BILL ANALYSIS Ó AB 1178 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON EDUCATION Joan Buchanan, Chair AB 1178 (Bocanegra) - As Amended: April 23, 2013 SUBJECT : Pupil instruction: California Promise Neighborhood Initiative SUMMARY : Establishes the California Promise Neighborhood Initiative (Initiative) to develop a system of 40 promise neighborhoods throughout California to support children's development from cradle to career. Specifically, this bill : 1)Makes findings and declarations regarding the Harlem Children's Zone and the Federal Promise Neighborhood Initiative grant program, which coordinate and align various public and private resources to serve the in-school and out-of-school needs of children and families. 2)Defines "California promise neighborhood" as a specific geographic area that represents a community focused on revitalization through the establishment of a cradle-to-career network of services aimed at improving the health, safety, education, and economic development of the defined area. 3)Requires the California Department of Education (CDE) to develop an application process by July 1, 2014. 4)Requires the CDE to designate 40 California promise neighborhoods by January 1, 2016 from applicants that meet eligibility criteria. 5)Requires the CDE to measure the performance of promise neighborhood designees on the following outcomes: a) Children enter kindergarten ready to succeed in school; b) Pupils are proficient in core academic subjects; c) Pupils successfully transition from middle school grades to high school;\ d) Pupils graduate from high school; e) High school graduates obtain a postsecondary degree, certification, or credential; f) Pupils are healthy; g) Pupils feel safe at home and in their community; AB 1178 Page 2 h) Pupils live in stable communities; i) Families and community members support learning in promise neighborhood schools; and j) Pupils have access to 21st Century learning tools. 6)Defines "eligible applicant" as any of the following: a) A nonprofit organization, including a faith-based organization to the extent permitted by law; b) An institution of higher education; or c) An Indian tribe or tribal organization service as a lead agency representative of the proposed geographic area to be served and in partnership with at least one public elementary or secondary school, either traditional or charter, located within the identified geographic area. 7)Requires a geographic area to meet all of the following criteria in order to be designated as a promise neighborhood: a) Contain a designated high school(s) and feeder schools that use a transformation model that includes, but is not necessarily limited to, full-service community schools, charter schools, turnaround schools as defined by the federal government, and career pathways; b) Contain a school with a graduation rate below 70%; c) Have unemployment rates higher than the state as a whole; and d) Have more than 25% of households with annual incomes below $22,000. 8)Requires promise neighborhood applicants, at a minimum, to include the following partners as part of its application: a) Other community organizations; b) Child development organizations; c) Schools or school districts; d) Postsecondary education institutions; e) City and county governments; and f) Representatives of local business and industry. 9)Requires an applicant to submit the following: a) A memorandum of understanding signed by representatives of each partner entity or agency; b) A description of the geographically defined area or AB 1178 Page 3 neighborhood to be served and the level of distress in that area based on indicators of need and other relevant indicators; c) A plan to significantly improve the academic, health, and social outcomes of children living in the neighborhood, as specified; and d) An analysis of community assets within, or accessible to, the neighborhood, including early learning programs, community centers, after school programs, transportation resources, parks and recreational facilities, health food options, family support organizations, businesses and employers, and postsecondary education institutions. 10)Requires the memorandum of understanding to include at least all of the following: a) Each partner's commitment and contribution toward achieving each common outcome at population level; b) Each partner's financial and programmatic commitment with respect to the strategies described in the application, including an identification of the fiscal agent; c) The governance structure proposed for the promise neighborhood, including a system for how the eligible applicant will hold partners accountable, the representation of geographical areas on the eligible applicant's governing and advisory boards, and resident engagement from the neighborhood in the organization's decision making process; d) Each partner's long-term commitment to providing pipeline services that, at a minimum, account for the cost of supporting the pipeline, including the period after grant funds are no longer available, and potential changes in local government; e) Each partner's mission and plan that will govern the work that partners do together; f) Each partner's long-term commitment to supporting the pipeline through data collection, monitoring, reporting, and sharing; and g) Each partner's commitment to ensure sound fiscal management and controls, including evidence of a system of supports and personnel. 11)Requires the CDE to guarantee eligibility for Promise neighborhood designation to California recipients of planning AB 1178 Page 4 or implementation grants from the federal Promise Neighborhood Initiative grant program. 12)Requires the CDE to work with the Employment Development Department (EDD); the California Health and Human Services Agency (HHS); the Business, Transportation and Housing Agency; the California Children and Families Commission (First 5 Commission); the California Community Colleges (CCC); the California State University (CSU); the University of California (UC); the Student Aid Commission; the Department of Parks and Recreation; and other agencies and departments selected by the Governor to implement the Initiative. 13)Authorizes the CDE to use existing federal or state funds or other public or private funds for purposes of implementing the Initiative. 14)Requires the CDE to work with other state and county agencies to ensure maximum participation of eligible populations within promise neighborhoods in the CalFresh and MediCal programs, establish a goal of 90% participation, and post participation rates beginning January 1, 2016. 15)Requires the CDE to work with the First 5 Commission to ensure that eligible entities in a promise neighborhood receive bonus points, additional recognition, or weighted consideration for funding for competitive grants administered by the commission. 16)Requires the CDE to work with the CCC, CSU, UC, and Student Aid Commission, and the California Postsecondary Education Commission to ensure that, to the extent feasible, eligible entities in a promise neighborhood receive bonus points, additional recognition, or weighted consideration for funding for competitive grants. 17)Provides that schools, school districts, and institutions of higher education within a promise neighborhood shall, at a minimum, receive bonus points, additional recognition, or weighted consideration for the following grants: a) The After School Education and Safety Program; b) The California Partnership Academy; c) The Immediate Intervention-Underperforming Schools Program; and AB 1178 Page 5 d) Career technical education pathways grants. 