BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: SB 636 ----------------------------------------------------------------- |Author: |Liu | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |April 7, 2015 |Hearing |April 21, 2015 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mareva Brown | |: | | ----------------------------------------------------------------- Subject: Homeless youth: basic material needs assistance SUMMARY This bill creates the Homeless Youth Basic Material Needs Assistance Program and requires that moneys appropriated by the Legislature be allocated proportionally to counties based on the number of homeless youth in each county. It authorizes a county either to establish the program or to request the California Department of Social Services (CDSS) to administer the county's program, in which case CDSS would be required to directly administer the program in that county. The bill would permit counties to pool resources and jointly administer the program. The bill requires each county program to solicit proposals from, and contract with, nonprofit organizations providing basic material needs assistance to homeless youth as specified, and requires those nonprofit organizations to provide a minimum of 25 percent matching funds or in-kind services, as specified. The bill requires each contracted nonprofit to prepare a report on the program, as specified, and requires CDSS to issue a report after three years identifying the number of youth served, a description of assistance provided and to identify any significant achievements. ABSTRACT Existing law: 1)Establishes, in federal law, the McKinney-Vento Homeless Assistance Act, which provides federal funding for local SB 636 (Liu) PageB of? homeless assistance projects. (42 USC § 11301, et seq.) 2)Includes in the McKinney-Vento Homeless Assistance Act, a definition of a homeless child or youth as one who lacks a fixed, regular, and adequate nighttime residence including: a) Children and youth who are sharing the housing of other persons due to loss of housing, economic hardship, or a similar reason; are living in motels, hotels, trailer parks, or camping grounds due to the lack of alternative adequate accommodations; are living in emergency or transitional shelters; are abandoned in hospitals; or are awaiting foster care placement; b) Children and youth who have a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings; c) Children and youth who are living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings; and d) Migratory children living in the circumstances described above. (42 USC § 11434a) 1)Establishes the United States Interagency Council on Homelessness to coordinate a federal response to homelessness and create a national partnership at every level of government and with the private sector to end homelessness. (42 USC § 11311) 2)States the intent of the Legislature that homeless youth are entitled to a meaningful opportunity to meet the challenging state pupil academic achievement standards to which all pupils are held. (EDC 48850(a)(1)) 3)Requires each state educational agency, pursuant to the federal McKinney-Vento Homeless Assistance Act, to make sub-grants to local educational agencies (LEAs), as specified, for the purpose of facilitating the enrollment, attendance, and success in school of homeless children and youths. (42 U.S.C. § 11433) 4)Requires each state to submit to the federal government a plan to provide for the education of homeless children and youth, as specified. (42 U.S.C. § 11432(g)) SB 636 (Liu) PageC of? 5)Establishes in the state Treasury the School Supplies for Homeless Children Fund to receive personal income tax contributions to be distributed, in part, to the California Department of Education (CDE) to provide school supplies and health products to homeless children through a competitive grant program. (RTC 18895 et seq.) This bill: 1) Makes a series of findings and declarations including: a) During the 2013-14 academic year, 297,617 children and youth enrolled in local educational agencies in California were identified as homeless, as defined by the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et sec.). This population is several times more than that of any other state in the nation and equates to one homeless student in every classroom. b) The federal definition of homelessness used by school, child nutrition and other programs includes children and youth who lack a fixed, regular, and adequate nighttime residence, including those who live in shelters, transitional housing, cars, campgrounds, motels, or who share the housing of others temporarily due to loss of housing, economic hardship, or similar reasons. c) A significant barrier to success faced by homeless children and youth is access to basic materials including school supplies, shoes, hygienic and dental products, and other basic necessities. This and the accompanying low self-esteem lead to absenteeism and truancy, which prevents homeless youth from obtaining the education that is both their legal right and their best opportunity to escape poverty. d) According to numerous homeless liaisons throughout California that represent more than 70 percent of California's homeless children and youth, the overwhelming majority of this population does not have their basic material needs met. SB 636 (Liu) PageD of? e) The local control funding formula does not specifically address the unmet basic material needs of homeless children and youth. f) This act addresses this barrier to success by articulating a state policy framework to provide the most basic unmet material needs of homeless children and youth, while also utilizing matching resources and leveraging federal funds to ensure program stability and longevity. This act is designed to ensure that all homeless public school students have their basic material needs met so they can attend school on a more equal playing field with their peers. g) States Legislative intent that funds appropriated by the Legislature for this program not exceed an average allocation of twenty-five dollars and twenty cents ($25.20) per pupil, with the assumption of a participation rate of not more than 297,619 homeless youth, or the number from the most recent count of homeless youth, whichever is lesser. 1) Adds a new chapter to the Welfare and Institutions code commencing with Section 13710 entitled the Homeless Youth Basic Material Needs Assistance Program. 