BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 636 (Liu) - Homeless youth: basic material needs assistance ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 23, 2015 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 4, 2015 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 636 would create the Homeless Youth Basic Material Needs Assistance Program, which would require the Department of Social Services (DSS) to allocate moneys appropriated by the Legislature to counties electing to establish a program for the purposes of the statewide program. This bill would require the DSS to administer a program for a county declining to establish a program or requesting DSS to administer the program. This bill would also require the DSS to issue a report, as specified, three years after implementation of the program. Fiscal Impact: Major future cost pressure (General Fund) in the tens of millions of dollars annually to establish and administer programs in all counties. While the extent of potential costs would be at the discretion of the Legislature to appropriate, in order to provide even 25 percent of the 297,470 homeless K-12 youth (74,367) with less than $20 per SB 636 (Liu) Page 1 of ? month over the school year to assist with basic material needs would cost $17.8 million (General Fund). Potentially significant ongoing administrative costs (General Fund) to DSS as the "administering entity" for counties declining to establish a program or requesting DSS administration. Costs would be dependent on the number of counties declining participation or requesting administration, which is unknown at this time, and the population of homeless youth in those specified counties. One-time and ongoing costs potentially in excess of $100,000 (General Fund) to the DSS to review proposals and allocate funds to participating counties, to the extent monies are appropriated for this program, and generate the report. Background: Existing federal law under the McKinney-Vento Homeless Assistance Act, defines a homeless child or youth as one who lacks a fixed, regular, and adequate nighttime residence including: o Children and youths 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. o Children and youths 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. o Children and youths who are living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings; and o Migratory children living in the circumstances described above. (42 U.S.C. § 11434a.) According to online data from kidsdata.org, there were 297,470 homeless school children in the 2013-14 educational year, with nearly a quarter of the youth living in Los Angeles County. Under existing law pursuant to SB 761 (DeSaulnier) Chapter 365/2014, the Personal Income Tax Law authorizes an individual SB 636 (Liu) Page 2 of ? to contribute amounts in excess of his or her tax liability for the support of specified funds, including the School Supplies for Homeless Children (SSHC) Fund. Existing law requires the moneys deposited in the SSHC Fund to be allocated, upon appropriation by the Legislature, to the DSS for the sole purpose of assisting pupils in California pursuant to the federal McKinney-Vento Homeless Assistance Act by providing school supplies and health-related products to homeless children through competitive grant programs. The SSHC Fund was originally authorized by SB 1571 (DeSaulnier), Chapter 459/2012 to help provide essential school supplies to homeless children. In 2013, the SSHC Fund received $367,868 in valid contributions, and has received $276,891 in contributions this year. This bill seeks to provide similar services to homeless youth through a direct appropriation rather than through voluntary tax contributions. Proposed Law: This bill would create the Homeless Youth Basic Material Needs Assistance Program, which would require the DSS to allocate moneys appropriated by the Legislature for the purposes of the statewide program. Specifically, this bill: Includes uncodified legislative intent language describing the maximum level of funds to be appropriated for the program, as specified. Defines "additional material needs assistance" as clothes, blankets, and access to shelter. Defines "administering entity" as a county that elects to establish a program, counties that elect to establish a program jointly, or the DSS if a county declines to establish a program or requests DSS to administer the program. Defines "homeless youth" as having the same meaning as the term defined in federal law under the McKinney-Vento Homeless Assistance Act. Defines "basic material needs assistance" as school supplies, dental supplies, and other hygienic products, shoes, socks, and underwear. From moneys appropriated by the Legislature for the program, requires DSS to allocate a proportional amount to each county program based on the county's respective number of homeless youth. SB 636 (Liu) Page 3 of ? Provides that moneys allocated to the county shall be used to establish and operate a Homeless Youth Basic Material Needs Assistance Program for the county. Provides if a county declines to establish a program or requests DSS to administer the program, the DSS is to retain the county's share of funds and is directly administer a program for homeless youth in that county, including contracting with a nonprofit and performing all duties specified in the bill. Requires each administering entity to do all of the following: o Solicit proposals from nonprofit organizations for the purpose of providing basic material needs assistance to homeless youth in the manner directed by the administering entity, as specified. o Select and contract with one or more nonprofit organizations to participate in the program based on the proposals solicited. Selection to be based on various factors, including the nonprofit organization's demonstrated ability to form partnerships with LEAs, demonstrated ability to generate additional matching funds or in-kind resources for similar programs. o Requires each nonprofit organization contracted to do all of the following: § Assist homeless youth through LEA partnerships. § Notify the homeless liaison of a county office of education each time a program commences or is renewed. § Provide basic material needs assistance to homeless youth, giving first priority to hygiene, dental, and school supply needs. § Authorizes a nonprofit to use other resources or demonstrated savings to provide additional material needs assistance. § Provide at least a 25 percent match for all moneys received from the administering entity. Specifies in-kind materials count toward the match, and any amounts provided by a nonprofit that exceed the 25-percent match constitute demonstrated savings that may be used to provide clothes, blankets, and access to SB 636 (Liu) Page 4 of ? shelter. § Consult with the children and families commission of the county, as specified. § Prepare a report for the administering entity, as specified. o Requires the DSS to issue a report after three years of operation of the program, to include the number of homeless youth assisted each year, a description of the assistance provided, the total match leveraged and the match leveraged by each county, copies of the original letters from each LEA, as specified, and any significant achievements in absenteeism reduction, improved academic outcomes, improved living or social outcomes, and any other significant improvements. Prior Legislation: AB 2591 (Weber) 2014 was substantially similar to this measure. This bill was held on the Suspense File of this Committee. SB 761 (DeSaulnier) Chapter 365/2014 requires funds appropriated by the Legislature from the School Supplies for Homeless Children Fund to be allocated to the DSS instead of CDE for distribution to a tax-exempt nonprofit organization to provide school supplies and health-related products to partnering LEAs for distribution to homeless children. This bill requires a minimum 100 percent match for all funds received. Staff Comments: To the extent monies are appropriated by the Legislature for the statewide program, the DSS would incur one-time and ongoing costs (General Fund) of an unknown but potentially significant amount in excess of several hundred thousand dollars to review proposals, allocate funds to counties, administer the program for counties declining to establish a program or requesting DSS to administer the program, and to prepare and issue the required report. This bill does not mandate an appropriation by the Legislature, but to the extent the Legislature appropriates funds for the SB 636 (Liu) Page 5 of ? purposes of this program in any one year, costs could potentially be in the millions of dollars to establish and administer programs in all counties. While the extent of potential costs would be at the discretion of the Legislature to appropriate, in order to provide even 25 percent of the 297,470 homeless K-12 youth (74,367) with less than $20 per month over the school year to assist with "basic material needs" would cost $17.8 million (General Fund). -- END --