BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2285 (McCarty) - State employment: former foster youth ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 27, 2016 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 8, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill requires, contingent upon an appropriation, the Sacramento County Office of Education (SCOE) to develop and administer the Former Foster Youth Job Readiness Training Pilot Program until January 1, 2020. This bill provides a $1.1 million appropriation to the SCOE to implement the pilot by awarding grants to nonprofit organizations that have related expertise to provide job readiness training to prepare former foster youth for entry-level employment in state service. Fiscal Impact: This bill appropriates $1.1 million from the Consolidated Work Program Fund, to the extent permitted by federal law, to the AB 2285 (McCarty) Page 1 of ? SCOE to implement this program. Since this funding source cannot be used in the way that this bill prescribes, it creates a General Fund cost pressure in a like amount to support the program. The SCOE cites annual administrative costs of $353,000. To the extent this exceeds the allowable percentage that can be used for administrative costs this could create a General Fund cost pressure to fund the balance. See staff comments. CalHR estimates ongoing costs of $226,000 General Fund for two positions related to the requirement of promoting the training of program participants in specified entry-level unclassified positions for their eventual hiring in classified positions in state service. Background: San Mateo County and Santa Clara County have implemented similar programs as proposed by this bill that assist foster youth with entry-level work opportunities using local funds. Existing law establishes the Consolidated Work Program Fund for the receipt of moneys deposited pursuant to the federal Workforce Innovation and Opportunity Act. Moneys in the Consolidated Work Program Fund are required to be expended consistent with the purposes of the federal Workforce Innovation and Opportunity Act and the State Plan required by the federal Workforce Innovation and Opportunity Act. This fund is administered by the Employment Development Department (EDD) and consists of a blend of federal and state funds. The EDD awards funds from Consolidated Work Program Fund to eligible training providers offering a variety of training opportunities. Proposed Law: This bill requires, contingent upon an appropriation, the SCOE to develop and administer the Former Foster Youth Job Readiness Training Pilot Program until January 1, 2020. The purpose of this pilot program is to prepare former foster youth for entry-level employment in state service and to provide job readiness training to eligible participants. This bill provides a $1.1 million appropriation, to the extent permitted by federal law, from the Workforce Investment Act to the SCOE to implement the pilot. AB 2285 (McCarty) Page 2 of ? The SCOE is required to develop an application and award grants to selected eligible organizations to be used to: (1) pay for trainers to provide job readiness training to eligible participants; and (2) provide a stipend to a participant, as specified. The SCOE is also required to collect specified data, including program participation and the number of participants receiving state employment after completing a placement. This bill provides that eligible organizations are nonprofits with expertise in providing job readiness training. An eligible participant is one who is 18 to 25 years old and who has been certified by a county as being, or having been in foster care, as specified. This bill also requires the CalHR, in consultation with the State Department of Social Services and the SCOE to promote the training of foster youth participating in this program in specified entry-level unclassified positions for their eventual hiring in classified positions in state service located in Sacramento County, as determined by CalHR. This bill provides that after a participant in the pilot program has been trained in an unclassified position for three months, but before being trained for nine months, he or she is required to take a written examination, if required. If the participant does not pass the examination or does not receive a favorable promotional rating, he or she must be released from the training program. Staff Comments: According to the EDD, the use of Consolidated Work Program Fund in this bill is not an appropriate funding source since it would award federal Workforce Investment and Opportunity funds to an external entity through a noncompetitive process. According to federal Uniform Guidance, states are not permitted to award these federal monies to another entity through a noncompetitive process, except under limited circumstances for which this bill does not apply. To access these funds, generally an entity must instead submit an application to either the state or local workforce investment boards. AB 2285 (McCarty) Page 3 of ? -- END --