BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 2060 (V.M. Perez) - Supervised Population Workforce Training  
          Grant Program.
          
          Amended: May 23, 2014           Policy Vote: Public Safety 7-0
          Urgency: No                     Mandate: No
          Hearing Date: August 14, 2014                           
          Consultant: Jolie Onodera       
          
          SUSPENSE FILE. AS AMENDED.


          Bill Summary: AB 2060 would establish the "Supervised Population  
          Workforce Training Grant Program," to be administered by the  
          California Workforce Investment Board (CWIB). This bill would  
          require the grant program to be funded, upon appropriation by  
          the Legislature, from the Recidivism Reduction Fund (RRF), as  
          specified.

          Fiscal Impact (as approved on August 14, 2014): 
              Major future cost pressure, likely in the millions to tens  
              of millions of dollars (Special Fund/General Fund) to  
              support a statewide grant program. Implementation of the  
              program is contingent upon the CWIB notifying the Department  
              of Finance (DOF) that sufficient moneys have been  
              appropriated for this specific grant program.   
              Annual costs of about $100,000 (General Fund*) to the CWIB  
              to provide programmatic oversight, administer the grant  
              program through the development of the criteria for  
              selection of grantees, design the grant application process,  
              process and review applications, collection of data from  
              grantees, and submittal of a report to the Legislature.  
              Costs are to be funded from the $1 million RRF appropriated  
              in the 2014 Budget Act for this purpose.
              Ongoing administrative costs potentially in the range of  
              five to 10 percent of moneys annually appropriated, to the  
              Employment Development Department (EDD) for CWIB to utilize  
              the EDD as its fiscal and administrative agent for tasks  
              such as the obligation of funds, performance of grant  
              closeout activities and grantee compliance audits. 

          *Recidivism Reduction Fund









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          Background: SB 105 (Steinberg) Chapter 310/2013 created the  
          Recidivism Reduction Fund (RRF) in the State Treasury to  be  
          available for appropriation by the Legislature for activities  
          aimed at reducing the state's prison population,  including, but  
          not limited to, reducing recidivism. (Penal Code § 1233.9.)

          SB 105 provided $315 million from the General Fund for the  
          Department of Corrections and Rehabilitation (CDCR) to house  
          inmates in contracted facilities to avoid early release and  
          comply with the court-ordered population cap. Due to the  
          two-year extension granted by the courts to comply with the  
          population cap, $91 million of the $315 million was available  
          for transfer to the RRF. The 2014 Budget Act (SB 852 (Leno))  
          appropriates the full $91 million transferred to the RRF, with  
          $42 million provided to the CDCR, $28 million to the Board of  
          State and Community Corrections (BSCC), and $20 million to court  
          programs and social innovation bonds. The remaining $1 million  
          has been appropriated as one-time funding for support of the  
          Employment Development Department (EDD) for a recidivism  
          reduction workforce training and development grant program.

          Existing law states that the California Workforce Investment  
          Board is the body responsible for assisting the Governor in the  
          development, oversight, and continuous improvement of  
          California's workforce investment system and the alignment of  
          the education and workforce investment systems to the needs of  
          the 21st century economy and workforce. (Unemployment Insurance  
          Code § 14010)

          This bill seeks to assist former offenders to successfully  
          reenter their communities and would create a program to be  
          administered by the CWIB to provide grant funding for vocational  
          training and apprenticeship opportunities for offenders under  
          county supervision who are on probation, mandatory community  
          supervision, or post-release community supervision (PRCS). 

          Proposed Law: This bill would establish the "Supervised  
          Population Workforce Training Grant Program," to be administered  
          by the CWIB, as follows:
                 Requires CWIB to consult with public and private  
               stakeholders, including local WIBs, local governments, and  
               nonprofit community-based organizations that serve the  
               supervised population (persons who are on probation,  
               mandatory supervision, or PRCS), in developing the program.








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                 Specifies the grant program to be funded, upon  
               appropriation by the Legislature, using an unspecified  
               amount of moneys from the RRF.
                 Specifies implementation of the program is contingent  
               upon the Director of the State WIB notifying the Department  
               of Finance that sufficient moneys have been appropriated  
               for this specific grant program.
                 Requires the grant funding to be competitively awarded  
               through at least two rounds of funding, with the first  
               phase of funding being awarded on or before May 1, 2015.
                 Requires CWIB to administer the grant program by  
               developing criteria for the selection of grantees through a  
               public application process including the rating and ranking  
               of applications meeting specified criteria, as well as  
               designing an application process to ensure specified  
               criteria are addressed.
                 Provides that each county is eligible to apply, and a  
               single application may include multiple counties applying  
               jointly.
                 Specifies eligible uses of grant funds to include but  
               are not limited to vocational training, stipends for  
               trainees, and apprenticeship opportunities for the  
               supervised population.
                 Provides that preference shall be awarded to  
               applications that propose matching funds, that currently  
               administers or participates in a workforce training program  
               for the supervised population, or that proposes  
               participation by nonprofit community-based organizations  
               that serve the supervised population.
                 Provides that applications must meet numerous  
               requirements, as specified.
                 Requires grant recipients to report to CWIB at least  
               annually regarding the use of funds and workforce training  
               program outcomes.
                 Requires CWIB to submit a report to the Legislature by  
               January 1, 2018, utilizing reports from grantees, to  
               contain specified information.
                 Sunsets the bill's provisions on January 1, 2021, unless  
               a later enacted statute deletes or extends that date.

          Related Legislation: SB 852 (Leno) Chapter 25/2014, the Budget  
          Act of 2014, appropriated $1 million from the RRF, "for support  
          of the Employment Development Department for a recidivism  
          reduction workforce training and development grant program."








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          Staff Comments: The CWIB has indicated that in order to provide  
          the high level programmatic oversight of the program to the EDD,  
          aggregate grant recipient data, and develop the legislative  
          report, the CWIB would require one position with an approximate  
          annual cost of $100,000 depending on the number of grants  
          awarded, which would be dependent on the amount of RRF funds  
          appropriated by the Legislature.

          In addition to CWIB's cost, the CWIB must utilize the EDD as its  
          fiscal and administrative agent. As EDD has historically  
          required between five and 10 percent to perform fiscal and  
          administrative tasks such as obligating funds, processing  
          competitive solicitation and grant documents, disbursing funds  
          to grantees, performing grant closeout activities, and  
          performing grantee compliance audits.

          To support a statewide grant program would cost potentially in  
          the millions to tens of millions of dollars, creating major  
          future cost pressure. Implementation of the program is  
          contingent upon the CWIB notifying the DOF that sufficient  
          moneys have been appropriated for this specific grant program.  
          Given the 2014 Budget Act fully allocates the $91 million  
          available in the RRF, and provides only $1 million RRF one-time  
          to the EDD to support such a program, additional moneys would  
          need to be transferred to the RRF in order to support an  
          adequate appropriation for this grant program.   

          Committee amendments specify that administration of the program  
          by CWIB is to be funded through moneys appropriated in the  
          Budget Act, and authorize future appropriations for the grant  
          program to come from any fund.