BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1221
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1221 (Hancock) - As Amended:  July 2, 2014 

          Policy Committee:                             EducationVote:6-1

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

           SUMMARY  

          This bill modifies eligibility, types of grants, amount of  
          grants, and outcome measures of the After School Education and  
          Safety (ASES), the 21st Century Community Learning Centers (21st  
          CCLC), and the 21st Century After School Safety and Enrichment  
          for Teens (ASSETs) programs.  Specifically, this bill:  

          1)Replaces "supplemental grant" funding with "summer grant"  
            funding to fund programs that operate in excess of 180 regular  
            schooldays or during any combination of summer, intersession,  
            or vacation periods. Clarifies an annual maximum grant amount  
            of $33,750 for each elementary school and $45,000 for each  
            middle or junior high school

          2)Makes changes to data collection and reporting requirements.  
            For example, programs would no longer be required to report  
            outcomes on STAR tests, positive behavioral changes, homework  
            completion rates, or skill development and instead requires  
            programs to submit evidence of a data-driven program quality  
            improvement process, based on CDE guidance.  

          3)Makes changes specific to the ASES program as follows:

             a)   Authorizes provision of a minimum grant for sites that  
               serve 20 children or less.

             b)   Authorizes additional funding, not to exceed $15,000 per  
               site, per school year, to be provided for transportation in  
               programs located in an area that has a population density  
               of less than 11 persons per square miles.  Requires  
               programs to submit to the California Department of  
               Education (CDE) for consideration evidence of the need for  








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               after school transportation funds.  Authorizes  
               transportation funds to be used to supplement, but not  
               supplant, local transportation services.

          4)Makes changes specific to the 21st CCLC as follows:

             a)   Reduces funding for family literacy services from 10% to  
               5% of total grant funding.

             b)   Gives priority to grant applications that will provide  
               year-round expanded learning programming.  Defines  
               "year-round expanded learning programs" as any combination  
               of an applicant that offers summer programming to  
               complement existing after school programs, or an applicant  
               that offers after school programs to complement existing  
               summer programs.  Specifies that the applicant is not  
               required to be the same entity that operates the existing  
               program but the applicant must identify the grantee  
               providing year round programming.  Further, gives priority  
               for funding to programs that previously received funding  
               rather than priority for programs that serve pupils  
               attending low performing schools. 

             c)   Requires the CDE to submit a biennial report to the  
               Legislature related to the students attending expanded  
               learning programs and the quality of those programs.  

             d)   Revises the purpose of the ASSETs program from assisting  
               pupils with passage of the high school exit exam to instead  
               focusing on supporting college and career readiness.

           FISCAL EFFECT  

          1)Potential loss of General Fund/Proposition 98 savings in the  
            range of $10 million to $12 million annually.  The policy  
            changes in this bill will likely result in less ASES funding  
            reverting to the General Fund, which has been used for other  
            education priorities in prior years.  For example, the 2014-15  
            Budget Act re-appropriated $22.5 million from unspent ASES  
            funds to support other educational priorities, including the  
            Emergency Repair Program and the California School Information  
            Services.

          2)Proposition 98/General Fund cost pressure, potentially in the  
            millions of dollars, to provide minimum grant funding,  








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            transportation grant funding and year-round expanded learning  
            programs, to the extent existing state and federal after  
            school funds do not cover these costs.  Although the ASES  
            program reverts unused funding annually to the General Fund,  
            it is not clear if the policy changes in this bill will result  
            in expenditures that exceed these annual reversions.  
            Currently, demand for federal 21st CCLC funding exceeds  
            available resources.  

          3)Minor General Fund administrative cost savings to the extent  
            new reporting requirements streamline the California  
            Department of Education's (CDE) grant monitoring activities.  

           COMMENTS  

           1)Purpose  . In 2002, voters approved Proposition 49 which  
            triggered an increase in funding for before and after school  
            programs from $122 million to $550 million annually. These  
            funds are provided to schools on top of the Proposition 98  
            minimum guarantee and provided through a continuous  
            appropriation. 

            According to the co-sponsors, the Superintendent of Public  
            Instruction Tom Torlakson and the Partnership for Children and  
            Youth, before and after school programs grew rapidly with the  
            passage of Proposition 49.  The before and after school  
            program administrators have since identified more effective  
            ways to administer these programs. Additionally, the sponsors  
            contend research on student learning loss in the summer  
            suggests year-round and summer learning opportunities are  
            essential to close the achievement gap.  This bill seeks to  
            improve administration of the 21st CCLC and ASES programs and  
            maximize the impact of expanded learning programs on students  
            by supporting high-quality, year-round programming.

           2)Background  . The 21st CCLC and ASES programs are both  
            school-site based programs operating outside of school hours,  
            and are administered by the CDE. The 21st CCLC is a federally  
            funded before and after school program that provides  
            disadvantaged K-12 students with academic enrichment and  
            support. It is very similar to the state-funded ASES program,  
            and 21st CCLCs often operate in tandem with ASES programs.  
            Programs are funded through a competitive grant process. 

            According to CDE, in 2013-14, applicants requested over $122  








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            million in federal 21st CCLC program funding, and a total of  
            $22 million was awarded. Of the 122 applications submitted, 30  
            applications were funded (operating at 172 school-sites).

            ASES programs receive direct state grants, where attendance is  
            projected and grants are funded up-front, in three one-year  
            increments. Each school that establishes an ASES program is  
            eligible to receive a three-year direct grant that is awarded  
            in three one-year increments and is subject to semiannual  
            attendance reporting and other requirements. In 2013-14, the  
            state funded nearly 500 grants totaling nearly $540 million. 

           3)New grant funding  .  This bill creates three new types of grant  
            funding within the 21st CCLC and ASES programs.  

              a)   Minimum grants  .  This bill sets a funding floor for each  
               program based on the attendance rate for 20 students,  
               regardless of the number of students that actually attend.  
               According to the sponsor, this change would enable programs  
               that serve less than 20 students to receive grant funding  
               sufficient to cover their relatively higher overhead costs.  
               Currently, there are 25 base grant recipients that serve  
               less than 20 students.  It is likely, however, that  
               provision of minimum grant funding would result in  
               additional grant applications from programs that could not  
               have afforded to operate otherwise.  This could create  
               additional cost pressure on ASES funds. 

              b)   Transportation grants  . The second type of new grant is  
               the authorization for ASES funding to be used for  
               "transportation grants" of up to $15,000 for each  
               qualifying rural school-site. Dedicated transportation  
               funding will likely allow more isolated programs to  
               generate higher attendance, and more remote school-sites to  
               be able to offer ASES programs. It is unclear the degree to  
               which these grants will put cost pressure on program funds.  


              c)   Summer grants  . The third type of new grant is the  
               authorization of applicants for 21st CCLC grants to apply  
               for summer-only program funding. This change will result in  
               additional grant applications that were previously not  
               allowed, by permitting funding for a summer program that is  
               not tied to a school-year program. Because the bill  
               specifies that priority will be given to programs that  








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               offer school-year and summer programs (which are the only  
               allowable summer grantees), the effect of this change is  
               unclear. 

           4)Priority for year-round programs  .  This bill gives priority  
            for 21st CCLC grant funding to grantees that provide  
            year-round expanded learning programs.  The bill allows  
            applicants to coordinate with existing providers to fill a  
            gap.  For example, a school may operate an after school  
            program, but not a summer program.  A separate organization  
            may submit an application to provide the summer program.  As  
            noted above, the number of applicants for 21st CCLC grants far  
            exceeds available resources.  It is not clear to what extent  
            these new requirements will change grant award outcomes for  
            existing program providers.

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