BILL ANALYSIS Ó AB 735 Page A Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Sandre Swanson, Chair AB 735 (Mitchell) - As Amended: April 11, 2011 SUBJECT : Interns and student assistants: hiring preference. SUMMARY : Establishes a hiring preference for state internships and student assistants for foster youth. Specifically, this bill : 1)Requires state agencies, when hiring for internships and student assistant positions, to give preference to qualified applicants who are, or have recently been, dependent children in foster care. 2)Requires county welfare departments to provide dependent children with information notifying them that they may be eligible for this hiring preference. FISCAL EFFECT : Unknown COMMENTS : According to the author, few groups are at greater risk for homelessness, poverty and school failure than California's foster youth. Only 50 percent of foster youth graduate from high school, compared with 75 percent of their peers who were not a part of the foster care system. In addition, the unemployment rate among former foster youth is staggering: 60 percent of former foster youth are unemployed at age 19 compared with 42 percent of their peers with no history of foster care. Background on the Employment Challenges Facing Foster/Former Foster Youth A 2008 study<1> by the U.S. Department of Health and Human Services highlighted some of the employment obstacles faced by former foster youth, obstacles that can have impacts on these individuals well into their 20s. Among other things, the report made the following findings: --------------------------- <1> "Coming of Age: Employment Outcomes for Youth Who Age Out of Foster Care Through Their Middle Twenties." U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation (2008). AB 735 Page B Youth who age out of foster care continue to experience poor employment outcomes at age 24. Compared to youth nationally and even youth from low-income families, they are less likely to be employed or employed regularly, and, not surprisingly, they earn very little. At age 24, average monthly earnings for youth who age out of foster care who worked are $690 in California, compared to $1,535 for youth nationally. Employment and earnings differences between youth who age out of foster care and youth from low-income families remain in California even when controlling for demographic factors. Overall about one-third to one-half of these youth follows a path that leads to relatively positive employment outcomes by age 24. At the same time, the other half to two-thirds of these youth exhibit patterns leading to poorer outcomes at age 24. Ages 16 to 18 are a period of significant employment activity for many youth aging out of foster care. Rapid increases in employment occur for consistently connected youth and initially connected youth between the ages of 16 and 18. Similarly, results show that employment prior to age 18 is associated with positive employment outcomes at age 24 for youth in California. This evidence suggests that helping youth connect to the workforce prior to adulthood may have benefits later. In addition, a recent study by researchers at Chapin Hall Center for Children at the University of Chicago<2> show that former foster youth lag far behind the average American youth in employment and economic success. In particular, the study found that: Only 51.5 percent of former foster youth were employed at age 21 compared to 63.9 percent of non-foster youth. 26.5 percent of the former foster youth did not have enough money to pay their rent - compared to only 8.6 percent of non-foster youth. -------------------------- <2> Courtney, M.E. & Dworsky, A. (2005). Midwest evaluation of the adult functioning of former foster youth: Outcomes at age 19. Chicago: Chapin Hall Center for Children. AB 735 Page C 8.3 percent of the former foster youth were evicted from their place of residence compared to only 1.4 percent of non-foster youth. Similar results were found in a University of Chicago 2002 study<3> of foster youth employment outcomes in three states, including California. Researchers found that youth aging out of foster care had very low levels of employment and earnings: Youth aging out of foster care are underemployed. No more than 45 percent of the aging out youth have earnings in any of the three states during any one of the 13 quarters of the study. About 23 percent of youth in California had no earnings during the entire 13-quarter period. Youth who do work begin to do so early. In all three states, youth were more likely to earn income for the first time during the four quarters prior to and the quarter of their eighteenth birthday than in the 2 years following. For youth who exited foster care by aging out, half in California had earnings prior to their eighteenth birthday. Youth aging out of foster care progress more slowly in the labor market than other youth. In California, if youth did not work prior to exit, there was only slightly more than a 50-50 chance that they would begin employment after exit. Youth aging out of foster care have mean earnings below the poverty level. Youth aging out of foster care earn significantly less than youth in any of the comparison groups both prior to and after their eighteenth birthday. --------------------------- <3> George, R., etal. (2002). Employment Outcomes for Youth Aging Out of Foster Care. Chicago, IL: University of Chicago, Chapin Hall Center for Children. Available at: http://aspe.hhs.gov/hsp/fostercare-agingout02/ AB 735 Page D ARGUMENTS IN SUPPORT : In order to address these issues, this bill states that priority should be given to former or current foster youth when state agencies are hiring for student assistant and/or intern positions. According to the author, student assistant positions already exist within many state departments. These positions are offered to students currently enrolled in school seeking "on the job" experience. These positions are a great place for students to learn a skill as well as make valuable contacts within the department which will assist them in establishing a pathway to a career. The author argues that the state has a unique obligation to current and former foster youth and these internships are excellent pathways to financial stability as well as an added incentive to stay in school. Writing in support of this bill, the Children's Advocacy Institute (CAI) argues that when by the authority of state law government enters a home and forcibly removes a child from the care of their parents, the state incurs a moral responsibility heavier than any other. CAI states that, according to the GAO, only 3 percent of foster youth will graduate from a four year college; between 27 and 35 percent end up in jail or prison. Though foster youth comprise less than 0.3 percent of the general population, 40 percent of all people in homeless shelters were once in foster care. Women who have emancipated from foster care are four times more likely than other women to receive public assistance. They conclude that student assistant positions provide a pathway to employment post-graduation and stability that is not only consistent with our moral obligation to these children but a wise step to ensure they do enter far more expensive state-funded systems and programs. REGISTERED SUPPORT / OPPOSITION : Support California Youth Connection Children's Advocacy Institute Youth Law Center Opposition AB 735 Page E None on file. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091