BILL ANALYSIS Ó AB 743 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 743 (Eggman) - As Amended April 9, 2015 ----------------------------------------------------------------- |Policy |Human Services |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 743 Page 3 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 AB 743 Page 4 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 AB 743 Page 5 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