California Briefs: Financial Aid Extended to Community College Students Without Diplomas; Fast-Food Minimum Wage Hike Seen as Triple Win

California Community College Students Without a High School Diploma Now Eligible for Federal Financial Aid

SACRAMENTO — Gov. Newsom announced today that California Community Colleges were successfully approved by the U.S. Department of Education to enable students without a high school diploma – or the equivalent – to access Title IV financial aid. California Community College’s successful application to participate in the Ability to Benefit (ATB) program means that the four million Californians without a high school diploma will now qualify to access federal financial aid to attend college classes – increasing opportunity and access to higher education, training, and jobs across the state.

Students participating in the ATB process will also have support for their education goals, and access to counseling and academic support, including math and writing workshops, tutoring services, accessibility services, and more.

In California, 19 percent of adults over 25 do not have a high school degree, as compared to 14 percent for the rest of the country. Education is statistically tied to earning potential, and today’s announcement will help ensure that more Californians are able to access higher-paying jobs by taking community college classes without massive debt. Previously, students without a high school diploma seeking to qualify for an ATB exception had to complete six credits of college classes or pass a qualifying exam to access federal financial aid. The new state process allows these students to meet a streamlined set of criteria instead, simplifying the process to get more aid to more students. 

California’s $20 Fast-Food Minimum Wage Is a Win-Win-Win, Research Says

SACRAMENTO —  A new study published by UC Berkeley’s Institute for Research and Labor Employment confirmed that California’s $20 minimum wage for fast-food workers has led to significant benefits for workers, without the devastating consequences that critics predicted. The study found that while wages have risen substantially, there has been no reduction in employment in the fast-food sector.

Below are some key takeaways from the research:

Wages increased by 18%: For 90% of non-managerial workers, wages increased by 18%, representing a meaningful bump for workers who have historically been underpaid despite many being the primary breadwinners in their families.

No job cuts: the wage increase did not lead to job cuts, despite what critics had said would be a doomsday for the industry.

Profit margins were already high – the industry had been benefiting from “​​monopsonistic (higher than competitive) profit margins” which have “absorbed a substantial share of the cost increase.”

15 cents: The cost of menu options rose by only 3.7%, which is roughly just 15 cents for a typical $4 hamburger.