BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 434 (Block) Hearing Date: 08/27/2009 Amended: 07/15/2009 Consultant: Dan Troy Policy Vote: ED 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 434 would reduce the local match requirement for After School Education and Safety (ASES) programs from 33 percent to 15 percent for the 2009-10 and 2010-11 fiscal years. The bill would also provide that the costs of a site supervisor would be counted as direct services if 85 percent of a supervisor's time is spent at the site. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Reduced local match Cost pressure in the tens of millions General* to backfill loss of local resources * Counts toward meeting the Proposition 98 minimum funding guarantee _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Proposition 49 (2002) increased funding for before and after school programs and renamed them the After School Education and Safety (ASES) program. ASES programs are partnerships between school districts and local community resources and provide enriching before or after school activities for pupils from kindergarten through 9th grade. Approximately $547 million has been appropriated for ASES for the 2009-10 fiscal year. Programs receiving ASES funding are required to provide an amount of cash or in-kind local funds equal to at least one-third of the total grant from the school district, governmental agencies, community organizations, or the private sector. Also, programs must ensure that at least 85 percent of the grant funding is allocated to school sites for direct services for pupils. This bill would lower the local match requirement from 33 percent to 15 percent through the 2010-11 fiscal year. It would also provide that the costs relating to a site supervisor would be counted as direct services provided that the supervisor spent at least 85 percent of his or her time at the site. According to the author's office, it is difficult for some programs to obtain sufficient matching dollars in the current economic climate and temporarily lowering the threshold may help sustain services. Page 2 AB 434 (Block) Reducing the local match from 33 percent to 15 percent would result in a loss of approximately $82 million in resources. This could result in reduced services and/or pressure on the General Fund to backfill the loss.