BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2328
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

             AB 2328 (John A. Perez) - As Introduced:  February 21, 2014 

          Policy Committee:                              Accountability  
          and Administrative Review                     Vote: 13 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes the California Service Corps (CSC) to be  
          administered by California Volunteers in the Governor's Office  
          and operate similarly to AmeriCorps. The bill requires an  
          application process and establishes eligibility criteria for  
          members based on the existing qualifications for AmeriCorps and  
          additional qualifications seeking California residents with  
          outstanding student loan debt.  The bill allows Cal Volunteers  
          to solicit and accept private funding to help supplement the  
          costs of the CSC.

           FISCAL EFFECT  

          1)On-going costs to Cal Volunteers estimated at $180,000 (GF)  
            for 2.2 PYs to implement and administer the program for an  
            estimated 150 members and 10 additional grantees.

          2)Significant on-going costs nearing $2 million (GF) to provide  
            stipends and education awards to program members.  If 150  
            members were admitted to the program and each received the  
            $7,400 stipend and the $4,725 education award, the cost would  
            be $1.8 million annually. This could be partially offset by  
            federal funding and/or private donations in future years.

          3)Minor and absorbable costs to Cal Volunteers to solicit and  
            accept private funding.

           COMMENTS  

           1)Purpose  . The author notes that the current AmeriCorps  
            operation in California is widely successful, but funding  








                                                                  AB 2328
                                                                  Page  2

            limits capacity and there is significant competition in the  
            application process.  This bill requires the CSC to operate  
            similarly to AmeriCorps and establishes additional eligibility  
            requirements for applicants, including completion of a degree,  
            proof of incurred student loan debt, and state residency.   
            This bill will expand opportunities for young people to serve,  
            and potentially pay down student debt, while providing a  
            valuable benefit to local communities.

           2)Existing Programs  . 

              a)   AmeriCorps  .   AmeriCorps is a national network of  
               hundreds of programs throughout the US that engage  
               Americans in intensive service each year at nonprofits,  
               schools, public agencies, and community and faith-based  
               groups across the country.  AmeriCorps consists of three  
               main programs, each with a specific focus. 

               AmeriCorps operates under the Corporation for National and  
               Community Service, which received about $1 billion from  
               Congress in 2013, supplemented by $480 million in outside  
               funding and donations.

               AmeriCorps service assignments may be part time or full  
               time and generally range from ten to 12 months.  Members  
               receive a $7,400 stipend and qualifying members are  
               eligible for the $4,725 Segal Education Award that can be  
               used to pay for college or pay back student loans.  To be  
               eligible for a position with AmeriCorps, qualification  
               guidelines focus on several factors, including citizenship,  
               age, work experience, and education.  Additional  
               qualifications may vary depending on the particular  
               program. 

               This bill models the CSC after the AmeriCorps program, but  
               adds additional application criteria focusing specifically  
               on California residents who have college degrees and  
               existing student loan debt.

              b)   Cal Volunteers  .  Individual states can receive financial  
               support for their own AmeriCorps programs, which California  
               does through Cal Volunteers.  Cal Volunteers is established  
               in the Governor's Office by Executive Order S-24-06 with  
               the specific mission to recruit and mobilize citizens for  
               volunteer service.  This bill tasks Cal Volunteers with  








                                                                  AB 2328
                                                                  Page  3

               administering the CSC.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081