BILL ANALYSIS Ó AB 2506 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2506 (Thurmond) As Amended August 19, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(June 1, 2016) |SENATE: | 39-0 |(August 25, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) Original Committee Reference: HIGHER ED. SUMMARY: Requires, commencing with the 2017-18 academic year, the California Student Aid Commission (CSAC) to ensure that postsecondary institutions meet eligibility requirements consistent with the Cal Grant Program in order to participate in the Chafee Educational and Training Voucher (Chafee) Program. The Senate amendments delete the Assembly version of this bill, and recast the provisions related to institutional eligibility for Chafee. Specifically, the Senate amendments: 1)Delete findings and declarations. AB 2506 Page 2 2)Delete the entitlement portion of this bill, which would have required an eligible current or foster youth receive a Chafee award. 3)Require out-of-state institutions to meet the same eligibility requirements as California institutions. 4)Delete the requirements that CSAC provide Chafee grant recipients seeking to attend, or attending, an ineligible institution with a complete list of all California postsecondary institutions at which the student would be eligible to receive an award. EXISTING LAW: 1)Establishes the CSAC for the purpose of administering specified student financial programs. (Education Code Section 69510, et seq.) 2)Establishes requirements for postsecondary education institutions to participate in the Cal Grant program, and requires, for the 2017-18 and subsequent academic years, an institution to maintain a graduation rate above 30% and a three-year cohort student loan default rate of less than 15.5%. (EC Section 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, Section 677) FISCAL EFFECT: According to the Senate Appropriations Committee, CSAC indicates that verifying institutions' eligibility for the use of Chafee grant awards by its students would impose minor and absorbable costs. AB 2506 Page 3 COMMENTS: 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 to $5,000 in grants to foster youth. The budget for the program is about $11.5 million, which is evenly split between federal funds ($5.6 million) and the state General Fund. State funding for the program is accounted for in the Department of Social Services (DSS) budget, the funding is distributed to CSAC through a Memorandum of Understanding (MOU) that outlines program operations; CSAC then directs money to students pursuant to the requirements of the MOU. Current or former foster youth qualify for the Chafee if they are 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; the average awarded grant in 2014-15 was $3,251. The program serves about 2,228 students. The 2016 Budget Act includes an additional $3 million for the Chafee ETV. Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0004767 AB 2506 Page 4