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Student Tuition Recovery Fund: claims down this quarter; STRF paid $1.35 million and May revise proposes $2.7 million transfer to STRF
Summary
STRF staff reported fewer claims in the quarter, a shift toward electronic submissions, 79 claims paid totaling $1,351,734.33, and about $1.0 million pending at the State Controller; DCA budget staff outlined a May revise request to shift roughly $2.7 million of BPPE administrative appropriations to STRF to address a structural shortfall.
The bureau's Student Tuition Recovery Fund (STRF) unit and the Office of Student Assistance and Relief (OSAR) briefed the advisory committee on outreach, claims processing and a budget proposal included in the governor's May revise.
Yvette Johnson, STRF chief, said STRF received fewer claims in the quarter and that the bureau continues to receive a larger share of claims filed electronically via Connect rather than on paper. Johnson reported the STRF unit paid 79 claims totaling $1,351,734.33 in the quarter and that 75 claims valued at more than $1 million were pending at the State Controller's Office for payment. Johnson also said the unit's queue decreased from 565 claims to 432 and that analysts had 89 active claims under review at quarter end.
Brian Vest, manager of the Office of Student Assistance and Relief, described proactive outreach to students through community events and reported a jump in students contacted during the quarter (from 844 to 1,801 attendees at outreach events) driven by larger events such as college expos. Vest said OSAR conducts targeted outreach after school closures when student rosters are available; in the quarter staff were able to reach 309 students affected by six closures, including 199 students from a Fashion Institute of Design and Merchandising closure.
Nicole Dragoon, DCA budget manager, briefed the committee on the governor's May revise: the bureau requested trailer bill language to shift approximately $2.7 million of appropriation for STRF administration and OSAR from the Bureau Administration Fund to the Student Tuition Recovery Fund. The bureau said the transfer would reduce a structural deficit and keep the bureau's administrative fund solvent through fiscal year 2026-27 ahead of the bureau's sunset review. Dragoon said the proposal was presented to the Senate Subcommittee on Education and was being held open by the legislature at the time of the meeting.
Committee members and two public commenters expressed support for budget action to shore up bureau operations and student protections.
