BILL ANALYSIS Ó
AB 743
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
743 (Eggman) - As Amended April 9, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY: This bill makes a number of changes to the California
Work Opportunity and Responsibility to Kids (CalWORKs) program
regarding GI Bill educational benefits and other vocational
education and higher education components of the CalWORKs
Welfare-to-Work program. Among its provisions, this bill:
AB 743
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1)Expands the types of benefits exempt from consideration as
income or property for purposes of determining CalWORKs
eligibility, to include all veterans' education, training,
vocation, or rehabilitation benefits, and related allowances,
paid through the US Department of Veterans Affairs. (This
ensures that the new benefits provided under the Post-9/11 GI
Bill, specifically the Monthly Living Allowances (MLAs) and/or
Basic Allowances for Housing (BAH), are not counted as income
or property for CalWORKs eligibility purposes.)
2)Requires child care supportive services under CalWORKs to be
continued, for a period not to exceed six weeks, when hours of
educational or vocational training are reduced due to a break
in instruction at an institution (e.g. semester break) and an
individual is eligible to continue in the educational or
vocational program following the break in instruction.
3)Makes clarifying changes related to CalWORKs college
participation regarding job search, study time and assessment
requirements for recipients enrolled in an education program
through the CalWORKs Community College program or a
Self-Initiated Program leading to employment.
FISCAL EFFECT:
1)On-going costs in the range of $60,786 to $300,900 (Federal
funds/GF) for CalWORKs caseload increases and increased grant
amounts for those already receiving aid, due to the expanded
exemption of veterans' benefits from consideration as income
for CalWORKs eligibility purposes. The average grant amount
for a family of three is $6,078 per year. A portion of new
recipients will likely qualify for additional services as
well, such as child care, which will increase these costs
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further.
2)On-going annual costs in the range of $275,000 to $650,000
(Federal funds/GF) for additional child care supportive
services to cover breaks at school. There are an estimated
1,200 students in CalWORKs receiving childcare at an average
monthly cost of $680. Many students will already qualify for
childcare assistance during school breaks (by meeting other
welfare-to-work requirements) so only a fraction will need the
service offered in this bill.
3)Minor administrative costs to the Department of Social
Services (DSS) resulting from other provisions in the bill.
COMMENTS:
1)Purpose. This bill seeks to encourage educational options for
low-income parents by removing unnecessary disruptions and
barriers to continuing in an education or training program in
which a CalWORKs applicant or recipient is making satisfactory
progress.
According to the author, "This bill seeks to help some of our
most hard-working students that are fighting to improve their
lives as well as their families. There are over 30,000 parents
who are improving their future earning potential and the life
opportunities of their children by seeking a certificate or
degree while participating in welfare-to-work. Research shows
that securing post-secondary degree will improve the
likelihood of exiting poverty and reduce reliance on safety
net programs. Supporting the success of low-income parents in
their academic and employment and training goals not only
improves the economic opportunities, but research has shown
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that it makes their children more likely to finish high school
and to seek college opportunities for themselves. This
two-generation approach to poverty reduction is being
recognized nationally as a strategy that works."
2)Background. Welfare-to-work activities within the CalWORKs
program include public or private sector subsidized or
unsubsidized employment; on-the-job training; community
service; secondary school, adult basic education, and
vocational education and training when the education is needed
for the recipient to become employed; and a number of other
activities necessary to assist a recipient in obtaining
unsubsidized employment.
Unless they are exempt, single parent adults need at least 30
hours per week in welfare-to-work activities, and two-parent
families need 35 hours per week. After receiving aid for up
to a maximum of 24 months, adults without an exemption must
work in unsubsidized employment or participate in community
services activities for the minimum number of hours listed
above. If a CalWORKs recipient does not meet his or her
welfare-to-work requirements, the recipient is sanctioned for
noncompliance, and that recipient's portion of the family's
grant is subtracted from the amount provided to the family to
meet basic needs.
Self-initiated Programs. Under current law, a person applying
for CalWORKs aid who is already enrolled in an undergraduate
or certificate program that will lead to self-sustaining
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employment can remain in that program provided he or she is
making satisfactory progress in the program. Such programs
are referred to as "self-initiated programs" because the
applicant or recipient is engaging in an education or training
program without first needing to go through a CalWORKs
assessment in order to gauge his or her employment skills and
abilities.
This bill seeks to ensure that CalWORKs recipients making
satisfactory progress in education programs can continue to
meet welfare-to-work requirements and ultimately become
successfully employed.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081