BILL ANALYSIS Ó AB 2058 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2058 (Mayes) - As Amended May 4, 2016 ----------------------------------------------------------------- |Policy |Human Services |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 2058 Page 2 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 AB 2058 Page 3 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 AB 2058 Page 4 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. AB 2058 Page 5 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. AB 2058 Page 6 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081