BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2489
                                                                  Page  1

          Date of Hearing:   May 17, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                      AB 2489 (Leno) - As Amended:  May 3, 2006 

          Policy Committee:                              Higher  
          EducationVote:6-0
                        Education                             8-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  


          This bill 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)Provides for expansion of the Foster Youth Services Program by  
            authorizing a range of local entities to 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 licensed or approved foster homes.


          2)Requires each foster youth services program, if sufficient  
            funds are available, to have at least one person identified as  
            a foster youth educational services advocate, with specified  
            duties.


          3)States the intent of the Legislature to provide additional  
            matching funds in the state budget for the federally-funded  
            Chafee Higher Education Grants (Chafee) and to ensure timely  
            payments of grants to foster youth by providing funding for  
            Chafee in anticipation of federal funding to be received after  
            adoption of the federal budget in October 2006.








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          4)States legislative intent that California Higher Education  
            Chaffee Grants be made to eligible foster youth by October 15,  
            2006, and if not, that the California Student Aid Commission  
            (SAC) and the Department of Social Services report the reasons  
            why to the Legislature by March 1, 2007.


          5)Authorizes the SAC 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.


          6)Establishes the "California Guardian Scholars Program"  
            (CGSP)-a grant program 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-to  
            provide comprehensive support for foster youth regarding  
            matriculation, graduation, academic success and transfer.


          7)States legislative intent that all current and former foster  
            youth who are 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 funds to  
               current and former foster youth to the extent the student  
               does not receive sufficient funds from Cal Grant to cover  
               systemwide and campus fees, and requests UC to do the same  
               using University of California Grant funds; 


             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, and requests UC to do the  
               same for UCG grants; 


          8)Requires UC and CSU to give student housing priority to  
            current and former foster youth in order to ensure stable  








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            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.


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


           FISCAL EFFECT  

          1)Up to several million dollars annually to expand foster youth  
            education and support services. (In 2005-06, about 11,000  
            foster children are receiving services at a cost of $10.5  
            million. About 17,000 additional children (age 6 to 18) are  
            placed in licensed care institutions, foster family homes,  
            with foster family agencies, or in a court specified home.  
            This total does not include foster children residing in a  
            relative's home.)

          2)Costs to provide tuition and fee payments to Cal Grant B  
            recipients in their first year if they were a foster youth are  
            unknown. About 4,500 youth emancipate from foster care each  
            year. If 1% of these individuals enrolled in a four-year  
            college and received this benefit, at an average cost of  
            $6,000, the total cost would be $270,000.

          3)General Fund costs to administer and provide grants for the  
            California Guardian Scholars Program would be at least several  
            million dollars per year for a viable grant program.

          4)General Fund costs to reimburse UC and CSU for the costs of  
            providing UC and CSU grant funds to former foster youth are  
            unknown, but probably not significant.

          5)Additional matching funds for Chafee Grants should not be  
            necessary as current state support exceeds the federal  
            matching requirements.

          6)Annual GF costs of about $12,000 for DSS to notify foster  
            youth of educational support.









                                                                  AB 2489
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           COMMENTS  

           1)Purpose  . 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 be successful in their education. The  
            author believes that the state 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.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081