7980 Student Aid Commission
Major Program Changes
  • The Budget proposes to shift $946.8 million of Cal Grant Program costs from the General Fund to the federal Temporary Assistance for Needy Families Program through a reimbursement from the Department of Social Services associated with CalWORKs reduction proposals.

  • The Budget proposes to shift $30 million of Cal Grant Program costs from the General Fund to the Student Loan Operating Fund.

  • The Budget proposes to decrease $1.2 million General Fund in 2010-11 and $842,000 General Fund in 2011-12 for the Commission to replace shared services formerly performed by EdFund. Instead, the Commission entered into an agreement with the successor guaranty agency, Educational Credit Management Corporation (ECMC), to assume the services. Therefore, the General Fund resources budgeted for these purposes are unnecessary.

  • The Budget proposes to eliminate all funding for EdFund for 2011-12. This reflects the U.S. Department of Education decision to terminate its designation of the Commission as the guaranty agency and transfer that designation to ECMC.