UNFINISHED BUSINESS  

Bill No: SB 1232

Author: Glazer (D), et al.

Amended: 8/19/20

Vote: 21

SENATE HUMAN SERVICES COMMITTEE: 6-0, 5/19/20

AYES: Hurtado, Jones, Beall, Jackson, Pan, Wiener

NO VOTE RECORDED: Melendez

SENATE APPROPRIATIONS COMMITTEE: 7-0, 6/18/20

AYES: Portantino, Bates, Bradford, Hill, Jones, Leyva, Wieckowski

SENATE FLOOR: 40-0, 6/25/20

AYES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Melendez, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

ASSEMBLY FLOOR: Not available

SUBJECT: CalWORKs: postsecondary education

SOURCE: Coalition of California Welfare Rights Organizations

University of California Student Association

DIGEST:

This bill requires that CalWORKs eligible individuals participating in a full time or part time educational activity at a publicly funded postsecondary educational institution receive a standard payment for books and college supplies of $175 to $500 per semester or quarter, as specified. This bill exempts such applicants or recipients from participating in specified work activities and revises applicable assessment requirements.

Assembly Amendments

remove the requirement that payments be adjusted annually for inflation; adjust the quarter and semester payment amounts; require that assessment shall be conducted only for the purpose of identifying barriers; among other things.

ANALYSIS:

Existing law:

1. Establishes the federal Temporary Assistance for Needy Families (TANF) program, which permits states to implement the program under a state plan. (42 USC § 601 et seq.)
2. Establishes in state law the CalWORKs program to provide cash assistance and other social services for low-income families through TANF. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC 11120 et seq.)
3. Requires, generally, a recipient of CalWORKs benefits to participate in welfare-to-work (WTW) activities as a condition of eligibility for aid. (WIC 11320 et. seq.)
4. Mandates the sequence of employment-related activities a CalWORKs participant must engage in subsequent to the receipt of aid, unless otherwise exempted. Further requires that recipients shall, and applicants may, at the option of the county and with consent of the applicant, receive orientation to the WTW program. (WIC 11320.1)
5. Requires a CalWORKs applicant or recipient to participate in WTW activities for 24 cumulative months, as specified, unless they are otherwise exempt. (WIC 11322.85)
6. Permits a CalWORKs recipient subject to the 24-month time limitation to request an extension, as specified, and to present evidence to the county that he or she meets certain specified circumstances. (WIC 11322.87)
7. Requires necessary supportive services to be available to every WTW participant in order to participate in an assigned program activity or to accept employment, to include childcare, diaper costs, transportation costs, ancillary expenses, which include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs and personal counseling, as specified. (WIC 11323.2)
8. Requires that payments for supportive services shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services. Further requires that payments for child care services shall be made, as specified. (WIC 11323.4(a))
9. Requires that all participants, except for certain teenage parents, shall be assigned to participate for a period of up to four consecutive weeks in job search activities, which may include job club, to identify the participant’s qualifications, as specified. (WIC 11325.22)
10. Requires a participant to work with the county welfare department to develop and agree on a WTW plan on the basis of an assessment of the individual’s skills and needs, as specified. (WIC 11325.4)

This bill:

1. Requires that a person who satisfies specified criteria to be entitled to receive the standard payment for books and college supplies subject to both of the following:
   1. The participant shall not be required to complete job club; and
   2. An assessment shall be conducted only for the purpose of identifying any barriers, such as domestic violence, substance abuse, mental health, learning disability, or other barriers that the participant may have, as specified.
2. Provides that the standard payment for books and college supplies is available to:
   1. A recipient attending a publicly funded postsecondary educational institution full time and making satisfactory progress at that institution; and
   2. A recipient attending a publicly funded postsecondary educational institution part time and who is meeting the hourly participation rates based on the number of academic units and the hours of study time required for those academic units, as specified. Requires the county to assist recipients in meeting required hours, as specified.
3. Provides that a recipient attending a publicly funded postsecondary education institution and making satisfactory progress at that institution shall not be subject to WTW requirements.
4. Requires a recipient who is attending a publicly funded postsecondary educational institution to provide verification that they are making satisfactory progress at the beginning of each term when that information is available from the institution the recipient attends.
5. Requires the definition of “full time,” “part time,” and “making satisfactory progress” to be determined according to the rules and regulations of the publicly funded postsecondary educational institution that the individual attends.
6. Requires an individual who meets specified requirements and wishes to receive supportive services to sign a WTW plan each academic semester or quarter. Requires the county to provide the plan to the individual by mail or electronically, if agreed to by the individual 30 days prior to the registration for each semester or quarter. If the plan is not provided by the county 30 days prior to registration for the semester or quarter, supportive services shall continue at the same level for the next semester or quarter. Requires the plan to be returned to the county after the individual registers for the classes of the semester or quarter.
7. Requires the plan to include specified information.
8. Requires the plan to be mailed to the recipient for completion and returned by mail or by electronic means, as specified.
9. Requires that a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity full time at a publicly funded postsecondary educational institution, as specified, shall receive a payment of $500 for each semester or $350 for each quarter, and a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity part time at a postsecondary educational institution, as specified, shall receive a payment of $250 for each semester or $175 for each quarter for the purpose of paying costs associated with attending the postsecondary educational institution 10 days before the beginning of the academic semester or quarter.
10. Requires that the payment for purpose of paying costs associated with attending the postsecondary educational institution shall be considered a standard payment for books and college supplies.
11. Permits a recipient to request reimbursement for the actual costs for the purpose of paying costs associated with attending the postsecondary educational institution if the recipient provides verification of expenses that exceed the applicable amount for books and college supplies that are required for the classes in which the individual is enrolled. Requires the county to issue payment within 20 days of the recipient’s request.
12. Permits a county to elect to satisfy the requirements of payments for costs associated with attending postsecondary education institution in the form of a book voucher or other means of payment to a store or stores that carry the books required for the recipient, as specified.
13. Provides the California Department of Social Services (CDSS) with authority to implement provisions of the bill via all-county letter or similar written instructions and via regulations, as specified.
14. Makes technical changes.

Comments

According to the author, “student parents on CalWORKs face an uphill battle in attaining a college education. After their first year of being a college student on CalWORKs, they must complete an additional 20-30 hours of core activities. This can lead to these students dropping out of college to meet these hours or receiving reduced benefits so they can continue going to school. This effectively punishes low-income parents for seeking a college education. SB 1232 ensures our student-parents have an opportunity to complete their education before timing out of CalWORKs.” The author further states, “CalWORKs students receive funds for books, but often get those funds too late, so they fall behind in their studies because they cannot buy their books in time. Our bill would require county welfare agencies to disperse these books funds prior to the academic term beginning.”

