BILL ANALYSIS Ó
SB 252
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Date of Hearing: August 26, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 252
(Leno) - As Amended August 18, 2015
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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
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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
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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
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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
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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.
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Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081