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 SB 1221 Page 2 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, SB 1221 Page 3 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 SB 1221 Page 4 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 SB 1221 Page 5 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