Existing law, the After School Education and Safety Program Act of 2002, enacted by initiative statute, establishes the After School Education and Safety Program to serve pupils in kindergarten and grades 1 to 9, inclusive, at participating public elementary, middle, junior high, and charter schools. The existing act provides that each school establishing a program pursuant to the act is eligible to receive a renewable 3-year grant for before or after school programs, as provided, and a grant for operating a program beyond 180 regular schooldays or during summer, weekend, intersession, or vacation periods, as provided, and specifies the maximum grant amount and related amounts for each of these grants. The existing act provides a formula for determining an amount to be continuously appropriated from the General Fund to the State Department of Education for purposes of the program and authorizes the Legislature to appropriate additional funds for purposes of the program.

For the 201617 fiscal year, and for each fiscal year thereafter, this bill would continously continuously appropriate $73,260,000 more to the State Department of Education for purposes of the program. The bill would, commencing with the 201718 fiscal year, require the Department of Finance to annually adjust that amount using a specified calculation, provided that adjustment does not result in a reduction. The bill would require the State Department of Education to adjust the maximum grant amounts and related amounts in accordance with the amount provided in the Budget Act for the 201617 fiscal year. The bill would, also commencing with the 201718 fiscal year, require the State Department of Education to annually adjust the maximum grant amounts and those related those amounts to reflect the percentage change in the California Consumer Price Index, provided that adjustment does not result in a reduction. The bill also would provide that funds appropriated by the bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.

Existing law, the After School Education and Safety Program Act of 2002, enacted by initiative statute, establishes the After School Education and Safety Program to serve pupils in kindergarten and grades 1 to 9, inclusive, at participating public elementary, middle, junior high, and charter schools. The existing act provides that each school establishing a program pursuant to the act is eligible to receive a renewable 3-year grant for before or after school programs, as provided, and a grant for operating a program beyond 180 regular schooldays or during summer, weekend, intersession, or vacation periods, as provided, and specifies the maximum grant amount and related amounts for each of these grants. The existing act provides a formula for determining an amount to be continuously appropriated from the General Fund to the State Department of Education for purposes of the program and authorizes the Legislature to appropriate additional funds for purposes of the program.

For the 201617 fiscal year, and for each fiscal year thereafter, this bill would continously appropriate $73,260,000 more to the State Department of Education for purposes of the program. The bill would, commencing with the 201718 fiscal year, require the Department of Finance to annually adjust that amount using a specified calculation, provided that adjustment does not result in a reduction. The bill would, also commencing with the 201718 fiscal year, require the State Department of Education to annually adjust the maximum grant amounts and those related amounts to reflect the percentage change in the California Consumer Price Index, provided that adjustment does not result in a reduction. The bill also would provide that funds appropriated by the bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2663

Author:(Cooper) – As Introduced Ver:April 14, 2016

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

SUMMARY:

This bill continuously appropriates $73.3 million for the After School Education and Safety program (ASES) beginning with the 2016-17 fiscal year (FY) and adjusts the appropriation annually thereafter based on the California Consumer Price Index (CA-CPI). Specifically, this bill:

1. Continuously appropriates $73,260,000 (Proposition 98/GF) for the 2016-17 FY. Beginning in the 2017-18 FY, adjusts the $73.3 million by adding the product of $623,260,000 multiplied by the percent change in the CA-CPI from the 2016-17 FY, provided that this adjustment does not result in a reduction in any fiscal year.
2. Requires the California Department of Education (CDE), beginning FY 2016-17, and each fiscal year thereafter, to adjust the maximum grant amounts, daily rates, and weekly rates for ASES before and after school programs, as provided for in statute.
3. Makes findings and declarations regarding the role of after school programs in closing the achievement gap and the impact of the minimum wage increase on rates that have not been adjusted since 2006.

FISCAL EFFECT:

1. Proposition 98/GF costs of $73.3 million starting in 2016-17. Unknown, but significant future year costs, in the millions of dollars, to adjust this appropriation annually based on the CA-CPI. The state currently provides an annual continuous appropriation of $550 million for before and after school programs, pursuant to Proposition 49 of 2002.
2. Minor administrative costs to CDE to adjust grant amounts and daily and weekly rates.

COMMENTS:

1. Purpose. According to the California Afterschool Advocacy Alliance, sponsors of this bill, California leads the nation in publicly-funded after-school programs, with annual appropriations of nearly $700 million in combined state and federal funding. This commitment provides more than 400,000 students access to safe and enriching after-school activities.

