THIRD READING  

Bill No: SB 291

Author: Leyva (D), et al.

Amended: 5/17/19

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 3/27/19

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

SENATE APPROPRIATIONS COMMITTEE: 4-1, 5/16/19

AYES: Portantino, Bradford, Hill, Wieckowski

NOES: Jones

NO VOTE RECORDED: Bates

SUBJECT: Postsecondary education: California Community College Student Financial Aid Program

SOURCE: California Community Colleges Board of Governors

California Community Colleges Chancellor’s Office

DIGEST:

This bill establishes the California Community College Student Financial Aid Program to be administered by the Board of Governors (BOG) of the California Community College (CCC) and implemented by eligible community colleges to assist CCC students cover the total cost of attendance.

ANALYSIS:

Existing law:

1. Establishes the mission and function of the CCC as the offering of academic and vocational instruction at the lower division level and authorizes the CCCs to grant the associate in arts and the associate in science degree. The community colleges are also required to offer remedial instruction, English as a Second Language instruction, and adult noncredit instruction, and support services which help students succeed at the postsecondary level. (Education Code § 66010.4)
2. Establishes a $46/unit fee for students at the CCC. Existing law also requires a waiver of these fees (formerly known as the BOG fee waiver) for students who meet specified income requirements. (EC § 66025.3.)
3. Establishes Community College Student Success Completion Grant for the purpose of providing eligible community college students with an additional $649 per semester or quarter equivalent for enrolling in 12-14 units, and $2,000 for students enrolled in 15 or more units. Students must maintain satisfactory academic progress. (EC § 88931)
4. Establishes the California College Promise, under the administration of the Chancellor of CCC, to provide funding, upon appropriation by the Legislature, to each community college meeting prescribed requirements, including using evidence-based assessment and placement practices at the community college. Existing law authorizes a community college to use that funding to accomplish specified policy goals and to waive some or all of the fees for one academic year for certain first-time students who are enrolled in 12 or more semester units at the college and complete and submit either a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application.

This bill:

1. Establishes the California Community College Student Financial Aid Program to be administered by the BOG of CCC based on the total cost of attendance and subject to an appropriation by the Legislature.
2. Specifies, in order to be eligible for the grant, that a student meets the following conditions:
   1. Is enrolled at an eligible CCC.
   2. Is enrolled at an eligible program at an eligible CCC.
   3. Is a resident of California based on the criteria for determining nonresident and resident tuition at a community college or be exempted from nonresident tuition as the result of the provisions established by AB 540 (Firebaugh, Chapter 814, Statutes of 2001).
   4. Not be a recipient of a grant or grants for educational expenses totaling more than the equivalent of two full-time academic years.
   5. Make satisfactory academic progress (determined by institutions).
   6. Complete a FAFSA or a California Dream Act application.
3. Requires, upon appropriation for this purpose, that each eligible CCC calculate the award amount by subtracting the “expected family contribution,” “reasonable student contribution,” and “gift aid received by the student,” from the “cost of attendance” for each term in an academic year for each eligible at that college.
4. Declares the Legislature’s intent that an appropriation for the program be included in future Budget Acts and requires that the appropriation specify the percentage of the sum from 3) above, to be awarded to each eligible student for that academic year. This bill authorizes the Department of Finance to adjust the appropriation to reflect the revised estimate of the costs for all awards for that academic year.
5. Requires that the BOG apportion funds to each eligible CCC for purposes of making payments of awards to eligible students in an amount that is derived from 4) above for that academic year.
6. Outlines specific calculations used to determine an award amount for an eligible student who is not a full-time student.
7. Defines various terms for the purpose of this bill including:
   1. “Expected family contribution (EFC),” be determined using the federal methodology. The information reported on the FAFSA is used to calculate the EFC, including family taxed and untaxed income, assets, and benefits. Family size and the number of members who attend college during the year is also factored into the formula.
   2. “Full-time,” “half-time,” “less than half-time,” and “three-quarter-time,” student to have the same meaning as is consistent with the term for the purposes of the federal Pell Grant program, and is based upon a minimum of 12 semester hours for full-time.
   3. “Gift aid,” to mean the financial aid received by a student that does not have to be repaid by the student, as described.
   4. “Reasonable student contribution,” to mean an amount a student should reasonably be expected to contribute to educational expenses, as adopted by the BOG for the academic year. This bill requires the BOG, for the purposes of determining the reasonable student contribution, to adopt the reasonable student contribution amount consistent with minimum wage rates, research regarding the level of work that may be harmful to student outcomes and report the reasonable contribution amount to the Governor and Legislature.
   5. “Cost of attendance,” to mean tuition, fees, and costs incurred by the students as determined by institutions for books, supplies, room and board costs as specified by federal law. This bill authorizes the BOG to adopt rules governing the establishment of an adjustment to, the cost of attendance by an eligible college for purposes of the program.
   6. “Eligible California community college (CCC),” to mean a CCC that satisfies both of the following conditions:
      1. It is deemed a qualifying institution for purposes of participation in the Cal Grant program as specified.
      2. It meets requirements for participation in the California College Promise program that includes, among other things, participation in the federal student loan program and the Community College Guided Pathways Grant program.
      3. Voluntarily designated by its district to participate in the program.
   7. “Eligible program,” to mean a training or undergraduate program that meets eligibility requirements for federal student assistance programs.
8. States various legislative findings and declarations relative to CCCs, lack of financial aid available to cover non-tuition costs, and need to streamline aid for CCC students.

Comments

1. Need for the bill. According to the author, “higher education funding policy in California has traditionally focused on making community college tuition more affordable for students and their families. California boasts the lowest tuition in the nation ($1,380 annually), with the California College Promise Grant (formerly BOG wavier) covering tuition for low-income students. Approximately 43 percent of community college students have their tuition waived under the California College Promise Grant. Even so, community colleges are often the least affordable option for students when non-tuition costs like housing, food, and textbooks are considered. That is, need-based financial aid to cover non-tuition costs is so limited for community college students it is often more expensive for the lowest-income students to attend California community colleges than the University of California.” This bill proposes to increase affordability by expanding eligibility for aid and the overall assistance available to meet the total costs of attendance for CCC students.
2. Related report about financial aid reform. As part of the 2017-18 Budget process, the Legislature passed supplemental reporting language that requested the California Student Aid Commission (CSAC) prepare and submit a report containing recommendations for reforms to state financial aid programs (i.e. Cal Grant). The report was to specifically address issues surrounding the expansion of existing programs to cover a greater share of student cost of attendance in order to better assist all financially needy students regardless of their age, GPA, or time out of high school—with meeting the full cost of college. The CSAC contracted with The Century Foundation to produce this report titled “Expanding Opportunity, Reducing Debt.” This report made several recommendations for reforming the state’s financial aid program, some of which are related to provisions of this bill. (NOTE: See Senate Education Committee analysis for list of findings and recommendations.)

Consistent with the recommendations from the report, the program proposed by this measure provides for a financial need determination that is based upon the cost of attendance, EFC, a self-help factor and other gift aid awarded to the student. Students could choose to borrow or work to meet the self-help expectation. In general, eligibility requirements closely align to that of the Federal Pell Grant program, including the use of satisfactory academic progress as a measure of academic performance and not imposing an age or time-out-of-high school requirement.

1. Who is eligible? This bill extends eligibility for the program to students who have an unmet financial need and make satisfactory academic progress (determined by institutions) which typically translates to maintaining a 2.0 GPA. A student could receive a grant for the equivalent of two full-time academic years and need not be enrolled full-time. The amount and duration of the award would be based on the student’s attendance status (full-time/part-time/less than part-time) and term (semester or quarter). This provides some flexibility, similar to the Cal Grant program, to take more or less units in an academic year within the parameters of their attendance status without losing additional eligibility.

Further, students regardless of their age who are California residents or are California Dream Act eligible enrolled in a certificate or degree program would qualify for a grant under the program. This criterion captures a broader student body than that of the state’s traditional financial aid programs and is likely to produce an eligibility pool that is reflective of the diversity of those enrolled in CCC.

1. Qualified colleges. This bill conditions college participation on several factors including its district governing board making a decision to participate in the program and receiving designation from the district to participate. In addition, colleges must meet requirements necessary to be deemed a Cal Grant eligible institution as well as for those established under the California College promise program.
2. Is there a need for an additional aid program at CCC? As noted earlier in the analysis, tuition for community college students is the lowest in the country, and is waived for almost half of students. However, tuition and fees only account for a portion of college costs. According to the CSAC, “non-tuition” costs exceed $18,000 annually for CCC students living independently. In addition, research by the Institute for College Access and Success reveals a student’s ability to pay the full cost of attendance is an important factor in his or her success. A student who cannot afford to fully cover access costs such as textbooks, transportation, food and housing may make choices that undermine their ability to complete their education. For example, they may need to work more hours at the expense of studying. The existing financial aid programs do not adequately cover the full cost of education beyond tuition and by contrast offer more in aid to public or nonprofit four-year college students. This bill proposes to address affordability by providing an additional source of grant funding to meet the true cost of attending college.

