BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 1518 (Eggman) - National Guard: Youth Challenge Program Amended: May 23, 2014 Policy Vote: Veterans 6-0, Education 7-0 Urgency: No Mandate: No Hearing Date: August 4, 2014 Consultant: Jacqueline Wong-Hernandez This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1518 requires the Adjutant General to conduct a civilian youth opportunities program, to be known as the "National Guard Youth ChalleNGe Program," consisting of at least a 22 week residential program and a 12 month post-residential mentoring period, as specified, and subject to funds appropriated for this purpose in the annual budget. Fiscal Impact: Youth ChalleNGe Program: $1.5 million (General Fund) was appropriated to the California Military Department in the Budget Act of 2014 to establish a new Youth ChalleNGe program. This bill creates $1.5 million in cost pressure to annually fund the program's operation. Average Daily Attendance (ADA): Significant additional ADA funding, depending on the number of students served by this dropout recovery program. Background: Existing federal law authorizes the Secretary of Defense to use the California National Guard to conduct a civilian youth opportunities program-the National Guard Youth ChalleNGe Program, which shall consist of at least a 22 week residential program and a 12 month post-residential mentoring period. (§ 509 of Title 32 of the United States Code) Existing state law also provides that the Adjutant General of the California National Guard may enter into a cooperative agreement with the governing board of a school district or a county office of education (COE) for the purpose of establishing, pursuant to existing authority in the Education Code, a military academy to be operated as a charter school or AB 1518 (Eggman) Page 1 as one of the existing alternative education options available under the Education Code. The program would provide a structured, disciplined environment that would be conducive to learning in a college preparatory environment. In addition to academic skills, students would develop leadership, self-esteem, and a strong sense of community. An academy established pursuant to this section must comply with the Education Code. Additionally, existing law provides that a new California National Guard Youth Program, except for the California Cadet Corps, may only be established as provided in this section if funds are appropriated for purposes of the program in the annual Budget Act or any other act. (Military and Veterans Code § 532) Proposed Law: This bill requires the Adjutant General to conduct a civilian youth opportunities program, to be known as the "National Guard Youth ChalleNGe Program," consisting of at least a 22 week residential program and a 12 month post-residential mentoring period. This bill provides that the program shall serve at risk teens in areas of the state, including, but not limited to, the San Joaquin Valley and Northern California, and shall be subject to all of the following: a) The program shall seek to improve life skills and employment potential of participants by providing military-based leadership development, promoting fellowship and community service, developing life-coping skills and job skills, improving physical fitness, providing health and hygiene training, and assisting participants to receive a high school diploma or its equivalent. b) The Adjutant General may accept federal funding to implement the program and may appoint a director and other service members and employees, permanent or temporary, to operate the program. c) The Military Department shall enter into a memorandum of agreement with an appropriate school district or COE for the purpose of providing educational services for students enrolled in a program, as specified. This bill also requires that a new program, except for the California Cadet Corps, may only be established if funds are appropriated for that purpose in the annual Budget Act or any other act. AB 1518 (Eggman) Page 2 Staff Comments: The Budget Act of 2014 provided $1.5 million (General Fund) to the California Military Department of establish a new Youth ChalleNGe program. This bill specifies the geographic location of the program, and adds implementing provisions. Establishing a new program creates cost pressure to continue funding $1.5 million per year, which would also leverage about $4.5 million in federal matching funds. In order to be eligible for the Youth ChalleNGe program, individuals must be 16 to 18-years-old, and a high school dropout. The program defines "dropout" as "an individual who is no longer attending any school and who has not received a secondary school diploma or certificate from a program of equivalency for such diploma." The Military Department is required to enter into a memorandum of agreement with a school district or COE for the purpose of providing educational services for students enrolled in a program, and that educational agency would be eligible to receive ADA funding for each enrolled student. Existing programs serve approximately 750 students; if this program serves 750 students not previously enrolled in school, ADA costs would likely exceed $5 million per year.