18)Requires the CDE to work with the EDD, the California Workforce Investment Board, and the Employment Training Panel to ensure that, to the extent feasible, eligible entities in a promise neighborhood receive bonus points, additional recognition, or weighted consideration for funding for competitive grants. 19)Requires the CDE to work with the Department of Parks and Recreation to ensure that children and families residing within a promise neighborhood, to the extent feasible, receive bonus points, additional recognition, or weighted consideration for funding for competitive grants. 20)Requires cities and counties in which a promise neighborhood is located to demonstrate that multiple sources of block grant assistance are being coordinated and invested in support of the planning, implementation, and long-term results of their promise neighborhoods program. 21)Provides that cities and counties in which promise neighborhoods are located shall receive, to the extent feasible, bonus points, additional recognition, or weighted consideration for funding for the creation of new parks and recreation activities in underserved communities. 22)Requires each entity that receives a California promise neighborhood designation to prepare and submit to the CDE an annual report to include: a) Information about the number and percentage of children, family members, and community members in the neighborhood who are served by the program, including a description of the number and percentage of children accessing each of the pipeline services and the number of family and community members served by which programs; and b) Disaggregated data regarding population and program levels related to the program's success in annual growth, expressed with respect to program and project indicators and performance metrics developed by the department. 23)Provides that any funding received as a result of the promise neighborhood designation shall only be used for the development of the promise neighborhood common outcomes. AB 1178 Page 6 24)Requires the CDE and the community served by the promise neighborhood to conduct an evaluation every three years to examine performance in all of the following outcomes: a) Children enter kindergarten ready to succeed in school; b) Pupils are proficient in core academic subjects; c) Pupils successfully transition from middle school grades to high school; d) Pupils graduate from high school; e) High school graduates obtain a postsecondary degree, certification, or credential; f) Pupils are healthy; g) Pupils feel safe at home and in their community; h) Pupils live in stable communities; i) Families and community members support learning in promise neighborhood schools; and j) Pupils have access to 21st Century learning tools. FISCAL EFFECT : Unknown COMMENTS : This bill is based on the Harlem Children's Zone in New York City and the federal Promise Neighborhood Initiative. Both programs involve collaborative efforts by schools, local government agencies, and non-governmental organizations to provide extensive wrap-around services to serve the in-school and out-of-school needs of children. According to a report from the National Bureau of Economic Research, the Harlem Children's Zone spends an estimated $20,000 per pupil, most of which comes from foundations and other private donors. The federal Promise Neighborhood Initiative provides planning and implementation grants to applicants on a competitive basis. The federal initiative provides planning grants of up to $500,000 and implementation grants of up to $6 million per year for five years. Of the eight California communities that received planning grants, three have received implementation grants: Chula Vista Promise Neighborhood Los Angeles Promise Neighborhood Mission Promise Neighborhood (San Francisco) Some other communities in California have initiated similar efforts on their own. AB 1178 Page 7 An all-or-nothing approach . This bill imposes extensive requirements on all local entities and their partners who wish to participate in a California promise neighborhood. Entities must agree to and fulfill all of the conditions specified in the bill in order to receive promise neighborhood designation. In exchange, those entities and partners receive official designation as a California promise neighborhood and the possibility of being offered preferential consideration for unspecified grants. In reality, grants are awarded pursuant to the rules of the grant maker. If those rules do not allow for preferential treatment, none will be given. To the extent entities do receive grants, they may have qualified for them even without the Promise neighborhood designation. It is questionable, therefore, if a Promise neighborhood designation results in any tangible benefits. In the absence of tangible benefits, the wide-ranging requirements this bill imposes on local entities and its all-or-nothing approach may actually be a disincentive for them to participate in the program. This is especially true since local entities do not need official designation to establish promise neighborhood-type initiatives on their own terms. New responsibilities for the California Department of Education . This bill imposes responsibilities on the CDE that are beyond its current scope of activity and staff expertise. These include the following: 1)Working with the California Health and Human Services Agency and county health and human services agencies to ensure maximum participation of eligible populations within promise neighborhoods in the CalFresh and Medi-Cal programs. 2)Working with the following agencies to ensure, to the extent possible, that eligible applicants in promise neighborhoods receive preferential consideration for grants: a) California Children and Families Commission (First 5 Commission); b) Institutions of higher education, the Student Aid Commission, and the California Postsecondary Education Commission; c) Employment Development Department; and d) Department of Parks and Recreation. 3)Working with the Business, Transportation and Housing Agency AB 1178 Page 8 in an unspecified manner to implement the provisions of the bill. 4)Evaluating the success of promise neighborhoods based on criteria that are not defined in measureable terms and for which the CDE does not currently collect data. The committee may wish to consider whether the CDE is the appropriate agency to undertake all of these responsibilities. Promise neighborhood schools . The bill establishes several requirements that a geographic area must meet in order to be eligible for a promise neighborhood designation. One of the requirements is that the area "Contain a designated high school or schools and feeder schools that use a transformational model that includes, but is not necessarily limited to, full-service community schools, charter schools, turnaround schools as defined by the federal government, and career pathways." This requirement assumes that only charter schools and federally-defined turnaround schools are up to the task of serving students in promise neighborhoods. Although many charter schools are very good, most studies have found that, both nationally and in California, the average charter school underperforms the average non-charter school. There is no reason to assume that a non-charter school cannot The committee may wish to consider whether the criteria for promise neighborhood designation should presuppose the best type of school to serve the neighborhood students. REGISTERED SUPPORT / OPPOSITION : Support Chula Vista Promise Neighborhood Los Angeles Unified School District Youth Policy Institute Opposition None received Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087 AB 1178 Page 9