This requirement is expected to increase applicants for CSAC’s financial aid programs, as well as demand for CSAC’s outreach programsedit
2021?22 Trailer Legislation Created New Financial Aid Application Requirement. Currently, just over half of high seniors attending California public schools complete a Free Application for Federal Student Aid (FAFSA) or California Dream Act Application (CADAA). The 2021?22 budget package included trailer legislation creating a new requirement beginning in 2022?23 for school districts to verify that all high school seniors complete a FAFSA or CADAA form, unless the student submits an opt?out form or receives an exemption from the district. Districts will also be required to direct students to relevant support services, including programs operated by CSAC, college readiness organizations, and immigration resource centers, among others.
Overview of 2022?23 Budget
Governor Proposes $3.9 Billion for CSAC in 2022?23. As Figure 3 shows, CSAC funding increases $282 million (8 percent) over the revised 2021?22 level. The two main fund sources for CSAC are state General Fund and federal Temporary Assistance for Needy Families (TANF). In 2022?23, state General Fund would comprise 89 percent of CSAC funding and federal TANF would comprise 10 percent. The remainder would come from various sources, including reimbursements from other departments.
a Includes Assumption Program of Loans for Education, California Military Department GI Bill Awards, Cash for College, Chafee Foster Youth Program, John R. Justice Program, Law Enforcement Personnel Dependents Scholarships, State Nursing Assumption fast auto and payday loans Erin TN Program of Loans for Education for Nursing Faculty, and Student Opportunity and Access Program.
Majority of New Spending Is Tied to Last Year’s Budget Agreement. Figure 4 shows the ongoing and one?time spending changes proposed for CSAC. The largest ongoing change (the Middle Class Scholarship revamp) and the two largest one?time changes (continued funding for the Learning?Aligned Employment and Golden State Teacher Grant programs) all were included in the 2021?22 budget agreement. In addition to these previously planned changes, the Governor’s budget makes caseload adjustments to Cal Grants and other financial aid programs, as well as includes small augmentations related to implementing last year’s program expansions.
c The 2021?22 Budget Act appropriated $500 million for this purpose. The budget act included language specifying that no more than $100 million was to be spent annually from 2021?22 through 2025?26. Amount shown reflects anticipated spending in year two.
Below, we provide an update on cost estimates for the Cal Grant and Middle Class Scholarship programs under the Governor’s budget.
Governor’s Budget Adjusts 2021?22 Cal Grant Spending Estimates Downward. The revised current?year spending level is $44 million below the level enacted in the 2021?22 Budget Act. The revision reflects the most recent Cal Grant caseload estimates, which CSAC prepared in . The most notable change since budget enactment is a decrease in the estimated cost of expanding entitlement awards for CCC students, due to revised assumptions about the number of recipients. CSAC began making offers and issuing payments for these awards in late fall. As more data becomes available on paid awards, CSAC will further refine its caseload estimates. The administration, in turn, is expected to update the spending level for these and all other Cal Grant awards at the data.
Governor’s Budget Reflects Projected Increase in Cal Grant Spending in 2022?23. From the revised 2021?22 spending level, the Governor’s budget provides a $188 million (7 percent) ?23 to align with projected cost increases. We summarize the projected changes by segment and award type in our Cal Grant Spending and Cal Grant Recipients tables. The most notable factor driving the cost increase in 2022?23 is the continued implementation of the CCC entitlement expansion. The cost of the CCC entitlement awards are projected to increase significantly as the first cohort of recipients (from 2021?22) renews their awards. In addition, some of these recipients are expected to transfer to CSU or UC, where award amounts are larger. Another factor contributing to the Cal Grant cost increase in 2022?23 is higher tuition award amounts at UC, where the Board of Regents has adopted a plan to raise systemwide charges for new resident undergraduates from $12,570 to $13,104 in 2022?23. As with its 2021?22 spending estimates, the administration is expected to update its 2022?23 spending projections at the data.