafee eligibility. This bill authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee ETV program that totals up to 200 percent of the total program funds available for all awards. Specifically, this bill:

1. Relaxes a component of the eligibility requirements of the Chafee ETV program by allowing students to receive award funds for up to two years while failing to meet satisfactory academic progress.
2. Requires the California Community Colleges and the California State University, requests the University of California, to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an education plan. This bill requires these institutions to strongly encourage Chafee grant recipients to use these services.
3. Prohibits Chafee funds from being released to Chaffee awardees who have failed satisfactory academic progress in the second semester or third semester until the student has worked with an advisor to develop and submit an academic progress improvement plan to the Office of Financial Aid.
4. Establishes processes for appeal and reinstatement of an awardee who loses eligibility for a Chafee grant. These processes require institutions to automatically reinstate a student’s Chafee eligibility in reviewing the appeal of a student if one of the following conditions applies:
   1. The student achieves a 2.0 grade point average (GPA) during the previous academic term or achieves a cumulative GPA of 2.0, irrespective whether the student otherwise met the institution’s satisfactory academic progress requirements.
   2. The student demonstrates that extenuating circumstances hindered their progress, but has since been resolved.
   3. The student is engaged in an academic support program.
5. Prohibits students from receiving the Chafee award for more than five years in total.
6. Requires that a student who loses Chafee eligibility due to failing satisfactory academic progress standards and subsequently un-enrolls for at least one term, is to regain Chafee eligibility upon re-enrollment at a qualifying postsecondary institution.
7. Authorizes CSAC to make initial award offers to applicants of the Chafee program totaling up to 200 percent of the total program funds available (i.e., over-awarding).
8. Authorizes the CSAC to deduct any spending overages resulting from over-awarding from the following year’s total program funding allocation.

EXISTING LAW:

1. Establishes the federal John H. Chafee Foster Care Independence Program to provide, among other benefits, education and training vouchers to qualifying current and former foster youth. (United States Code, Title 42, § 677)
2. Establishes the CSAC for the purpose of administering specified student financial aid programs. (Education Code (EDC) Section 69510 et seq.)
3. Establishes requirements for postsecondary education institutions to participate in the Cal Grant program, and requires, for the 2012-13 and subsequent academic years, an institution to maintain a graduation rate above 30 percent and a three-year cohort student loan default rate of less than 15.5 percent. (EDC Section 69432.7)
4. Requires the CSAC, through an interagency agreement with the Department of Social Services, to operate a federally-funded scholarship program that provides grant aid to California’s current and former foster youth. Existing law requires funds to be used to assist students who are current and former foster youth, for career and technical training or traditional college courses. (EDC Section 69519)
5. Requires, beginning with the 2017–18 award year, CSAC to make a new Chafee grant award to a student only if the student attends either of the following:
   1. A qualifying institution that is eligible for participation in the Cal Grant program.
   2. An institution that is not located in California that satisfies the provisions of a qualifying institution that is eligible for participation in the Cal Grant program. (EC § 69519)
6. Expands eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorizes the CSAC to award grants to this population beginning with the 2019-20 award year. (EDC Section 69519)

FISCAL EFFECT: According to the Senate Appropriations Committee, this bill’s provisions could result in additional General Fund cost pressures. While the over-awarding of grants is intended to speed up the distribution process and there have been savings for the program in recent years, it could lead to increased acceptance rates that would exceed the amount of funding that is available in a given year.

Additionally, eligibility for the program will be expanded to include former foster youth who are between age 22 and 26 beginning in the 2019-20 award year (authorized under existing law) which could lead to even higher acceptance rates. This bill would allow students that fail to meet satisfactory progress standards to retain eligibility and continue to receive a grant. The number of students that would benefit from this provision is unknown.

COMMENTS: Need for the bill. This bill recognizes that foster youth typically experience extraordinary hardships while trying to complete higher education. This bill relaxes eligibility requirements, establishes a more lenient appellate process facilitating Chafee reinstatement if eligibility is lost, and enables Chafee funds to be dispersed to more awardees in a timelier manner. This bill improves the ability of Chafee recipients to stay enrolled in college, to re-access Chaffee funds if they lose eligibility by establishing a framework for appeals, and to be linked to academic support services, especially if they are struggling.

According to the author, “…several issues with the administration of the award present many eligible students from receiving their awards in a timely fashion or even at all. The state’s current award process is cumbersome, and delays leave many students without their award until late in the school year. Additionally, the state’s current award process adds requirements for meeting satisfactory academic progress (SAP) benchmarks that are not required by federal law and that do not appropriately account for the unique circumstances of foster youth.”

