BILL ANALYSIS Ó AB 2656 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2656 (O'Donnell) - As Amended March 18, 2016 ----------------------------------------------------------------- |Policy |Education |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill prohibits the California Department of Education (CDE) from charging foster youth a fee to take the California High School Proficiency Exam (CHSPE) and prohibits any contractor or testing center from charging foster youth a fee to take any high AB 2656 Page 2 school equivalency test (also known as the GED). This is consistent with the policy under existing law for homeless youth. FISCAL EFFECT: 1)Unknown special fund costs, likely minor, to subsidize fees for foster youth and former foster youth who choose to take any of the high school equivalency tests or CHSPE. It is difficult to predict the number of foster youth that will take these tests. There are approximately 60,000 foster youth in California. The author estimates there are approximately 4,000 foster youth between the ages of 15-24 that do not receive a high school diploma. Approximately 0.15% of eligible homeless students took these tests last year. Assuming a similar percentage of foster youth take these tests, the state would incur costs of approximately $980 for the equivalency exams and $770 for the CHSPE. 2)Special fund costs to the CDE of approximately $260,000 to provide assistance and support to the foster youth community, verify foster youth eligibility, adjust testing contracts and report participation rates. COMMENTS: 1)Purpose. According to the author, foster youth and former foster youth face issues and circumstances that make graduating from high school challenging or even impossible. Only 50% of foster youth in the United States receive a high school diploma. Only 10% of foster youth will attend college and of that 10% only 3% will graduate. The CHSPE and high AB 2656 Page 3 school equivalency tests are two alternate paths to postsecondary education and the opportunities and benefits that education provides. However the fees for these exams create a nearly impossible barrier for foster and former foster youth to overcome. This bill prohibits a fee from being charged to foster, and former foster youth, making this an accessible option for these youth. 2)Background. The CHSPE and High School Equivalency Tests are offered as alternatives to a high school diploma. The fee to take the CHSPE is $110, $135 for late registration, and $160 for emergency registration. The State Board of Education has approved three different high school equivalency tests for use in California: the High School Equivalency Test (HiSET), the General Education Development (GED) and the Test Assessing Secondary Completion (TASC). Fees for the equivalency tests can vary from from one test center to another but average around $140 to $150 per exam. 3)Prior legislation. SB 252 (Leno), Chapter 384, Statutes of 2015, prohibited the assessment of fees for homeless youth. The legislation specified no additional state funds could be appropriated for purposes of implementing the requirements of the bill. SB 252 did, however; authorize the Superintendent of Public Instruction (SPI) to use surplus funds from the special deposit account established for the high school equivalency tests to reimburse contractors for any loss of fees. Funds in the special deposit account cannot be used for costs associated with the CHSPE. CDE estimates the fund had a surplus of approximately $1.3 million. According to a budget request this year, annual costs associated with subsidizing homeless youth are estimated to be around $100,000. AB 2656 Page 4 Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081