BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 429 (DeSaulnier)
          
          Hearing Date: 05/09/2011        Amended: 04/26/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 7-1
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          BILL SUMMARY: SB 429 would provide that any school that 
          establishes a program pursuant to the After School Education and 
          Safety Program (ASES), or establishes a program with a before 
          school program component pursuant to ASES is eligible to receive 
          a supplemental grant to operate the program in excess of 180 
          regular schooldays or during any combination of summer, 
          intersession, or vacation periods for a maximum of 30% of the 
          total grant amount awarded, per year, to the school, as 
          specified. The bill would allow supplemental grantees to change 
          the location of the program and to open eligibility for the 
          program, and to offer 6-hour extended day program, as specified.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          ASES program flexibility           Potentially significant loss 
          of savings            General*                              
          *Counts toward meeting the Proposition 98 minimum funding 
          guarantee
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.

          Under existing law, ASES is a grant program that funds before 
          and after school academic enrichment. ASES programs receive 
          direct grants, where attendance is projected and grants are 
          funded up-front, in three one-year increments. The maximum total 
          direct grant awarded annually at $112,500 for each regular 
          school year for elementary schools and $150,000 for middle 
          schools, and is based on a formula of $7.50 per pupil per day of 
          attendance, at a maximum of $37.50 per pupil per week. Schools 
          are also eligible for supplemental grants to operate in excess 
          of 180 days or during any combination of summer, intersession, 








          SB 429 (DeSaulnier)
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          or vacation for a maximum of the lesser of the following 
          amounts: a) $7.50 per pupil per day; or b) 30% of the total 
          grant amount awarded to the school.  (Education Code § 8482.4 - 
          8483.7)

          This bill allows an after school program to offer a 6-hour 
          program (instead of a 3-hour program) using its existing 
          supplemental grant funds, subject to specified restrictions. 
          This bill does not allow for the provision of additional funds 
          for this purpose. It only allows flexibility surrounding how to 
          implement the summer, weekend, or intercession programs. 
          However, the additional programmatic flexibility could allow 
          some programs to spend more of their supplemental grant fund 
          than they would have under existing restrictions. To the extent 
          that this allows grantees to spend more grant money than they 
          otherwise would have, the state will realize a loss of savings 
          from funds that would otherwise revert to the Proposition 98 
          Reversion Account, which would have allowed them to be spent on 
          other Prop 98 purposes. Grantees can, however, spend the money 
          in their possession now, and most of the programs would do so 
          with or without this flexibility. 

          In 2009-10, less than 5% of ASES supplemental grant funding was 
          unspent and reverted back to the account (for a total of $23.1 
          million). However, if this flexibility resulted in even a 1% 
          decrease in reversions, the state would lose a savings of more 
          than $500,000.