Background. The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. These represent foster youth who, between these ages, were not permanently housed, not reunited with legal parents or guardians, and not adopted. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states.

In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

Satisfactory Academic Progress (SAP). SAP is a standard that students must meet to receive state and federal financial aid. The U.S. Department of Education requires that all institutions receiving financial aid have a SAP policy that specifies what is required of students to maintain financial aid eligibility. The policy must include the following three elements:

1. GPA requirement: Students must maintain a minimum GPA per the policy of the individual institution, to be set at no lower than 2.0.
2. Process requirement: Students must make progress towards their degree by completing a minimum percentage of attempted course units. The minimum percentage of units attempted must be successfully completed both cumulatively and by the end of each academic year. It is commonly set to 67 percent.
3. Maximum number of attempted units: Students must complete their degree within a maximum specified amount of attempted course units. It is commonly set at 150 percent of the total unit requirements for the program in which the student is enrolled.

Grant disbursement delays. CSAC makes award offers to eligible Chafee recipients in excess of the available award funding for a given award year. Why is this the case? Many eligible foster youth who receive initial award offers are later determined to be ineligible, most often because the individual is not enrolled in a qualifying post-secondary institution. After the initial round of award offers has been made and after the ineligible awardees have been identified, the first round of Chafee funds are dispersed. The unused funds are then repackaged and dispersed to a waiting list– up until the yearly award allocation has been exhausted.

This process is time-consuming, resulting in significant delays in actual award payments to students on the waiting list. In fact, this process typically takes so long, that students may not receive their Chafee funds until the midpoint or later of the academic year of which they applied. In 2017-18, the CSAC reported that 57 percent of Chafee awardees did not receive funds for the fall academic term until January 2018 or later. Over ten percent of awarded students did not receive their funds until May 2018 or later.

Proponents of the bill state that these delays are particularly disadvantageous to foster youth, a population of students are significantly more likely to experience financial hardship relative to their peers. Chafee grants may be used to pay for regularly occurring bills such as classes, textbooks, school supplies, transportation, child care, and rent. Delays in award delivery counteract the Chafee program’s mission to enable the ongoing academic and professional success of foster youth through financial aid.

Potential impact of over-awarding the Chafee Grant. In the case of the competitive Cal Grant, also administered by the CSAC, over-awarding has both sped up the funds distribution process and enabled more eligible students to receive their monies more quickly. In the academic year prior to the implementation of over-awarding (2015-16), just over 60 percent of Cal Grant awardees had received payment by January 2016. In the following academic year (2016-17) with over-awarding in place, over 80 percent of awardees received payment within this same time period.

Prior to over-awarding, the CSAC only dispensed 92.3 percent of the awards in 2015-16, leaving 1.6k available award slots unallocated for that year. But since the implementation of over-awarding in years 2017 through 2019, CSAC was able to dispense 100 percent of the available competitive Cal Grant award funds.

Committee comments. The committee recommends, and the author has accepted, technical amendments to ensure that references to academic terms of enrollment include both the semester and quarter systems.

Arguments in support. The John Burton Advocates for Youth write that “…While California’s foster care system has made important strides in the last five years for older youth, one area where it continues to struggle is post-secondary achievement. By age 26, just four percent of former foster youth have achieved a college degree, compared to 36 percent of same-age young adults.”

“Evidence shows that receiving financial aid is a strong predictor of degree attainment, positively impacting grade point average, transfer rates, and undergraduate degree attainment; however, many students who qualify for these funds do not receive them in a timely manner, and many lose the funds when they often need them most. SB 150 would improve access to the state’s only financial aid source dedicated to foster youth.”

Prior legislation. AB 1811 (Committee on Budget) Chapter 35, Statutes of 2018, expanded eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorized the CSAC to award grants to this population beginning with the 2019-20 award year.

AB 3089 (Thurmond) Chapter 594, Statutes 2018, appropriated $80,000 for outreach to former foster youth who are newly eligible for the Chafee grant, and added a data element to existing reporting requirements related to the Chafee grant.

SB 840 (Mitchell) Chapter 29, Statutes of 2018 authorized the CSAC to “over-award” the Competitive Cal Grant.

AB 2506 (Thurmond) Chapter 388, Statutes of 2016 required postsecondary education institutions to meet eligibility requirements to receive Chafee funds, similar to existing provisions of the Cal Grant program.