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

According to the Senate Appropriations Committee:

• While this bill’s establishment of the program would be subject to an appropriation, it would result in Proposition 98 General Fund cost pressure ranging from approximately $230 million to nearly $1.4 billion each year, depending on the number of students eligible and the grant award determinations.
• The Chancellor’s Office estimates one-time costs of $189,000 and ongoing costs of $390,000 necessary to implement the new program, including three new positions for financial aid and IT related workload. (General Fund).

SUPPORT: (Verified 5/17/19)

California Community Colleges Board of Governors (co-source)

California Community Colleges Chancellor's Office (co-source)

Asian Pacific American Leadership Foundation

Aspiranet

Associated Students of Glendale Community College

Association of California Community College Administrators

Cabrillo Community College District

California Coalition for Youth

California Community Colleges Student Financial Aid Administrators Association

California Edge Coalition

California Federation of Teachers

California Workforce Association

Campaign for College Opportunity

Cerritos Community College

Chabot-Las Positas Community College District

Chaffey College

Citrus College

City College of San Francisco

Coast Community College District

Community College League of California

East Los Angeles College

Faculty Association of California Community Colleges

Foothill-De Anza Community College District

Golden Sierra Workforce Development Board

Greater Sacramento Urban League

Grossmont-Cuyamaca Community College District

Kern Community College District

Long Beach Community College District

Los Angeles Area Chamber of Commerce

Los Angeles College Faculty Guild, Local 1521

Los Rios Community College District

Napa Valley College

National Association of Social Workers, California Chapter

Peralta Community College District

Rio Hondo Community College District

Sacramento Hispanic Chamber of Commerce

San Bernardino Community College District

San Diego Community College District

San Francisco Community College District

San Joaquin Delta College

San Jose-Evergreen Community College District

Santa Barbara City College

Santa Clarita Community College District - College of the Canyons

Santa Monica College

Silicon Valley Leadership Group

South Orange County Community College District

Southwestern Community College District

Student Senate for California Community Colleges

The Education Trust - West

The Institute for College Access & Success

United Food and Commercial Workers, Western States Council

Urban League of San Diego County

Yosemite Community College District

OPPOSITION: (Verified 5/17/19)

None received

Prepared by: Olgalilia Ramirez / ED. /

5/20/19 13:37:48

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 291 (Leyva) - Postsecondary education: California Community College Student Financial Aid Program

Bill Summary:

This bill would establish the California Community College Student Financial Aid Program to be administered by the Board of Governors (BOG) of the California Community Colleges (CCCs) to provide CCC students with additional financial aid to offset the cost of attendance.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on May 16, 2019

Fiscal Impact:

• While the bill’s establishment of the program would be subject to an appropriation, it would result in Proposition 98 General Fund cost pressure ranging from approximately $230 million to nearly $1.4 billion each year, depending on the number of students eligible and the grant award determinations.
• The Chancellor’s Office estimates one-time costs of $189,000 and ongoing costs of $390,000 necessary to implement the new program, including 3 new positions for financial aid and IT related workload. (General Fund)

Committee Amendments:

Remove the contents in SEC. 3 of the bill regarding legislative intent to appropriate specific amounts for the program in future years.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 291 (Leyva) - Postsecondary education: California Community College Student Financial Aid Program

Bill Summary:

This bill would establish the California Community College Student Financial Aid Program to be administered by the Board of Governors (BOG) of the California Community Colleges (CCCs) to provide CCC students with additional financial aid to offset the cost of attendance.

Fiscal Impact:

• While the bill’s establishment of the program would be subject to an appropriation, it would result in Proposition 98 General Fund cost pressure ranging from approximately $230 million to nearly $1.4 billion each year, depending on the number of students eligible and the grant award determinations. The bill requires the award calculations to be based on a specific percentage of a student’s unmet need each year, ranging from seventeen percent in the 2019-20 fiscal year to one hundred percent in the 2024-25 fiscal year.
• The Chancellor’s Office estimates one-time costs of $189,000 and ongoing costs of $390,000 necessary to implement the new program, including 3 new positions for financial aid and IT related workload (General Fund).