2) Establishes definitions, including the following: a. "Additional material needs assistance" means clothes, blankets, and access to shelter, and "basic material needs assistance" means school supplies, dental supplies and other hygienic products, shoes, socks and underwear. b. "Administering entity" means one of the following: i. A county that elects to establish a program and does not join with another county, as defined. ii. A county designated as the lead county, if two or more counties elect to establish a program jointly. iii. CDSS, if a county declines to SB 636 (Liu) PageE of? establish a program or requests the department to administer the program. c. "Homeless youth" is defined as in federal statute, as specified; nonprofit organization means a nonprofit corporation qualified to do business in California and qualified under federal IRS code 501(c)(3). 3) Requires CDSS to allocate money appropriated by the Legislature to each county program in a proportionate amount based on the county's respective number of homeless youth to establish and operate a Homeless Youth Basic Material Needs Assistance Program. 4) Permits a county to pool money and join with one or more other counties to establish and administer the program. 5) Requires CDSS to directly administer a program for homeless youth in any county that declines to establish a program or requests the department to administer the program, including contracting with a nonprofit organization, as specified. 6) Requires administering agencies to do the following: a. Solicit proposals from nonprofit organizations to administer a basic material needs assistance program for homeless youth, as specified. b. Select and contract with one or more nonprofit organizations to participate in the program and to base selection criteria upon the following: i. Demonstrated ability to form partnerships with Local Educational Agencies (LEAs). ii. Demonstrated ability to provide basic material needs assistance to homeless or low-income youth by working with LEAs. iii. Ability to work with the homeless liaison of each LEA, as specified. iv. Demonstrated ability to generate additional matching funds or in-kind resources SB 636 (Liu) PageF of? for similar programs. c. Requires each contracted nonprofit organization to notify the homeless liaison of a county office of education of the contractor's intent to enter into new partnership agreements or to renew an existing agreement with the LEAs in that county, and requires the contractor to form or maintain partnerships with LEAs for the purpose of providing basic material needs assistance to homeless youth, d. Additionally, requires the contracted nonprofit organization to provide basic material needs assistance to homeless youth, giving first priority to hygiene, dental, and school supply needs. A nonprofit organization may use other resources or demonstrated savings to provide additional material needs assistance. e. Requires the contracted nonprofit organization to provide at least a 25 percent match for all moneys received from the administering entity under this chapter. f. Requires that, if the nonprofit organization provides in-kind materials toward the 25-percent match, the value of the in-kind materials contributing to a 25-percent match shall be verified by the donor of the materials and shall not exceed the market value of the materials if sold at retail. Any amounts provided by the nonprofit organization that exceed the 25-percent match constitute demonstrated savings, as defined. g. Requires the contracted nonprofit organization to consult with the children and families commission of the county or counties served to determine how to best provide basic material needs assistance to homeless youth from birth to five years of age, if the administering entity elects to include homeless youth of that age in its program. h. Requires each contracted nonprofit organization to prepare a report for the administering SB 636 (Liu) PageG of? entity following each distribution cycle, which shall include, but not be limited to, the number of homeless youth assisted, location and dates of distributions. Additionally requires the report include a letter from each LEA, shelter, or other partnering entity, verifying this information and original letters from all donors contributing any in-kind materials counting toward the required match. 7) Requires that CDSS issue a simplified report after three years of operation of the program including the number of homeless youth assisted each year, a description of the assistance provided, a total leveraged match statewide and by each county and a scanned or paper copy of the original letters from each LEA, as specified. 8) Requires the CDSS report to include any significant achievements in absenteeism reduction, improved academic outcomes, improved living or social outcomes, and any other significant improvements. FISCAL IMPACT This bill has not been analyzed by fiscal committee. However, a Senate Appropriations Committee analysis of AB 2591 in 2014, which was substantially similar to this bill, indicated potential ongoing costs in excess of $100,000 (General Fund) for CDSS to review proposals and allocate funds to participating counties. Additionally, the analysis of AB 2591 projected major future cost pressure (General Fund) in the millions of dollars to establish and administer programs in participating counties. Based solely on the Legislative intent stated in this bill, the cost would cap at $7.5 million (General Fund) annually. BACKGROUND AND DISCUSSION Purpose of the bill: According to the author, this bill addresses a significant barrier to success for homeless children and youth, namely access to basic materials such as school supplies, shoes, hygienic and dental products and other necessities. Lack of basic material needs accompanied by low self-esteem lead to absenteeism and truancy, which prevent homeless students from SB 636 (Liu) PageH of? obtaining the education that is both their legal right and their best opportunity to escape poverty, the author writes. By establishing the Homeless Youth Basic Material Needs Assistance Act, and using matching resources and leveraging federal funds to ensure resource stability and longevity, this bill will ensure that all children and youth identified as homeless in public schools have their basic material needs met so they can attend school on a more equal playing field with their peers, the author states. Homelessness among children Homeless children and families began to be discussed as a significant social problem in the mid-1980s, and the issue has grown steadily and seen increasing numbers of homeless children since then.