REGISTERED SUPPORT / OPPOSITION:

Support

Advanced Consulting, LLC
Alameda County Office of Education
Alliance for Children's Rights
Aspiranet
California Alliance of Child and Family Services
California Edge Coalition
California State University, Chico Path Scholars
California Youth Connection
Casa de Amparo
Children Now
County of Los Angeles Board of Supervisors
David & Margaret Youth and Family Services
First Place for Youth
Hillsides
Human Services Department of the County of Santa Cruz
John Burton Advocates for Youth
League of Women Voters of California
Los Angeles Area Chamber of Commerce
Los Angeles County Chief Executive Office
Los Angeles County Office of Education
Monterey County Office of Education
National Association of Social Workers, California Chapter
New Alternatives
New Morning Youth & Family Services
Norco College
Power To Soar
Redwood Community Action Agency - Youth Services Bureau
Regional Economic Association Leaders Coalition
Riverside City College
San Jose-Evergreen Community College District
Santa Cruz County Office Of Education
Star Vista
Swipe Out Hunger
United Friends of the Children
Unity Care Group
University of California Student Association
Voices Youth Centers

Opposition

None on file.

Analysis Prepared by: Kevin J. Powers / HIGHER ED. / (916) 319-3960

SENATE COMMITTEE ON EDUCATION

Senator Connie Leyva, Chair

2019 - 2020 Regular

Bill No: SB 150 Hearing Date: April 10, 2019

Subject: Student financial aid: Chafee grant awards.

SUMMARY

This bill relaxes a component of the eligibility requirements for the Chafee Educational and Training Vouchers (ETV) program to allow recipients to continue to be eligible for the award while failing to demonstrate satisfactory academic progress for two consecutive years. If a student is failing to meet satisfactory academic progress after the second or third academic semester, this bill requires students to work with an advisor to develop an educational improvement plan as a condition of Chafee funds being released for that semester. This bill also establishes processes for appeal and reinstatement for an awardee who loses Chafee eligibility. This bill authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee ETV program that totals up to 200 percent of the total program funds available for all awards.

BACKGROUND

Existing law:

1. Establishes the CSAC for the purpose of administering specified student financial aid programs. (Education Code § 69510 et seq.)
   
2. Establishes requirements for postsecondary education institutions to participate in the Cal Grant program, and requires, for the 2012-13 and subsequent academic years, an institution to maintain a graduation rate above 30 percent and a three-year cohort student loan default rate of less than 15.5 percent.
   (EC § 69432.7)
   
3. Establishes the federal John H. Chafee Foster Care Independence Program to provide, among other benefits, education and training vouchers to qualifying current and former foster youth. (United States Code, Title 42, § 677)
   
4. Requires the CSAC, through an interagency agreement with the Department of Social Services, to operate a federally-funded scholarship program that provides grant aid to California’s current and former foster youth. Existing law requires funds to be used to assist students who are current and former foster youth, for career and technical training or traditional college courses. (EC § 69519)
   
5. Requires, beginning with the 2017–18 award year, California Student Aid Commission to make a new Chafee grant award to a student only if the student attends either of the following:
   
   1. A qualifying institution that is eligible for participation in the Cal Grant program.
      
   2. An institution that is not located in California that satisfies the provisions of a qualifying institution that is eligible for participation in the Cal Grant program. (EC § 69519)
      
6. Expands eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorizes the California Student Aid Commission (CSAC) to award grants to this population beginning with the 2019-20 award year. (EC § 69519)

ANALYSIS

This bill:

1. Relaxes a component of the eligibility requirements of the Chafee Educational Training and Voucher program by allowing students to receive award funds for up to two years while failing to meet satisfactory academic progress.
2. Requires the California Community Colleges and the California State University, requests the University of California, to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an education plan. This bill requires these institutions to strongly encourage Chafee grant recipients to use these services.
3. Prohibits Chafee funds from being released to Chaffee awardees who have failed satisfactory academic progress in the second semester or third semester until the student has worked with an advisor to develop and submit an academic progress improvement plan to the Office of Financial Aid.
4. Establishes processes for appeal and reinstatement of an awardee who loses eligibility for a Chafee grant. These processes require institutions to automatically reinstate a student’s Chafee eligibility in reviewing the appeal of a student if one of the following conditions applies:
   1. The student achieves a 2.0 grade point average (GPA) during the previous academic term or achieves a cumulative GPA of 2.0, irrespective whether the student otherwise met the institution’s satisfactory academic progress requirements.
   2. The student demonstrates that extenuating circumstances hindered their progress, but has since been resolved.
   3. The student is engaged in an academic support program.
5. Prohibits students from receiving the Chafee award for more than five years in total.
6. Requires that a student who loses Chafee eligibility due to failing satisfactory academic progress standards and subsequently un-enrolls for at least one term, is to regain Chafee eligibility upon re-enrollment at a qualifying postsecondary institution.
7. Authorizes the California Student Aid Commission (CSAC) to make initial award offers to applicants of the Chafee program totaling up to 200 percent of the total program funds available (i.e., over-awarding).
8. Authorizes the CSAC to deduct any spending overages resulting from over-awarding from the following year’s total program funding allocation.

