BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2489
                                                                  Page  1

          Date of Hearing:   April 18, 2006

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                  Carol Liu, Chair
                     AB 2489 (Leno) - As Amended:  April 17, 2006
           
          SUBJECT  :   Foster youth: educational and financial aid support  
          services

           SUMMARY  :   Enacts the "Foster Youth Higher Education Preparation  
          and Support Act of 2006," which includes matching funds for  
          federal grants, enhanced education services in K-12 districts,  
          student aid initiatives to close fee grant gaps in public higher  
          education, a new program for college-based foster youth  
          services, and student housing priority at public colleges and  
          universities.   Specifically,  this bill  :  

          1)Enacts the "Foster Youth Higher Education Preparation and  
            Support Act of 2006."

          2)States the intent of the Legislature to accomplish the  
            following:

             a)   To create opportunities for local education-based Foster  
               Youth Services Programs;

             b)   To close gaps in the mixture of California student aid  
               programs to ensure foster youth receive sufficient  
               financial aid to pay their systemwide and campus fees at  
               California public colleges and universities;

             c)   To provide matching funds in the State Budget for the  
               federally funded California Chafee Higher Education Grants  
               (Chafee) and to fulfill the commitment to support the cost  
               of attendance for foster youth; and

             d)   To ensure timely payments in Chafee by accomplishing  
               both of the following:

               i)     Providing funding for Chafee in anticipation of  
                 federal funding to be received after adoption of the  
                 federal budget in October; and 

               ii)    Encouraging the Department of Social Services (DSS)  
                 and the California Student Aid Commission (CSAC) to  








                                                                  AB 2489
                                                                  Page  2

                 review their joint and separate responsibilities for the  
                 Chafee and to make all necessary improvements to ensure  
                 the unacceptable delays in 2005-06 are not repeated.

          3)Specifies a range of local entities that may apply for grant  
            funding from the Superintendent of Public Instruction (SPI) to  
            operate an education-based foster youth services program for  
            children who reside in foster homes and requires that:

             a)   Each foster youth services program thus established  
               shall have at least one person identified as a foster youth  
               educational services advocate with duties that include, but  
               are not limited to:

               i)     Working with the child welfare agency to minimize  
                 changes in school placement;

               ii)    Facilitating prompt transfer of education records  
                 when changes are necessary;

               iii)   Providing information to the child welfare agency;

               iv)    Responding to requests from the juvenile court;

               v)     Working to identify and obtain services to enhance  
                 the educational prospects of the children (e.g.,  
                 tutoring, mentoring);

               vi)    Facilitating communication between the foster care  
                 provider, the teacher and other providers;

               vii)   Sharing information with the foster care provider  
                 about training programs; and

               viii)  Referring foster youth with special needs to special  
                 education advocates; 

             b)   Each program may prescribe the method for determining  
               which children may be served and suggest allowable  
               methodologies; and

             c)   Each program shall have guiding principles that  
               establish a hierarchy of services, in accordance with the  
               following order:









                                                                  AB 2489
                                                                  Page  3

               i)     Provide tutoring services;

               ii)    Provide or arrange referral to mentoring,  
                 counseling, transitioning services, emancipation  
                 services;

               iii)   Facilitation of timely individualized education  
                 programs and all special education services;

               iv)    Establishing collaborative relationships and local  
                 advisory groups; and

               v)     Establishing mechanisms for efficient and  
                 expeditious transfer of records; and

             d)   For the purposes of this section, defining a "licensed  
               or approved foster home" as a licensed or approved relative  
               (kin) foster home, licensed foster family home, certified  
               foster family agency home, court-specified home, or  
               licensed care institution (group home).

          4)Authorizes CSAC to make tuition and fee payments to a  
            recipient of Cal Grant B in his or her first academic year of  
            attendance if the recipient is or was a foster youth.

          5)Establishes the "California Guardian Scholars Program" (CGSP),  
            to be jointly administered by the Regents of the University of  
            California (UC), the Trustees of the California State  
            University (CSU), the Board of Governors of the California  
            Community Colleges (CCC) and the SPI, which includes the  
            following features:

             a)   The purpose of the program is to provide comprehensive  
               support for foster youth on UC, CSU and CCC campuses and to  
               support matriculation, graduation, academic success and  
               transfer;

             b)   Campuses receiving grants shall receive an annual grant  
               for five years that shall be utilized for the costs of  
               years one to three, and shall be $40,000 in years four and  
               five;

             c)   The State Department of Education (SDE) shall also  
               receive grant funding for the purpose of contracting with  
               community-based organizations to provide technical  