Education, Employment, and Earnings. The long-term earning potential for a person with a college degree is the highest it has been in decades. The Public Policy Institute of California reports that the typical full-time worker with a bachelor’s degree earned $81,000 in 2017, while the typical worker with a high school diploma earned $36,000. Educational attainment is also associated with lower unemployment and less strain on the social safety net, as well as higher tax revenue and greater civic participation.

CalWORKs. As the state’s largest anti-poverty program, CalWORKs provides temporary cash assistance aimed at moving children out of poverty and helping qualified low income families meet their basic needs, such as rent, clothing, utility bills, food and other items needed to ensure children are cared for at home and safely remain with their families.  In addition to cash assistance, adult CalWORKs recipients are provided education, employment and training services designed to help remove barriers to work and promote self-sufficiency. These services are typically outlined in a WTW plan.

In order to be eligible for CalWORKs, families must meet income and asset tests that are based on family size and county of residence. For example, a family of three living in a higher cost-of-living region could qualify to receive CalWORKs benefits if their monthly adjusted income is no more than $1,453. The same family living in a lower cost-of-living region would qualify if their monthly adjusted income is no more than $1,379.

As of October 2019, the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $878. The same family living in a lower cost-of-living county would be eligible for up to $834 per month. According to the CalWORKs Annual Summary dated March 2020, the average CalWORKs grant for families participating in WTW during Fiscal Year 2019-20 was $689 per month. CalWORKs provides cash assistance to more than 383,000 families and 450,000 children.

Sequence of Employment-Related Services. After a person has been determined to be eligible for the CalWORKs program, the sequence of employment-related services starts with orientation and appraisal. After orientation and appraisal, recipients may be required to participate in job search and job club; family stabilization; substance abuse, mental health, or domestic violence services, whichever is appropriate. However, the county may determine that the recipient should skip these activities and go straight to assessment. Upon referral to assessment, participants work with the county welfare department to develop and agree on WTW plans that are based on participants’ skills and needs.

Welfare-to-Work. A key component of the federal welfare reform of the mid-1990s was the encouragement of job training and employment. Current CalWORKs rules reflect this focus on training and employment by limiting the length of time adults may receive benefits and requiring recipients to perform certain activities as a condition of receiving benefits.

Under the CalWORKs program rules, adults may not receive CalWORKs cash benefits for more than 48-months throughout the entirety of their lifetime. During those 48 months, adults may receive a total of 24 months of WTW services and activities, if they meet program requirements. Adult benefits in the CalWORKs program are contingent upon participation in WTW activities, which are designed to promote job readiness and self-sufficiency. WTW activities include subsidized and unsubsidized employment, community service, adult basic education, community college, job skills, training, mental health counseling, substance abuse treatment, and other activities necessary to assist recipients in obtaining employment. Unless they are exempt, adult parents are required to participate in WTW activities 20 – 30 hours per week, depending on their circumstances.

CalWORKs Funds for Ancillary Expenses. CalWORKs rules permit a recipient to obtain an advance for supportive services, which includes ancillary expenses. Ancillary expenses include the costs to purchase books, tools and other expenses related to WTW activities. Expenses for transportation can include but are not limited to gas for a vehicle, a bus pass, taxi fare, parking costs, etc., necessary to complete WTW activities.  Under current law, such payments “shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services.” Typically, in order to receive reimbursement for supportive services, including ancillary expenses, a recipient must have a signed WTW plan. However, supportive services can be provided to a client at any point after they have come onto aid to mitigate barriers to participation. 

Related/Prior Legislation

SB 374 (Glazer, 2019) would have required that a CalWORKs eligible individual participating in an educational activity full time and making satisfactory progress, as specified, receive a standard allowance of $500; be deemed to be meeting all WTW requirements, including the hourly participation requirements; be entitled to advance payments for allowance or reimbursement and other necessary supportive services, as specified; and is entitled to an extension of the 24-month cumulative participation period, as specified. The bill was held in the Senate Appropriations Committee.

AB 227 (Mayes, 2017) would have created the CalWORKs Educational Opportunity and Attainment Program to offer education grants and stipends to eligible CalWORKs participants who complete certain educational programs. The bill did not pass out of the Senate Human Services Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Assembly Appropriations Committee, CDSS indicates no cost to implement the changes in this bill. CalWORKs ancillary payments are currently provided for books and supplies and can be claimed to the CalWORKs Single Allocation as an ancillary supportive service. This bill changes the point-in-time of the payment to the CalWORKs recipient. Office of Systems Integration indicates automation costs are minor and absorbable.

SUPPORT: (Verified 8/27/20)

Coalition of California Welfare Rights Organizations (co-source)

University of California Student Association (co-source)

Asian Americans Advancing Justice - California

Associated Students, University of California, Davis

California Food Policy Advocates

County Welfare Directors Association of California

Glide

National Association of Social Workers, California Chapter

SEIU California

Student Senate for California Community Colleges

Western Center on Law & Poverty, Inc.

OPPOSITION: (Verified 8/27/20)

None received

Prepared by: Taryn Smith / HUMAN S. /

8/30/20 18:16:10

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Date of Hearing: August 18, 2020

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1232

Author:(Glazer) – As Amended Ver:July 27, 2020

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

SUMMARY:

This bill has proposed author’s amendments. See comment #5 below for a discussion.

This bill requires, upon appropriation by the Legislature, an eligible California Work Opportunity and Responsibility for Kids (CalWORKs) recipient to receive a standard payment for college books and supplies, and exempts the recipient from participating in certain job club or welfare-to-work (WTW) activities. Among its provisions, this bill:

1. Specifies an “eligible” CalWORKs recipient is a recipient who is attending a publicly funded postsecondary educational institution who is either, (a) attending full time and making satisfactory progress at that institution or, (b) attending part time and meeting the hourly WTW participation rates, as specified.
2. Requires an eligible recipient who wishes to receive supportive services to sign a WTW plan each academic semester or quarter that includes specified information.
3. Provides that an eligible CalWORKs recipient, per “1) (a)” above, receive a payment of $500 for each semester or $250 for each quarter, and a CalWORKs eligible recipient, per “1) (b)” above shall receive a payment of $250 for each quarter for the purpose of paying costs associated with attending the postsecondary educational institution. The recipient must receive payment 10 days before the beginning of the academic semester or quarter.
4. Requires the payment amounts to be adjusted annually for inflation, using the Consumer Price Index published by the US Department of Labor, Bureau of Labor Statistics.
5. Authorizes an eligible recipient to request reimbursement for the actual costs associated with attending the postsecondary educational institution if the recipient provides verification of expenses that exceed the applicable amount for books and college supplies required for the classes in which the individual is enrolled.

