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