BILL ANALYSIS Ó AB 1994 Page 1 Date of Hearing: March 29, 2016 ASSEMBLY COMMITTEE ON HUMAN SERVICES Susan Bonilla, Chair AB 1994 (Lopez) - As Amended March 28, 2016 SUBJECT: CalED Program SUMMARY: This bill creates the CalED Program, which provides support for California Work Opportunity and Responsibility to Kids (CalWORKs) participants working to obtain a high school diploma or equivalency certificate. Specifically, this bill: 1)Makes Legislative findings and declarations regarding the connection between education and self-sufficiency. 2)Establishes the CalED Program, and requires participants to be all of the following: a) At least 19 years of age; b) Not in possession of a high school diploma or its equivalent; AB 1994 Page 2 c) Attending school on a full-time basis, as specified; and d) A participant in the welfare-to-work component of CalWORKs, as specified. 3)Establishes that participation in the CalED program is optional and requires a participant to opt out in writing if he or she declines to participate. 4)Requires the county to notify potentially eligible CalWORKs participants about the CalED Program, as specified. 5)Requires the Department of Social Services (DSS) to develop a form explaining the program, and the county to distribute this form, as specified. 6) Requires counties to provide education services, supportive services, including child care and transportation, and other services, as specified, in order to facilitate successful participation in the CalED Program. 7)Permits CalED Program participants to participate in specified programs in order to obtain a high school equivalency certificate. 8)Reassigns a participant who fails to demonstrate that he or she has made adequate progress in his or her educational program, as specified, to another welfare-to-work activity. 9)Awards a CalED participant who successfully completes high AB 1994 Page 3 school or a California high school equivalency examination a one-time five-hundred-dollar ($500) supplement, as specified. EXISTING LAW: 1)Establishes under federal law the Temporary Assistance for Needy families (TANF) program to provide aid and welfare-to-work services to eligible families and, in California, provides that TANF funds for welfare-to-work services are administered through the CalWORKs program. (42 U.S.C. 601 et seq., WIC 11200 et seq.) 2)Requires all individuals over 16 years of age, unless they are otherwise exempt, to participate in welfare-to-work activities as a condition of eligibility for CalWORKs. (WIC 11320.3, 11322.6) 3)Establishes a 48-month lifetime limit of CalWORKs benefits for eligible adults, including 24 months during which a recipient must meet federal work requirements in order to retain eligibility. (WIC 11454, 11322.85) 4)Establishes the number of weekly hours of welfare-to-work participation necessary to remain eligible for aid, including requirements for an unemployed parent in a two-parent assistance unit, as specified. (WIC 11322.8) 5)Establishes the Cal-Learn program to provide services to teen parents and encourage them to obtain a high school diploma or equivalency certificate. (WIC 11331 et seq.) AB 1994 Page 4 FISCAL EFFECT: Unknown. COMMENTS: CalWORKS: The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides monthly income assistance and employment-related services aimed at moving children out of poverty and helping families meet basic needs. Federal funding for CalWORKs comes from the Temporary Assistance for Needy Families (TANF) block grant. The average 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $506.55, and the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $704. According to recent data from the California Department of Social Services, over 497,000 families rely on CalWORKs, including over one million children. Nearly 60% of cases include children under 6 years old. Maximum grant amounts in high-cost counties of $704 per month for a family of three with no other income means $23.46 per day, per family, or $7.82 per family member, per day to meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to ensure children can be cared for at home and safely remain with their families. This grant amount puts the annual household income at $8,448 per year, or 42% of poverty. Federal Poverty Guidelines for 2016 show that 100% of poverty for a family of three is $20,160 per year. Welfare-to-work: Welfare-to-work activities within the CalWORKs program include public or private sector subsidized or unsubsidized employment; on-the-job training; community service; secondary school, adult basic education and vocational education and training when the education is needed for the