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)
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          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.