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  








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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