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 8, 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
            California Alliance of Boys & Girls Clubs
            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










                                                                  AB 434
                                                                  Page 5



            Greater San Jose After-School All-Stars
            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