According to the sponsor, the current investment in after school programs is not keeping pace with rising costs and expectations. This bill proposes to increase the state's continuous appropriation by $73.3 million. This amount would grow annually based on inflation adjustments. According to the author, this increase will support a daily rate increase from $7.50 to $8.50 per pupil per day, providing maximum grants of $127,000 for elementary school programs and $170,000 for middle school programs.

1. Minimum wage impacts. One of the main reasons supporters seek an increase in state funding is due to the increase in the state minimum wage. As the state increases the minimum wage, sponsors of the bill state that it is more difficult to attract qualified staff when other entry level jobs may be less demanding. Supporters also state the wage increase has affected their ability to pay site coordinators who are classified as full-time exempt. Current law requires exempt employees to be paid twice the minimum wage. According to supporters of the bill, site coordinators annual salaries have increased from $33,000 when the state provided a minimum wage of $8 an hour, to $42,000 when the $10 minimum wage went into effect. According to the sponsor, many programs have reclassified workers as hourly employees to avoid this increase and structure jobs so that overtime is not earned. Nothing in this bill would prohibit the continued reclassification of employees; however, according to the author, the $1 increase per pupil is sufficient to restore site coordinators to full-time status. 
2. Prior year budget actions. Although funding has remained constant for after school programs for more than a decade, the Legislature acknowledged the $550 million allocation may not be keeping pace with program costs. Last year, an attempt was made to secure increased funding in the 2015-16 Budget Act. The Assembly's budget provided $50 million. The Budget Conference Committee reduced this amount to $25 million. However, the budget signed by the Governor included no increase.
3. Prior legislation. SB 645 (Hancock) of 2013 authorized the ASES program, beginning January 1, 2016 and ending July 1, 2017, to suspend its operation for a maximum of five schooldays in each fiscal year in order to provide some financial relief. The bill was held on the Suspense file in this committee.

Analysis Prepared by: Misty Feusahrens / APPR. / (916) 319-2081

Date of Hearing: April 6, 2016

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

ABPCA Bill Id:AB 2663 (

Author:Cooper) – As Introduced Ver:February 19, 2016

SUBJECT: After school programs: grant amounts

SUMMARY: Increases the amount provided for the After School Education and Safety program (ASES) by appropriating from the General Fund $73,260,000 for the 2016-17 fiscal year (FY) and requires, beginning in the FY 2017-18 and every fiscal year thereafter, an increase based on the percentage change in the California Consumer Price Index (CPI) from the prior year, provided that the adjustment does not result in a reduction in any fiscal year. Requires, beginning FY 2017-18 and each fiscal year thereafter, an adjustment in the maximum grant amounts and daily and weekly rates to ASES before and after school programs. Makes findings and declarations regarding the role of after school programs in closing the achievement gap and the impact of the minimum wage increase on rates that have not been adjusted since 2006.

EXISTING LAW:

1. Establishes the ASES program through the 2002 voter approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade (Education Code (EC) Section 8482).
2. Establishes a maximum grant of $112,000 for an elementary school program and $150,000 for a middle or junior high school program. (EC Section 8482.55)
3. Establishes the total annual after school grant amount for which a site is eligible based on a formula of $7.50 per pupil per day of pupil attendance and a maximum of $37.50 per projected pupil per week. Provides funds for staff development based on a formula of $7.50 per projected pupil per day, with a maximum of three days. (EC Section 8483.7)
4. Establishes a before school program component with a maximum grant of $37,500 for an elementary school and $49,000 for a middle or junior high school based on a formula of $5 per pupil per day and a maximum total grant of $25 per projected pupil per week. (EC Section 8483.75)

FISCAL EFFECT: Unknown

COMMENTS: ASES program. The ASES program, passed by voters as Proposition 49 in 2002, provides almost $550 million annually for before and after school programs for kindergarten through grade 9 students. In FY 2015-16, 555 school districts and county offices of education operated ASES programs serving approximately 400,000 students. Local governments and nonprofit organizations working in partnership with local educational agencies may also apply for funding. After school programs must commence right after school and at least until 6 p.m. for 15 hours per week. Grants, last adjusted in 2006, are provided in three one-year increments with maximum grants at $112,500 per year for elementary schools, $150,000 per year for middle or junior high schools based on a per pupil amount of $7.50 per day of pupil attendance, and $7.50 per pupil per day for staff development, with a maximum of three staff development days per year. Priority for funding goes to schools where at least 50% of the pupils are eligible for free- or reduced-priced lunch. Each program is required to provide a match equal to not less than one-third of the total grant. Facilities may count towards 25% of the local contribution.

