BILL ANALYSIS SENATE COMMITTEE ON EDUCATION Gloria Romero, Chair 2009-2010 Regular Session BILL NO: AB 434 AUTHOR: Block AMENDED: June 1, 2009 FISCAL COMM: Yes HEARING DATE: July 1, 2009 URGENCY: No CONSULTANT: Lynn Lorber SUBJECT : Before and after school programs: level of local match. SUMMARY This bill temporarily reduces, from 33% to 15%, the local match requirement for After School Education and Safety before and after school programs, and establishes that the costs of the site supervisor are to be included in direct costs, as specified. BACKGROUND 1) Proposition 49, passed in 2002, expanded before and after school opportunities and funding, and renamed the existing program as the After School Education and Safety (ASES) program. The ASES program provides state funding to local before and after school programs, which are administered through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for pupils in kindergarten through ninth grade. 2) Requires ASES before and after school programs to provide a cash or in-kind local match of at least 33% of the total grant amount. 3) Limits the use of facilities or space usage for the fulfillment of the local contribution at 25% of the required local match. AB 434 Page 2 4) Requires ASES programs to ensure that at least 85% of funding is allocated to schoolsites for direct services to pupils. The 2009 Budget Act allocates $547 million General Fund (Prop 98) for the ASES program. Proposition 49 requires state funding for after school programs to be continuously appropriated, thereby no longer requiring approval by the Legislature as part of the annual Budget Act. ASES funding is not subject to categorical flexibility or associated funding reductions. The amount of additional funding pursuant to Proposition 49 is added to the Proposition 98 base in future years. ANALYSIS This bill temporarily reduces, from 33% to 15%, the local match requirement for After School Education and Safety (ASES) before and after school programs, and establishes that the costs of the site supervisor is to be included in direct costs. Specifically, this bill: 1) Reduces, only for the 2009-10 and 2010-11 fiscal years, the required local match from 33% to 15% of the total grant amount. 2) Reduces, from 25% to 15% of the total grant amount, the portion of the local match that may be fulfilled by the use of facilities or space usage. 3) Provides that the cost of a program site supervisor is to be included as direct services, provided that at least 85% of the site supervisor's time is spent at the program site. STAFF COMMENTS 1) Level of local match . Staff understands that the California Department of Education (CDE) has been unofficially notified by some After School Education AB 434 Page 3 and Safety (ASES) providers that they may close programs because they can no longer meet the local match requirements (the poor economy has reportedly hampered local fundraising efforts). 2) Direct services . Current law requires an ASES provider to spend 85% of the funds on direct services to pupils and authorizes no more than 15% of funds on administrative costs. This bill specifies that the cost of a program site supervisor shall be considered direct services as long as at least 85% of the site supervisor's time is spent at the program site. According to the California Department of Education (CDE), "direct services" is not defined. The majority of the site supervisor's work is typically on managing the program and the bulk of his/her time is spent at the program site, which the CDE considers direct services. The remaining time may be spent at the district office conducting administrative duties. The CDE indicates that without clarification, it must require site supervisors to account for every minute of their time. 3) Technical amendments needed . This bill temporarily reduces the required local match but the reduction in the portion of the local match that may be fulfilled by the use of facilities or space usage was not made temporary. The intent is to make both reductions temporary and specific only to the 2009-10 and 2010-11 fiscal years. Additionally, the section of this bill affecting before school programs strikes reference to the current local match of 33%. Language should be reinstated to provide for the return to a required local match of 33% beginning in the 2011-12 fiscal year. Staff recommends amendments to make these changes. 4) Fiscal impact . According to the Assembly Appropriations Committee analysis, reducing the ASES program local match could have the effect of serving AB 434 Page 4 fewer pupils and decreasing program quality. For example, if the 377 local education agencies that received funds in 2008-09 were to lower their match to 15% for two fiscal years 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 General Fund (Prop 98) cost pressure to increase the amount allocated for the ASES program to maintain existing service and/or quality levels. 5) Related legislation . AB 983 (Skinner) authorizes providers of After School Education and Safety before and after school programs to operate on weekends in addition to weekdays, using existing grant funds. AB 983 is scheduled for hearing in the Committee on July 1, 2009. SUPPORT After-School All Stars, Los Angeles American Federation of State, County and Municipal Employees ASPIRE After School Program A World Fit for Kids Bancroft Middle School Boy & Girls Clubs of Carson Boy & Girls Clubs of East Los Angeles Boy & Girls Clubs of Garden Grove Boy & Girls Club of Hollywood Boy & Girls Clubs of Long Beach Boy & Girls Clubs of the Los Angeles Harbor Boy & Girls Club of Venice Camp Fire USA Long Beach Area Council Central Valley Afterschool Foundation Children's Initiative City of Fontana, Community Services Department Fight Crime: Invest in Kids Gang Alternatives Program/GAP Greater San Jose After-School All-Stars AB 434 Page 5 Hill Classical Middle School John Muir Academy LACER Afterschool Programs LA's BEST League of California Afterschool Providers Lodi Unified School District Bridge Program Long Beach Community Action Partnership Long Beach WRAP Madison WRAP Old Adobe Union School District Partnerships to Uplift Communities, PUC Schools Phoenix Accounting Corporation Project APPLE/REACH BUSD Rio Hondo Boys and Girls Club Rogers Middle School Saddleback Valley Unified School District San Diego After School Consortium Stevenson Elementary Watts/Willowbrook Boys & Girls Club William Cullen Bryant Elementary School OPPOSITION Department of Finance