BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 2448 ----------------------------------------------------------------- |Author: |Burke | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |April 6, 2016 |Hearing | May 10, 2016 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |No | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Taryn Smith | |: | | ----------------------------------------------------------------- Subject: CalWORKs: welfare-to-work: education SUMMARY The bill will authorize a CalWORKs recipient who has not received a high school diploma or its equivalent to participate in a high school equivalency program, as specified, in lieu of participating in a job search or job club, and it would prohibit the county from requiring the recipient to participate in an assessment before the recipient may engage in a high school equivalency program in satisfaction of welfare-to-work requirements. ABSTRACT Existing law: 1) Establishes the federal Temporary Assistance for Needy Families (TANF) program, which permits states to implement the program under a state plan. (42 USC § 601 et seq.) 2) Establishes in state law the California Work Opportunity and Responsibility to Kids (CalWORKs) program to provide cash assistance and social services for low-income families. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC 10530, WIC 11200) AB 2448 (Burke) PageB of? 3) Establishes income, asset and real property limits to determine eligibility for CalWORKs program participants, including net income below the Maximum Aid Payment (MAP), based on family size and county of residence. (WIC 11150 to 11160, 11450 et seq.) 4) Establishes a 48-month lifetime limit of CalWORKs benefits for eligible adults, which includes a requirement that a recipient must meet federal work requirements for 24 months in order to retain eligibility. (WIC 11454, 11322.85) 5) Generally requires a recipient of CalWORKs benefits to participate in welfare-to-work activities as a condition of eligibility for aid. (WIC 11320 et seq.) 6) Mandates the sequence of employment-related activities a CalWORKs participant must engage in subsequent to the receipt of aid, unless otherwise exempted under Section 11320.3. (WIC 11320.1) 7) Requires all recipients over 16 years of age, unless they are otherwise exempt, to participate in specified welfare-to-work activities as a condition of eligibility for CalWORKs. (WIC 11320.3) 8) Establishes qualifying welfare-to-work activities to include employment, on-the-job training, community service, adult basic education, and other specified activities. (WIC 11322.6) 9) 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) AB 2448 (Burke) PageC of? This bill: 1)Adds participation in a high school equivalency program to the list of permissible welfare-to-work activities a CalWORKs participant is required to engage in after orientation and appraisal, as specified. 2)Requires that any month in which a CalWORKs recipient participates in a high school equivalency program, as specified, shall not be counted against that recipient's "24-month clock." 3)Removes the requirement that assignments to certain educational activities are limited to situations in which the education is needed to become employed. 4)Removes the following from the list of one or more welfare-to-work activities a CalWORKs recipient must participate in after the 24-month clock is exhausted; a. Education that is directly related to employment, for recipients who have not received a high school diploma or certificate of equivalency, and b. Satisfactory attendance at a secondary school or a course of study leading to a certificate of general equivalence, for recipients who have not completed secondary school or received such a certificate. 5)Permits a CalWORKs recipient to participate in a high school equivalency program if it is determined during the appraisal that the recipient not yet received his or her high school diploma or its equivalent, as specified. 6)Exempts a CalWORKs recipient who is determined to not have yet AB 2448 (Burke) PageD of? received his or her high school diploma or its equivalent from having to participate in an assessment prior to, or as a condition of, participation in a high school equivalency program. FISCAL IMPACT This bill has been keyed as non-fiscal. BACKGROUND AND DISCUSSION Purpose of the bill: According to the author, AB 2448 intends to alleviate the pressure facing CalWORKs participants who are under the 24-month clock, and specifically for those working towards high school equivalency. Under current law, recipients would have to obtain high school equivalency while under the 24-month clock and find employment or risk penalties. To mitigate this time restraint, this bill will guarantee a pre-assessment period where the 24-month clock is not activated as long as the participant is making sufficient progress toward high school equivalency, per the author. CalWORKs According to the U.S. Census Bureau, California's poverty rate during 2011-13 was 23.4 percent. This rate was measured by using the Supplemental Poverty Measure, which takes into account housing costs and other factors. The Census Bureau also reports that more than 2 million of California children were living in poverty in 2014. California's