BILL ANALYSIS Ó
AB 2663
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2663 (Cooper) - As Introduced April 14, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill continuously appropriates $73.3 million for the After
School Education and Safety program (ASES) beginning with the
2016-17 fiscal year (FY) and adjusts the appropriation annually
thereafter based on the California Consumer Price Index
AB 2663
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(CA-CPI). Specifically, this bill:
1)Continuously appropriates $73,260,000 (Proposition 98/GF) for
the 2016-17 FY. Beginning in the 2017-18 FY, adjusts the $73.3
million by adding the product of $623,260,000 multiplied by
the percent change in the CA-CPI from the 2016-17 FY, provided
that this adjustment does not result in a reduction in any
fiscal year.
2)Requires the California Department of Education (CDE),
beginning FY 2016-17, and each fiscal year thereafter, to
adjust the maximum grant amounts, daily rates, and weekly
rates for ASES before and after school programs, as provided
for in statute.
3)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.
FISCAL EFFECT:
1) Proposition 98/GF costs of $73.3 million starting in
2016-17. Unknown, but significant future year costs, in the
millions of dollars, to adjust this appropriation annually
based on the CA-CPI. The state currently provides an annual
continuous appropriation of $550 million for before and
after school programs, pursuant to Proposition 49 of 2002.
2) Minor administrative costs to CDE to adjust grant
amounts and daily and weekly rates.
AB 2663
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COMMENTS:
1)Purpose. According to the California Afterschool Advocacy
Alliance, sponsors of this bill, California leads the nation
in publicly-funded after-school programs, with annual
appropriations of nearly $700 million in combined state and
federal funding. This commitment provides more than 400,000
students access to safe and enriching after-school activities.
According to the sponsor, the current investment in after
school programs is not keeping pace with rising costs and
expectations. This bill proposes to increase the state's
continuous appropriation by $73.3 million. This amount would
grow annually based on inflation adjustments. According to
the author, this increase will support a daily rate increase
from $7.50 to $8.50 per pupil per day, providing maximum
grants of $127,000 for elementary school programs and $170,000
for middle school programs.
2)Minimum wage impacts. One of the main reasons supporters seek
an increase in state funding is due to the increase in the
state minimum wage. As the state increases the minimum wage,
sponsors of the bill state that it is more difficult to
attract qualified staff when other entry level jobs may be
less demanding. Supporters also state the wage increase has
affected their ability to pay site coordinators who are
classified as full-time exempt. Current law requires exempt
employees to be paid twice the minimum wage. According to
supporters of the bill, site coordinators annual salaries have
increased from $33,000 when the state provided a minimum wage
of $8 an hour, to $42,000 when the $10 minimum wage went into
effect. According to the sponsor, many programs have
reclassified workers as hourly employees to avoid this
increase and structure jobs so that overtime is not earned.
Nothing in this bill would prohibit the continued
reclassification of employees; however, according to the
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author, the $1 increase per pupil is sufficient to restore
site coordinators to full-time status.
3)Prior year budget actions. Although funding has remained
constant for after school programs for more than a decade, the
Legislature acknowledged the $550 million allocation may not
be keeping pace with program costs. Last year, an attempt was
made to secure increased funding in the 2015-16 Budget Act.
The Assembly's budget provided $50 million. The Budget
Conference Committee reduced this amount to $25 million.
However, the budget signed by the Governor included no
increase.
4)Prior legislation. SB 645 (Hancock) of 2013 authorized the
ASES 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 on the Suspense file in
this committee.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081