Participating afterschool programs are required to have an educational and literacy component in which tutoring or homework assistance is provided in one or more of the following areas: language arts, mathematics, history and social science, computer training, or sciences; and an educational enrichment component, which may include, but is not limited to, fine arts, career technical education, career exploration, recreation, physical fitness and prevention activities.

The program requires before school programs to operate one and a half hours a day and after school programs to operate after school until 6 p.m. for a minimum of 15 hours per week. ASES grantees can request summer grants (previously called supplemental grants) in order to operate for more than 180 days or to operate during summer, intersession or vacation.

In addition to the funds generated by Proposition 49, the state also receives approximately $130 million annually in federal funds for the 21st Century Community Learning Centers (21^st CCLC) program, which provides funding for before and after school activities to pupils in kindergarten through grade 12. The state has chosen to implement this program almost identical to the state's ASES program.

The problem. The author states:

"After-school programs are essential to closing the achievement and opportunity gap. They provide underserved students with meaningful academic and enrichment activities, keep kids safety off the streets during the primate time for crime, and offer essential child care for working parents. They also provide a crucial infrastructure for STEM, summer learning, physical activity, and leveraging hundreds of millions of federal dollars for nutritious snacks and meals.

"While the costs, demands, and expectations of ASES programs have consistently increased, the funding has remained stagnant for a decade…As costs significantly outpace funding, ASES programs have been stretched to their breaking point and find it increasingly difficult to deliver the same high-quality services. Without additional funding, program quality will continue to suffer as hours would be reduced and some programs are at risk of being cut all together. 75% of ASES funded program had to reduce number of enrichment activities offered."

Supporters also note the challenges caused by increases in the minimum wage requirements. Beginning January 1, 2016, the state's minimum wage is $10 per hour. Increasing wages is one challenge; the other challenge is in attracting qualified staff when other entry level jobs may be less demanding. The wage increase also affects the hiring of site coordinators who are paid an annual salary, typically around $33,000. The minimum wage increase requires an increase in site coordinators' annual salary to about $42,000. Providers have reclassified these employees to pay hourly wages due to the inability to pay increased wages.

According to preliminary data from a survey conducted by the Partnership for Children and Youth in February, 35% of ASES funded programs have reduced the number of students served and 74% have reduced the number of enrichment activities offered, while 64% have reduced staff hours and professional development. Of the 700 respondents, 29% reported that they are very likely to close within the next two years without additional funding.

What does this bill do? This bill increases the funding for the ASES program by appropriating $73.3 million from the General Fund in FY 2016-17 and requires ongoing annual cost of living adjustments based on percentage changes from year to year in the California CPI. According to the author, the increase will adjust the daily rate from $7.50 to $8.50 per pupil per day. The bill directs the California Department of Education (CDE) to adjust the maximum grants and daily rates in accordance with the CPI for before and after school ASES programs beginning in 2017-18. The bill, however, does not specify similar adjustments in 2016-17. Staff recommends an amendment directing CDE to adjust the maximum grants and daily rates in accordance with the 2016-17 budget augmentation.

Last year, an attempt was made to secure increased funding in the FY 2015-16 budget. The Assembly's budget provided $50 million but the budget conference committee reduced the amount to $25 million. The budget signed by the Governor included no increase. Subsequently, SB 645 (Hancock), was amended to authorize a program, beginning January 1, 2016 and ending July 1, 2017, to suspend its operation for a maximum of five schooldays in each fiscal year in order to provide some financial relief. The bill was held in the Assembly Appropriations Committee suspense file.

Previous related legislation. SB 1221 (Hancock), Chapter 370, Statutes of 2014, modified eligibility, types of grants, amount of grants, and outcome measures of the ASES, the 21^st CCLC, and the 21^st Century After School Safety and Enrichment for Teens programs.

SB 429 (DeSaulnier), Chapter 626, Statutes of 2011, authorizes an ASES program provider to use supplemental grant funds to operate a six-hour program and establishes other parameters for programs operating summer, intersession or vacation programs, including authorizing a program to be conducted at an offsite location or at an alternate schoolsite and authorizing a supplemental grantee to open eligibility to every pupil attending a school in the district with priority for pupils enrolled in the school that receive a grant.

