BILL ANALYSIS Ó AB 2663 Page 1 Date of Hearing: April 6, 2016 ASSEMBLY COMMITTEE ON EDUCATION Patrick O'Donnell, Chair AB 2663 (Cooper) - As Introduced February 19, 2016 SUBJECT: After school programs: grant amounts SUMMARY: Increases the amount provided for the After School Education and Safety program (ASES) by appropriating from the General Fund $73,260,000 for the 2016-17 fiscal year (FY) and requires, beginning in the FY 2017-18 and every fiscal year thereafter, an increase based on the percentage change in the California Consumer Price Index (CPI) from the prior year, provided that the adjustment does not result in a reduction in any fiscal year. Requires, beginning FY 2017-18 and each fiscal year thereafter, an adjustment in the maximum grant amounts and daily and weekly rates to ASES before and after school programs. Makes findings and declarations regarding the role of after school programs in closing the achievement gap and the impact of the minimum wage increase on rates that have not been adjusted since 2006. EXISTING LAW: 1)Establishes the ASES program through the 2002 voter approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships AB 2663 Page 2 between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade (Education Code (EC) Section 8482). 2)Establishes a maximum grant of $112,000 for an elementary school program and $150,000 for a middle or junior high school program. (EC Section 8482.55) 3)Establishes the total annual after school grant amount for which a site is eligible based on a formula of $7.50 per pupil per day of pupil attendance and a maximum of $37.50 per projected pupil per week. Provides funds for staff development based on a formula of $7.50 per projected pupil per day, with a maximum of three days. (EC Section 8483.7) 4)Establishes a before school program component with a maximum grant of $37,500 for an elementary school and $49,000 for a middle or junior high school based on a formula of $5 per pupil per day and a maximum total grant of $25 per projected pupil per week. (EC Section 8483.75) FISCAL EFFECT: Unknown COMMENTS: ASES program. The ASES program, passed by voters as Proposition 49 in 2002, provides almost $550 million annually for before and after school programs for kindergarten through grade 9 students. In FY 2015-16, 555 school districts and county offices of education operated ASES programs serving approximately 400,000 students. Local governments and nonprofit organizations working in partnership with local educational agencies may also apply for funding. After school programs must commence right after school and at least until 6 p.m. for 15 hours per week. Grants, last adjusted in 2006, are provided in three one-year increments with maximum grants at $112,500 per year for elementary schools, $150,000 per year for middle or junior high schools based on a per pupil amount of $7.50 per day of pupil attendance, and $7.50 per pupil per day for staff AB 2663 Page 3 development, with a maximum of three staff development days per year. Priority for funding goes to schools where at least 50% of the pupils are eligible for free- or reduced-priced lunch. Each program is required to provide a match equal to not less than one-third of the total grant. Facilities may count towards 25% of the local contribution. Participating afterschool programs are required to have an educational and literacy component in which tutoring or homework assistance is provided in one or more of the following areas: language arts, mathematics, history and social science, computer training, or sciences; and an educational enrichment component, which may include, but is not limited to, fine arts, career technical education, career exploration, recreation, physical fitness and prevention activities. The program requires before school programs to operate one and a half hours a day and after school programs to operate after school until 6 p.m. for a minimum of 15 hours per week. ASES grantees can request summer grants (previously called supplemental grants) in order to operate for more than 180 days or to operate during summer, intersession or vacation. In addition to the funds generated by Proposition 49, the state also receives approximately $130 million annually in federal funds for the 21st Century Community Learning Centers (21st CCLC) program, which provides funding for before and after school activities to pupils in kindergarten through grade 12. The state has chosen to implement this program almost identical to the state's ASES program. The problem. The author states: "After-school programs are essential to closing the AB 2663 Page 4 achievement and opportunity gap. They provide underserved students with meaningful academic and enrichment activities, keep kids safety off the streets during the primate time for crime, and offer essential child care for working parents. They also provide a crucial infrastructure for STEM, summer learning, physical activity, and leveraging hundreds of millions of federal dollars for nutritious snacks and meals. "While the costs, demands, and expectations of ASES programs have consistently increased, the funding has remained stagnant for a decade?As costs significantly outpace funding, ASES programs have been stretched to their breaking point and find it increasingly difficult to deliver the same high-quality services. Without additional funding, program quality will continue to suffer as hours would be reduced and some programs are at risk of being cut all together. 75% of ASES funded program had to reduce number of enrichment activities offered." Supporters also note the challenges caused by increases in the minimum wage requirements. Beginning January 1, 2016, the state's minimum wage is $10 per hour. Increasing wages is one challenge; the other challenge is in attracting qualified staff when other entry level jobs may be less demanding. The wage increase also affects the hiring of site coordinators who are paid an annual salary, typically around $33,000. The minimum wage increase requires an increase in site coordinators' annual salary to about $42,000. Providers have reclassified these employees to pay hourly wages due to the inability to pay increased wages. According to preliminary data from a survey conducted by the Partnership for Children and Youth in February, 35% of ASES funded programs have reduced the number of students served and 74% have reduced the number of enrichment activities offered, while 64% have reduced staff hours and professional development. AB 2663 Page 5 Of the 700 respondents, 29% reported that they are very likely to close within the