Background:

Existing law establishes the mission and function of the CCCs as the offering of academic and vocational instruction at the lower division level and authorizes the CCCs to grant the associate in arts and the associate in science degree. The community colleges are also required to offer remedial instruction, English as a Second Language instruction, adult noncredit instruction, and support services which help students succeed at the postsecondary level.

Existing law establishes a $46/unit fee for students at the CCCs. Existing law also requires a waiver of these fees (formerly known as the BOG fee waiver) for students who meet specified income requirements.

Existing law provides Cal Grant B Entitlement awards to students meeting specified income and asset thresholds and that have at least a 2.0 GPA. Awardees are entitled to a living allowance and tuition/fee assistance. Awards for first-year students are limited to an allowance for books and living expenses ($1,678). In the second and subsequent years, the award also provides tuition and fee support.

Existing law establishes Community College Student Success Completion Grant for the purpose of providing eligible community college students with an additional $649 per semester or quarter equivalent for enrolling in 12-14 units, and $2,000 for students enrolled in 15 or more units. Students must maintain satisfactory academic progress.

Existing law establishes the California College Promise, under the administration of the Chancellor, to provide funding to each community college meeting prescribed requirements, including using evidence-based assessment and placement practices at the community college. Community colleges are authorized to use the funds to accomplish specified policy goals and to waive some or all of the fees for one academic year for certain first-time students who are enrolled in 12 or more semester units at the college and complete and submit either a Free Application for Federal Student Aid or a California Dream Act application.

Proposed Law:

This bill establishes the California Community College Student Financial Aid Program to be administered by the Board of Governors of the California Community Colleges based on the total cost of attendance and subject to an appropriation by the Legislature. This bill specifies that in order to be eligible for a grant, a student must meet specified conditions, including enrollment in an eligible program at an eligible CCC, a resident of California, and not be a recipient of a grant for more than the equivalent of two full-time academic years.

This bill requires that each eligible community college calculate the award amount by subtracting the expected family contribution, reasonable student contribution and gift aid received by the student from the cost of attendance for each term in an academic year for each eligible student at that college.

This bill declares legislative intent that an appropriation for the program be included in future Budget Acts and requires that the appropriation specify the percentage of the amount to be awarded to each eligible student for that academic year. This bill also authorizes the Department of Finance to adjust the appropriation to reflect the revised estimate of the costs for all awards for that academic year. This bill includes calculations used to determine an award amount for an eligible student who is not a full-time student.

This bill declares legislative intent to enact future legislation to appropriate specified amounts of funding phased-in over a five-year period beginning in the 2019-20 fiscal year at $250 million growing to $1.5 billion for the 2024-25 fiscal year, for the California Community College Student Financial Aid Program. The bill also specifies the percentage funds to be awarded to each eligible students for each fiscal year.

Related Legislation:

AB 2 (Santiago, 2019) would authorize a community college to use California College Promise funding to waive fees for two academic years for community college students who have not previously earned a degree or certificate from a postsecondary educational institution. AB 2 is pending in the Assembly Appropriations Committee.

Staff Comments:

This bill requires that each community college calculate an award amount by subtracting the expected family contribution, reasonable student contribution and gift aid received by the student from the cost of attendance for each term in an academic year for each eligible student at that college. Statewide, the Chancellor’s Office estimates a total of 283,000 eligible community college students each year and an “unmet need” amount as follows: $4,459 for full-time students taking 15 units, $5,302 for full-time students taking 12 units, $6,683 for students taking 9 units, and $8,625 for half-time students. The award calculations would be based on a specific percentage of the unmet need for each category of students. For example, in the 2019-20 fiscal year, the percentage would be 17 percent. When this percentage is applied to unmet need of $4,459 for the category of students taking 15 units, the award amount would be $758 for each of 37,495 students totaling $28.4 million. The Chancellor’s Office estimates a total program cost of $232.3 million for the 2019-20 fiscal year which gradually increases to $1.366 billion by the 2024-25 fiscal year when the program requires the awards to cover the entire unmet need for students.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Connie Leyva, Chair

2019 - 2020 Regular

Bill No: SB 291 Hearing Date: March 27, 2019

Subject: Postsecondary education: California Community College Student Financial Aid Program.