STAFF COMMENTS

1. Need for the bill. This bill recognizes that foster youth typically experience extraordinary hardships while trying to complete higher education. This bill relaxes eligibility requirements, establishes a more lenient appellate process facilitating Chafee reinstatement if eligibility is lost, and enables Chafee funds to be dispersed to more awardees in a timelier manner. This bill improves the ability of Chafee recipients to stay enrolled in college, to re-access Chaffee funds if they lose eligibility by establishing a framework for appeals, and to be linked to academic support services, especially if they are struggling.

According to the author, “several issues with the administration of the award present many eligible students from receiving their awards in a timely fashion or even at all. The state’s current award process is cumbersome, and delays leave many students without their award until late in the school year. Additionally, the state’s current award process adds requirements for meeting satisfactory academic progress (SAP) benchmarks that are not required by federal law and that do not appropriately account for the unique circumstances of foster youth.”

1. What is the Chafee Grant? The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. These represent foster youth who, between these ages, were not permanently housed, not reunited with legal parents or guardians, and not adopted. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states.

In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

1. Satisfactory Academic Progress (SAP) SAP is a standard that students must meet to receive state and federal financial aid. The U.S. Department of Education requires that all institutions receiving financial aid have a SAP policy that specifies what is required of students to maintain financial aid eligibility. The policy must include the following three elements:
2. Grade point average (GPA) requirement: Students must maintain a minimum GPA per the policy of the individual institution, to be set at no lower than 2.0.
3. Process requirement: Students must make progress towards their degree by completing a minimum percentage of attempted course units. The minimum percentage of units attempted must be successfully completed both cumulatively and by the end of each academic year. It is commonly set to 67 percent.
4. Maximum number of attempted units: Students must complete their degree within a maximum specified amount of attempted course units. It is commonly set at 150 percent of the total unit requirements for the program in which the student is enrolled.
5. What accounts for grant disbursement delays? The California Student Aid Commission (CSAC) makes award offers to eligible Chafee recipients in excess of the available award funding for a given award year. Why is this the case? Many eligible foster youth who receive initial award offers are later determined to be ineligible, most often because the individual is not enrolled in a qualifying post-secondary institution. After the initial round of award offers has been made and after the ineligible awardees have been identified, the first round of Chafee funds are dispersed. The unused funds are then repackaged and dispersed to a waiting list– up until the yearly award allocation has been exhausted.

This process is time-consuming, resulting in significant delays in actual award payments to students on the waiting list. In fact, this process typically takes so long, that students may not receive their Chafee funds until the midpoint or later of the academic year of which they applied. In 2017-18, the CSAC reported that 57 percent of Chafee awardees did not receive funds for the fall academic term until January 2018 or later. Over ten percent of awarded students did not receive their funds until May 2018 or later.

Proponents of the bill state that these delays are particularly disadvantageous to foster youth, a population of students is significantly more likely to experience financial hardship relative to their peers. Chafee grants may be used to pay for regularly occurring bills such as classes, textbooks, school supplies, transportation, child care, and rent. Delays in award delivery counteract the Chafee program’s mission to enable the ongoing academic and professional success of foster youth through financial aid.

1. What is the expected impact of “overawarding” on grant distribution? In the case of the competitive Cal Grant, also administered by the CSAC, overawarding has both sped up the funds distribution process and enabled more eligible students to receive their monies more quickly. In the academic year prior to the implementation of overawarding (2015-16), just over 60 percent of Cal Grant awardees had received payment by January 2016. In the following academic year (2016-17) with overawarding in place, over 80 percent of Cal Grant awardees received payment within this same time period.

Prior to overawarding, the California Student Aid Commission (CSAC) only dispensed 92.3 percent of the awards in 2015-16, leaving 1.6k available award slots unallocated for that year. But since the implementation of overawarding in years 2017 through 2019, CSAC was able to dispense 100 percent of the available competitive Cal Grant award funds.

This bill protects the State from budget overages by stipulating that if the acceptance rate of the Chafee award offered exceeds the level of available program funding, the CSAC may deduct the spending overage from the following year’s program allocation.

