BILL ANALYSIS Ó SB 252 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 252 (Leno) - As Amended August 18, 2015 ----------------------------------------------------------------- |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 homeless youth a fee to take the California High School Proficiency Exam (CHSPE) and prohibits any contractor or testing center from charging homeless youth a fee to take any SB 252 Page 2 high school equivalency test (also known as the GED). Specifically, this bill: 1)Specifies no additional state funds will be appropriated for purposes of implementing the requirements of the bill, however; the bill authorizes the Superintendent of Public Instruction (SPI) to use surplus funds from the special deposit account established for the high school equivalency test, to be used to reimburse contractors for any loss of fees. 2)Requires a contract executed by CDE for the provision of the high school equivalency test to require the contracting party to accept all examinees, including those that qualify for a fee waiver pursuant to this bill. 3)Requires the CDE to include a provision in all memorandums of understanding (MOUs) with contractors providing the high school equivalency test, that if the surplus funds in the special deposit account are depleted, the ongoing costs of a fee waiver will be absorbed by the contractor. 4)Authorizes the CDE to adopt emergency regulations to implement the bill as necessary. 5)Defines homeless youth as an individual who lacks fixed, regular, and adequate residence as defined under the federal McKinney-Vento Act and; the status as a homeless youth is required to be verified by homeless services provider such as a government agency or law enforcement officer. 6)Requires the Superintendent of Public Instruction (SPI), on or before December 1, 2018, to submit a report to the Legislature SB 252 Page 3 on the number of homeless youth that took a high school proficiency test in each of the 2016, 2017 and 2018 calendar years; the impact of the no cost testing option on homeless youth; estimated number of homeless youth that may take a high school proficiency test in future years; a recommendation for a permanent funding source in future years; the annual and projective administrative costs to CDE and reimbursement to contractors. Sunsets the reporting requirement on January 1, 2020. FISCAL EFFECT: 1)This bill prohibits additional state funding from being provided to implement fee exemptions; however, this bill authorizes the CDE to use surplus funds from the GED special deposit account to support the fee exemption and associated administrative costs. The CDE estimates the fund has a surplus of approximately $1.3 million. Annual costs to cover the fee exemption are unknown. Approximately 49,000 homeless youth attended grades 10-12, inclusive, according to 2013-14 data. A field survey indicates approximately 63 homeless students took this test last year. Presumably, this number would increase if the test was provided at no cost. Assuming 1% of homeless students in grades 10-12 took the test at a cost of $140 per test, this would result in approximately 490 fee exemptions at a total cost of $68,600. 2)This bill prohibits additional state funding from being provided to implement fee exemptions, therefore; any costs associated with a fee exemption for the CHSPE would be SB 252 Page 4 absorbed by other test takers at the local level. (The $1.3 million identified in the special deposit account noted above cannot be used for costs associated with the CHSPE). A field survey indicated approximately 60 homeless students took this test last year. Presumably, this number would increase if the test was provided at no cost. Assuming 1% of homeless students in grades 10-12 took the test at a cost of $110 per test, this would result in approximately 490 fee exemptions at a total cost of $53,900. 3)CDE estimates one-time administrative costs of approximately $100,900 and ongoing costs of approximately $77,000 to process reimbursements to vendors and to collect and process data related to reporting requirements in the bill. These costs are 50% General Fund and 50% Special Funds. In addition, CDE anticipates minor costs for regulations and for DGS to process the contracts with test vendors. COMMENTS: 1)Purpose. According to the author, during the 2012-2013 school year, nearly 270,000 California students experienced homelessness. Twenty-seven percent of these students were enrolled in grades 9-12. California studies have found that as many as 75% of older homeless youths drop out of school. Exempting homeless youth from examination fees will remove financial barriers and increase accessibility to the high school proficiency and equivalency examinations. 2)High school equivalency exam. The state authorizes the high school equivalency test (commonly referred to as the GED) as an alternative to a high school diploma. The State Board of Education has approved three high school equivalency tests for use in California: one is provided by a not-for-profit company SB 252 Page 5 and two are provided by for-profit companies. The state has established a special deposit account for fees generated from the test to be used for administrative purposes. Currently the account has a surplus of $1.3 million. This amount fluctuates annually depending on administrative needs. For example, according to the CDE, last year the cost to administer the GED was approximately $800,000; however, the state only collected $600,000. This bill authorizes the CDE to use surplus funds to reimburse contractors for any loss of funds as a result of providing fee exemptions to homeless students. It is not clear how long the account can sustain these reimbursements. The bill calls for a study to review the sustainability of this funding source. Additionally, if the surplus funds in the special deposit account are depleted, the ongoing costs of a fee waiver are required to be absorbed by the contractor. 3)California High School Proficiency Exam (CHSPE). The state also authorizes the California High School Proficiency Exam (CHSPE) as an alternative to a high school diploma. CDE is responsible for the CHSPE and contracts with the Sacramento County Office of Education, with support from Educational Data Systems, Inc, to administer the test. Students pay a fee of $110 to take the CHSPE for those who register by the deadline, $135 for late registration, and $160 for emergency registration. Costs associated with providing a fee exemption to homeless students will be passed on to other test takers. The CDE has the authority under existing law to raise the fee as necessary to cover these additional costs. SB 252 Page 6 Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081