                                                                  AB 2489
                                                                  Page  4

               assistance to campus programs receiving grants under CGSP;

             d)   The administrator of the CGSP shall establish an  
               advisory committee to assist in the selection of proposals  
               to be funded and the development of project evaluation  
               criteria, with members that include, but are not limited  
               to, representatives from UC, CSU, CCC, the California  
               Postsecondary Education Commission, California Department  
               of Education Foster Youth Services Program, DSS, and  
               current or former foster youth;

             e)   The advisory committee shall make recommendations  
               regarding criteria for: awarding grants, determining  
               priority ranking of schools to receive assistance,  
               identifying effective projects, and for awarding grants to  
               community-based programs to provide technical assistance to  
               campus projects, and the advisory committee shall also make  
               recommendations regarding additional resources to promote  
               the program;

             f)   A public postsecondary educational institution may  
               submit an application to the administrator of the CGSP to  
               fund a project intended to improve foster youth services  
               and graduation rates;

             g)   The advisory committee shall give consideration to the  
               following elements in a campus plan: dedicated support  
               staff, one-stop shopping, housing, full financial aid  
               packages, academic guidance counseling, planned transition  
               to college, personal guidance and counseling, career  
               counseling, supplemental supports, social activities,  
               student leadership, partnerships, data collection and  
               internal/external campus support;

             h)   The administrator of the CGSP is authorized to award 50%  
               matching grants to applicants for the purpose of funding  
               the proposed project; 

             i)   Each project that receives a grant in the CGSP must  
               provide matching funds from existing funds received from a  
               federal, state, local, or private source or a budget  
               increase in those funds, with preference given to projects  
               that have the strongest demonstrated institutional  
               commitment; and









                                                                  AB 2489
                                                                  Page  5

             j)   UC, CSU, CCC and the SPI are directed to adopt rules and  
               regulations to implement this new program.

          6)States the intent of the Legislature that all current and  
            former foster youth who are current residents of California  
            shall have their systemwide and campus fees covered by grant  
            funds, and enacts the following provisions to meet this  
            intent:

             a)   Requires CSU to provide State University Grant (SUG) to  
               current and former foster  youth to the extent that the  
               student does not receive sufficient funds from Cal Grant to  
               cover systemwide and campus fees;

             b)   Requires CSU to provide annual estimates to the  
               Department of Finance (DOF) and the Legislative Analyst's  
               Office (LAO) of the amount of budget augmentation necessary  
               to provide SUG to foster youth;

             c)   Requests UC to provide University of California Grant  
               (UCG) to current and former foster  youth to the extent  
               that the student does not receive sufficient funds from Cal  
               Grant to cover systemwide and campus fees; and

             d)   Requests UC to provide annual estimates to the DOF and  
               the LAO of the amount of budget augmentation necessary to  
               provide UCG to foster youth.

          7)Requires UC and CSU to give student housing priority to  
            current and former foster youth in order to ensure stable  
            housing for these students, and further requires CSU to give  
            first priority to foster youth for residence in housing  
            facilities that are open for uninterrupted year-round  
            occupation and secondarily, for housing that is open for  
            occupation during most days throughout the calendar year.

          8)Requires DSS annually to notify, in writing, all foster youth  
            aged 13 and older of the educational supports available to  
            them pursuant to this bill.

          The remainder of this analysis primarily addresses aspects of  
          this bill related to higher education.

           EXISTING LAW  provides authority to UC, CSU and CCC to charge  
          California residents systemwide and campus fees and provides  








                                                                  AB 2489
                                                                  Page  6

          financial aid in the form of Cal Grants, UCG, SUG and Board of  
          Governors Enrollment Fee Waivers (BOG Fee Waivers) to assist  
          needy students in paying such fees.

          Existing federal law establishes the Chafee Education and  
          Training Vouchers Program, administered by the Administration  
          for Children and Families in the US Department of Health and  
          Human Services, which provides resources to states to assist  
          youths who have aged out of foster care or have been adopted  
          from the public foster care system after age 16.

           FISCAL EFFECT  :   Unknown, including, but not limited to,  
          augmentation necessary to provide an unknown amount of  
          additional matching funds for Chafee grants, funding necessary  
          to administer the CGSP, including grant funds for SDE as  
          authorized and funding of institutional grants of an unknown  
          amount and number, augmentation to the Cal Grant B program  
          sufficient to cover first-year tuition and fees in the Cal Grant  
          B program for foster youth, augmentation to the UCG and SUG  
          programs in UC and CSU, and additional funding for  
          education-based foster youth services.

           COMMENTS  :   

           What is the purpose of this bill  ?  According to the author, all  
          California foster youth should receive the academic preparation,  
          financial assistance and campus-based support services they need  
          to gain access to higher education and to be successful in their  
          education.  While California protects foster youth from abuse  
          and neglect, it needs to do more to support a successful  
          transition into adulthood.  Only half of all foster youth  
          complete high school and only 15% take the necessary courses to  
          gain college admission; fewer than 10% who graduate from high  
          school go on to college, and those that do encounter significant  
          obstacles (including insufficient financial aid, insufficient  
          coordination of campus support services, and a lack of a stable  
          place of residence).  Fewer than 2% of foster youth who go on to  
          college ever graduate.  Foster youth are more likely than the  
          general population to face homelessness, incarceration and lower  
          lifetime earning potential.  This bill contains a package of  
          initiatives to meet the higher education needs of foster youth.

           Funding tuition and fees for foster youth in Cal Grant B  :  Cal  
          Grant B serves the lowest income students. Cal Grant B (unlike  
          Cal Grant A that serves higher income students) does not pay for  








                                                                  AB 2489
                                                                  Page  7

          tuition and fees in a student's first year of college.  When Cal  
          Grant B was enacted more than 40 years ago (as the "College  
          Opportunity Grant Program"), policy makers assumed low-income  
          students would go the CCC, which at that time charged no fees.   
          Later, when fee charges began in the CCC, the BOG Fee Waiver was  
          created and all Cal Grant B students had their fees waived.  In  
          reality, many low-income students begin their education in UC,  
          CSU or private colleges.  AB 2813 (De La Torre), pending in the  
          Assembly, seeks to provide tuition and fee payments to all Cal  
          Grant B students in their first year of attendance.  This bill  
          seeks to provide tuition and fee assistance to foster youth in  
          their first year of attendance.

           Funding systemwide and campus fees at UC and CSU  :  Some foster  
          youth receive Cal Grant funding for systemwide fees at UC and  
          CSU.  Foster youth are typically among the lowest income  
          students, so most receive Cal Grant B and therefore, as noted  
          above, do not receive this assistance until their sophomore and  
          subsequent years.  Cal Grant does not pay for campus fees for  
          any UC or CSU student and thus, these local fees, which are  
          hundreds (and even, in some cases, thousands) of dollars, are  
          not automatically covered for foster youth.  This bill seeks to  
          eliminate the fee payment barrier for foster youth by ensuring  
          their receipt of grant funding for systemwide and campus fees at  
          UC and CSU by directing these segments to cover such fees with  
          their campus-based student aid grant funds (UCG and SUG), and  
          providing a process by which appropriate budget augmentations  
          could be made for this purpose.

           Chafee grants in California  :  CSAC administers the Chafee grants  
          in California, including responsibility for the application  
          process, need analysis, awarding and payments.  DSS must verify  
          a student's foster youth status. Awards were first made in  
          2003-04; 1,174 students received a total of $7,778,491.  In  
          2004-05, 862 students received renewal awards and 1300 received  
          new awards for a total of $7,938,337.  Final numbers are not  
          available for the current year.

           What is the concern about late payments in Chafee  ?  Foster youth  
          do not typically have families upon which to rely while they  
          await financial aid grants.  Their needs are considerable and  
          immediate.  Actual payments in this program have been seriously  
          delayed for a combination of reasons, including the October  
          availability of federal funding, delays in DSS certification of  
          eligible foster youth and CSAC delays in making awards and  








                                                                  AB 2489
                                                                  Page  8

          processing payments.  In the current year, renewal students were  
          paid sometime between mid-September and mid-October 2005.  New  
          recipients, however, were not even selected by CSAC until March  
          17, 2006 and payments were not actually started until early  
          April 2006.   Campuses report that foster youth, who had applied  
          for this assistance many months ago, have experienced serious  
          difficulties, including eviction from residences and dropping  
          out of college.  Ironically, some of those chosen for new awards  
          are now having their awards cancelled because they dropped out  
          because funds did not arrive.  According to the author, the  
          provision of matching grant funds, and the availability of state  
          funding in anticipation of federal funding to be received in  
          October would assist in the effort to make more timely payments  
          in future years, but these actions will not, in and of  
          themselves, cure the problems that led to payments being made  
          six months after the adoption of the federal budget.  In light  
          of these concerns, the author has decided to add language to  
          this bill to be more forceful in his encouragement that DSS and  
          CSAC serve these students more promptly.

                Author's amendment  :  SEC. 9.  It is the intent of the  
               Legislature that new and renewal payments shall be made to  
               eligible foster youth in the California Higher Education  
               Chafee Grants program on or before October 15, 2006.  If  
               payments are not made by that date, the California Student  
               Aid Commission and the Department of Social Services shall  
               report to the Legislature and the Governor by March 1, 2007  
               on the reasons for failure to make timely payments and  
               shall include in that report the corrective actions being  
               undertaken to prevent further delays in future years.

           Matching fund requirements for the Chafee Program  :  Federal law  
          currently requires a 20% match by states receiving allotments in  
          the Chafee Program.  This bill states the intent of the  
          Legislature to provide additional matching funds in the State  
          Budget, but does not specify the amount of such a match or how  
          this intent relates to the currently required funding match.   
          The Chafee Education and Training Grants (the federal funds that  
          California has named "The California Higher Education Chafee  
          Grants") are a subset of the larger Chafee Foster Care  
          Independence (CFCI) program.  The CFCI has a 20 % State match.   
          The state match is budgeted in an Independent Living Program  
          (ILP) called the "extended ILP".  There is about $15 million  
          General Fund budgeted for extended ILP, much more than the  
          required match (of about $6 million) for the entire CFCI.   When  








                                                                  AB 2489
                                                                  Page  9

          California received the new Chafee funding, it did not have to  
          add any more General Fund, because it was already overmatching  
          the federal program. DSS transfers to CSAC the entire amount of  
          the Chafee grants portion of the CFCI.  

           What is the need for the California Guardian Scholars Program  ?   
          This proposal, according to the author, is based upon successful  
          campus-based foster youth service programs.  It is his intent to  
          encourage and build institutional structures to ensure  
          coordinated campus services for foster youth.

           How will the California Guardian Scholars Program be  
          administered  ?  This bill provides for CGSP to be jointly  
          administered by UC, CSU, CCC and the SPI but does not provide a  
          specific structure to implement this intent.  Similarly, the  
          bill requires UC, CSU, CCC and the SPI to adopt rules and  
          regulations for CGSP, a process that each entity typically does  
          on its own.  Staff recommends the author pursue clarification of  
          the administrative structure of CGSP as this bill moves forward.

           The structure and grant process for the California Guardian  
          Scholars Program as set forth in this bill needs additional  
          work  :  This bill creates an advisory committee to the  
          administrator of the CGSP to "assist in selecting proposals" but  
          grants the administrator the sole authority to make awards.  It  
          might be prudent to clarify the relationship between the  
          administrator and the advisory committee and the role of the  
          latter in selecting recipients.  Additionally, the appointment  
          authority is specified for some advisory committee members and  
          not for others.  This bill is silent on the number and amount of  
          awards to campuses, yet specifies a somewhat confusing grant  
          structure.  The language in the bill states the campus "shall  
          receive a grant annually for five years, to be utilized for the  
          costs of years 1 to 3, inclusive, and $40,000 in years 4 and 5."  
           The payments for five years cover three years of costs? Why  
          exactly $40,000 in the fourth and fifth years?  How does the 50%  
          matching requirement work?  The details of the proposed grant  
          structure should be clarified as the bill moves forward.   

           Do foster youth need priority for student housing  ?  Foster youth  
          would be well served by more stable residences during their  
          college years.  Most students who reside in college dorms  
          typically go home for holiday and vacation breaks.  The lack of  
          a home to which a foster youth might go has caused problems for  
          this population for many years.  Priority for housing, including  








                                                                  AB 2489
                                                                  Page  10

          year-round and vacation-break housing, where available, is a  
          positive step toward providing this population with critically  
          needed stability.

           Related legislation now pending  :  
                 AB 1532 (Bass), pending in the Senate, removes  
               procedural barriers that limit foster youth participation  
               in the Cal Grant programs.  
                 AB 2216 (Bass), pending in the Assembly, establishes a  
               Child Welfare Council, which may advise various branches of  
               government regarding the needs of foster youth.  
                 AB 2813 (De La Torre), pending in the Assembly, provides  
               tuition and fee benefits for first-year Cal Grant B  
               recipients, among other provisions.
                 SB 1289 (Cedillo), pending in the Senate, extends  
               welfare benefits provided to foster care providers on  
               behalf of a foster youth over the age of 18 if that foster  
               youth is enrolled in a college, university or vocational  
               school.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Alameda County Foster Youth Alliance
          American Federation of State, County and Municipal Workers
          California Alliance of Child and Family Services
          California State Association of Counties
          California Youth Connection (Sponsor)
          Children's Advocacy Institute
          Children's Law Center of Los Angeles (Sponsor)
          CME (Connect, Motivate Educate) Society of San Jose State  
          University
          County Welfare Directors Association of California
          John Halcon, PhD, College of Education, California State  
                                               University, San Marcos
          Lambda Letters Project
          National Association of Social Workers, California Chapter
          National Center for Youth Law
          Service Employees International Union
          Youth Law Center (Sponsor)

           Opposition 
           
          None on file.








                                                                  AB 2489
                                                                  Page  11

           
          Analysis Prepared by  :    Mary Gill / HIGHER ED. / (916) 319-3960