SUMMARY

This bill would establish the California Community College Student Financial Aid Program to be administered by the Board of Governors (BOG) of the California Community College (CCC) and implemented by eligible community colleges to assist CCC students cover the total cost of attendance.

BACKGROUND

Existing law:

1. Establishes the mission and function of the CCC as the offering of academic and vocational instruction at the lower division level and authorizes the CCCs to grant the associate in arts and the associate in science degree. The community colleges are also required to offer remedial instruction, English as a Second Language instruction, and adult noncredit instruction, and support services which help students succeed at the postsecondary level. (Education Code § 66010.4)
2. Establishes a $46/unit fee for students at the CCC. Existing law also requires a waiver of these fees (formerly known as the BOG fee waiver) for students who meet specified income requirements. (EC § 66025.3.)
3. Provides Cal Grant B Entitlement awards to students meeting specified income and asset thresholds, having at least a 2.0 GPA and applying either the year they graduate from high school or the following year. Awardees are entitled to a living allowance and tuition and fee assistance. Awards for first-year students are limited to an allowance for books and living expenses ($1,678). In the second and subsequent years, the award also provides tuition and fee support. (EC § 69435)
4. Establishes Community College Student Success Completion Grant for the purpose of providing eligible community college students with an additional $649 per semester or quarter equivalent for enrolling in 12-14 units, and $2,000 for students enrolled in 15 or more units. Students must maintain satisfactory academic progress. (EC § 88931)
5. Establishes the California College Promise, under the administration of the Chancellor of the California Community Colleges (CCC), to provide funding, upon appropriation by the Legislature, to each community college meeting prescribed requirements, including using evidence-based assessment and placement practices at the community college. Existing law authorizes a community college to use that funding to accomplish specified policy goals and to waive some or all of the fees for one academic year for certain first-time students who are enrolled in 12 or more semester units at the college and complete and submit either a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application.

ANALYSIS

This bill:

1. Establishes the California Community College Student Financial Aid Program to be administered by the Board of Governors of the California Community Colleges (CCC) based on the total cost of attendance and subject to an appropriation by the Legislature.
2. Specifies, in order to be eligible for the grant, that a student meets the following conditions:
   1. Is enrolled at an eligible CCC.

• 1. Is enrolled at an eligible program at an eligible CCC.
  2. Is a resident of California based on the criteria for determining

nonresident and resident tuition at a community college or be exempted from nonresident tuition as the result of the provisions established by AB 540.

• 1. Not be a recipient of a grant or grants for educational expenses totaling

more than the equivalent of two full-time academic years.

• 1. Make satisfactory academic progress (determined by institutions).
  2. Complete a FAFSA or a California Dream Act application.

1. Requires that each eligible CCC calculate the award amount by subtracting the “expected family contribution,” “reasonable student contribution,” and “gift aid received by the student,” from the “cost of attendance” for each term in an academic year for each eligible at that college.
2. Declares the Legislature’s intent that an appropriation for the program be included in future Budget Acts and requires that the appropriation specify the percentage of the sum from 3) above, to be awarded to each eligible student for that academic year. This bill authorizes the Department of Finance to adjust the appropriation to reflect the revised estimate of the costs for all awards for that academic year.
3. Requires that the board of governors (BOG) apportion funds to each eligible California community college (CCC) for purposes of making payments of awards to eligible students in an amount that is derived from 4) above for that academic year.
4. Outlines specific calculations used to determine an award amount for an eligible student who is not a full-time student.
5. Declares the Legislature’s intent to enact future legislation to appropriate the specified amount of funds phased-in over a five-year period beginning in the 2019-20 fiscal year, for the California Community College Student Financial Aid Program.
6. Provides that the portion awarded each student, as described in 4) above, for each fiscal year be as follows:
   1. For the 2019-20 fiscal year, 17 percent.
   2. For the 2020-2021 fiscal year, 33 percent.
   3. For the 2021-22 fiscal year, 50 percent.

• 1. For the 2022-23 fiscal year, 67 percent.
  2. For the 2023-24 fiscal year, 83 percent.
  3. For the 2024-25 fiscal year and each year thereafter; 100 percent.