<1> Homeless families with children are 37 percent of the overall homeless population, according to data from the US Department of Housing and Urban Development. In 2013, more than 1.2 million public school children were homeless, an increase of roughly 25 percent from the 2009-10 school year, according to various U.S. Department of Education data sources. Overall, 2.5 million children experienced homelessness nationally in 2013 - or 1 in 30. There were nearly 270,000 homeless school children in the 2013-14 educational year, according to federal data. State data from the prior year indicates nearly a quarter of them live in Los Angeles County. Of the state's homeless children, more than 80 percent, or 224,161 children, were living in doubled-up situations, which include cohabitating with other families, "couch surfing," or living in a garage. Another 17,844 were living in shelters, 10,073 lived in motels and hotels, and 7,578 were unsheltered. McKinney-Vento Homeless Assistance Act The McKinney-Vento Homeless Assistance Act, passed in 1987, was the first significant piece of federal legislation to address homelessness. It provided funding for shelters, created an interagency council on homelessness to coordinate government nonprofit system efforts and addressed educational needs of --------------------------- <1> "America's Youngest Outcasts, A Report Card on Child Homelessness," American Institutes for Research, November 2014. SB 636 (Liu) PageI of? homeless youth. The Act requires homeless children to be able to attend their school of origin, have free transportation to and from school, enroll in school even without all required paperwork, among other rights. It also requires school districts to appoint local educational liaisons for homeless children. The Act defines homelessness more broadly than the previously used HUD definition. It includes individuals and families who lack a fixed, regular, and adequate nighttime residence, including those who live in shelters, transitional housing, cars, campgrounds, motels, or who share the housing of others temporarily due to loss of housing, economic hardship, or similar reasons. Comparison to other states The National Center on Family Homelessness at the American Institutes for Research created a report card on child homelessness, ranking states on the extent of homelessness adjusted for state population, child well-being, risk for child homelessness and state policy and planning efforts. California ranked 48th overall, just above Mississippi and Alabama, respectively. It ranked 48th in the extent of child homelessness, just above New York and Kentucky, based on HUD data showing that nearly 530,000 children were homeless in California in 2012-13, an increase of 20,000 children from one year prior and of nearly 90,000 from two years earlier. California also ranked second-to-last in policy and planning efforts, above only Wyoming. Despite positive marks for having a state housing trust fund, California continues to have poor access to housing for children and their families: Just 1,650 emergency shelter beds for families, 4,602 transitional housing units and 5,064 permanent supportive housing units statewide. Effects on children Researchers have found that the vast majority of homeless families are headed by a single mother with children under the age of 6. The families tended to move frequently, often staying in substandard housing and in dangerous neighborhoods, and were without transportation or adequate child care. Children experiencing homelessness were more often hungry, sick, and SB 636 (Liu) PageJ of? worried about whether they would eat or where they would sleep. Children often developed more slowly and struggled in school, repeating grades, missing school and dropping out at higher rates. Researchers found that mental health problems for homeless children were significantly worse than for similarly aged poor children.<2> Related legislation AB 2591 (Weber, 2014) was substantially similar to this bill, but did not include data reporting requirements. SB 761 (DeSaulnier, Chapter 369, Statutes of 2014) required the state Department of Education to designate a tax-exempt, nonprofit organization to use the School Supplies for Homeless Children Fund to provide school supplies and health-related products to local education agencies for distribution to homeless children, and to provide a 100 percent match for all funds received. SB 1571 (DeSaulnier, Chapter 459, Statutes of 2012), established the School Supplies for Homeless Children Fund and tax check off to provide school supplies to homeless children through a competitive grant program. SB 608 (DeSaulnier, Chapter 307, Statutes of 2011), authorized the Prison Industry Authority to offer their goods and services for sale to nonprofit organizations that have entered into MOUs with LEAs if the products and services are provided to public school students at no cost to the students or their families. COMMENTS This bill is substantially similar to AB 2591 (Weber, 2014) which was held in the Senate Appropriations Committee. The author has narrowed the scope of the bill by clarifying the items included in the definition of material needs, requiring nonprofits and the state to report the numbers of children served and the supplies provided. It additionally requires the state to retain the funding of any county that elects not to participate in the program and to directly contract with nonprofits to run the program in that county. This version also --------------------------- <2> Ibid, p. 9-10 SB 636 (Liu) PageK of? increases the required match by contracted nonprofit organizations from 20 percent to 25 percent, but permits that match to be made by in-kind donations. This bill additionally includes a series of findings and declarations which define the federal act and provide 2013-14 data, make various statements about the necessity of the bill and state Legislative intent to institute a $7.5 million cap on annual expenditures. Staff recommends the author amend this bill to remove unnecessary findings and declarations (a) through (f), retaining the Legislative fiscal intent in (g), as follows: On page 2, delete lines 1 through 20. On page 3, delete lines 1 through 17. POSITIONS Support: Ktocollege (Co-Sponsor) California State PTA (Co-Sponsor) California Catholic Conference Oppose: None. -- END --