Revamped Program Is Estimated to Cost $2.6 Billion at Full Implementation. CSAC has also updated the state’s cost estimate for the revamped Middle Class Scholarship program, using more detailed student?level data on cost of attendance and resources than was available when the 2021?22 budget was enacted. Based on the updated estimates, it would cost $2.6 billion to cover 100 percent of each student’s remaining costs after accounting for other available gift aid, a student work contribution, and any applicable parent contribution. (This estimated cost is only slightly less than the $2.8 billion that the state is projected to spend on Cal Grants in 2022?23.)

Governor’s Budget Partially Funds Revamped Program. In accordance with the 2021?22 budget agreement, the Governor’s budget provides an augmentation of $515 million ongoing General Fund for the revamped Middle Class Scholarship program. This is enough to cover an estimated 24 percent of total program costs (with each student’s award direct payday loans Gadsden, TN adjusted accordingly). Our Middle Class Scholarship Program table compares projected recipients, spending, and award amounts under the revamped program in 2022?23, compared to under the original program in 2020?21 and 2021?22.

New Positions

Below, we provide background on CSAC staffing, describe the Governor’s proposal to add new positions to implement program expansions, assess that proposal, and provide an associated recommendation.

Background

CSAC Has About 140 Authorized Positions Across Several Divisions. In 2021?22, CSAC has 137.5 authorized ongoing positions, as well as 2.2 temporary positions. These positions span seven divisions, the largest of which are program administration and services, information technology (IT), fiscal and administrative services, and the executive division. As of January, CSAC reports that 22.5 positions (16 percent) were vacant, with the IT division accounting for 40 percent of the vacancies. CSAC indicates the majority of its vacant positions have been unfilled for less than three months and it is actively recruiting to fill them.

2021?22 Budget Did Not Increase Staffing to Implement Program Expansions. Although the 2021?22 budget enacted major expansions to the Cal Grant and Middle Class Scholarship programs (described in the Overview section of this brief), the budget did not provide any additional funding or positions for CSAC to administer these programs. CSAC also has not yet received any funding or positions associated with the new financial aid application requirement for high school seniors, which is scheduled to take effect in 2022?23.

CSAC Has Received Funding to Administer One?Time Initiatives. Trailer legislation to the 2021?22 budget authorized CSAC to use between 0.5 percent to 1.5 percent of the funds allocated for its various one?time initiatives to undertake associated administrative activities. These one?time carve?outs total $7.5 million for the Golden State Teacher Grant Program, with funds available through ; $5 million for the Golden State Education and Training Grant Program, with the bulk of these funds available through ; and $1 million for the Learning?Aligned Employment Program, with funds available through June 30, 2031. Under the Governor’s budget, CSAC would receive an additional $1.5 million in 2022?23 for administration of the Learning?Aligned Employment Program, with these funds also available through June 30, 2031. Regarding position authority, CSAC previously received four positions to administer the Golden State Teacher Grant Program when the initiative first launched in 2020?21. To date, CSAC has not received additional position authority to administer the other two initiatives. (Without additional position authority, CSAC would likely need to rely on limited?term positions or redirect some of its existing positions for these purposes until the initiatives expire.)

Proposals

Governor Proposes Five Positions to Implement Program Expansions. The Governor’s budget provides $479,000 ongoing General Fund and five positions for CSAC to implement the program expansions enacted last year. The five proposed positions consist of: