BILL ANALYSIS                                                                                                                                                                                                    Ķ



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 645             
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          |Author:    |Hancock                                              |
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          |Version:   |April 6, 2015                               Hearing  |
          |           |Date:     April 8, 2015                              |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Lynn Lorber                                          |
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          Subject:  After school programs:  grant amounts

            SUMMARY
          
          This bill appropriates to the After School Education and Safety  
          program $54 million in the 2015-16 fiscal year, and $72 million  
          beginning in the 2016-17 fiscal year and every year thereafter,  
          and creates a cost of living adjustment linked to the California  
          Consumer Price Index beginning in the 2017-18 fiscal year.

            BACKGROUND
          
          Current law establishes:

             1.   The After School Education and Safety (ASES) program,  
               consisting of before and after school academic enrichment.   
               Priority for funding is granted to schools where at least  
               50% of the students are eligible for free or reduced price  
               meals.  ASES programs receive direct grants, where  
               attendance is projected and grants are funded up-front, in  
               three one-year increments.  
               (Education Code § 8482, 8482.4, and § 8482.5)

             2.   The maximum total direct grant awarded annually for an  
               after school program as $112,500 for each regular school  
               year for elementary schools and $150,000 for middle or  
               junior high schools (based on a formula of $7.50 per  
               student per day of attendance, at a maximum of $37.50 per  
               student per week).  
               (EC § 8482.55 and § 8483.7)







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             3.   The maximum total grant awarded annually for a before  
               school program as $37,500 for each regular school year for  
               elementary schools and $49,000 for middle or junior high  
               schools (based on a formula of $5 per student per day of  
               attendance, at a maximum of $25 per student per week).  (EC  
               § 8483.75)

             4.   A summer grant to operate the program in excess of 180  
               days or during any combination of summer, intersession, or  
               vacation for a maximum of the lesser of:

                  A.        $7.50 per student per day; or, 

                  B.        30% of the total grant amount awarded to the  
                    school per school year; or,

                  C.        $33,750 for elementary schools and $45,000 for  
                    middle or junior high schools.  (EC § 8483.7 and §  
                    8483.76)

          Current law continuously appropriates to the California  
          Department of Education $550 million from the General Fund for  
          the After School Education and Safety (ASES) program.  (EC §  
          8483.5)

          Current law:

             1.   Establishes the minimum wage of nine dollars per hour on  
               and after July 1, 2014, and ten dollars per hour on and  
               after January 1, 2016.  (Labor Code § 1182.12)

             2.   Requires employers to provide at least one hour of paid  
               sick time for every 30 hours worked, or a minimum of three  
               days per year.  (Labor Code § 246)

            ANALYSIS
          
          This bill appropriates to the After School Education and Safety  
          (ASES) program $54 million in the 2015-16 fiscal year, and $72  
          million beginning in the 2016-17 fiscal year and every year  
          thereafter, and creates a cost of living adjustment linked to  
          the California Consumer Price Index beginning in the 2017-18  
          fiscal year.  Specifically, this bill:








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          1.   For the 2015-16 fiscal year, appropriates $54 million from  
               the General Fund (Proposition 98) to the California  
               Department of Education (CDE) for the ASES program, and  
               requires the CDE to proportionately adjust the dollar  
               amounts for the ASES base grants and the per student per  
               day rates.

          2.   For the 2016-17 fiscal year and each fiscal year  
               thereafter, continuously appropriates $72 million from the  
               General Fund (Proposition 98) to the CDE for the ASES  
               program, and requires the CDE to proportionately adjust the  
               dollar amounts for the ASES base grants and the per student  
               per day rates.

          3.   Requires the Department of Finance, beginning with the  
               2017-18 fiscal year and each fiscal year thereafter, to  
               adjust the appropriation for the ASES program by adding the  
               product of $622 million times the percentage change in the  
               California Consumer Price Index from the 2016-17 fiscal  
               year, provided the adjustment does not result in a  
               reduction in any fiscal year.