most essential anti-poverty strategy is the CalWORKs program, which provides cash assistance to approximately 540,000 families - including more than 1 million children, according to 2014 federal data. The 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 TANF block grant. In addition to temporary cash assistance to meet basic family needs, CalWORKs provides AB 2448 (Burke) PageE of? education, employment and training programs. CDSS is the designated state agency responsible for program supervision at the state level. The counties are responsible for administering the caseloads at the local level. The CalWORKs program is funded with a mix of federal, state, and county funds. In order to be eligible for CalWORKs, families must meet income and asset tests. In addition, children must be deprived of parental support and care due to the incapacity, death or absence of apparent or unemployment of the principal wage-earner. Persons fleeing to avoid prosecution, custody or confinement after conviction of a felony are not eligible for CalWORKs. Per the 2016-2017 Governor's budget, the average monthly grant for a CalWORKs household is $497.35 and the maximum aid payment for a family of three is $704, or 42 percent of Federal Poverty Level. Welfare-to-Work Requirements State law provides for a cumulative 48-month lifetime limit on cash aid for adults. During those 48 months, adults may receive a total of 24 months of Welfare-to-Work (WTW) services and activities. WTW activities include subsidized and unsubsidized employment, community service, adult basic education, community college, job skills, training, mental health counseling, substance abuse treatment and other activities necessary to assist recipients in obtaining employment. Unless they are exempt, an adult in a one parent assistance unit is required to participate in WTW activities for an average of 30 hours per week during the month or an average of 20 hours per week for a parent with a child under age six. In a two-parent assistance unit, one or both adults must participate in WTW activities for a combined average of 35 hours per week. Once the 24 months of WTW activities have been exhausted, adults must meet the stricter federal work participation requirements (20, 30, or 35 hours weekly, depending on family composition) unless they are exempt or receive an extension. If a CalWORKs recipient who is not exempt from participation does not meet the welfare-to-work requirements, the recipient may be sanctioned, and that recipient's portion of the family's grant may be subtracted from the amount provided to the family. AB 2448 (Burke) PageF of? Educational attainment According to a report issued by US Department of Labor's Bureau of Labor Statistics, in 2014, 18.3 percent of the working poor had not obtained a high school diploma and 8.3 percent of the working poor had obtained a high school diploma, but no college education.<1> In a separate report by the Bureau of Labor Statistics, the average weekly income for a worker with less than a high school diploma in 2015 was $493. The same report shows high school graduates earning $678 per week. Additionally, unemployment rates for a worker with less than a high school diploma were about 8%, which was almost double that of the national average. <2> Related legislation: AB 1994 (Lopez) creates the CalED program to provide a onetime $500 supplement to eligible CalWORKs participants upon successful completion of a high school equivalency examination. AB 2058 (Mayes) creates the CalWORKs Educational Opportunity and Attainment Program and awards grant increases to CalWORKs recipients upon completion of educational limestones, as specified. COMMENTS This bill currently eliminates some educational options from the current list of one or more WTW activities a recipient must participate in after the 24 month time clock is exhausted. This was reportedly a drafting error. Therefore, the following amendments are suggested in order to correct unintended and technical drafting errors and to reinstate existing law. On page 5, line 22: (s) Assignment to an educational activity identified --------------------------- <1> http://www.bls.gov/opub/reports/working-poor/2014/home.htm <2> http://www.bls.gov/emp/ep_chart_001.htm AB 2448 (Burke) PageG of? in subdivisions (k), (m),and(o) , and (p) is limited to those situations in which the education is needed to become employed. On page 6, line 21: (J) Education directly related to employment , in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency (K) Satisfactory attendance at a secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate .(K)(L) The provision of child care services to an individual who is participating in a community service program. PRIOR VOTES ----------------------------------------------------------------- |Assembly Floor: |76 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: |6 - | | |0 | |-----------------------------------------------------------+-----| | | | ----------------------------------------------------------------- POSITIONS AB 2448 (Burke) PageH of? Support: County Welfare Directors Association of California(Sponsor) California Catholic Conference, Inc. Alameda County Board of Supervisors Oppose: None received. -- END --