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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2015 |Policy Vote: N.R. & W. 8 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- 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, AB 988 (Mark Stone) Page 1 of ? 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 AB 988 (Mark Stone) Page 2 of ? 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. AB 988 (Mark Stone) Page 3 of ? 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 AB 988 (Mark Stone) Page 4 of ? 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. -- END --