          4.   Requires the CDE, beginning with the 2017-18 fiscal year  
               and each fiscal year thereafter, to annually adjust the  
               dollar amounts for the ASES base grants and the per student  
               per day rates by an amount reflecting the percentage change  
               in the California Consumer Price Index from the 2016-17  
               fiscal year, provided the adjustment does not result in a  
               reduction in any fiscal year.

          STAFF COMMENTS

          1.   Need for the bill.  According to the author, "The Education  
               Code establishes that $550 million shall be continuously  
               appropriated from the General Fund to the Department of  
               Education for the After School Education and Safety (ASES)  
               Program.  This funding amount has not increased since the  
               introduction of the program, despite minimum wage increases  
               that impact the hourly pay for both site coordinators and  
               program leaders, the new statutory requirement for three  
               paid sick days per year, and other increased costs  
               associated with operated After School Education and Safety  
               (ASES) programs.  The average cost of an after school  








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               program is $7 per child per hour, or $21 per day.  This is  
               nearly three times the average daily attendance rate of  
               $7.50 paid to ASES providers."

          2.   Family fees.  Current law does not require ASES programs to  
               charge family fees or to conduct individual eligibility  
               determinations based on need or income.  It appears that  
               ASES programs have the ability to charge family fees;  
               however, it is unlikely that many programs charge fees, or  
               reap significant fees, as ASES programs serve schools where  
               a minimum of 50% of the students are eligible for free- or  
               reduced-price meals, and funding priority is given to  
               programs serving the highest percentages of students who  
               are eligible for free and reduced-price meals.
          
          3.   Budget issue.  The Education Code requires the continuous  
               appropriation of $550 million from the General Fund to the  
               California Department of Education for the ASES program.   
               This bill proposes to increase that appropriation by $54  
               million in the 2015-16 fiscal year, $72 million in the  
               2016-17 fiscal year and every fiscal year thereafter, and  
               provide an annual cost of living adjustment beginning in  
               the 2017-18 fiscal year.  The Governor's proposed 2015-16  
               Budget does not provide an increased appropriation for the  
               ASES program.  The Senate Budget Subcommittee on Education  
               may wish to consider this funding proposal through the  
               annual budget process.

          Is it appropriate for this Committee to pass a bill that makes a  
               significant appropriation of Proposition 98 funds?  Passing  
               this bill would signal this Committee's desire to provide  
               funds to ASES programs that are sufficient to mitigate the  
               increase in minimum wage.  The decision of whether to  
               provide additional funds will ultimately be made in the  
               Budget Act.  

          4.   Subcommittee hearing.  The Senate Education Subcommittee on  
               Community Schools held an informational hearing on March  
               25, 2015, featuring a panel on after school and  
               out-of-school programs.  This panel provided testimony  
               relative to the effects the increases in minimum wage will  
               have on the statutory funding levels and caps on per  
               student daily rates for ASES programs (see Comment #1).









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            SUPPORT
          
          Alhambra Afterschool Adventures
          Alhambra Unified School District
          ARC
          Aspiranet
          Bay Area Community Resources
          Boys & Girls Clubs of Garden Grove
          Boys & Girls Clubs of Greater Redlands-Riverside
          California Educational Centers
          California School - Age Consortium 
          California State Alliance of YMCAs
          California Teaching Fellows Foundation
          Children's Initiative
          Citizen Schools
          City of Santa Maria Recreation and Parks Department
          Coaching Corps.
          Empire Union School District
          Fight Crime: Invest in Kids California
          Institute for Student Success, Inc. 
          LA's Best After School Enrichment
          Lassen County Office of Education
          LEAD ASES Assist., Site Coordinator, Bernardo Height Middle  
          School
          Merced County Office of Education
          MVM Strategy Group 
          Oakland Unified School District
          Para Los Niņos Charter
          Partnership for Children & Youth
          Patterson Joint Unified School District, After School Programs
          Reach for the Stars
          Student Success Institute, Inc. 
          Summerville School District
          Think Together
          TOSA/Program Coordinator/ Poway Unified School District
          Twin Peaks Middle School, Site Coordinator ASES Programs
          YMCA Coast Central
          YMCA of Metropolitan Los Angeles
          YMCA of San Diego County 
          YMCA of the East Bay
          An individual

            OPPOSITION
           








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           None received.

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