FISCAL EFFECT:

1. The California Department of Social Services (CDSS) indicates no cost to implement the changes in this bill. CalWORKs ancillary payments are currently provided for books and supplies and can be claimed to the CalWORKs Single Allocation as an ancillary supportive service. This bill changes the point-in-time of the payment to the CalWORKs recipient.
2. Office of Systems Integration indicates automation costs are minor and absorbable.

COMMENTS:

1. Purpose. This bill seeks to make it easier for CalWORKs recipients to attend college by providing an upfront payment for books and other supplies associated with attending school.
2. CalWORKs. The CalWORKs program provides eligible low-income families with cash grants and supportive services aimed at helping them to secure education, training, and employment. Participating families have access to a range of services that can include childcare and services aimed at addressing mental health needs, substance use disorders, experiences of domestic violence and learning disabilities, among other issues. The average monthly cash grant for a family of three on CalWORKs (one parent and two children) in 2019-20 was $682 and the maximum monthly grant if the family has no other income and lives in a high-cost county was $785. Many families earn some income and do not qualify for the maximum grant amount. According to recent CDSS data, approximately 423,000 families rely on CalWORKs.
3. WTW: Unless deemed exempt, participants are required to develop and participate in a WTW plan. CalWORKs-approved WTW activities can include public or private sector subsidized or unsubsidized employment; on-the-job training; community service; secondary school, adult basic education and vocational education and training; and a number of other activities necessary to assist a recipient in obtaining unsubsidized employment. Adult benefits in the CalWORKs program are contingent upon participation in WTW activities, which are designed to promote job readiness and self-sufficiency.
4. Supportive Services. Certain supportive services are available to CalWORKs participants to enable them to participate in a program activity or to accept or maintain employment. These services include childcare, diaper costs, transportation costs, personal counseling and ancillary expenses (including the costs to purchase books, tools and other expenses related to WTW activities). This bill seeks to provide a standard payment, in advance of the start of school, to help pay for books and supplies to CalWORKs recipients who are attending school as their WTW activity.
5. Proposed Amendments. In response to issues raised by the Assembly Human Services Committee and by this committee, the author has proposed the following amendments to be voted on by this committee today:
6. To include part-time semester students who were inadvertently left out and to make the standard payments equitable for all school arrangements, amend subdivision (a) of Section 11323.21 to:
7. Instead require an eligible CalWORKs recipient, attending school full-time on a quarterly basis to receive a payment of $350 per quarter.
8. Require an eligible CalWORKs recipient, attending school part-time on a semester basis to receive a payment of $250 per semester.
9. Instead require an eligible CalWORKs recipient, attending school part-time on a quarterly basis to receive a payment of $175 per quarter.
10. Because it is not clear the cost of college text books is closely tied to the Consumer Price Index, remove the annual cost-of-living adjustment (delete subdivision (e) of Section 11323.21).
11. Because the bill no longer has a state cost, remove the appropriation requirements (delete subdivision (f) of Section 11322.84 and subdivision (g) of Section 11323.21).
12. Add a coauthor.
13. Prior Legislation. SB 374 (Glazer), of this legislative session, would have required an eligible CalWORKs individual participating in an educational activity full time receive a standard allowance of $500, be deemed to be meeting all WTW requirements, be entitled to advance payments for allowance or reimbursement and other necessary supportive services, and be entitled to an extension of the 24-month cumulative participation period. SB 374 was held on Senate Appropriations Committee suspense file.

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

Date of Hearing: August 3, 2020

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Eloise Gómez Reyes, Chair

SBPCA Bill Id:SB 1232

Author:(Glazer) – As Amended Ver:July 27, 2020

SENATE VOTE: 40-0

SUBJECT: CalWORKs: postsecondary education

SUMMARY: Requires that eligible California Work Opportunity and Responsibility for Kids (CalWORKs) student parents receive a standard allowance per semester or quarter for the purpose of paying costs associated with attending the postsecondary educational institution, and exempts an eligible applicant or recipient who is enrolled in a specified educational plan or program from participating in specified job club or welfare-to-work (WTW) activities. Specifically, this bill:

1. Requires that an eligible recipient be entitled to receive the standard allowance for ancillary services for books and college supplies and provides that the participant shall not be required to complete job club and that an assessment should only be conducted for the purpose of identifying any barriers, such as domestic violence, substance abuse, mental health, learning disability, or other barriers that the participant may have. Further specifies that in no event that the individual be disallowed to attend a publicly funded postsecondary education institution if otherwise eligible due to any barrier.
2. Provides that the benefit for an eligible recipient applies to:
3. A recipient attending a publicly funded postsecondary educational institution full time and making satisfactory progress at that institution; or,
4. A recipient attending a publicly funded postsecondary educational institution part time and who is meeting the hourly WTW participation rates, as specified. Further requires the county, if a recipient’s academic units do not meet the total number of hours required, to assist the recipient in meeting the required hours of participation by allowing the recipient to submit a proposal for meeting those hours based on the full array of options available to the recipient.
5. Prohibits an eligible recipient from being subject to WTW requirements.
6. Requires a recipient who is attending a publicly funded postsecondary educational institution to provide verification that they are making satisfactory progress at the beginning of each term.
7. Provides that the definitions of “full time,” “part time,” and “making satisfactory progress” be determined according to the rules and regulations of the publicly funded postsecondary educational institution that the individual attends.
8. Requires an eligible recipient who wishes to receive supportive services to sign a WTW plan each academic semester or quarter that includes all of the following information:
9. The educational schedule for the semester or quarter;
10. A description of the various supportive services that the recipient is entitled to, if necessary, as specified;
11. A request for the supportive services the individual wishes to receive;
12. The number of academic units for which the individual has enrolled;
13. Class times for the purposes of receiving childcare assistance, if required by law;
14. Transportation and parking costs; and,
15. Any other costs that are necessary for attending the publicly funded postsecondary educational institution.
16. Requires the county to provide the plan to the individual by mail or electronically, if agreed to by the individual 30 days prior to the registration for each semester or quarter. Further, provides that if the plan is not provided by the county 30 days prior to registration for the semester or quarter, supportive services shall continue at the same level for the next semester or quarter.
17. Requires the plan to be returned to the county after the individual registers for the classes of the semester or quarter.
18. Requires the plan to be mailed to the recipient for completion and shall be returned by mail or by electronic means, if the county has the capacity to make the plan electronically available; if the county requires the plan to be returned by mail, the county shall include a postage-prepaid envelope for that purpose. Further, authorizes the recipient to request, in writing, to meet with a county employee to receive assistance with completing the plan.
19. Provides that a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity full time at a publicly funded postsecondary educational institution, as specified, shall receive a payment of $500 for each semester or $250 for each quarter; and, a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity part time at a postsecondary educational institution, as specified, shall receive a payment of $250 for each quarter for the purpose of paying costs associated with attending the postsecondary educational institution 10 days before the beginning of the academic semester or quarter. Further, provides that these amounts shall be considered a standard payment for books and college supplies.
20. Authorizes an eligible recipient to request reimbursement for the actual costs for the purpose of paying costs associated with attending the postsecondary educational institution if the recipient provides verification of expenses that exceed the applicable amount for books and college supplies that are required for the classes in which the individual is enrolled. Further requires the county to issue payment within 20 days of the recipient’s request.
21. Requires the payment amounts to be adjusted upward annually by the increase, if any, in the United States Transportation Consumer Price Index for All Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics.
22. Authorizes the California Department of Social Services (CDSS) to implement, interpret, or make specific these provisions by means of all-county letters or similar written instructions from the department until regulations are adopted; these all-county letters or similar instructions shall have the same force and effect as regulations.
23. Requires CDSS to adopt emergency regulations by January 1, 2023. Further, authorizes CDSS to readopt any emergency regulation authorized by these provisions that is the same as, or substantially equivalent to, an emergency regulation previously adopted under these provisions.
24. Provides that the initial adoption of emergency regulations and one readoption of emergency regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Further provides that the initial emergency regulations and the one readoption of emergency regulations shall be exempt from review by the Office of Administrative Law. Further provides that the initial emergency regulations and the one readoption of emergency regulations shall be submitted to the Office of Administrative Law for filing with the Secretary of State and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.
25. Provides that the provisions of this bill shall become operative only if funds are appropriated in the annual Budget Act or another statute for its purposes.

