BILL ANALYSIS AB 434 Page 1 Date of Hearing: April 22, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 434 (Block) - As Introduced: February 24, 2009 Policy Committee: Education Vote:10-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill, for the 2009-10 and 2010-11 fiscal years (FYs) only, reduces the local match requirement for the After School Safety and Education (ASES) program from one-third to 15% of the local agency's grant amount, as specified. Specifically, this bill: Requires the cost of a program site supervisor to be considered direct services to pupils, provided that at least 85% of the site supervisor's time is spent at the program site. FISCAL EFFECT 1)By reducing the ASES program local match from one-third to 15%, there is the potential effect of serving fewer pupils and decreasing program quality. For example, if the 377 local education agencies (LEAs) that received funds in 2008-09 were to lower their match to 15% for two FYs as proposed by this measure, there would be $95 million less in matching funds statewide for ASES programs. Reduced local program funding will lead to GF/98 cost pressure to increase the amount allocated for the ASES program to maintain existing service and/or quality levels. 2)The 2009 Budget Act allocates $547 million GF/98 for the ASES program. According to the State Department of Education (SDE), 377 LEAs received ASES grants serving 3,800 schools in 2008-09. Community organizations (e.g., non-profits, etc.) and local governments may partner with a LEA to receive grants to operate ASES programs provided that the LEA is the fiscal agent for the program. AB 434 Page 2 COMMENTS 1)Purpose . The ASES program, as renamed and revised by Proposition 49 in 2002, funds the establishment of local before and after school education and enrichment programs. These programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe alternatives for students in kindergarten through ninth grade. Funding is designed to: (a) maintain existing before and after school program funding and (b) provide eligibility to all elementary and middle schools that submit quality applications throughout California. According to the SDE, over 300,000 pupils were served by ASES programs in 2007-08. Since the establishment of a state after school program in 1998, LEAs and their community partners have been required to contribute a local match in addition to the state's grant award. The rationale for the match requirement was that in order for a local program to be successful LEAs should seek support from the community, such as business, law enforcement, etc, to aid in building and maintaining the program. Current law requires the local match to be not less than one-third of the total grant from the LEA. It further specifies that facilities or space usage may fulfill no more than 25% of the required local contribution. Maximum grant awards are $112,500 per year for elementary schools and $150,000 per year for middle or junior high schools based on a per pupil amount of $7.50 per day. ASES programs are required to begin immediately after school and continue until at least 6 pm. According to the author, "With the current economic crisis facing the state at all levels, school districts are not able to secure and/or provide the necessary matching funds to draw down this important funding for after school programs. This bill would temporarily reduce, over the next two fiscal years, the matching funds by nearly half. This would allow LEAs and local governments to continue providing homework help, tutoring, mentoring, time for organized physical activities, and play time in a safe environment." AB 434 Page 3 2)Existing law requires an ASES provider to spend 85% of its grant award on direct services to pupils and authorizes no more than 15% of funds to be spent on administrative costs. This bill specifies that the cost of a program site supervisor shall be considered direct services provided that at least 85% of the site supervisor's time is spent at the program site. The term "direct services" is not defined in statute or regulations. When SDE initiated ASES program reviews two years ago, the issue of whether or not to count the site supervisor's salary as direct or administrative costs was in question. In most cases, the majority of an ASES site supervisor's work is managing the program; therefore, the bulk of his or her time is spent at the program site, which would qualify as a direct service expenditure. The site supervisor's remaining time may be spent at the LEA's main office conducting administrative duties. This bill clarifies this issue. 3)Proportionate reduction to local facility match . This measure proposes to reduce the total local match from one-third to 15%. Current law specifies that facilities or space usage may fulfill no more than 25% of the required local contribution (i.e., the one-third). While this bill proposes to reduce the local match, it does not reduce the 25% requirement that facilities may count toward the local match. The committee may wish to consider amending this bill to reduce the facility percentage of the local match in proportion to the overall match reduction. 4)Proposition 49, approved by the voters in 2002, expanded existing before and after school programs and renamed them the ASES program. Proposition 49 has the effect of requiring the state to add approximately $428 million annually for before and after school programs. As a result of the initiative, state funding for after school programs is continuously appropriated and no longer requires approval by the Legislature as part of the annual Budget Act. The amount of additional funding pursuant to Proposition 49 will be added to the Proposition 98 base in future years. ASES, as modified by Proposition 49, has two main goals: keeping students safe after school and improving student academic outcomes. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) AB 434 Page 4 319-2081