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