BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1426            
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          |Author:    |Cooper                                               |
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          |Version:   |June 22, 2016                            Hearing     |
          |           |Date:    June 29, 2016                               |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Lynn Lorber and Olgalilia Ramirez                    |
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          Subject:  After school programs


          NOTE:  This bill has been amended to replace its contents and  
          this is the first time the bill is being heard in its current  
          form.

            SUMMARY
          
          This bill increases the per student daily and weekly rates for  
          the After School Education and Safety program, and eliminates  
          the requirement for the after school component of the program to  
          operate at least until 6 p.m. on regular schooldays. 

            BACKGROUND
          
          Existing law establishes:

             1)   The After School Education and Safety (ASES) program,  
               consisting of before and after school academic enrichment.   
               Priority for funding is granted to schools where at least  
               50% of the students are eligible for free or reduced price  
               meals.  ASES programs receive direct grants, where  
               attendance is projected and grants are funded up-front, in  
               three one-year increments.  
               (Education Code § 8482, 8482.4, and § 8482.5)

             2)   The maximum total direct grant awarded annually for an  
               after school program is $112,500 for each regular school  
               year for elementary schools and $150,000 for middle or  







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               junior high schools (based on a formula of $7.50 per  
               student per day of attendance, at a maximum of $37.50 per  
               student per week).  
               (EC § 8482.55 and § 8483.7)

          Existing law continuously appropriates to the California  
          Department of Education $550 million from the General Fund for  
          the After School Education and Safety (ASES) program.  (EC §  
          8483.5)

          Existing law:

            1)  Establishes the minimum wage of $9.00 per hour on and  
              after July 1, 2014, and $10.00 per hour on and after January  
              1, 2016.  (Labor Code § 1182.12)

            2)  Requires employers to provide at least one hour of paid  
              sick time for every 30 hours worked, or a minimum of three  
              days per year.  (Labor Code § 246)

            ANALYSIS
          
          This bill increases the per student daily and weekly rates for  
          the After School Education and Safety (ASES) program, and  
          eliminates the requirement for the after school component of the  
          program to operate at least until 6 p.m. on regular schooldays.   
          Specifically, this bill:

             1)   Increases the dollar amounts for the per student per day  
               rate from $7.50 to $8.50, the per student per week rate  
               from $37.50 to $42.50 and the per student per day of staff  
               development rate from $ 7.50 to $8.50.

             2)   Requires the California Department of Education,  
               beginning on or before April 1, 2017, and every six months  
               thereafter, to report to the Legislature on progress in  
               implementing these rate changes, unless or until the rate  
               changes are fully implemented for all grantees.

             3)   Deletes the requirement for the after school component  
               of the program to operate at least until 6 p.m. on regular  
               schooldays. 

          STAFF COMMENTS








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          1)   Need for the bill.  According to the Partnership for Child  
               and Youth, "While the costs, demands and expectations of  
               ASES programs have consistently increased, the funding has  
               remained stagnant for a decade.  Since 2007, the California  
               Consumer Price Index has increased 19%, the state minimum  
               wage has increased 33%, and state law now requires  
               employers to offer 3 days of annual sick leave.  Over the  
               same time period, the ASES daily rate of $7.50 per student  
               has not increased and there is no legal authority for a  
               cost-of-living adjustment, Under the current financing  
               structure extremely conservative site level budget  
               projections, including the local match, demonstrates that  
               programs during the current year will have to operate with  
               annual deficits of $10,000-15,000 or more per program  
               site."

          2)   Practical effect.  The maximum total direct grant awarded  
               annually for an after school program is $112,500 for each  
               regular school year for elementary schools and $150,000 for  
               middle or junior high schools (based on a formula of $7.50  
               per student per day of attendance, at a maximum of $37.50  
               per student per week).  This bill increases the daily rate  
               but keeps the maximum total grant awards at current levels,  
               thereby creating a new formula in relation to the maximum  
               grant.  The result is that programs will receive the same  
               total funding, at a higher per student rate, which means  
               fewer students will be served.  Advocates contend that,  
               without flexibility to reduce slots or an increase in  
               funding, many ASES programs will have no choice but to  
               close.

          Is it the Legislature's desire to reduce slots for after school  
               programs?  Will reductions in slots be across the board, or  
               will programs be affected differently?  How will programs  
               determine which students will continue to be served?
          
          3)   Budget issue.  Existing law requires the continuous  
               appropriation of $550 million from the General Fund to the  
               California Department of Education for the ASES program.   
               There have been several recent attempts to increase funding  
               for the ASES program in consideration of the increase in  
               the minimum wage as well as the requirement to provide paid  
               sick days for employees.  According to advocates, the  








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               average cost of an after school program is $21 per student  
               per day, nearly three times the amount provided for in  
               statute.  None of the attempts to provide additional  
               funding have been successful; the Budget Act of 2016 does  
               not provide an increased appropriation for the After School  
               Education and Safety (ASES) program.  

          Should the Legislature increase the daily rate at the expense of  
               slots when it has declined to provide an increase in  
               funding via the budget process?

          4)   Revenue from family fees.  Existing law does not require  
               ASES programs to charge family fees or to conduct  
               individual eligibility determinations based on need or  
               income.  It appears that ASES programs have the ability to  
               charge family fees; however, it is unlikely that many  
               programs charge fees, or reap significant fees, as ASES  
               programs serve schools where a minimum of 50% of the  
               students are eligible for free- or reduced-price meals, and  
               funding priority is given to programs serving the highest  
               percentages of students who are eligible for free and  
               reduced-price meals.

          5)   Subcommittee hearing.  The Senate Education Subcommittee on  
               Community Schools held an informational hearing on March  
               25, 2015, featuring a panel on after school and  
               out-of-school programs.  This panel provided testimony  
               relative to the effects the increases in minimum wage will  
               have on the statutory funding levels and caps on per  
               student daily rates for ASES programs (see Comment #1).

          6)   Related legislation. SB 645 (Hancock, 2016) appropriated to  
               the ASES program $54 million in the 2015-16 fiscal year,  
               and $72 million beginning in the 2016-17 fiscal year and  
               every year thereafter, and created a cost of living  
               adjustment linked to the California Consumer Price Index  
               beginning in the 2017-18 fiscal year.  SB 645 was held in  
               the Assembly Appropriations Committee. 

          AB 2663 (Cooper) continuously appropriated $73.3 million for the  
               ASES program beginning with the 2016-17 fiscal year and  
               adjusted the appropriation annually thereafter based on the  
               California Consumer Price Index.  AB 2663 was held in the  
               Assembly Appropriations Committee.








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          AB 2615 (Wood, 2016) among other things, specifically authorizes  
               ASES programs to charge family fees.  AB 2615 is pending in  
               the Senate Appropriations Committee.
          
               AB 1567 (Campos, 2016) provides priority enrollment for  
               homeless and foster care youth priority after school  
               programs and prohibits a before and after program from  
               charging family fees for a child that the program knows to  
               be a homeless or foster care youth. AB 1567 is pending in  
               the Senate Appropriations Committee. 


            SUPPORT
          
          California After School Coalition 
          LA's BEST
          Partnership for Children and Youth

            OPPOSITION
           
           None received on the current version of this bill.

                                      -- END --