1. Prior legislation. AB 1811 (Committee on Budget, Chapter 35, 2018) expanded eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorized the CSAC to award grants to this population beginning with the 2019-20 award year.
   
   AB 3089 (Thurmond, Chapter 594, 2018) appropriated $80,000 for outreach to former foster youth who are newly eligible for the Chafee grant, and added a data element to existing reporting requirements related to the Chafee grant.
   
   SB 840 (Mitchell, Chapter 29, 2018) authorized the CSAC to “over-award” the Competitive Cal Grant.
   
   AB 2506 (Thurmond, Chapter 388, 2016) required postsecondary education institutions to meet eligibility requirements to receive Chafee funds, similar to existing provisions of the Cal Grant program.

SUPPORT

John Burton Advocates for Youth (Sponsor)

Los Angeles Area Chamber of Commerce (Sponsor)

AdvanED Consulting, LLC

Alameda County Office of Education, Foster Youth Services Coordinating Program

American River College, YESS/ILP Program

Aspiranet

Bunker Wilson

Butte College Inspiring Scholars

California Alliance of Child and Family Services

California EDGE Coalition

California State University, Bakersfield, Guardians Scholar Program

California State University, Chico, PATH Scholars Program

California Youth Connection

Cal Poly Pomona Renaissance Scholars

Casa de Amparo

Cerritos College, Leaders Involved in Creating Change

Children Now

City College of San Francisco Guardian Scholars Program

College of the Canyons, Resources for Individual Success in Education

Creative Alternatives

David & Margaret Youth and Family Services

Diablo Valley College, START Program

El Dorado County Office of Education, Foster Youth Services Coordinating Program

Family Care Network

First Place for Youth

Fred Finch Youth Center

Frontier High School

GRACE

Hillsides

Imperial Valley Regional Occupational Program

Journey House

League of Women Voters of California

Los Angeles County Department of Children and Family Services

Los Angeles County Office of Education

Los Angeles Harbor College EOPS

Los Medanos College Student Success & Retention Programs

Mission College Student Enrollment & Financial Services

Monterrey County Office of Education, Foster Youth Service Coordinating Program

Mt. San Antonio College, REACH Foster Youth Program

National Center for Youth Law

New Alternatives

Norco College, Grants and Student Equity Initiatives

One Day, Inc.

Orange Coast College, Guardian Scholars Program

Power to Soar Foundation

Public Counsel

Redwood Community Action Agency

Reedley College NextUp

Regional Economic Association Leaders Coalition

Rio Hondo College

Riverside City College Guardian Scholars Program

San Bernardino Valley College Guardian Scholars Program

San Jose Evergreen Community College District

San Jose State University Guardian Scholars Program

Santa Cruz County Office of Education, Foster Youth Services

Sonoma County Medical Association Alliance

Student Senate for California Community Colleges

Student Success Partnership Foundation

Swipe Out Hunger

TLC Child & Family Services

United Friends of the Children

University of California Student Association

University of San Diego, Student Affairs

University of San Francisco Student Financial Aid Services

University of Southern California, Rossier School of Education, Pullias Center for Higher

Education

University of Southern California, Race and Equity Center

VOICES

Walden Family Services

OPPOSITION

None received

-- END --

 THIRD READING  

Bill No: SB 150

Author: Beall (D), et al.

Amended: 4/1/19

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 4/10/19

AYES: Leyva, Wilk, Chang, Durazo, Glazer, McGuire, Pan

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SUBJECT: Student financial aid: Chafee grant awards

SOURCE: John Burton Advocates for Youth

Los Angeles Area Chamber of Commerce

DIGEST:

This bill relaxes the eligibility requirements for the Chafee Educational and Training Vouchers (Chafee) program by allowing recipients to retain eligibility while failing to demonstrate satisfactory academic progress for two consecutive years. This bill also authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee program that totals up to 200 percent of the total program funds available for all awards.

ANALYSIS: Existing federal law establishes the federal John H. Chafee Foster Care Independence Program to provide, among other benefits, education and training vouchers to qualifying current and former foster youth. (United States Code, Title 42, § 677)

Existing state law:

1. Establishes the CSAC for the purpose of administering specified student financial aid programs. (Education Code § 69510 et seq.)
2. Establishes requirements for postsecondary education institutions to participate in the Cal Grant program, and requires, for the 2012-13 and subsequent academic years, an institution to maintain a graduation rate above 30 percent and a three-year cohort student loan default rate of less than 15.5 percent. (EC § 69432.7)
3. Requires the CSAC, through an interagency agreement with the Department of Social Services, to operate a federally-funded scholarship program that provides grant aid to California’s current and former foster youth. Existing law requires funds to be used to assist students who are current and former foster youth, for career and technical training or traditional college courses. (EC § 69519)
4. Requires, beginning with the 2017–18 award year, the CSAC to make a new Chafee grant award to a student only if the student attends either of the following:
   1. A qualifying institution that is eligible for participation in the Cal Grant program.
   2. An institution that is not located in California that satisfies the provisions of a qualifying institution that is eligible for participation in the Cal Grant program. (EC § 69519)
5. Expands eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorizes the CSAC to award grants to this population beginning with the 2019-20 award year. (EC § 69519)

This bill:

1. Relaxes a component of the eligibility requirements of the Chafee program by allowing students to receive award funds for up to two years while failing to meet satisfactory academic progress.
2. Requires the California Community Colleges and the California State University, requests the University of California, to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an education plan. This bill requires these institutions to strongly encourage Chafee grant recipients to use these services.
3. Prohibits Chafee funds from being released to Chaffee awardees who have failed satisfactory academic progress in the second semester or third semester until the student has worked with an advisor to develop and submit an academic progress improvement plan to the Office of Financial Aid.
4. Establishes processes for appeal and reinstatement of an awardee who loses eligibility for a Chafee grant. These processes require institutions to automatically reinstate a student’s Chafee eligibility in reviewing the appeal of a student if one of the following conditions applies:
   1. The student achieves a 2.0 grade point average (GPA) during the previous academic term or achieves a cumulative GPA of 2.0, irrespective whether the student otherwise met the institution’s satisfactory academic progress requirements.
   2. The student demonstrates that extenuating circumstances hindered their progress, but has since been resolved.
   3. The student is engaged in an academic support program.
5. Prohibits students from receiving the Chafee award for more than five years in total.
6. Requires that a student who loses Chafee eligibility due to failing satisfactory academic progress standards and subsequently un-enrolls for at least one term, is to regain Chafee eligibility upon re-enrollment at a qualifying postsecondary institution.
7. Authorizes CSAC to make initial award offers to applicants of the Chafee program totaling up to 200 percent of the total program funds available (i.e., over-awarding).
8. Authorizes the CSAC to deduct any spending overages resulting from over-awarding from the following year’s total program funding allocation.

Comments

1. Need for the bill. According to the author, “several issues with the administration of the award present many eligible students from receiving their awards in a timely fashion or even at all. The state’s current award process is cumbersome, and delays leave many students without their award until late in the school year. Additionally, the state’s current award process adds requirements for meeting satisfactory academic progress (SAP) benchmarks that are not required by federal law and that do not appropriately account for the unique circumstances of foster youth.”
2. What is the Chafee Grant? The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. These represent foster youth who, between these ages, were not permanently housed, not reunited with legal parents or guardians, and not adopted. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states.

In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

1. Satisfactory Academic Progress (SAP). SAP is a standard that students must meet to receive state and federal financial aid. The U.S. Department of Education requires that all institutions receiving financial aid have a SAP policy that specifies what is required of students to maintain financial aid eligibility. The policy must include the following three elements:
2. GPA requirement: Students must maintain a minimum GPA per the policy of the individual institution, to be set at no lower than 2.0.
3. Process requirement: Students must make progress towards their degree by completing a minimum percentage of attempted course units. The minimum percentage of units attempted must be successfully completed both cumulatively and by the end of each academic year. It is commonly set to 67 percent.
4. Maximum number of attempted units: Students must complete their degree within a maximum specified amount of attempted course units. It is commonly set at 150 percent of the total unit requirements for the program in which the student is enrolled.
5. What accounts for grant disbursement delays? The CSAC makes award offers to eligible Chafee recipients in excess of the available award funding for a given award year. Why is this the case? Many eligible foster youth who receive initial award offers are later determined to be ineligible, most often because the individual is not enrolled in a qualifying post-secondary institution. After the initial round of award offers has been made and after the ineligible awardees have been identified, the first round of Chafee funds are dispersed. The unused funds are then repackaged and dispersed to a waiting list– up until the yearly award allocation has been exhausted.

This process is time-consuming, resulting in significant delays in actual award payments to students on the waiting list. In fact, this process typically takes so long, that students may not receive their Chafee funds until the midpoint or later of the academic year of which they applied. In 2017-18, the CSAC reported that 57 percent of Chafee awardees did not receive funds for the fall academic term until January 2018 or later. Over ten percent of awarded students did not receive their funds until May 2018 or later.

