BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2656 (O'Donnell) - Pupils: diploma alternatives: fee waiver: foster youth ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 9, 2016 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill extends to foster youth the fee waivers for the California High School Proficiency Exam and the high school equivalency exam that are currently provided to students who are homeless. Fiscal Impact: The California Department of Education (CDE) anticipates costs of $335,000 in the first year and $343,000 in ongoing support to modify regulations for each test, renegotiate four contracts that administer the test, and develop data tracking mechanisms. Additional resources may be necessary to complete AB 2656 (O'Donnell) Page 1 of ? the report on fee waivers for these tests due December 1, 2018. (Special fund*) Unknown revenue loss due to waived exam fees for foster youth. Assuming 200 foster youth students take either exam, revenue loss would be in the low tens of thousands. (Special fund*) Staff notes that the Special Deposit Fund Account surplus is an unlikely sustainable funding source for the long term. Once it is depleted, costs would have to be covered by either by testing contractors or by other test-takers, thereby also creating a General Fund cost pressure. * Special Deposit Fund Account Background: CDE has designated the California High School Proficiency Examination (CHSPE) as the test by which students may verify proficiency in high school basic skills. Generally, students that can take the test must be at least 16 years old. Some students take the test and leave high school early to work or attend college. The State Board of Education awards a "certificate of proficiency" to people who achieve a passing score on the proficiency exam. The certificate of proficiency is equivalent to a high school diploma. The State Board of Education has approved the use of three high school equivalency tests for students 18 years old and older, and 17 years old in some instances, for the purpose of receiving a California High School Equivalency Certificate. These tests include: (1) the General Educational Development Test (GED); the High School Equivalency Test; and (3) the Test Assessing Secondary Completion. Current law provides that a California high school equivalency certificate is deemed to be a high school diploma for the purpose of meeting the requirements of employment by all state and local public agencies in California. (Education Code § 51420 and § 51425) Existing law prohibits the CDE from charging the fee for the high school proficiency exam and the high school equivalency tests to a homeless child or youth under the age of 25 years who can verify his or her status as a homeless child or youth. Existing law authorizes the CDE to charge a fee for each application to take the high school proficiency exam in an amount sufficient to recover the costs of administering the test. Current law provides that the loss of fees due to waiving AB 2656 (O'Donnell) Page 2 of ? examination fees for homeless youth, is deemed to be a cost of administering this test for purposes of determining the costs of administering the test. Existing law requires that if a contractor or testing center charges an examinee its own separate fee for the high school equivalency exam, the contractor or testing center is prohibited from charging the fee to a homeless youth. Existing law also allows the CDE to use surplus funds in the Special Deposit Fund Account to reimburse contractors for the loss of fees, if any. Once the surplus is depleted, the contractors are required to absorb the ongoing costs of the fee waiver. Proposed Law: This bill prohibits the CDE from charging a fee for the high school proficiency examination or the high school equivalency examination to a foster youth who is under the age of 25, as defined. This bill also adds foster youth to the report that CDE is required to complete by December 1, 2018, that includes specified information regarding the exam fee waivers. This bill defines a foster youth as any individual who is, or has ever been, the subject of a petition before the juvenile court and was removed from his or her home by the court. This definition, in effect, covers former foster youth as well. Staff Comments: The fee waivers proposed by this bill are currently provided to individuals who are homeless and who are under the age of 25 years. This bill extends fee waivers to foster youth. The fee to take the California High School Proficiency Exam is $110. The fee for the high school equivalency tests varies, as determined by each test vendor and test center; this fee is generally $120-$200. This bill does not eliminate or waive the $20 fee charged by CDE for the cost of awarding certificates, issuing score reports, and maintaining records, and providing follow-up services related to the completion of the test. According to a report by WestEd done in 2013, The Invisible Achievement Gap, there were 394,715 students age 17 or younger enrolled in grade 12 in fall 2009, of which 2,674 were students AB 2656 (O'Donnell) Page 3 of ? in foster care. Of the 12th graders in foster care, 58 percent graduated high school. A portion of the remaining 1,123 foster youth students that did not graduate high school may, before they turn 25 years old, choose to take either the high school proficiency or equivalency test. The estimated number of foster youth that have not graduated high school and are older than 17 years old, who would increase the number of foster youth eligible for exam fee waivers, is unknown. Assuming 200 students take either test at an average test fee of $135, revenue loss would be about $27,000. The forgone fees for the exams could absorbed by the Special Deposit Fund Account in the short term until the surplus is depleted. Once it is depleted, costs would have to be covered by either by testing contractors or by other test-takers, thereby also creating a General Fund cost pressure. -- END --