EXISTING LAW:

1. Establishes in federal law the Temporary Assistance for Needy Families (TANF) program, which provides block grants to states to develop and implement their own state welfare-to-work programs designed to provide cash assistance and other supports and services to low-income families. (42 United States Code Section 601 et seq.)
2. Establishes the state's TANF program, the CalWORKs program. CalWORKs provides cash assistance and other supports and services to low-income families and is administered by the counties. (Welfare and Institutions Code Section [WIC] 11200 et seq.)
3. Requires, generally, a recipient of CalWORKs benefits to participate in WTW activities as a condition of eligibility for aid. (WIC 11320 et. seq.)
4. Mandates the sequence of employment-related activities a CalWORKs participant must engage in subsequent to the receipt of aid, unless otherwise exempted. Further requires that recipients shall, and applicants may, at the option of the county and with consent of the applicant, receive orientation to the WTW program. (WIC 11320.1)
5. Requires a CalWORKs applicant or recipient to participate in WTW activities for 24 cumulative months, as specified, unless they are otherwise exempt. (WIC 11322.85)
6. Permits a CalWORKs recipient subject to the 24-month time limitation to request an extension, as specified, and to present evidence to the county that he or she meets certain specified circumstances. (WIC 11322.87)
7. Requires necessary supportive services to be available to every WTW participant in order to participate in an assigned program activity or to accept employment, to include childcare, diaper costs, transportation costs, ancillary expenses, which include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs and personal counseling, as specified. (WIC 11323.2)
8. Requires that payments for supportive services shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services. Further requires that payments for childcare services shall be made, as specified. (WIC 11323.4(a))
9. Requires any individual who is required to participate in WTW activities to enter into a written WTW plan with the county welfare department after assessment, but no more than 90 days after the date that a recipient’s eligibility for aid is determined or the date the recipient is required to participate in WTW activities, as specified. (WIC 11325.21)
10. Requires that all participants, except for certain teenage parents, shall be assigned to participate for a period of up to four consecutive weeks in job search activities, which may include job club to identify the participant’s qualifications, as specified. These activities may include the use of job clubs to identify the participant’s qualifications, as specified. (WIC 11325.22)
11. Requires a participant to work with the county welfare department to develop and agree on a WTW plan on the basis of an assessment of the individual’s skills and needs. The assessment must include the participant’s work history and employment skills, knowledge, and abilities; the participant’s educational history and present educational competency level; the participant’s need for supportive services in order to obtain the greatest benefit from the employment and training services; an evaluation of the chances for employment given the current skills of the participant and the local labor market conditions; local labor market information; and physical limitations or mental conditions that limit the participant’s ability for employment or participation in WTW activities. (WIC 11325.4)

FISCAL EFFECT: According to the Senate Appropriations Committee on June 18, 2020, this bill may result in the following costs:

1. Cost pressures, as the bill’s amendments make it subject to a budget appropriation, of one-time $1.3 million for the Statewide Automated Welfare System (SAWS) automation changes (Office of Systems Integration), which may be spread over outyears, depending on the implementation timing;
2. Cost pressures for limited-term, potentially ten thousands for CDSS staff resources to promulgate regulations; and,
3. County welfare departments currently provide reimbursement to students for educational expenses, and this bill would change the point in time at which funds are disbursed to the participant. In addition, CalWORKs employment services are based on actual expenditures, so reimbursements to clients are captured in methodology.

COMMENTS:

California Work Opportunity and Responsibility to Kids: The CalWORKs program, which implements the federal TANF program, provides eligible low-income families with cash grants and supportive services aimed at helping them to secure education, training, and employment. CDSS is charged with program supervision at the state level, and counties administer the caseloads at the local level. CalWORKs is funded largely through the federal TANF block grant and state maintenance-of-effort contributions. Families participating in CalWORKs have access to a range of services that can include childcare and services aimed at addressing mental health needs, substance use disorders, experiences of domestic violence, and learning disabilities, among other issues. The average monthly cash grant for a family of three on CalWORKs (one parent and two children) in 2019-20 was $682 and the maximum monthly grant if the family has no other income and lives in a high-cost county was $785. However, many families earn some income and do not qualify for the maximum grant amount. According to recent data from CDSS, approximately 423,000 families rely on CalWORKs.

Employment-Related Services: After a person has been determined to be eligible for the CalWORKs program, the sequence of employment-related services starts with orientation and appraisal. Following orientation and appraisal, recipients may be required to participate in job search and job club; family stabilization; or, substance abuse, mental health, or domestic violence services, whichever is appropriate. The county may determine that the recipient should skip these activities and proceed directly to assessment. Once referred to assessment, participants work with the county welfare department to develop and agree on a WTW plan that is based on the participant’s skills and needs. A recipient who has not received a high school diploma or its equivalent may choose to participate in a high school education or equivalency program.

