BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1426 (Cooper) - After school programs ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 2, 2016 |Policy Vote: ED. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 8, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- 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 AB 1426 (Cooper) Page 1 of ? 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 AB 1426 (Cooper) Page 2 of ? 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. AB 1426 (Cooper) Page 3 of ? -- END --