1. Defines various terms for the purpose of this bill including:
   1. “Expected family contribution (EFC),” be determined using the federal

methodology. The information reported on the Free Application for Federal Student Aid (FAFSA) is used to calculate the EFC, including family taxed and untaxed income, assets, and benefits (such as unemployment or Social Security). Family size and the number of members who attend college during the year is also factored into the formula.

• 1. “Full-time,” “half-time,” “less than half-time,” and “three-quarter-time,”

student to have the same meaning as is consistent with the term for the purposes of the federal Pell Grant program, and is based upon a minimum of 12 semester hours for full-time.

• 1. “Gift aid,” to mean the financial aid received by a student that does not

have to be repaid by the student, as described.

• 1. “Reasonable student contribution,” to mean an amount a student should

reasonably be expected to contribute to educational expenses, as adopted by the BOG for the academic year. This bill requires the BOG, for the purposes of determining the reasonable student contribution, to adopt the reasonable student contribution amount consistent with minimum wage rates, research regarding the level of work that may be harmful to student outcomes and report the reasonable contribution amount to the Governor and Legislature.

• 1. “Cost of attendance,” to mean tuition, fees, and costs incurred by the

students as determined by institutions for books, supplies, room and board costs as specified by federal law. This bill authorizes the board of governors (BOG) to adopt rules governing the establishment of an adjustment to, the cost of attendance by an eligible college for purposes of the program.

• 1. “Eligible California community college (CCC),” to mean a CCC that
     satisfies both of the following conditions:
     1. It is deemed a qualifying institution for purposes of participation in the

Cal Grant program as specified. ..

• • 1. It meets requirements for participation in the California College

Promise program that includes, among other things, participation in the Federal student loan program and the Community College Guided Pathways Grant program.

• • 1. Voluntarily designated by its district to participate in

the program.

• 1. “Eligible program,” to mean a training or undergraduate program that

meets eligibility requirements for federal student assistance programs.

1. States various legislative findings and declarations relative to CCCs, lack of financial aid available to cover non-tuition costs, and need to streamline aid for CCC students.

STAFF COMMENTS

1. Need for the bill. According to the author, “higher education funding policy in California has traditionally focused on making community college tuition more affordable for students and their families. California boasts the lowest tuition in the nation ($1,380 annually), with the California College Promise Grant (formerly BOG wavier) covering tuition for low-income students. Approximately 43 percent of community college students have their tuition waived under the California College Promise Grant. Even so, community colleges are often the least affordable option for students when non-tuition costs like housing, food, and textbooks are considered. That is, need-based financial aid to cover non-tuition costs is so limited for community college students it is often more expensive for the lowest-income students to attend California community colleges than the University of California. This bill proposes to increase affordability by expanding eligibility for aid and the overall assistance available to meet the total costs of attendance for CCC students.”
2. Related report about financial aid reform. As part of the 2017-18 budget process, the Legislature passed supplemental reporting language that requested the California Student Aid Commission (CSAC) prepare and submit a report containing recommendations for reforms to state financial aid programs (i.e. Cal Grant). The report was to specifically address issues surrounding the expansion of existing programs to cover a greater share of student cost of attendance in order to better assist all financially needy students regardless of their age, GPA, or time out of high school—with meeting the full cost of college. The CSAC contracted with The Century Foundation to produce this report titled “Expanding Opportunity, Reducing Debt.” This report made several recommendations for reforming the state’s financial aid program, some of which are related to provisions of this bill. Those findings and recommendations include:
   1. Shift from a tuition-centric aid system to one that takes into consideration each student’s full college expenses when determining award levels.
   2. Remove age, GPA, time-out-of-school, income, and asset requirements.
   3. Base state financial aid on the federal methodology for determining expected family contribution (EFC) rather than separate income and asset cutoffs.
   4. Base aid on a requirement that recipients make satisfactory academic progress.
   5. Make grants available for any degree or certificate program that is Pell Grant eligible.
   6. Make grants available for the equivalent of two-years at a community college.
   7. Make grants available only to California residents and include Dreamers.

Consistent with these recommendations, the program proposed by this measure provides for a financial need determination that is based upon the cost of attendance, EFC, a self-help factor and other gift aid awarded to the student. Students could choose to borrow or work to meet the self-help expectation. In general, eligibility requirements closely align to that of the Federal Pell Grant program, including the use of satisfactory academic progress as a measure of academic performance and not imposing an age or time-out-of-high school requirement.