Proponents of the bill state that these delays are particularly disadvantageous to foster youth, a population of students is significantly more likely to experience financial hardship relative to their peers. Chafee grants may be used to pay for regularly occurring bills such as classes, textbooks, school supplies, transportation, child care, and rent. Delays in award delivery counteract the Chafee program’s mission to enable the ongoing academic and professional success of foster youth through financial aid.

1. What is the expected impact of “overawarding” on grant distribution? In the case of the competitive Cal Grant, also administered by the CSAC, overawarding has both sped up the funds distribution process and enabled more eligible students to receive their monies more quickly. In the academic year prior to the implementation of overawarding (2015-16), just over 60 percent of Chafee awardees had received payment by January 2016. In the following academic year (2016-17) with overawarding in place, over 80 percent of Chafee awardees received payment within this same time period.

Prior to overawarding, the CSAC only dispensed 92.3 percent of the awards in 2015-16, leaving 1.6k available award slots unallocated for that year. But since the implementation of overawarding in years 2017 through 2019, CSAC was able to dispense 100 percent of the available competitive Cal Grant award funds.

This bill protects the State from budget overages by stipulating that if the acceptance rate of the Chafee award offered exceeds the level of available program funding, the CSAC may deduct the spending overage from the following year’s program allocation.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee, this bill’s provisions could result in additional, unknown General Fund cost pressures. While the overawarding of grants is intended to speed up the distribution process and there have been savings for the program in recent years, it could lead to increased acceptance rates that would exceed the amount of funding that is available in a given year. Additionally, eligibility for the program will be expanded to include former foster youth who are between age 22 and 26 beginning in the 2019-20 award year which could lead to even higher acceptance rates. Further, this bill would allow students that fail to meet satisfactory progress standards to retain eligibility and continue to receive a grant. The number of students that would benefit from this provision is unknown.

SUPPORT: (Verified 5/16/19)

John Burton Advocates for Youth (co-source)

Los Angeles Area Chamber of Commerce (co-source)

AdvanED Consulting, LLC

Alameda County Office of Education, Foster Youth Services Coordinating Program

American River College, YESS/ILP Program

Aspiranet

Bunker Wilson

Butte College Inspiring Scholars

Cal Poly Pomona Renaissance Scholars

California Alliance of Child and Family Services

California EDGE Coalition

California State University, Bakersfield, Guardians Scholar Program

California State University, Chico, PATH Scholars Program

California Youth Connection

Casa de Amparo

Cerritos College, Leaders Involved in Creating Change

Children Now

City College of San Francisco Guardian Scholars Program

College of the Canyons, Resources for Individual Success in Education

Creative Alternatives

David & Margaret Youth and Family Services

Diablo Valley College, START Program

El Dorado County Office of Education, Foster Youth Services Coordinating Program

Family Care Network

First Place for Youth

Fred Finch Youth Center

Frontier High School

GRACE

Hillsides

Imperial Valley Regional Occupational Program

Journey House

League of Women Voters of California

Los Angeles County Department of Children and Family Services

Los Angeles County Office of Education

Los Angeles Harbor College EOPS

Los Medanos College Student Success & Retention Programs

Mission College Student Enrollment & Financial Services

Monterrey County Office of Education, Foster Youth Service Coordinating Program

Mt. San Antonio College, REACH Foster Youth Program

National Association of Social Workers, California Chapter

National Center for Youth Law

New Alternatives

Norco College, Grants and Student Equity Initiatives

One Day, Inc.

Orange Coast College, Guardian Scholars Program

Power to Soar Foundation

Public Counsel

Redwood Community Action Agency

Reedley College NextUp

Regional Economic Association Leaders Coalition

Rio Hondo College

Riverside City College Guardian Scholars Program

San Bernardino Valley College Guardian Scholars Program

San Jose Evergreen Community College District

San Jose State University Guardian Scholars Program

Santa Cruz County Office of Education, Foster Youth Services

Sonoma County Medical Association Alliance

Student Senate for California Community Colleges

Student Success Partnership Foundation

Swipe Out Hunger

TLC Child & Family Services

United Friends of the Children

University of California Student Association

University of San Diego, Student Affairs

University of San Francisco Student Financial Aid Services

University of Southern California, Race and Equity Center

University of Southern California, Rossier School of Education, Pullias Center for Higher Education

VOICES

Walden Family Services

OPPOSITION: (Verified 5/16/19)

None received

Prepared by: Chanel Matney / ED. /

5/18/19 10:29:12

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 150 (Beall) - Student financial aid: Chafee grant awards

Bill Summary:

This bill relaxes the eligibility requirements for the Chafee Educational and Training Vouchers (ETV) program by allowing recipients to retain eligibility while failing to demonstrate satisfactory academic progress for two consecutive years. This bill also authorizes the California Student Aid Commission (CSAC) to make initial award offers for the Chafee ETV program that totals up to 200 percent of the total program funds available for all awards.

