BILL ANALYSIS Ó
AB 2506
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2506 (Thurmond) - As Amended March 30, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill makes the Chafee Educational and Training Voucher
(Chaffee grant) an entitlement for qualified current and former
foster youth attending qualified postsecondary educational
institutions. Specifically, this bill:
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1)Stipulates that, in order to be qualified for accepting
Chaffee grants, an institution must meet the same
qualifications - in terms of the maximum allowable cohort
default rate (for federal student loans) - and the minimum
allowable graduation rate as for Cal Grant institutional
participation.
2)Requires the California Student Aid Commission (CSAC) to
provide Chafee grant recipients with a list of the
institutions deemed eligible.
3)Provides that, commencing with the 2017-18 academic year,
current and former foster youth are entitled to a Chafee grant
award, and that CSAC must allocate an award to foster youth
that:
a) Meet Chafee grant requirements as set forth in the
federal John H. Chafee Foster Care Independence Program.
b) Submit a Free Application for Federal Student Aid
(FAFSA) and a Chafee grant application between January 1
and September 2 of each calendar year for the academic year
beginning in the fall of that calendar year.
4)Provides that the amount a Chafee grant award depends on the
cost of attendance at the institution where the student is
enrolled, and may not exceed the amount of the calculated
financial need.
FISCAL EFFECT:
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1)Estimated additional General Fund costs of $6.4 million
annually for entitlement program awards, based on 1,960
additional awards and an average award of $3,234. There were
1,115 eligible applicants that, under the current Chaffee
program, did not receive an award in 2014-15 due to
insufficient resources. In addition, CSAC indicates that
another 845 applicants were deemed ineligible due to lack of a
single piece of required information. CSAC expects that new
administrative procedures to assist such applicants will be
implemented soon and will increase eligibility, which would
lead to an entitlement award.
2)CSAC administrative costs (General Fund) will be about $60,000
one-time and $270,000 ongoing for four positions to implement
the entitlement program. The commission indicates that the
Chafee program is relatively labor intensive due to the
population it serves and the need to coordinate among various
agencies.
COMMENTS:
1)Background. The federal John H. Chafee Foster Care
Independence Program (CFCIP) was created in 1999 to offer
assistance to current and former foster care youths in
achieving self-sufficiency. Federal grants are offered to
States who submit a plan to assist youth in a wide variety of
areas designed to support a successful transition to
adulthood. The Educational and Training Vouchers Program
(ETV) for Youths Aging out of Foster Care was added to the
CFCIP in 2002. ETV provides resources specifically to meet
the education and training needs of youth aging out of foster
care.
In California, the Chafee Grant for Foster Youth provides up
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to $5,000 in grants to foster youth. The program budget is
about $11.5 million, evenly split between federal funds and
the state General Fund. CSAC administers the program pursuant
to an MOU with the state Department of Social Services. To
qualify, current or former foster youth must be under age 22
and were in foster care in out-of-home placement at any time
between the ages of 16 and 18. The maximum grant is $5,000 per
academic year; and the average awarded grant in 2014-15 was
$3,250. The program serves about 2,200 students.
2)Purpose. According to the author, this bill seeks to help
address the low rates of college persistence and completion
among foster youth in California by addressing two
deficiencies in the program: insufficient funding and
poor-quality institutions.
Funding is inadequate to meet the current demand, which has
increased considerably with the expansion of foster care in
2012. In the 2014-15, about 4,600 students were determined to
be eligible for the Chafee ETV, but due to a lack of funding,
almost 25% of these eligible applicants did not receive a
grant. In addition, unlike the Cal Grant Program, current law
does not require Chafee grants to be used at postsecondary
institutions that meet baseline performance measures. The
author notes reports of for-profit colleges marketing
specifically to vulnerable student populations, including
veterans and foster youth, in order to access financial aid.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
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