Welfare-to-Work: Unless deemed exempt or otherwise not required to participate per CalWORKs rules, participants are required to develop and participate in a WTW plan. CalWORKs-approved WTW activities can include public or private sector subsidized or unsubsidized employment; on-the-job training; community service; secondary school, adult basic education and vocational education and training when the education is needed for the recipient to become employed; specific mental health, substance abuse, or domestic violence services if they are necessary to obtain or retain employment; and a number of other activities necessary to assist a recipient in obtaining unsubsidized employment. Adult benefits in the CalWORKs program are contingent upon participation in WTW activities, which are designed to promote job readiness and self-sufficiency.

Under current CalWORKs program rules, adults may not receive CalWORKs cash benefits for more than 48 months throughout the entirety of their lifetime. During those 48 months, adults may receive a total of 24 months of WTW services and activities if they meet program requirements. AB 79 (Committee on Budget), Chapter 11, Statutes of 2020, commencing May 1, 2022, will expand the total lifetime limit for CalWORKs from 48 months to 60 months, and will eliminate the 24-month limit on WTW services and activities.

Supportive services: Certain supportive services are available to CalWORKs participants to enable them to participate in a program activity or to accept or maintain employment. These services include childcare, diaper costs, transportation costs (including, but not limited to gas for a vehicle, a bus pass, taxi fare, and parking costs, necessary to complete WTW activities) personal counseling, and ancillary expenses (including the costs to purchase books, tools and other expenses related to WTW activities). Under current law, such payments “shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services.” Typically, in order to receive reimbursement for supportive services, including ancillary expenses, a recipient must have a signed WTW plan. However, supportive services can be provided to a client at any point after they have come onto aid to mitigate barriers to participation.

Need for this bill: The cost for college books can be prohibitive for CalWORKs recipients; thus, CalWORKs rules permit a recipient to obtain an advance for supportive services. Because participants must receive a reimbursement for supportive services, including ancillary expenses to cover the costs for books, CalWORKs student parents are often unable to buy books before classes begin because they do not receive their funds from the county in time. This bill makes it easier for CalWORKs student parents to continue their postsecondary education by providing a cash aid to pay for books and other costs associated with attending school.

According to the author, “According to the Public Policy Institute of California, by 2025, California will face a shortfall of one million college graduates. At the same time, college students in California are experiencing unprecedented levels of housing and food insecurity, making a college education less accessible, especially for low-income students.

“A college education is even more difficult to attain for student parents on CalWORKs. College student parents on CalWORKs may be required to work an additional 20-30 hours to receive full CalWORKs benefits. Not only is it difficult to be a parent, full time student, and work 20-30 hours all at the same time, but if a student parent on CalWORKs does not meet their work hour requirement, they may have their benefits reduced. This effectively punishes low-income parents for seeking a college education. With the current CalWORKs time limit of 48 months of available aid, it is imperative that we ensure our student parents have an opportunity to complete their education before timing out of CalWORKs.

“Furthermore, some CalWORKs student parents are unable to buy their books before classes begin because they do not receive their funds from the county in time. In these scenarios, students either do not buy their books, which puts them behind in their coursework, or they buy their books with their own funds or on credit, further straining them financially.

“[This bill] will make an education more attainable for student parents. This bill allows parents to receive full CalWORKs benefits and receive funds to purchase books prior to the beginning of the academic year.”

Staff comments: The goal of this bill is to remove one barrier to pursuing postsecondary education that some CalWORKs student parents face—paying for books and other supplies associated with attending school. This bill provides an eligible CalWORKs student parent cash aid, prior to the start of the academic period, for the purpose of paying costs associated with attending the postsecondary educational institution. A full-time student would receive a payment of $500 for each semester or $250 for each quarter while a part-time student would receive a payment of $250 for each quarter.

While this is a worthy goal, the bill, as it is currently written, does not account for part-time students who are attending school on a semester schedule; there is no standard payment provided for these students. Additionally, the payment that a part-time student in a quarterly system receives would ultimately be equivalent to the payment that a full-time student in a quarterly system receives. While it is important that student parents receive cash assistance to cover the costs associated with attending a postsecondary educational institution, all full-time and part-time students should be considered. Further, any difference in allocation between full-time students and part-time students should be accurately reflected with different payment amounts. In consideration of these concerns, should this bill move forward, the author may wish to consider including part-time students attending a postsecondary school in a semester system in the payment structure, and amending the rate structure to more accurately reflect the difference in books and supplies needs between full-time and part-time students.

RELATED AND PRIOR LEGISLATION:

SB 374 (Glazer) of 2019 would have required that a CalWORKs eligible individual participating in an educational activity full time and making satisfactory progress, as specified, receive a standard allowance of $500; be deemed to be meeting all WTW requirements, including the hourly participation requirements; be entitled to advance payments for allowance or reimbursement and other necessary supportive services, as specified; and is entitled to an extension of the 24-month cumulative participation period, as specified. SB 374 was held on Senate Appropriations Committee suspense file.

AB 227 (Mayes) of 2017 would have created the CalWORKs Educational Opportunity and Attainment Program to offer education grants and stipends to eligible CalWORKs participants who complete certain educational programs. AB 227 died in the Senate Human Services Committee.

AB 1994 (Lopez) of 2016 would have created the CalED program to provide a one-time $500 supplement to eligible CalWORKs participants upon successful completion of a high school equivalency examination. AB 1994 was held on the Assembly Appropriations Committee suspense file.

REGISTERED SUPPORT / OPPOSITION:

Support

Coalition of California Welfare Rights Organizations (Co-Sponsor)

Asian Americans Advancing Justice - California

Associated Students of the University of California

California Association of Christian Colleges and Universities

California Association of Food Banks

California Catholic Conference

California Food Policy Advocates

County Welfare Directors Association of California (CWDA)

East Bay Community Law Center

Friends Committee on Legislation of California

National Association of Social Workers, California Chapter

National Lawyers Guild San Francisco Bay Area Chapter, Doris Brin Walker Legislative Reform
Committee

San Francisco Senior and Disability Action

University of California Student Association

Western Center on Law & Poverty, INC.

Opposition

None on file

Analysis Prepared by: Debra Cooper / HUM. S. / (916) 319-2089

 THIRD READING  

Bill No: SB 1232

Author: Glazer (D)

Amended: 6/18/20

Vote: 21

SENATE HUMAN SERVICES COMMITTEE: 6-0, 5/19/20

AYES: Hurtado, Jones, Beall, Jackson, Pan, Wiener

NO VOTE RECORDED: Melendez

SENATE APPROPRIATIONS COMMITTEE: 7-0, 6/18/20

AYES: Portantino, Bates, Bradford, Hill, Jones, Leyva, Wieckowski

SUBJECT: CalWORKs: postsecondary education

SOURCE: Coalition of California Welfare Rights Organizations

University of California Student Association

DIGEST:

This bill requires California Work Opportunity and Responsibility to Kids (CalWORKs) recipients who are participating in specified educational activities to receive a standard allowance of $250 to $500 for the purpose of paying for costs associated with attending a postsecondary educational institution, as specified. This bill exempts CalWORKs recipients who are enrolled in specified educational activities from participating in specified CalWORKs activities.