next two years without additional funding. What does this bill do? This bill increases the funding for the ASES program by appropriating $73.3 million from the General Fund in FY 2016-17 and requires ongoing annual cost of living adjustments based on percentage changes from year to year in the California CPI. According to the author, the increase will adjust the daily rate from $7.50 to $8.50 per pupil per day. The bill directs the California Department of Education (CDE) to adjust the maximum grants and daily rates in accordance with the CPI for before and after school ASES programs beginning in 2017-18. The bill, however, does not specify similar adjustments in 2016-17. Staff recommends an amendment directing CDE to adjust the maximum grants and daily rates in accordance with the 2016-17 budget augmentation. Last year, an attempt was made to secure increased funding in the FY 2015-16 budget. The Assembly's budget provided $50 million but the budget conference committee reduced the amount to $25 million. The budget signed by the Governor included no increase. Subsequently, SB 645 (Hancock), was amended to authorize a program, beginning January 1, 2016 and ending July 1, 2017, to suspend its operation for a maximum of five schooldays in each fiscal year in order to provide some financial relief. The bill was held in the Assembly Appropriations Committee suspense file. Previous related legislation. SB 1221 (Hancock), Chapter 370, Statutes of 2014, modified eligibility, types of grants, amount of grants, and outcome measures of the ASES, the 21st CCLC, and the 21st Century After School Safety and Enrichment for Teens programs. SB 429 (DeSaulnier), Chapter 626, Statutes of 2011, authorizes AB 2663 Page 6 an ASES program provider to use supplemental grant funds to operate a six-hour program and establishes other parameters for programs operating summer, intersession or vacation programs, including authorizing a program to be conducted at an offsite location or at an alternate schoolsite and authorizing a supplemental grantee to open eligibility to every pupil attending a school in the district with priority for pupils enrolled in the school that receive a grant. SB 798 (DeSaulnier), Chapter 479, Statutes of 2010, requires any federal 21st CCLC program funds that exceed the total state appropriation for fiscal year 2008-09 to be allocated in accordance with a specified formula that includes 15% for summer programs serving elementary and middle school pupils. SB 638 (Torlakson), Chapter 380, Statutes of 2006, among others, increased the maximum grant amounts for after school programs from $75,000 to $112,500 for elementary schools and $100,000 to $150,000 for middle schools; and increased the per pupil daily rate from $5.00 to $7.50 per hour. The bill also increased the maximum grant amount for before school programs from $25,000 to $37,500 for elementary schools and $33,000 to $49,000 for middle schools; and increased the per pupil daily rate from $3.33 to $5. REGISTERED SUPPORT / OPPOSITION: Support California After School Coalition (sponsor) AB 2663 Page 7 A World Fit For Kids! ABC Unified School District After-School All-Stars, Los Angeles After School All-Stars, San Diego After-School Education and Safety Program at David Reese Elementary School, Elk Grove Alice Birney Elementary Anaheim Family YMCA Azusa Unified School District Bassett Unified School District Bay Area Community Resources Berry Creek Afterschool Program Beyond the Bell Branch Boys & Girls Clubs of Antelope Valley AB 2663 Page 8 Boys & Girls Clubs of Carson Boys & Girls Clubs of Cypress Boys & Girls Clubs of El Dorado County Western Slope Boys & Girls Clubs of Fontana Boys & Girls Clubs of Greater Redlands-Riverside Boys & Girls Clubs of Greater San Diego Boys & Girls Clubs of Kern County Boys & Girls Clubs of the Los Angeles Harbor Boys & Girls Clubs of Monterey County Boys & Girls Clubs of North County Boys & Girls Clubs of North Valley Boys & Girls Clubs of Oceanside Boys & Girls Clubs of the Peninsula AB 2663 Page 9 Boys & Girls Clubs of San Leandro Boys & Girls Clubs of San Marcos Boys & Girls Clubs of Santa Maria Valley Boys & Girls Clubs of Stanislaus County Boys & Girls Clubs of Tracy Boys & Girls Clubs of the West Valley Boys & Girls Clubs of Westminster Butte County Office of Education California Alliance of Boys & Girls Clubs California Association for Health, Physical Education, Recreation and Dance California Educational Centers California Federation of Teachers AB 2663 Page 10 California School-Age Consortium California State Alliance of YMCAs California State PTA California Teaching Fellows Foundation Camp Fire CEC California Educational Centers Central Coast YMCA Champions for America's Future Channel Islands YMCA Children Now Children's Defense Fund - California Children's Initiative Chino Valley Unified School District AB 2663 Page 11 Citizen Schools City of Downey ASPIRE after school program Compton Unified School District Afterschool Program DPS Group, North America Duarte Unified School District EduCare Foundation Extended Child Care Coalition of Sonoma County Fight Crime: Invest in Kids California Food Bank of Contra Costa and Solano Four Winds of Indian Education, Inc. Fortuna Elementary School District Fullerton School District Garvey School District AB 2663 Page 12 Gilroy Unified School District Institute for Student Success, Inc. LA's BEST After School Enrichment Program Lassen County Office of Education Lassen County Board of Education Lawndale Elementary School District Expanded Day Learning Program Little Lake City School District Long Beach Unified School District WRAP Expanded Learning Program Los Angeles County Office of Education Mission: Readiness-Military Leaders for Kids Mountain View School District Nicholas Elementary ASES Program P.F. Bresee Foundation AB 2663 Page 13 Partnership for Children & Youth Sacramento Chinese Community Service Center San Francisco Unified School District Santa Barbara Unified School District Santa Maria Valley YMCA Sonoma County Family YMCA STAR Education Student Success Institute, Inc. Team Prime Time Temescal Associates and the Learning in Afterschool & Summer Project THINK Together Warner Bros. Records AB 2663 Page 14 Woodcraft Rangers YMCA of the Central Bay Area YMCA of the East Bay YMCA of the East Valley YMCA of Greater Long Beach YMCA of Metropolitan Los Angeles YMCA of Orange County YMCA of San Diego County YMCA of Silicon Valley YMCA of Superior California Numerous individuals Opposition AB 2663 Page 15 None on file Analysis Prepared by:Sophia Kwong Kim / ED. / (916) 319-2087