BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 2058


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2058 (Mayes) - As Amended May 4, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:  This bill creates the California Work Opportunity and  
          Responsibility to Kids (CalWORKs) Educational Opportunity and  
          Attainment Program to offer education grants to eligible  
          CalWORKs participants who complete certain educational programs.  
          Specifically, this bill: 









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          1)Permits a CalWORKs recipient to apply for an education grant,  
            which constitutes an ongoing adjustment to a participant's  
            monthly CalWORKs cash grant, awarded as follows:


             a)   $100 per month for completion of high school or its  
               equivalent;


             b)   $200 per month for completion of an associate's degree  
               or career technical education program; and


             c)   $300 per month for completion of a bachelor's degree.


          2)Stipulates that grant amounts are not cumulative, and that a  
            participant shall receive, on an ongoing basis, the highest  
            monthly bonus for which he or she is eligible.


          3)Requires a participant to submit evidence of completion of an  
            educational program to the county when applying for the  
            education grant.


          4)Appropriates $20 million from the General Fund to the  
            California Community Colleges to fund services provided under  
            the CalWORKs Recipients Education Program, as specified and  
            including, but not limited to, education and career counseling  
            services, employment development services, including job  
            development staff positions, and work study positions.


          FISCAL EFFECT:


          1)The bill contains a one-time $20 million General Fund  








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            appropriation to the California Community Colleges to fund  
            services under the CalWORKs Recipients Education Program.


          2)Ongoing unknown, but significant costs likely in the millions  
            of dollars (GF) annually to fund the cash grants.


          3)One-time costs of approximately $1 million (GF) for necessary  
            automation changes. 


          4)Unknown, potentially reimbursable mandate costs to counties to  
            verify completion of the program, certify a recipient's  
            eligibility and ensure a recipient's monthly cash grant is  
            increased.


          COMMENTS:


          1)Purpose.  According to the author, "The goal of this bill is  
            to encourage and support those on CalWORKs to get the  
            education they need to become self-sufficient and to thrive.   
            It is also intended to change the life trajectory of children  
            in low-income households-not only would their immediate needs  
            be better met, they would have a greater chance of achieving  
            successful and fulfilling lives as adults.  This bill will  
            provide supports and incentives to help CalWORKs recipients  
            pursue education, improving the well-being of low-income  
            California families and helping break the cycle of poverty."

          2)California Community College CalWORKs Program.  The California  
            Community Colleges CalWORKs program was created in 1997 when  
            the state established the CalWORKs program in response to the  
            federal welfare reform of 1996.  Today, there are CalWORKs  
            programs in all 113 of the state's community colleges, as well  
            as in one adult education center.  Over 31,000 CalWORKs  
            participants are enrolled in community colleges across the  








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            state.  

            The individual community college CalWORKs programs coordinate  
            with local county human services offices and deliver case  
            management and a number of services to participants,  
            including: on- and off-campus subsidized work study  
            placements; and academic, career, and personal counseling  
            involving intensive case management, career exploration,  
            coordination of child care services, and collaboration with  
            on-campus student services and off-campus community based  
            organizations for emergency assistance.  English language  
            learners and individuals seeking to complete a high school  
            equivalency program can also access educational and other  
            services through the California Community College CalWORKs  
            program.

            When originally established, the California Community Colleges  
            CalWORKs program had an annual budget of approximately $81  
            million ($65 million in Prop 98 dollars, and $16 million in  
            federal Temporary Assistance for Needy Families [TANF]  
            monies).  This budget was cut significantly - by 46% - in  
            2002-03 as the state struggled with a budget deficit.  Other  
            cuts and augmentations have taken place since then; the budget  
            for the California Community Colleges CalWORKs program is  
            currently approximately $43 million ($35 million Prop 98, and  
            $8 million TANF).

          3)Educational attainment of CalWORKs participants.  The  
            Department of Social Services (DSS) reports that, in Federal  
            Fiscal Year 2013, 52.3% of heads-of-household in single-parent  
            CalWORKs families had completed high school or the equivalent,  
            and 56.1% of heads-of-household in two-parent families had.   
            In each of fiscal years 2013-14 and 2014-15, DSS reports that  
            approximately 19,000 associate's degrees were earned by  
            CalWORKs recipients (note that one individual may have  
            received more than one degree in given year).  During those  
            same fiscal years, the California Community Colleges  
            Chancellor's Office reports that approximately 31,000 CalWORKs  
            participants were enrolled in community college in the state.








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          4)Cal-Learn.  Cal-Learn is a statewide program for pregnant and  
            parenting teens in the CalWORKs program, designed to encourage  
            pregnant and parenting teens to graduate from high school or  
            attain an equivalency diploma.  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, have not graduated from high school  
            or its equivalent, and are not in foster care. DSS estimates  
            that 7,700 teens participate in Cal-Learn each month.





          5)Related Legislation.


             a)   AB 1994 (Lopez) creates the CalED program to provide a  
               one-time $500 supplement to eligible CalWORKs participants  
               upon obtaining a high school diploma or equivalency  
               certificate.  This bill is pending on this Committee's  
               Suspense file.


             b)   AB 2448 (Burke) changes CalWORKs requirements regarding  
               permissible welfare-to-work activities to facilitate a  
               recipient's completion of a high school equivalency  
               program. This bill is pending in the Senate Human Services  
               Committee.











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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081