ANALYSIS:

Existing law:

1. Establishes the federal Temporary Assistance for Needy Families (TANF) program, which permits states to implement the program under a state plan. (42 USC § 601 et seq.)
2. Establishes in state law the CalWORKs program to provide cash assistance and other social services for low-income families through TANF. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC 11120 et seq.)
3. Requires, generally, a recipient of CalWORKs benefits to participate in welfare-to work (WTW) activities as a condition of eligibility for aid. (WIC 11320 et. seq.)
4. Mandates the sequence of employment-related activities a CalWORKs participant must engage in subsequent to the receipt of aid, unless otherwise exempted. Further requires that recipients shall, and applicants may, at the option of the county and with consent of the applicant, receive orientation to the WTW program. (WIC 11320.1)
5. Requires a CalWORKs applicant or recipient to participate in WTW activities for 24 cumulative months, as specified, unless they are otherwise exempt. (WIC 11322.85)
6. Permits a CalWORKs recipient subject to the 24-month time limitation to request an extension, as specified, and to present evidence to the county that he or she meets certain specified circumstances. (WIC 11322.87)
7. Requires necessary supportive services to be available to every WTW participant in order to participate in an assigned program activity or to accept employment, to include childcare, diaper costs, transportation costs, ancillary expenses, which include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs and personal counseling, as specified. (WIC 11323.2)
8. Requires that payments for supportive services shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services. Further requires that payments for child care services shall be made, as specified. (WIC 11323.4(a))
9. Requires that all participants, except for certain teenage parents, shall be assigned to participate for a period of up to four consecutive weeks in job search activities, which may include job club, to identify the participant’s qualifications, as specified. (WIC 11325.22)
10. Requires a participant to work with the county welfare department to develop and agree on a WTW plan on the basis of an assessment of the individual’s skills and needs, as specified. (WIC 11325.4)

This bill:

1. Requires that a CalWORKs recipient shall be entitled to receive the standard allowance for ancillary services for books and college supplies, as specified, and shall not be required to enter into a WTW plan (except for the purpose of receiving any of the supportive services requested by the recipient); complete job club; or complete an assessment, as long as the following criteria is satisfied:
   1. Attending a publicly funded postsecondary educational institution full time and making satisfactory progress at that institution; or
   2. Attending a publicly funded postsecondary educational institution part time and meeting hourly WTW participation rates, based on the number of academic units and the hours of study time required for those academic units.
2. Requires that, for purposes of calculating whether a recipient is meeting the hourly participation requirement, the number of hours for study time shall be three hours of study time for each academic unit.
3. Requires that, if a recipient’s academic units and study time do not meet the total number of hours required, the county shall assist the recipient in meeting the required hours by allowing the recipient to submit a proposal for meeting those hours based on the full array of options available to the recipient, which the county shall apply to satisfy the hourly participation requirement.
4. Prohibits a recipient of the standard allowance for necessary supportive services from being subject to WTW requirements.
5. Requires that a recipient who is attending a publicly funded postsecondary educational institution shall provide verification that they are making satisfactory progress at the beginning of each term when that information is available from the institution the recipient attends.
6. Provides that “full time,” “part time,” and “making satisfactory progress” shall be determined according to the rules and regulations of the publicly funded postsecondary educational institution that the individual attends.
7. Requires that an individual who meets the criteria for an advance or reimbursement for necessary supportive services shall be required to sign a WTW plan each academic semester or quarter.
8. Requires the county to make a copy of the WTW plan available to the individual 30 days prior to the registration for each semester or quarter. Further requires the WTW plan to be returned to the county after the individual registers for classes for the semester or quarter.
9. Requires the WTW plan to include specified information.
10. Requires the WTW plan to be mailed to the recipient for completion and be returned by mail or by electronic means, if the county has the capacity to make the agreement electronically available. Requires that, if the county requires the agreement to be returned by mail, the county shall include a postage-prepaid envelope for that purpose. Permits the recipient to request, in writing, to meet with a county employer to receive assistance with completing the WTW plan.
11. Requires a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity full time at a publicly funded postsecondary educational institution shall receive an allowance of $500 for each semester or $250 for each quarter, and a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity part time at a postsecondary educational institution shall receive an allowance of $250 for the purpose of paying costs associated with attending the postsecondary educational institution 10 days before the beginning of the academic semester or quarter, as specified.
12. Requires that the amount of the allowance shall be considered a standard allowance for ancillary services for books and college supplies.
13. Permits a recipient to request reimbursement for the actual costs for ancillary services, as specified, if the recipient provides verification of expenses that exceed allowance for books and college supplies that are required for the classes in which the individual is enrolled.
14. Requires the county to issue payment for actual costs for ancillary services within 20 days of the recipient’s request.
15. Permits a county to elect to satisfy the requirements of the allowance in the form of a book voucher or other means of payment to a store or stores that carry the books required for the recipient. The county may only exercise this option if the county makes all required books available to the recipient at least 10 days before the start of the semester or quarter to ensure that the participant has the required books on the first day of class.
16. Requires the amounts of the allowance shall be adjusted upward annually by the increase, if any, in the United States Transportation Consumer Price Index for All Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics.
17. Provides that the bill shall become operative only if funds are appropriate in the annual Budget Act or another statute for its purpose.
18. Makes technical amendments.

Comments

According to the author, “student parents on CalWORKs face an uphill battle in attaining a college education. After their first year of being a college student on CalWORKs, they must complete an additional 20-30 hours of core activities. This can lead to these students dropping out of college to meet these hours or receiving reduced benefits so they can continue going to school. This effectively punishes low-income parents for seeking a college education. SB 1232 ensures our student-parents have an opportunity to complete their education before timing out of CalWORKs.” The author further states, “CalWORKs students receive funds for books, but often get those funds too late, so they fall behind in their studies because they cannot buy their books in time. Our bill would require county welfare agencies to disperse these books funds prior to the academic term beginning.”

Education, Employment, and Earnings. The long-term earning potential for a person with a college degree is the highest it has been in decades. The Public Policy Institute of California reports that the typical full-time worker with a bachelor’s degree earned $81,000 in 2017, while the typical worker with a high school diploma earned $36,000. Educational attainment is also associated with lower unemployment and less strain on the social safety net, as well as higher tax revenue and greater civic participation.

