7980 Student Aid Commission
Major Program Changes
  • The Budget proposes a reorganization that would consolidate the functions of the California Postsecondary Education Commission (CPEC) and the Commission and decentralize the administration of financial aid, including Cal Grants, to the higher education segments. The Budget anticipates a partial-year savings of $2 million assuming mid-year implementation of this proposal and is scored under a separate organization code. A new control section is proposed that would authorize the Director of Finance to shift funding from the existing appropriations for the CPEC and the Commission consistent with this reorganization.

  • The Budget proposes $87.5 million in reductions by eliminating new awards for the Cal Grant Competitive Program, partially decoupling Cal Grant awards from segment fee increases, reducing the Cal Grant award for independent and private institutions, and freezing Cal Grant income eligibility at 2008-09 levels.

  • The Budget proposes to shift $192.6 million Cal Grant costs from General Fund to the federal Temporary Assistance for Needy Families Program through a reimbursement from the Department of Social Services.

  • The Budget recognizes revised estimates of costs for Cal Grants in 2008-09 that project a potential shortfall of $62.6 million.