BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 434
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          Date of Hearing:   April 22, 2009

                                Kevin De Leon, Chair

                 AB 434 (Block) - As Introduced:  February 24, 2009 

          Policy Committee:                              Education  

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No


          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.  


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           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." 


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           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  

           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)  


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