May 2017

Financial Aid

Summary of Financial Aid Recommendations

Program May Revision Proposal LAO Recommendation
Cal Grants    
Participation

Decreases by $56 million in 2015-16, increase by $33 million in 2016-17, and increase by $72 million in 2017-18.

 Adopt. Conforms with updated participation estimates.
Awards for students at UC and CSU

Increases by $49 million ($21 million UC and $28 million CSU).

 Adopt. Conforms with UC and CSU tuition increases. 
Awards for students at private, nonprofit schoolsa

Provides $8 million to maintain award at $9,084 (rather than reducing to $8,056 as previously scheduled). Links the $1,028 difference in award amount to three conditions (enrolling more low-income students, enrolling more transfer students, and offering more online courses). 

 Modify. Adopt funding level but reject conditions without prejudice. Could consider any new conditions as part of developing a statutory policy on private, nonprofit awards. 
Cal Grant B supplement from College Access Tax Credit Fund 

Decreases by $5.6 million (reducing the award supplement from $49 to $24).

 Adopt. Conforms with updated estimates of available resources.
Initial offers for competitive awards  Provides CSAC authority to make 35,000 initial award offers in 2017-18 but continues to fund 25,750 new awards. Reject. Does not address root issue.
Other    
Middle Class Scholarships Decreases by $4.5 million in 2015-16. Decreases by $10 million in 2017-18.  Adopt. Conforms with updated participation estimates.
Grant Delivery System Modernization Project Provides $546,000. Adopt. Allows CSAC to continue IT project planning.
Temporary Assistance for Needy Families (TANF) Increases federal TANF support by $194 million, with a corresponding decrease in General Fund support of that amount.  Adopt. Reflects fund swap and has no programmatic effect. 
Other financial aid programsb Adjusts for changes in participation and award amounts. Adopt. Conforms with updated estimates.
     
a Also applies to for-profit institutions that are accredited by the Western Association of Schools and Colleges.
b Applies to Assumption Program of Loans for Education (APLE), State Nursing Assumption Program of Loans for Education (SNAPLE), Child Development Teacher and Supervisor Grant Program, John R. Justice Loan Assumption Program, and Law Enforcement Personnel Dependent Grant Program.
CSAC = California Student Aid Commission and IT = information technology.