BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1178
                                                                  Page  1

          Date of Hearing:   January 23, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1178 (Bocanegra) - As Amended:  January 8, 2014 

          Policy Committee:                              Education  
          Vote:4-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes the California Promise Neighborhood (CPN)  
          Initiative to develop a system of up to 40 promise neighborhoods  
          throughout the state with the purpose of supporting a child's  
          development from cradle to career.  Specifically, this bill: 

          1)Defines CPN 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.  

          2)Requires the State Department of Education (SDE), beginning  
            July 2015, to develop an application process for eligible  
            entities to apply for sites to become CPNs.  Further  
            authorizes SDE to designate up to 40 CPNs by January 2017, as  
            specified.  

          3)Requires SDE to determine acceptable indicators to illustrate  
            progress in the outcomes, as specified, such as kindergarten  
            readiness, pupil proficiency in common core, high school  
            graduation and school safety.

          4)Defines eligible applicant as any of the following: (a) a  
            non-profit organization (including a faith-based organization  
            permitted under federal law), (b) a local education agency,  
            (c) an institution of higher education, and (d) an Indian  
            tribe or tribal organization in partnership with at least one  
            public school (including charter school) located within the  
            identified geographic area.  









                                                                  AB 1178
                                                                  Page  2

          5)Requires SDE to work with several state departments and  
            agencies to identify existing programs and grants for which  
            designated CPNs would receive bonus points, additional  
            recognition or weighted consideration when competing for  
            existing grants.  
                
              FISCAL EFFECT 

             One-time and on-going GF administrative costs, of at least  
            $500,000, to SDE to implement and coordinate the CPN  
            Initiative, including establishing a request for proposal  
            process, coordinating with various state departments and  
            agencies, and assessing availability of sufficient funds, as  
            specified.  This bill authorizes SDE to use state, federal,  
            and private funds for this purpose; it is unclear, however, if  
            this funding will materialize.     

           

          SUMMARY CONTINUED
           
          6)Further authorizes SDE to use existing state and federal funds  
            to implement this chapter and authorizes SDE to apply for and  
            accept grants, donations, and other public/private financial  
            support.  

          7)Requires eligible applicants to partner with community  
            organizations and submit plans to significantly improve the  
            academic, health, and social outcomes of children living in  
            the identified neighborhood, as specified.  Requires any  
            funding received by grantees to be used only on the CPN, and  
            requires the grantees to report various outcomes to SDE every  
            three years, as specified.  

          8)Makes enactment of the bill contingent upon the Superintendent  
            of Public Instruction (SPI) finding that sufficient funding is  
            provided through a combination of state, federal or private  
            funds.  Requires the SPI to post these findings on SDEs  
            website. 

          9)Sunsets the provisions of the bill on January 1, 2026. 

           COMMENTS  

           1)Federal Promise Neighborhood Initiative (PNI) funds  .  The PNI  








                                                                  AB 1178
                                                                  Page  3

            was modeled after the Harlem Children Zone (HCZ) in New York  
            City.  The HCZ is a 24 to nearly 100-block geographic area  
            that provides career-to-cradle services to children and has  
            demonstrated significant results in raising the academic  
            achievement of Harlem children.  The stated purpose of the PNI  
            is to significantly improve the educational and developmental  
            outcomes of children and youth in the nation's most distressed  
            communities.
             
             According to the United States Department of Education (USDE),  
            the initial federal investment in the PNI was $10 million in  
            2010.  In 2011, $30 million was provided for planning and  
            implementation grants and $60 million was provided in 2012.   
            Grantees may receive a one-time planning grant of up to  
            $500,000 and an implementation grant of up to $6 million per  
            year for three to five years.  SDE does not receive any  
            administrative funds under this federal program because funds  
            are allocated directly to grantees and administration of this  
            program is the sole responsibility of USDE.  

           2)Purpose  .  Of the 78 California communities that applied for  
            planning and implementation grants, only eight communities  
            have received one or both.  According to supporters of the  
            bill, the communities that did not receive a federal grant  
            continue to work on cross community planning and other stated  
            goals of the PNI.  The identification of up to 40 promise  
            neighborhoods in California could assist in maximizing  
            resources, aligning programs and leveraging opportunities.

           3)Concerns:    
                
             a)   The bill establishes a new program through 2026,  
               allowing the program to run 11 years without legislative  
               review.  The committee may wish to consider a shorter  
               sunset period of five years rather than 11 years.  
                 
              b)   The bill requires designated Promise Neighborhoods to  
               report to the SDE every three years, however, there is no  
               requirement for the report to be reviewed or evaluated.   
               The committee may wish to consider a requirement for the  
               SDE to review and evaluate the report.

             c)   The bill specifies it shall become operative only to the  
               extent the SPI finds that sufficient funding has been  
               provided.  It is not standard practice for the SPI to  








                                                                  AB 1178
                                                                  Page  4

               certify whether state or federal funding is available.  The  
               committee may wish to consider striking this section.

           4)Prior legislation  . AB 1072 (Fuentes), 2012, established the  
            California Promise Neighborhoods Initiative in the Office of  
            Economic Development and required the office to establish 40  
            promise neighborhoods throughout the state.  This bill was  
            held in the Senate Appropriations Committee.

           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081