BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 1426 (Cooper) - After school programs
          
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          |Version: August 2, 2016         |Policy Vote: ED. 8 - 0          |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.







          Bill  
          Summary:  This bill, and urgency measure, 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.


          Fiscal  
          Impact:  
           Cost pressure of $73 million to support a $1 increase in the  
            per-student daily rate for the ASES program.  This bill  
            increases the per-student funding rate but there is no  
            increase in funding to the overall program.  Therefore, to  
            implement this bill the state would either need to provide  







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            funding to pay for the increase in rates so that there is no  
            decrease in the number of students served, or downsize the  
            program by dis-enrolling students.  Without an increase in  
            funding for the program almost 48,000 students would no longer  
            be able to be enrolled in the program. (Proposition 98)


          Background:  Existing law establishes the ASES program, a three year grant  
          program, to create incentives for establishing locally driven  
          before and after school enrichment programs that partner public  
          schools and communities to provide academic and literacy support  
          and safe, constructive alternatives for youth.  The ASES program  
          serves students in kindergarten and grades 1 to 9.  Local  
          educational agencies (LEAs) may operate a before school  
          component of a program, an after school component, or both, on  
          one or multiple school sites.  
          Priority for funding is required to be given to schools where a  
          minimum of 50 percent of the students in elementary schools and  
          50 percent of the students in middle and junior high schools are  
          eligible for free or reduced cost meals through the school lunch  
          program of the United States Department of Agriculture.  ASES  
          programs receive direct grants, where attendance is projected  
          and grants are funded up-front, in three one-year increments.  
          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).   
          Existing law continuously appropriates to the California  
          Department of Education (CDE) $550 million from the General Fund  
          for the ASES program, including administrative costs.   (EC §  
          8482, 8482.3, 8482.5, 8482.55, 8483.7)


          Proposed Law:  
            This bill increases the per-student daily and weekly rates for  
          ASES.  Specifically, this bill raises the per-student daily rate  
          from $7.50 to $8.50 for student attendance that the program  
          plans to serve for regular school year programs and summer  
          programs.  For the regular school year program consisting of 180  
          days, the maximum student per week rate would increase from  
          $37.50 to $42.50, reflecting the daily rate increase.  In  
          addition, this bill increases daily rate for up to three days  
          per year of staff development from $7.50 to $8.50 per projected  








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          student.    
          Finally, this bill deletes the requirement for the after school  
          component of the program to operate at least until 6 p.m. on  
          regular schooldays.




          Related  
          Legislation:  AB 2615 (Wood, 2016) among other things,  
          specifically authorizes ASES programs to charge family fees.  AB  
          2615 is pending in this committee.
          AB 1567 (Campos, 2016) provides priority enrollment for homeless  
          and foster care youth in before and after school programs and  
          prohibits a before and after school 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 this committee.




          Staff  
          Comments:  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).  The  
          Budget Act of 2016 funds full-year enrollment of 404,985  
          students with about $547 million.  An increase in the daily rate  
          to $8.50 translates to a yearly rate of $1,530, since the  
          minimum number of days required of a full year after school  
          program is 180.  In order to maintain the same level of  
          enrollment, there would need to be a $73 million increase to the  
          program.  Otherwise, significantly fewer students would be able  
          to 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.
          The Budget Act of 2016 includes $550 million for the ASES  
          program.  There have been several attempts to increase funding  
          for this program in light of the increase in minimum wage as  
          well as the requirement to provide paid sick days for employees.  
           The Budget Act of 2016 does not provide an increased  
          appropriation for this program.









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