Fiscal Impact:

The bill’s provisions could result in additional, unknown General Fund cost pressures. While the overawarding of grants is intended to speed up the distribution process and there have been savings for the program in recent years, it could lead to increased acceptance rates that would exceed the amount of funding that is available in a given year. Additionally, eligibility for the program will be expanded to include former foster youth who are between age 22 and 26 beginning in the 2019-20 award year which could lead to even higher acceptance rates. Further, this bill would allow students that fail to meet satisfactory progress standards to retain eligibility and continue to receive a grant. The number of students that would benefit from this provision is unknown.

Background:

Existing law establishes the CSAC for the purpose of administering specified student financial aid programs, and establishes requirements for postsecondary education institutions to participate in the Cal Grant program.

Existing law establishes the federal John H. Chafee Foster Care Independence Program to provide, among other benefits, education and training vouchers to qualifying current and former foster youth. The CSAC, through an interagency agreement with the Department of Social Services, administers the Chafee program which assists students who are current and former foster youth with career and technical training or traditional college courses.

Existing law requires CSAC to make a new Chafee grant award to a student only if the student attends either a qualifying institution that is eligible for participation in the Cal Grant program or an institution that is not located in California that satisfies the provisions of a qualifying institution that is eligible for participation in the Cal Grant program.

Existing law expands eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorizes CSAC to award grants to this population beginning with the 2019-20 award year.

Proposed Law:

This bill relaxes a component of the eligibility requirements of the Chafee Educational Training and Voucher program by allowing students to receive award funds for up to two years while failing to meet satisfactory academic progress. However, the bill prohibits Chafee funds from being released to Chaffee awardees who have failed satisfactory academic progress in the second semester or third semester until the student has worked with an advisor to develop and submit an academic progress improvement plan to the Office of Financial Aid. This bill also establishes processes for appeal and reinstatement of an awardee who loses eligibility for a Chafee grant, as specified.

This bill requires that a student who loses Chafee eligibility due to failing satisfactory academic progress standards and subsequently un-enrolls for at least one term, is to regain Chafee eligibility upon re-enrollment at a qualifying postsecondary institution. Students are prohibited from receiving the Chafee award for more than five years in total.

This bill requires the California Community Colleges and the California State University, requests the University of California, to provide Chafee grant awardees with information about on-campus academic support services, including working with an advisor to develop an education plan. This bill requires these institutions to strongly encourage Chafee grant recipients to use these services.

This bill authorizes CSAC to make initial award offers to applicants of the Chafee program totaling up to 200 percent of the total program funds available (i.e., over-awarding), and allows the CSAC to deduct any spending overages resulting from over-awarding from the following year’s total program funding allocation.

Related Legislation:

AB 1811 (Committee on Budget, Chapter 35, Statutes of 2018) expanded eligibility for the Chafee grant to include former foster youth who are between age 22 and 26 years, and authorized the CSAC to award grants to this population beginning with the 2019-20 award year.

AB 3089 (Thurmond, Chapter 594, Statutes of 2018) appropriated $80,000 for outreach to former foster youth who are newly eligible for the Chafee grant, and added a data element to existing reporting requirements related to the Chafee grant.

Staff Comments:

The Chafee grant provides up to $5,000 per year for career training, technical training or college to financially needy-individuals who were in foster care between the ages of 16 and 18 as a dependent or ward of the court. Eligibility will be expanded to include former foster youth who are between age 22 and 26 beginning with the 2019-20 award year. Chafee grant money may be used to pay for classes, textbooks, school supplies, transportation, child care, and rent while the student is enrolled at any eligible California college, university, or technical school – or schools in other states. In fiscal year 2017, the CSAC distributed $13.2 million to 3,516 current and former foster youth pursuing higher education. The average award per student was $3,754.

The overawarding of grants is intended to speed up the funds distribution process and enable more eligible students to receive their monies more quickly. In the academic year prior to the implementation of overawarding (2015-16), just over 60 percent of Chafee awardees had received payment by January 2016. In the following academic year (2016-17) with overawarding in place, over 80 percent of Chafee awardees received payment within this same time period. This bill provides that if the acceptance rate of the Chafee award offered exceeds the level of available program funding, the CSAC may deduct the spending overage from the following year’s program allocation.

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