1. Grant distribution. The proposed entitlement program seeks to cover a student’s unmet need. Since funding is subject to an appropriation from the state in a given year, this bill establishes several methodologies to determine the total award or the proportion of the calculated award amount that would be allocated to each student should funding for the program fall short. Those provisions aim to provide some predictability that would help colleges determine the amount of each award as well as administer aid in a timely manner to students anticipating the financial benefit.
2. Who is eligible? This bill extends eligibility for the program to students who have an unmet financial need and make satisfactory academic progress (determined by institutions) which typically translates to maintaining a 2.0 GPA. A student could receive a grant for the equivalent of two full-time academic years and need not be enrolled full-time. The amount and duration of the award would be based on the student’s attendance status (full-time/part-time/less than part-time) and term (semester or quarter). This provides some flexibility, similar to the Cal Grant program, to take more or less units in an academic year within the parameters of their attendance status without losing additional eligibility.

Further, students regardless of their age who are California residents or are California Dream Act eligible enrolled in a certificate or degree program would qualify for a grant under the program. This criterion captures a broader student body than that of the state’s traditional financial aid programs and is likely to produce an eligibility pool that is reflective of the diversity of those enrolled in California Community colleges (CCC).

1. Qualified colleges. This bill conditions college participation on several factors including its district governing board making a decision to participate in the program and receiving designation from the district to participate. In addition, colleges must meet requirements necessary to be deemed a Cal Grant eligible institution as well as for those established under the California College promise program.
2. Is there a need for an additional aid program at CCC? As noted earlier in the analysis, tuition for community college students is the lowest in the country, and is waived for almost half of students. However, tuition and fees only account for a portion of college costs. According to the California Student Aid Commission, “non-tuition” costs exceed $18,000 annually for CCC students living independently. In addition, research by the Institute for College Access and Success reveals a student’s ability to pay the full cost of attendance is an important factor in his or her success. A student who cannot afford to fully cover access costs such as textbooks, transportation, food and housing may make choices that undermine their ability to complete their education. For example, they may need to work more hours at the expense of studying. The existing financial aid programs do not adequately cover the full cost of education beyond tuition and by contrast offer more in aid to public or nonprofit four-year college students. This bill proposes to address affordability by providing an additional source of grant funding to meet the true cost of attending college.
3. Amendment. In order to provide greater clarity regarding the purpose of the California Community College Student Financial Aid Program Staff recommends that the bill be amended as follows:

• 70201. Subject to an appropriation in the Budget Act or other statute for these purposes, the board shall administer the California Community College Student Financial Aid Program consistent with the provisions of this chapter. The purpose of the grant program is to provide California community college students with additional financial aid to help offset their total cost of attendance.

For purposes of clarifying eligibility window, the author wishes to amend the bill as follows:

• 7020(f)(2) The person has not received a grant or grants for educational expenses totaling pursuant to this chapter for less than more than the equivalent of two full-time academic years.

1. Related legislation. AB 2 (Santiago, 2019) would authorize a community college to use California College Promise funding to waive fees for two academic years for community college students who have not previously earned a degree or certificate from a postsecondary educational institution. AB 2 is awaiting hearing in the Assembly Higher Education Committee.

SUPPORT

Asian Pacific American Leadership Foundation

Aspiranet

Associated Students of Glendale Community College

Association of California Community College Administrators

Cabrillo Community College District

California Coalition for Youth

California Community Colleges Board of Governors

California Community Colleges, Chancellor's Office

California Edge Coalition

California Federation of Teachers

California Workforce Association

Campaign for College Opportunity

Chabot-Las Positas Community College District

Chaffey College

Citrus College

Coast Community College District

East Los Angeles College

Faculty Association of California Community Colleges

Foothill-De Anza Community College District

Greater Sacramento Urban League

Grossmont-Cuyamaca Community College District

Kern Community College District

Long Beach Community College District

Los Angeles Area Chamber of Commerce

Los Angeles College Faculty Guild, Local 1521

Los Rios Community College District

Napa Valley College

Peralta Community College District

Rio Hondo Community College District

Sacramento Hispanic Chamber of Commerce

San Bernardino Community College District

San Diego Community College District

San Francisco Community College District

San Joaquin Delta College

Santa Barbara City College

South Orange County Community College District

Southwestern Community College District

Student Senate for California Community Colleges

The Education Trust - West

The Institute for College Access & Success

Urban League of San Diego County

Yosemite Community College District

OPPOSITION

None received

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