SB 798 (DeSaulnier), Chapter 479, Statutes of 2010, requires any federal 21st CCLC program funds that exceed the total state appropriation for fiscal year 2008-09 to be allocated in accordance with a specified formula that includes 15% for summer programs serving elementary and middle school pupils.

SB 638 (Torlakson), Chapter 380, Statutes of 2006, among others, increased the maximum grant amounts for after school programs from $75,000 to $112,500 for elementary schools and $100,000 to $150,000 for middle schools; and increased the per pupil daily rate from $5.00 to $7.50 per hour. The bill also increased the maximum grant amount for before school programs from $25,000 to $37,500 for elementary schools and $33,000 to $49,000 for middle schools; and increased the per pupil daily rate from $3.33 to $5.

REGISTERED SUPPORT / OPPOSITION:

Support

California After School Coalition (sponsor)

A World Fit For Kids!

ABC Unified School District

After-School All-Stars, Los Angeles

After School All-Stars, San Diego

After-School Education and Safety Program at David Reese Elementary School, Elk Grove

Alice Birney Elementary

Anaheim Family YMCA

Azusa Unified School District

Bassett Unified School District

Bay Area Community Resources

Berry Creek Afterschool Program

Beyond the Bell Branch

Boys & Girls Clubs of Antelope Valley

Boys & Girls Clubs of Carson

Boys & Girls Clubs of Cypress

Boys & Girls Clubs of El Dorado County Western Slope

Boys & Girls Clubs of Fontana

Boys & Girls Clubs of Greater Redlands-Riverside

Boys & Girls Clubs of Greater San Diego

Boys & Girls Clubs of Kern County

Boys & Girls Clubs of the Los Angeles Harbor

Boys & Girls Clubs of Monterey County

Boys & Girls Clubs of North County

Boys & Girls Clubs of North Valley

Boys & Girls Clubs of Oceanside

Boys & Girls Clubs of the Peninsula

Boys & Girls Clubs of San Leandro

Boys & Girls Clubs of San Marcos

Boys & Girls Clubs of Santa Maria Valley

Boys & Girls Clubs of Stanislaus County

Boys & Girls Clubs of Tracy

Boys & Girls Clubs of the West Valley

Boys & Girls Clubs of Westminster

Butte County Office of Education

California Alliance of Boys & Girls Clubs

California Association for Health, Physical Education, Recreation and Dance

California Educational Centers

California Federation of Teachers

California School-Age Consortium

California State Alliance of YMCAs

California State PTA

California Teaching Fellows Foundation

Camp Fire

CEC California Educational Centers

Central Coast YMCA

Champions for America's Future

Channel Islands YMCA

Children Now

Children's Defense Fund – California

Children's Initiative

Chino Valley Unified School District

Citizen Schools

City of Downey ASPIRE after school program

Compton Unified School District Afterschool Program

DPS Group, North America

Duarte Unified School District

EduCare Foundation

Extended Child Care Coalition of Sonoma County

Fight Crime: Invest in Kids California

Food Bank of Contra Costa and Solano

Four Winds of Indian Education, Inc.

Fortuna Elementary School District

Fullerton School District

Garvey School District

Gilroy Unified School District

Institute for Student Success, Inc.

LA's BEST After School Enrichment Program

Lassen County Office of Education

Lassen County Board of Education

Lawndale Elementary School District Expanded Day Learning Program

Little Lake City School District

Long Beach Unified School District WRAP Expanded Learning Program

Los Angeles County Office of Education

Mission: Readiness-Military Leaders for Kids

Mountain View School District

Nicholas Elementary ASES Program

P.F. Bresee Foundation

Partnership for Children & Youth

Sacramento Chinese Community Service Center

San Francisco Unified School District

Santa Barbara Unified School District

Santa Maria Valley YMCA

Sonoma County Family YMCA

STAR Education

Student Success Institute, Inc.

Team Prime Time

Temescal Associates and the Learning in Afterschool & Summer Project

THINK Together

Warner Bros. Records

Woodcraft Rangers

YMCA of the Central Bay Area

YMCA of the East Bay

YMCA of the East Valley

YMCA of Greater Long Beach

YMCA of Metropolitan Los Angeles

YMCA of Orange County

YMCA of San Diego County

YMCA of Silicon Valley

YMCA of Superior California

Numerous individuals

Opposition

None on file

Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087