The California Postsecondary Education Commission (CPEC), the Association of Independent California Colleges and Universities (AICCU) and all three California public higher education segments are continuing to working hard on a proposal that would offer a new approach to administering the Cal Grant program. The primary purpose of this inter-segmental proposal is to simplify the financial aid process for all students.

The proposal presented for consideration to the state budget conference committee would:

• Streamline the process for students and parents in leveraging all financial aid dollars at a one stop shop;
• Reduce administrative duplication for the higher education segments and the California Student Aid Commission (CSAC);
• Maintain the Competitive Grants program by refocusing it exclusively on community college students; and
• Reduce state costs for the total Cal Grant budget by approximately $30 million without reducing access to Cal Grants.

The Entitlement award programs would be administered at the campus level including the final disbursement of funds to students and assurance of payment to CSAC. The competitive grants program would be focused entirely on community college students for their two years of work to transfer to a four-year university or preparation for the workforce.

The proposal makes no fundamental changes to financial aid policy, unlike the Administration’s budget proposal to eliminate the program, while still saving $30 million given the lower costs for students at the community colleges for their first two years.

CSAC would remain the primary source of maintenance on the program which would include functions such as collecting GPA information, tracking student eligibility, tracking student payment and having the overall policy, research and audit functions and responsibilities.

The budget conference committee did not take any action on the issue during it hearings but the coalition working to support the decentralization proposal continue to push the idea as a solution to duplication and cost savings for the systems and the state.

For more information please read the full proposal, or the following two testimonies regarding the proposal:
Robert Oakes, AICCU President, Testimony for CA Senate Education Committee Coalition Letter to the Legislative Leadership – February 20, 2009