CalWORKs. As the state’s largest anti-poverty program, CalWORKs provides temporary cash assistance aimed at moving children out of poverty and helping qualified low income families meet their basic needs, such as rent, clothing, utility bills, food and other items needed to ensure children are cared for at home and safely remain with their families.  In addition to cash assistance, adult CalWORKs recipients are provided education, employment and training services designed to help remove barriers to work and promote self-sufficiency. These services are typically outlined in a WTW plan.

In order to be eligible for CalWORKs, families must meet income and asset tests that are based on family size and county of residence. For example, a family of three living in a higher cost-of-living region could qualify to receive CalWORKs benefits if their monthly adjusted income is no more than $1,453. The same family living in a lower cost-of-living region would qualify if their monthly adjusted income is no more than $1,379.

As of October 2019, the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $878. The same family living in a lower cost-of-living county would be eligible for up to $834 per month. According to the CalWORKs Annual Summary dated March 2020, the average CalWORKs grant for families participating in WTW during Fiscal Year 2019-20 was $689 per month. CalWORKs provides cash assistance to more than 383,000 families and 450,000 children.

Sequence of Employment-Related Services. After a person has been determined to be eligible for the CalWORKs program, the sequence of employment-related services starts with orientation and appraisal. After orientation and appraisal, recipients may be required to participate in job search and job club; family stabilization; substance abuse, mental health, or domestic violence services, whichever is appropriate. However, the county may determine that the recipient should skip these activities and go straight to assessment. Upon referral to assessment, participants work with the county welfare department to develop and agree on WTW plans that are based on participants’ skills and needs.

Welfare-to-Work. A key component of the federal welfare reform of the mid-1990s was the encouragement of job training and employment. Current CalWORKs rules reflect this focus on training and employment by limiting the length of time adults may receive benefits and requiring recipients to perform certain activities as a condition of receiving benefits.

Under the CalWORKs program rules, adults may not receive CalWORKs cash benefits for more than 48-months throughout the entirety of their lifetime. During those 48 months, adults may receive a total of 24 months of WTW services and activities, if they meet program requirements. Adult benefits in the CalWORKs program are contingent upon participation in WTW activities, which are designed to promote job readiness and self-sufficiency. WTW activities include subsidized and unsubsidized employment, community service, adult basic education, community college, job skills, training, mental health counseling, substance abuse treatment, and other activities necessary to assist recipients in obtaining employment. Unless they are exempt, adult parents are required to participate in WTW activities 20 – 30 hours per week, depending on their circumstances.

CalWORKs Funds for Ancillary Expenses. CalWORKs rules permit a recipient to obtain an advance for supportive services, which includes ancillary expenses. Ancillary expenses include the costs to purchase books, tools and other expenses related to WTW activities. Expenses for transportation can include but are not limited to gas for a vehicle, a bus pass, taxi fare, parking costs, etc., necessary to complete WTW activities.  Under current law, such payments “shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services.” Typically, in order to receive reimbursement for supportive services, including ancillary expenses, a recipient must have a signed WTW plan. However, supportive services can be provided to a client at any point after they have come onto aid to mitigate barriers to participation. 

Related/Prior Legislation

SB 374 (Glazer, 2019) would have required that a CalWORKs eligible individual participating in an educational activity full time and making satisfactory progress, as specified, receive a standard allowance of $500; be deemed to be meeting all WTW requirements, including the hourly participation requirements; be entitled to advance payments for allowance or reimbursement and other necessary supportive services, as specified; and is entitled to an extension of the 24-month cumulative participation period, as specified. The bill was held in the Senate Appropriations Committee.

AB 227 (Mayes, 2017) would have created the CalWORKs Educational Opportunity and Attainment Program to offer education grants and stipends to eligible CalWORKs participants who complete certain educational programs. The bill did not pass out of the Senate Human Services Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee:

• Cost pressures, as this bill’s amendments make it subject to a budget appropriation, of one-time $1.3 million for SAWS automation changes (Office of Systems Integration), which may be spread over out years, depending on the implementation timing.
• Cost pressures for limited-term, potentially tens of thousands for CDSS staff resources to promulgate regulations.
• County welfare departments currently provide reimbursement to students for educational expenses, and this bill would change the point in time at which funds are disbursed to the participant. In addition, CalWORKs employment services are based on actual expenditures, so reimbursements to clients are captured in methodology.

SUPPORT: (Verified 6/18/20)

Coalition of California Welfare Rights Organizations (co-source)

University of California Student Association (co-source)

Associated Students, University of California, Davis

California Food Policy Advocates

County Welfare Directors Association of California

Glide

National Association of Social Workers, California Chapter

SEIU California

Student Senate for California Community Colleges

Western Center on Law & Poverty, Inc.

OPPOSITION: (Verified 6/18/20)

None received

Prepared by: Taryn Smith / HUMAN S. /

6/23/20 17:13:57

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 1232 (Glazer) - CalWORKs: postsecondary education

Bill Summary:

Senate 1232 would require an eligible CalWORKs recipient receive a standard allowance of $250 per semester to $500 per quarter for books and college supplies, and to not be required to enter a welfare-to-work plan, except to receive any supportive services, complete job club, nor complete a specified assessment. Would require CDSS to adopt regulations by January 1, 2023.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on June 18, 2020

Fiscal Impact:

• Cost pressures, as the bill’s amendments make it subject to a budget appropriation, of one-time $1.3 million for SAWS automation changes (Office of Systems Integration), which may be spread over outyears, depending on the implementation timing.
• Cost pressures for limited-term, potentially ten thousands for CDSS staff resources to promulgate regulations.
• County welfare departments currently provide reimbursement to students for educational expenses, and this bill would change the point in time at which funds are disbursed to the participant. In addition, CalWORKs employment services are based on actual expenditures, so reimbursements to clients are captured in methodology.

Committee Amendments:

The committee amendments would make the bill operative if funds are appropriated in the annual Budget Act or another statute of its purposes.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 1232 (Glazer) - CalWORKs: postsecondary education

Bill Summary:

• Senate 1232 would require an eligible CalWORKs recipient receive a standard allowance of $250 per semester to $500 per quarter for books and college supplies, and to not be required to enter a welfare-to-work plan, except to receive any supportive services, complete job club, nor complete a specified assessment. Would require CDSS to adopt regulations by January 1, 2023.

Fiscal Impact:

• According to the Office of Systems Integration, one-time $1.3 million for automation changes to the SAWS system. However, the funding, or a portion thereof, may need to shift to the out-years, depending on the time implementing the automation.
• Staff anticipates limited-term, indeterminate (potentially ten thousands) cost pressures for CDSS staff resources to promulgate regulations, which may be achieved through redirection of staff. However, to the extent, other bills propose to require the CDSS to promulgate regulations, there would be cumulative impact, which may require permanent staff.
• County welfare departments currently provide reimbursement to students for educational expenses, and this bill would change the point in time at which funds are disbursed to the participant. In addition, CalWORKs employment services are based on actual expenditures, so reimbursements to clients are captured in methodology.

