BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1518 (Eggman)
          As Amended  May 23, 2014
          Majority vote 

           VETERANS AFFAIRS    9-0         EDUCATION           7-0         
           
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          |Ayes:|Quirk-Silva, Ch�vez,      |Ayes:|Buchanan, Olsen, Ch�vez,  |
          |     |Medina, Brown, Eggman,    |     |Gonzalez, Nazarian,       |
          |     |Fox, Grove, Muratsuchi,   |     |Weber, Williams           |
          |     |Salas                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           APPROPRIATIONS      17-0                                        
           
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          |Ayes:|Gatto, Bigelow,           |     |                          |
          |     |Bocanegra, Bradford, Ian  |     |                          |
          |     |Calderon, Campos,         |     |                          |
          |     |Donnelly, Eggman, Gomez,  |     |                          |
          |     |Holden, Jones, Linder,    |     |                          |
          |     |Pan, Quirk,               |     |                          |
          |     |Ridley-Thomas, Wagner,    |     |                          |
          |     |Weber                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Codifies authority for the existing California  
          National Guard Youth ChalleNGe Program, and requires certain  
          geographic areas be served subject to funding, as specified.   
          Specifically,  this bill  :  

          1)Requires the Adjutant General of the California National Guard  
            (Adjutant General) to conduct a civilian youth opportunities  
            program pursuant to Title 32 of the United States Code   
            Section 509 and subject to the availability of funding. 

          2)Directs that the program shall be known as "National Guard  
            Youth ChalleNGe Program," (Program).  

          3)Mandates that the Program shall consist of at least a 22-week  
            residential program and a 12-month post-residential mentoring  








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            period.   

          4)Requires the Program to serve at risk teens in areas of the  
            state, including, but not limited to, the San Joaquin Valley  
            and Northern California.

          5)States that the Program shall be subject to all of the  
            following:

             a)   The Program shall seek to improve life skills and  
               employment potential of participants by providing  
               military-based leadership development, promoting fellowship  
               and community service, developing life-coping skills and  
               job skills, improving physical fitness, providing health  
               and hygiene training, and assisting participants to receive  
               a high school diploma or its equivalent.

             b)   The Adjutant General may accept federal funding to  
               implement the Program. The Adjutant General may appoint a  
               director and other service members and employees, permanent  
               or temporary, to operate the Program.

             c)   The Military Department shall enter into a memorandum of  
               agreement with an appropriate school district or a county  
               office of education for the purpose of providing  
               educational services for students enrolled in the Program.  
               The school district or county office of education with  
               which the department contracts shall be responsible for  
               ensuring compliance with any applicable requirements  
               imposed by the Education Code.

               i)      Mandates that a new Program, except for the  
                 California Cadet Corps, may only be established as if  
                 funds are appropriated for that purpose.
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee: 

          1)Annual General Fund cost of about $1.5 million, assuming a  
            program similar in size to the existing programs (about 750  
            students). Federal funding would account for about $4.5  
            million for the balance of the program. The educational  
            component of the program is supported by local school  
            districts and/or the County Office of Education via existing  








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            K-12 average daily attendance.  

          2)Current law specifies a new program may only be established if  
            funds are appropriated for this purpose.  This bill is keyed  
            non-fiscal [by the Legislative Counsel].

          3)The Assembly has added this project to the 2014-15 budget  
            bill.  The Senate has not. 

           COMMENTS  :  This bill codifies in state law the requirement that  
          the Adjutant General conduct a Program in California subject to  
          funding.  There are two existing Programs already being  
          conducted in California, the Grizzly Youth ChalleNGe Academy,  
          located near San Luis Obispo and the Sunburst Youth ChalleNGe  
          Academy located in Los Alamitos, California.  These programs  
          serve students from all over California, but National Guard  
          staff state that many parents and students prefer not to be  
          extremely distant from one another.  

          This bill would require that Programs serve students in all  
          areas of the state but also specifically in the San Joaquin  
          Valley and Northern California.  As stated above, the two  
          existing programs are located roughly in the central coast and  
          southern regions of California.  

          The Program is a national program.  The program, an intensive  
          residential and mentoring program for high school dropouts ages  
          16 to 18 currently operates in 27 states and Puerto Rico.   The  
          Program is authorized and funded through the Department of  
          Defense, with management and oversight from the National Guard  
          Bureau.  The federal Program provides federal matching funds at  
          75% of the program cost to the implementing state.

          Program participants, called cadets, are housed together, often  
          on a National Guard base or at a training center, for the first  
          22 weeks of the Program. During these weeks, the program  
          immerses cadets in a quasi-military environment in which they  
          focus on discipline, academic excellence, teamwork, physical  
          fitness, leadership, and service to the community. 

          The program encourages cadets to obtain a General Educational  
          Development (GED) and to seek further education and training or  
          employment during the one-year post-residential phase of the  
          program. Individuals ages 16 to 18 who have dropped out or been  








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          expelled from high school and are United States citizens or  
          legal residents, un- or under-employed, drug free, physically  
          and mentally capable of participating in the program, and have  
          either no police record or a police record limited to juvenile  
          status offenses are eligible to apply for admission to a program  
          in their state of residence.

          A report released by the California Department of Education in  
          2009 shows that over a lifetime, high school dropouts have  
          increased dependence on public assistance, lower earnings,  
          poorer health, and higher rates of unemployment, mortality,  
          criminal behavior, and incarceration. According to the  
          California Research Project, all these factors generate  
          substantial economic losses to the nation, state, and local  
          communities. 

          A 2009 National Labor Market study reported that California has  
          714,000 dropouts between the ages of 16 to 24 and is ranked the  
          6th worst in the nation.  This crisis gained presidential  
          attention in March of 2009 when President Barack Obama stated,  
          "My budget invests in developing new efforts to give dropouts  
          who want to return to school the help they need to graduate; and  
          new ways to put those young men and women who have left school  
          back on a pathway to graduation."  

          According to the author:

               The high school dropout rate in San Joaquin County is  
               15.4%, exceeding the statewide average of 13.1%. There  
               is a strong correlation between dropout rates and  
               violent crime, and San Joaquin County also leads the  
               state's other counties in youth and young adult  
               homicides, with a per capita rate nearly three times  
               California's overall rate.

          In 2012, the RAND Corporation published, A Cost-Benefit Analysis  
          of the National Guard Youth ChalleNGe Program.  RAND determined  
          the Program is extremely cost effective, with a return on  
          investment of $2.66 for every dollar spent.

          The two existing Programs are limited to graduating 750 to 800  
          students annually.  As a result, these Programs must turn down  
          more than 800 otherwise qualified candidates out of the more  
          than 1,600 who apply each year.  There is thus documented demand  








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          for the Programs far in excess of existing capacity.

          With more than 100,000 California high school students dropping  
          out each year, adding a third Program would continue the  
          investment of serving California's high risk youth population.  


           Analysis Prepared by  :    John J. Spangler / V.A. / (916)  
          319-3550 

            
                                                                 FN:  
                                                                 0003598