BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 839
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          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 839 (Brownley) - As Amended:  April 26, 2011 

          Policy Committee:                              Education 
          Vote:7-2

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              Yes 

           SUMMARY  

          This bill requires school districts to submit a report to the 
          State Department of Education (SDE) and publicly disclose 
          information regarding participation in the federal School 
          Breakfast (SB) Program, as specified.  Specifically, this bill: 

          1)Requires each school district to submit a report to the SDE on 
            each noncharter, public schoolsites within the district that 
            did not operate a federal SB program in the previous year and 
            hear the results of the report at two school district board 
            meetings.  This measure further requires the report to contain 
            specified information regarding eligibility, participation in 
            the National School Lunch Program, and reasons for not 
            participating in the SB program.  

          2)Requires each school district to adopt a resolution and submit 
            it to the SDE that indicates which schoolsites do not operate 
            a federal SB program and their reasons for nonoperation.  The 
            resolution must also indicate the public schools that will 
            begin to operate the program and provide a timeline for 
            implementation. 

          3)Requires school districts to submit a report to SDE that 
            includes all of the following for each schoolsite in the 
            district: (a) the number of pupils enrolled at the schoolsite 
            who are eligible to receive free, reduced-price school meals; 
            (b) the average daily participation in the federal National 
            School Lunch Program of low-income pupils at the schoolsite; 
            and (c) consideration of options including, but not limited 
            to, alternative service locations, service times, and payment 
            structures for the federal SB program.  The school district is 








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            required to hear this report at two school board meetings. 

          4)Requires school districts to adopt a resolution that indicates 
            which public schoolsites within the district operate a federal 
            SB program and will continue to operate it without changes to 
            service locations, service times, or payment structures and 
            articulate the reasons and fiscal analysis for not making 
            changes to the program.  This measure also requires districts 
            to report on schoolsites who will continue to operate the 
            program with these specified changes.  

           FISCAL EFFECT  

          1)Annual GF/98 state reimbursable mandated costs to school 
            districts, likely between $2 million and $4 million, to meet 
            all of the reporting and public disclosure requirements of 
            this bill.  In 2009-10, there were 1,021 school districts in 
            the state.  

          2)The 2010 Budget Act allocated approximately $439.6 million for 
            the SB program.  Of this amount, approximately $399 million is 
            federal funding and $40.6 million is GF/98.  

           COMMENTS  

           1)Purpose  .  The federal SB program is a federal and state funded 
            program helping schools to provide nutritious morning meals so 
            students enter the classroom ready to focus on the day's 
            coursework. The program provides 25% of a child's daily 
            dietary needs and must meet the United States Department of 
            Agriculture nutrition standards. Children are served free, 
            reduced-price, or full-price meals depending on their family 
            income. A student whose household income is between 130% and 
            185% of the federal poverty guidelines is eligible to receive 
            reducedprice meals. For a household of four during the 201011 
            school year, an annual income of $28,665 is at 130% of the 
            federal poverty guidelines.

            School breakfast costs are subsidized through federal and 
            state funding so all can participate. Both the federal and 
            state governments offer a per-meal reimbursement for 
            breakfast.  The reimbursement rates for the 2010-11 fiscal 
            year are as follows:  

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                     |            | Free |Reduced-Pri|Paid |
                     |            |      |    ce     |     |
                     |------------+------+-----------+-----|
                     |Federal     |$1.48 |   $1.18   |$0.26|
                     |            |      |           |     |
                     |------------+------+-----------+-----|
                     |State       |$0.22 |   $0.22   |N/A  |
                      ------------------------------------- 

            According to the author, "Children who eat breakfast have 
            healthier diets, perform better in school and are less likely 
            to be overweight or obese. Today, millions of lowincome kids 
            in California attend schools that do not offer the 
            federallyfunded SB program or that operate the program but 
            arent reaching enough students. Currently, nearly 750 public 
            schools in California, which enroll over 54,000 lowincome 
            students, do not offer SBP. While 91% of Californias public 
            schools do operate the SB program, over 2.3 million (70%) of 
            Californias lowincome students in public schools do not 
            participate in the program."  

            This bill requires school districts to submit a report to SDE 
            and publicly disclose information regarding participation in 
            the federal SB program, as specified.  

           2)Timeline and requirements in the bill  .  Currently, the bill 
            requires school districts to provide two separate reports and 
            resolutions to the SDE.  The reports and resolutions provide 
            information on schoolsites that do not operate the federal SB 
            program and schoolsites that do operate the program.  The 
            author may wish to consider whether or not it is more 
            manageable for a school district to provide one report and one 
            resolution to the SDE.  Likewise, this measure requires a 
            school district to hear and discuss the report at two separate 
            board meetings.  This seems excessive and the author may 
            consider limiting this requirement to one regularly scheduled 
            board meeting.  

            This measure also requires every school district, even if it 
            offers the SB program, to report and disclose information, as 
            specified.   The author may wish to consider limiting the 
            requirements of this bill to school districts that do not 
            currently offer an SB program.       

            As currently drafted, the bill does not provide a timeline for 








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            completion and submission of the reports and resolutions.  
            Likewise, it is not clear if school districts must complete 
            these requirements on a one-time or annual basis.  The 
            committee suggests the author clarify these two issues.  

           3)Current law  requires the SDE to award grants on a competitive 
            basis of up to $15,000 per schoolsite for nonrecurring 
            expenses incurred in initiating or expanding a school 
            breakfast program. In addition, the law requires SDE, in 
            making school breakfast grants, to give preference to school 
            districts and county superintendents of schools that meet 
            certain criteria, including submitting a plan to SDE regarding 
            start-up or expansion, the established use of public and 
            private resources to carry out expansion of the program, and 
            an agreement to operate the breakfast program or summer food 
            program for a period of not less than three years.  The 2010 
            Budget Act allocated $1 million GF/98 for this program.  In 
            April 2011, SDE made the application for this program 
            available and school districts have until May 2011 to submit, 
            with notification of an award expected to occur in June 2011.  
              

           4)Unpaid K-12 mandates  . According to the Legislative Analyst's 
            Office, the state owes approximately $3.4 billion in K-12 
            mandate costs for prior years.  Prior to the 2010 Budget Act, 
            the state deferred mandate payments for several years with the 
            promise of making the payments to school districts in future 
            years. As a result, districts did not received payment for 
            annual services they were required to conduct. 

             a)   SB 90 (Committee on Budget and Fiscal Review), Chapter 
               7, Statutes of 2011 allocated $80 million GF/98 to school 
               districts for annual K-12 mandate costs; the state, 
               however, still owes school districts for the prior year 
               costs.   

           5)Previous legislation  .  AB 1966 (Garcia) required schoolsites 
            that enroll more than 400 pupils           and meet the 
            qualifications of federal severe need reimbursement to offer 
            breakfast, beginning with the 2010-11 school year.  This bill 
            was held on this committee's suspense file in May 2008.  


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081 








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