recipient to AB 1994 Page 5 become employed; specific mental health, substance abuse, or domestic violence services if they are necessary to obtain or retain employment; and a number of other activities necessary to assist a recipient in obtaining unsubsidized employment. Unless they are exempt, single parent adults must participate for at least 30 hours per week in welfare-to-work activities, whereas the minimum participation requirement for two-parent families is 35 hours per week. After receiving aid for up to a maximum of 24 months, adults without an exemption must meet federal work requirements, with more restrictive employment settings and allowable employment activities. If a CalWORKs recipient who is not exempt from participation does not meet his or her welfare-to-work requirements, the recipient is sanctioned for noncompliance, and that recipient's portion of the family's grant subtracted from the amount provided to the family to meet basic needs. Cal-Learn: Cal-Learn is a statewide program for pregnant and parenting teens in the CalWORKs program. It is designed to encourage pregnant and parenting teens to graduate from high school or its equivalent, become independent, and form healthy families. Cal-Learn consists of three coordinated services aimed at helping teens become self-sufficient adults and responsible parents: intensive case management that assists teen parents to obtain education, health and social services; supportive services such as child care, transportation, educational expenses, to enable pregnant/parenting teens to attend school; and bonuses and sanctions to encourage school attendance and good grades. Bonuses include four $100 bonuses per year earned based on report card results, and a one-time $500 bonus for graduating or attaining an equivalent high school diploma. Sanctions are applied if satisfactory grades are not maintained, and/or timely report cards are not submitted. Participation in Cal-Learn is limited to and required for pregnant/parenting teens who are receiving CalWORKs and who are under the age of 19, live in the same household as their child, AB 1994 Page 6 have not graduated from high school or its equivalent, and are not in foster care. CDSS estimates that 7,700 teens participate in Cal-Learn each month. Suggested Amendments: 1)In order to clarify that the intent of the CalED program is to assist recipients in completing a high school equivalency program, committee staff recommends the following amendments: On page 3, line 19 of the bill: insert new subdivision (a) detailing that participants must participate in specified programs aimed at acquiring a high school equivalency certificate. 2)In order to clarify eligibility requirements for Cal ED participants, committee staff recommends the following amendments: On page 3 of the bill, strike lines 15 and 16. After line 17 on page 4 of the bill, insert: 11344. (a)A participant in the CalED Program must do all of the following: (1) attend AB 1994 Page 7 his or her educational program on a full-time basis, as normally defined by the school in which the participant enrolls; (2) maintain adequate progress; and (3) submit grades, if available, to the county welfare department on a basis to be determined by the county welfare department. After line 37 on page 4 of the bill, insert: (c) For purposes of this section, adequate progress means maintaining a grade point average of at least 1.0 on a scale where A equals 4.0 points and F equals 0 points. RELATED LEGISLATION: AB 2058 (Mayes), 2016, creates the CalWORKs Educational Opportunity and Attainment Program and awards grant increases to AB 1994 Page 8 CalWORKs recipients upon completion of education milestones, as specified. The bill will be heard in Assembly Human Services on April 12, 2016. AB 2448 (Burke), 2016, changes CalWORKs requirements regarding permissible welfare-to-work activities to facilitate a recipient's completion of a high school equivalency program. The bill will be heard in Assembly Human Services on March 29, 2016. REGISTERED SUPPORT / OPPOSITION: Support California Alternative Payment Program Association (CAPPA) California Church IMPACT California Federation of Teachers (CFT) Coalition of California Welfare Rights Organizations - sponsor County Welfare Directors Association of CA (CWDA) Courage Campaign Hunger Action LA AB 1994 Page 9 Interfaith Movement for Human Integrity Sacramento Regional Coalition to End Homelessness (SRCEH) St Mary's Center St. Anthony Foundation Time for Change Foundation United Methodist Women 18 individuals Opposition None on file. Analysis Prepared by:Kelsy C. Castillo / HUM. S. / (916) 319-2089 AB 1994 Page 10