BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 988 (Mark Stone) - Outdoor Environmental Education and  
          Recreation Grants Program
          
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          |Version: June 30, 2015          |Policy Vote: N.R. & W. 8 - 1    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 988 would create a new grant program to increase  
          the ability of underserved and at-risk populations to  
          participate in outdoor recreation and educational experiences. 


          Fiscal  
          Impact:  
           Initial costs of $230,000 and ongoing annual costs of $216,000  
            to the General Fund to develop the required grant program.
           Unknown ongoing costs, likely in the hundreds of thousands of  
            dollars, to the General Fund to administer the required grant  
            program.
           Cost pressures in the millions to tens of millions of dollars  
            to the General Fund to fund outdoor recreation and education.


          Background:  The State Urban Parks and Healthy Communities Act established  
          a competitive grant program at DPR to assist state parks,  







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          certain state conservancies, urbanized and heavily urbanized  
          local agencies, and community-based organizations within those  
          jurisdictions to provide outdoor educational opportunities to  
          children. At least one-third of any funds appropriated for this  
          program were to be prioritized for increasing access for  
          elementary school-age children to conservancy or state,  
          community and regional park priorities. In signing SB 359  
          (Murray) Chapter 877, Statutes of 2001, Governor Davis included  
          a signing message indicating that there would been no General  
          Fund allocations to support the program in the following budget  
          year due to a decrease in state revenues. Additionally, Governor  
          Davis noted that Proposition 40, should it pass, would make $350  
          million available for various local assistant grant programs for  
          the development of neighborhood, community, and recreational  
          parks and recreation lands and facilities in urban and rural  
          areas, but that these funds cannot be used for non-capital  
          outlay programs such as outdoor education curriculum  
          development. Instead, these programs require General Fund  
          appropriations.
          Proposition 40, approved by the voters in March 2002, made  
          available $2.6 billion for various purposes, including $23.337  
          million for the acquisition and/or development of properties for  
          active recreational purposes under the State Urban Parks and  
          Health Communities Program. No Proposition 40 monies were made  
          available for programmatic outdoor education purposes.


          Government Code §16727 provides that general obligation bonds  
          are to be used for capital purposes. This provision aims to  
          ensure that the benefits of a project at least roughly match the  
          period during which the bond must be repaid. 




          Proposed Law:  
            This bill would create the Outdoor Environmental Education and  
          Recreation Grants Program at DPR aimed to increase the ability  
          of underserved and at-risk populations to participate in outdoor  
          recreation and educational experiences. 

          Eligible entities would be public organizations including local  
          governments, local education agencies, and nonprofit  
          organizations. Priority would be given to fund programs that  








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          primarily provide outreach to and serve students who are  
          eligible for free or reduced-priced meals, foster youth, or  
          pupils of limited English proficiency, and have at least one of  
          the following attributes:
           Demonstrate partnerships between public, private, and  
            nonprofit entities
           Contribute to health lifestyles, sound nutritional habits, and  
            improved outdoor educational and recreational experiences 
           Maximize the number of participants that can be served
           Commit in-kind resources
           Have a curriculum that is aligned to the science content  
            standards for California Public Schools
           Foster stewardship of the environment
           Integrate instruction in science, technology, engineering, and  
            mathematics
           Include service learning and community outreach components


          DPR would be authorized to develop an advisory task force to  
          assist in the development of the grant program. 


          If a grantee meets the requirements of this program and the  
          criteria specified in the State Urban Parks and Healthy  
          Communities Act, the grant may be funded by Proposition 40  
          monies that have been reverted and unencumbered. The author  
          intends to amend the bill to also require that the Proposition  
          40 be spent on grants for capital outlay. The program would also  
          be authorized to receive private donations. 


          All funding for this program would be deposited into the  
          California Youth Outdoor Education Account within the State Park  
          and Recreation Fund (SPRF), which would be created under this  
          bill. All monies in the account would be continuously  
          appropriated to DPR for this program.


          DPR would be required to gather information from applications  
          each award year for the purpose of evaluating the effectiveness  
          of outdoor environmental education and recreation programs. This  
          information would be summarized and reported annually to the  
          Legislature.









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          This bill would also amend the State Urban Parks and Healthy  
          Communities Act to specify that programs on public properties  
          within the coastal zone are included in the programs that are  
          prioritized for funding.




          Staff  
          Comments:  The author intends to submit amendments to the bill  
          that specify that any funds from Proposition 40 received by this  
          program must be spent on capital outlay. This analysis considers  
          this future amendment.
          To develop the required grant program, DPR anticipates needing  
          two PYs at a first-year cost of $230,000, and $216,000 ongoing.  
          Additional staff would be needed to implement the program  
          depending on how much money is allocated to the program. As a  
          general indicator, grant programs usually require about 5% of  
          the total amount for administration. Thus, a $10 million grant  
          program would need approximately $500,000 for administration. As  
          this bill does not make an appropriation to this program and it  
          is unknown how much private donations DPR would receive for this  
          purpose, the ongoing administrative costs are unknown but likely  
          to be in the hundreds of thousands of dollars 


          This year, through SB 83 (Committee on Budget and Fiscal Review)  
          Chapter 24, Statutes of 2015, the Legislature made available $10  
          million of Proposition 40 monies that have been reverted, upon  
          appropriation, for outdoor environmental education and  
          recreation programs that are consistent with the Proposition 40  
          guidelines for local assistance grants. These funds could be  
          distributed under the grant program outlined in this bill, to  
          the extent that the program is funding capital outlay projects.  
          In addition to the possibility of Proposition 40 monies, this  
          bill would also allow DPR to receive private donations to fund  
          the program. The bill is silent on whether this restriction  
          applies to other funding sources. 


          Staff notes that because the two potential funding sources for  
          the grant program have different requirements, DPR would either  
          have to administer two grant programs with slightly different  








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          criteria- perhaps one program for operational costs and another  
          for capital outlay - or design the program so that all projects  
          meet the more stringent requirements of the two funding sources,  
          that is, in the case of this bill, all grants would be  
          restricted to capital outlay. Staff recommends that the bill  
          specify whether the whole program is to be for capital outlay or  
          whether DPR should run two grant programs. 


          This bill would continuously appropriate funds in the California  
          Youth Outdoor Education Account. Presumably this provision is to  
          allow private donations to flow to the program without  
          legislative action. However, while a continuous appropriation  
          might be appropriate for private donations, continuously  
          appropriating state funds restricts legislative oversight of the  
          programs. Staff recommends that the special fund be limited to  
          only receive funds from private donations.




          Proposed Author  
          Amendments:  The author intends on amending this measure to  
          require that all Proposition 40 monies expended by this program  
          be for the purpose of funding capital outlay projects. 


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