AB 94 — Education finance: higher education.

Summary

(1) Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. Under existing law, the commission, among other things, administers the Cal Grant Program, the Student Opportunity and Access Program, the Assumption Program of Loans for Education, the Graduate Assumption Program of Loans for Education, the Public Interest Attorney Loan Repayment Program, and the California State Work-Study Program. The commission also oversees the state's participation in the Federal Family Education Loan Program. This bill would authorize the commission to enter into an agreement with a public agency of a state other than California, or a private entity related to an agency of another state, to assist the other agency or entity in implementing financial aid programs, including assistance with processing grants, fellowships, and loans through the use of automated information systems. The bill would create a Financial Aid Technical Assistance Fund, and would make moneys in the fund available to the commission, upon appropriation by the Legislature, for purposes of the bill. The bill would require the commission to establish fees for services provided under the bill, and would require that the fees be deposited in the fund. The bill would authorize the use of residual moneys in the fund for improvement of financial aid services for California. The bill would require the commission, beginning October 1, 2014, to submit an annual report, as prescribed, to the Department of Finance and the Joint Legislative Budget Committee detailing the total revenues collected in the fund, by service provided and applicable fee collected, and the use of the moneys in the fund. (2) Existing law provides for a public postsecondary education system in this state. This system consists of the University of California, the California State University, and the California Community Colleges. Existing law authorizes these institutions to require that mandatory systemwide fees and tuition, among other fees, be paid by students at these institutions. This bill would establish the Middle Class Scholarship Program under the administration of the Student Aid Commission. The bill would provide that, subject to an available and sufficient appropriation, commencing with the 2014–15 academic year, undergraduate students enrolled at the University of California or the California State University would receive a scholarship award that, combined with other publicly funded student financial aid, as defined, received by an eligible student, would be up to 40% of the amount charged to that student for mandatory systemwide tuition in that fiscal year if the student meets the following conditions: has an annual household income that does not exceed $150,000; satisfies specified requirements for a Cal Grant award; is a resident of this state or exempt from paying nonresident tuition; files specified financial aid forms; makes timely application or applications for publicly funded student financial aid, as defined, for which he or she is eligible; and maintains at least a 2.0 grade point average. The bill would provide that a student whose annual household income exceeds $100,000, but does not exceed $150,000, and who otherwise meets the program requirements, would receive a scholarship award that is reduced in accordance with prescribed calculations. The bill would require, in order for students enrolled in their respective segments to remain eligible to receive financial aid under the bill, that the University of California and the California State University maintain their respective institutional need-based grant program policies and maintain their funding amounts at a level that, at a minimum, is equal to the level maintained during the 2013–14 academic year. The bill would require the Student Aid Commission to annually determine if the amounts appropriated under the bill in each fiscal year are sufficient to cover the costs of the scholarships as projected to be awarded pursuant to the program. The bill would require, if those amounts are not sufficient for this purpose, that the scholarships be reduced proportionately by an equal percentage for all recipients of scholarships under the bill. The bill would establish the Middle Class Scholarship Fund, and would specify amounts to be transferred, upon the order of the Director of Finance, from the General Fund to the Middle Class Scholarship Fund for annual appropriation to the Student Aid Commission for allocation for purposes of the bill. The bill, beginning with the 2014–15 fiscal year, would require the Department of Finance to include in the Governor's Budget proposal a fund condition statement for the Middle Class Scholarship Fund for the fiscal year of the proposed budget and the 2 immediately preceding fiscal years. (3) Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. This bill would require the California State University to report biennially to the Legislature and the Department of Finance, beginning on or before October 1, 2014, and on or before October 1 of each even-numbered year through 2020, on the total costs of education at the university on a systemwide and campus-by-campus basis, as specified. This bill, commencing with the 2013–14 academic year, would require the California State University to report, by March 1 of each year, on specified performance measures, including various calculations of graduation rates and amounts spent per degree, for the preceding academic year. This bill would require the contributions of the California State University to the Public Employees' Retirement Fund to be based on pensionable compensation and the rates set forth in the annual Budget Act and to be paid out of the total appropriation of the university in the annual Budget Act. The bill would specify that, beginning in the 2013–14 fiscal year and each fiscal year thereafter, annual adjustments to the appropriation for the pension contributions of the California State University would be based on the university's pensionable payroll for the 2013–14 fiscal year, as identified by the Controller's office. This bill would authorize the Director of Finance to defer payment of General Fund moneys, in a cumulative amount not to exceed $250,000,000 annually, appropriated to the California State University in the annual Budget Act, for payment in May or June of the same fiscal year for which the original payment would have been made. (4) Existing law creates the University of California, administered by the Regents of the University of California, as one of the segments of public postsecondary education in the state. The University of California operates campuses at Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz. Existing law authorizes the University of California to issue revenue bonds, secured by a specified pledge of revenues. This bill would authorize the University of California to pledge its annual General Fund support appropriation, less certain amounts, to secure the payment of its general revenue bonds or commercial paper associated with the general revenue bond program. The bill would authorize the university to fund debt service for capital expenditures, as defined, from its General Fund support appropriation, as specified. The bill would provide that these provisions do not require the Legislature to make an appropriation from the General Fund to the university in any specific amount. The bill would also authorize the university to fund pay-as-you-go capital outlay projects from its General Fund support appropriation, as specified. This bill would require the University of California, if it is able to reduce annual debt service costs by refunding, defeasing, or retiring general obligation bonds or State Public Works Board lease revenue bonds pursuant to these provisions, to annually contribute an equal amount to reduce the existing unfunded liability of the University of California Retirement Plan. This bill would require the University of California to report to the Joint Legislative Budget Committee and the Department of Finance if it plans to use any of its support appropriation for capital outlay projects in each fiscal year, as specified. The bill would require the committee and the department to review the report by specified dates, and would authorize the department to approve capital outlay projects pursuant to specified procedures. The bill would also require the university to submit a progress report by April 1 of each year to the committee and the department detailing the scope and funding of each project. The bill would require the university to manage its general revenue bond program so that not more than 15% of its General Fund support appropriation, less a prescribed amount, is used for the total of the following: debt service for specified capital expenditures, pay-as-you-go capital outlay, and State Public Works Board rental payments. This bill would require the University of California to report biennially to the Legislature and the Department of Finance, beginning on or before October 1, 2014, and on or before October 1 of each even-numbered year through 2020, on the total costs of education at the university on a systemwide and campus-by-campus basis, as specified. This bill, commencing with the 2013–14 academic year, would require the University of California to report, by March 1 of each year, on specified performance measures, including various calculations of graduation rates and amounts spent per degree, for the preceding academic year. This bill would appropriate $375,000 from the 1996 Higher Education Capital Outlay Bond Fund to the University of California for the purpose of funding the equipment phase of the Science and Engineering Building at the Merced campus, as specified, during the 2013–14 fiscal year, with the appropriation available for encumbrance until June 30, 2016, subject to the enactment of a resolution by the Regents of the University of California requiring the payment of prevailing wage rates by the contractors and subcontractors working on this project, and all other capital outlay projects undertaken by the University of California that are funded using nonstate funds or are otherwise not financed with the funds appropriated for this project, during the 2013–14 fiscal year. This bill would require the University of California to allocate and encumber from a specified appropriation the amount necessary to pay in full all amounts that are reasonably anticipated to become due and payable during the 2013–14 fiscal year for lease revenue and general obligation bond debt service. The bill would require the Controller to transfer funds from the specified appropriation in accordance with specified schedules. This bill would allocate $15,000,000 from a specified appropriation in the Budget Act of 2013 to the Regents of the University of California for the School of Medicine at the University of California, Riverside, for specified purposes. The bill would require, on or before April 1 of each year, the University of California to provide progress reports and specified information consistent with the published mission and vision of the University of California, Riverside, School of Medicine to the relevant policy and fiscal committees of the Legislature pertaining to funding, recruitment, hiring, and outcomes for the University of California, Riverside, School of Medicine. The bill would declare that the absence of language in the Budget Act of 2013 specifying that the University of California and the Hastings College of the Law shall use budgeted funds for retirement costs is not an indication of legislative support for, or acceptance of, increased retirement costs being paid for by employees of the University of California and the Hastings College of the Law. (5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 07/01/13 - Chaptered Current pdf July 01, 2013
• Enrolled 06/28/13 - Enrolled pdf June 28, 2013
• Amended 06/13/13 - Amended Senate pdf June 13, 2013
• Introduced 01/10/13 - Introduced pdf January 10, 2013
• AB94 View text html

