BILL ANALYSIS Ó AB 402 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 402 (Skinner) - As Amended: April 26, 2011 Policy Committee: Education Vote:7-2 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill authorizes a school district and county office of education (COE) to incorporate CalFresh program information into the School Lunch (SL) program application. Specifically, this bill: 1)Requires the following information be incorporated into the SL program application (at the option of the district or to the extent necessary to implement the CalFresh program): pupil eligibility; parental consent regarding forwarding any eligibility information to the agency that administers the CalFresh program; information about the CalFresh program; notification that SL program information is confidential (unless authorized by the parent); and notification that SL program information will only be used by CalFresh state and local agencies, as specified. 2)Authorizes districts and COEs to implement a process to share information provided on the SL program application with the local agency that determines CalFresh program eligibility. 3)Requires each county to use information shared from the SL program application to determine CalFresh program eligibility and enroll eligible children in the CalFresh program, upon receipt of a signed application. 4)Requires the county to notify the parent/guardian that his or her family is eligible for the CalFresh program, if the county determines eligibility from the SL program application. 5)Requires the county to contact the parent/guardian of a child to seek additional information regarding eligibility, if the AB 402 Page 2 county is unable to determine eligibility in the CalFresh program from the SL application, as specified. 6)Requires each county to request information from a parent/guardian that will ensure sustained participation in the CalFresh program. This measure also requires the county to deny or discontinue CalFresh program benefits if the parent/guardian does not provide this information. FISCAL EFFECT 1)One-time GF/98 cost pressure, likely between $250,000 and $500,000, to school districts and COEs to revise the SL program application, as specified. There were 1,021 districts and COEs in the state in 2009-10. If this process leads to increase eligibility in the CalFresh program, the state will receive an increase in federal funds to implement this program. 2)The 2010 Budget Act allocated approximately $1.29 billion for the SL program. Of this amount, approximately $1.2 billion is federal funding and $93.8 million is GF/98. COMMENTS 1)Background . The CalFresh program, formerly known as Food Stamps, provides food to low-income individuals with a maximum gross income of 130% of federal poverty level ($28,665 for a family of four) and a net income of 100% of federal poverty guidelines, as specified. The cost of this program is borne entirely by the federal government. Associated administrative costs are shared between the federal government (50%), the state (35%), and the counties (15%). Existing law requires all public school districts and COEs to make available, free or at a reduced price, one nutritionally adequate meal to each needy student every school day. A needy student is one who qualifies for free or reduced price meals, according to specified family size and income standards. 2)Rationale . The United States Department of Agriculture studies reveal that only 50% of eligible Californians receive CalFresh. According to the author, "Although 3.4 million children are now eligible for school meal programs, a large number of these children and their families are not participating in CalFresh. California loses nearly $5 billion AB 402 Page 3 in federal food benefits and $1.7 billion in generated economic activity due to low CalFresh participation rates. AB 402 allows school districts to use their school meal application as a tool to increase CalFresh participation by sharing information with local social services agencies." 3)Existing law authorizes school districts and COEs to establish a process to share information provided under the SL program application with the local entity that determines eligibility under the Medi-Cal program. This bill attempts to establish a similar process between districts and COEs for the CalFresh program, as specified. 4)The SL program is a federally funded reimbursement program that assists schools and other agencies in providing nutritious lunches to children at reasonable prices. The program is required to available to all enrolled children. Free or reduced price meals must be provided to those children who qualify for such benefits according to specified family size and income standards. According to the State Department of Education, 580.8 million school lunches were served in 2009-10. Of the number, 390 million meals were free and 70.2 million meals were a reduced price. Approximately 1,000 school districts, COEs, and charter schools participated in SL program during this time period. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081