Action History

1. July 01, 2013

   Chaptered by Secretary of State - Chapter 50, Statutes of 2013.

2. July 01, 2013

   Approved by the Governor.

3. June 18, 2013

   Enrolled and presented to the Governor at 4:15 p.m.

4. June 15, 2013

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 65. Noes 9. Page 2047.).

5. June 15, 2013

   Assembly Rule 63 suspended. (Ayes 53. Noes 24. Page 2045.)

6. June 15, 2013

   Assembly Rule 77 suspended. (Ayes 53. Noes 24. Page 2045.)

7. June 15, 2013

   Measure version as amended on June 13 corrected.

8. June 15, 2013

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 17 pursuant to Assembly Rule 77.

9. June 15, 2013

   Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 1385.).

10. June 14, 2013

    Joint Rule 10.5 suspended. (Ayes 28. Noes 10. Page 1363.)

11. June 14, 2013

    (Ayes 24. Noes 6. Page 1361.)

12. June 14, 2013

    Ordered to third reading.

13. June 14, 2013

    Withdrawn from committee.

14. June 13, 2013

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.

15. May 23, 2013

    Referred to Com. on RLS.

16. May 13, 2013

    In Senate. Read first time. To Com. on RLS. for assignment.

17. May 13, 2013

    Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 24. Page 1399.)

18. May 09, 2013

    (Ayes 53. Noes 22. Page 1314.)

19. May 09, 2013

    Read second time. Ordered to third reading.

20. May 09, 2013

    Assembly Rule 63 suspended. (Ayes 53. Noes 22. Page 1313.)

21. May 09, 2013

    Ordered to second reading.

22. May 09, 2013

    (Ayes 53. Noes 22. Page 1312.)

23. May 09, 2013

    Withdrawn from committee.

24. March 14, 2013

    Referred to Com. on BUDGET.

25. January 11, 2013

    From printer. May be heard in committee February 10.

26. January 10, 2013

    Read first time. To print.

Sponsors

• Committee on Budget · Primary

Votes

Subjects