Background: CalWORKs provides temporary cash assistance to qualifying low-income individuals to assist with basic needs and moving children out of poverty. In addition to cash assistance, adult CalWORKs recipients participate in welfare-to-work (WTW) programs, which may include education, training, and subsidized employment opportunities, to assist in barrier-removal and promote self-sufficiency. CalWORKs is funded with a mix of federal funding (Temporary Assistance to Needy Families), state, and county funds.

CalWORKs benefits for adults are limited to no more than 48-months in their entire lifetime. During those 48 months, adults may receive a total of 24 months of WTW services and activities, such as subsidized employment, education, community college, job skills, and counseling. Currently, CalWORKs limits the time during which a WTW participant may engage in certain educational activities to a cumulative of 24 months. A participant may obtain an extension for up to six months, which is reevaluated every six months under certain circumstances. Absent an extension, a CalWORKs recipient who is attending school may be required to complete an additional 20-30 hours of core activities – fulltime education is not considered a core activity. CalWORKs recipients enrolled in WTW are typically required to work 20-30 hours per week in order to receive full CalWORKs benefits. Failure to meet work requirements, may cause the families’ CalWORKs benefits to be reduced.

Existing law requires necessary supportive services to be available to every WTW participant in order to participate in an assigned program activity or to accept employment, to include childcare, diaper costs, transportation costs, ancillary expenses – which include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs – and personal counseling, as specified. These expenses are provided at the actual costs and there is no cap.

Proposed Law:

SB 1232 would provide a CalWORKs eligible individual with a $250 (each quarter) or $500 (per semester) standard allowance for ancillary services for books and college supplies, an amount which would be adjusted annually by the Consumer Price Index. In addition, the bill would:

• Require a county to issue reimbursement for actual costs of ancillary services within 20 days of the recipient’s request.
• Authorize a county to provide the allowances in a form of a book voucher or other means of payment to a store or stores that carry the books required for the recipient. The county may only exercise this option if all the required books are made available to the recipient at least 10 days before the start of the semester or quarter.
• Specify how a county can determine whether a recipients meets the hourly participation requirement, and if a recipient’s hours are not met, requires a county to assist the recipient in meeting the required hours of participation.
• Require the recipient who is attending a publicly funded postsecondary educational institution provide verification of satisfactory progress.
• Provides that definitions of “full time,” “part time,” and “making satisfactory progress” shall be determined according to the rules and regulations of the publicly funded postsecondary educational institution that the individual attends.
• Authorize the CDSS to implement the bill’s provisions through all-county letters until regulations are adopted, and requires the department adopt emergency regulations no later than January 1, 2023, an in effect for no longer than 180 days, and exempt from Office of Administrative Law review.
• Requires reimbursement to local agencies and school districts for costs if the Commission on State Mandates determines the bill contains state-local mandate.
• Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program. This bill would instead provide that the continuous appropriation would not be made for purposes of implementing the bill.

Related Legislation:

SB 374 (Glazer, 2019) would have required a CalWORKs eligible individual participating in an educational activity full-time and making satisfactory progress, as specified, receive a standard allowance of $500; be deemed to be meeting all WTW requirements, including the hourly participation requirements; be entitled to advance payments for allowance or reimbursement and other necessary supportive services, as specified; and is entitled to an extension of the 24-month cumulative participation period, as specified. This bill was held in Senate Appropriations Committee.

Staff Comments:

Staff notes that the actual costs for distributing the standard allowance will be dependent on the number of participants enrolled full-time in an educational activity. According to the CalWORKs Annual Summary, between July 1, 2017, and June 30, 2018, over 10,000 participants were enrolled in an education program. If all of these participants received the standard allowance, costs would exceed $5 million. However, it is not known how many of those participants are attending a postsecondary educational institution.

The 2020 May Revision CalWORKs Employment Services incudes $4 million for additional contract costs due to the COVID-19 health crisis and resulting fiscal downturn, which may be used for educational expenses. 

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Hurtado, Chair

2019 - 2020 Regular

Subject: CalWORKs: postsecondary education

SUMMARY

This bill requires California Work Opportunity and Responsibility to Kids (CalWORKs) recipients who are participating in specified educational activities to receive a standard allowance of $250 to $500 per semester or quarter, which may be provided, in whole or in part, in the form of an advance, book voucher, or reimbursement for verified actual expenses, as specified. The bill exempts CalWORKs recipients who are enrolled in specified educational activities from participating in specified CalWORKs activities. The bill provides that a recipient who is enrolled in a publicly funded postsecondary educational institution and making satisfactory progress that would meaningfully increase the likelihood of employment is entitled to an extension of the 24-month cumulative participation period, as specified.

ABSTRACT

Existing Law:

1. Establishes the federal Temporary Assistance for Needy Families (TANF) program, which permits states to implement the program under a state plan. (42 USC § 601 et seq.)
2. Establishes in state law the CalWORKs program to provide cash assistance and other social services for low-income families through TANF. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC 11120 et seq.)
3. Generally requires a recipient of CalWORKs benefits to participate in welfare-to work (WTW) activities as a condition of eligibility for aid. (WIC 11320 et. seq.)
4. Mandates the sequence of employment-related activities a CalWORKs participant must engage in subsequent to the receipt of aid, unless otherwise exempted. Further requires that recipients shall, and applicants may, at the option of the county and with consent of the applicant, receive orientation to the WTW program. (WIC 11320.1)
5. Requires a CalWORKs applicant or recipient to participate in WTW activities for 24 cumulative months, as specified, unless they are otherwise exempt. (WIC 11322.85)
6. Permits a CalWORKs recipient subject to the 24-month time limitation to request an extension, as specified, and to present evidence to the county that he or she meets certain specified circumstances. (WIC 11322.87)
7. Requires necessary supportive services to be available to every WTW participant in order to participate in an assigned program activity or to accept employment, to include childcare, diaper costs, transportation costs, ancillary expenses, which include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs and personal counseling, as specified. (WIC 11323.2)
8. Requires that payments for supportive services shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services. Further requires that payments for child care services shall be made, as specified. (WIC 11323.4(a))
9. Requires any individual who is required to participate in WTW activities to enter into a written WTW plan with the county welfare department after assessment, but no more than 90 days after the date that a recipient’s eligibility for aid is determined or the date the recipient is required to participate in WTW activities, as specified. (WIC 11325.21)
10. Requires that all participants, except for certain teenage parents, shall be assigned to participate for a period of up to four consecutive weeks in job search activities, which may include job club to identify the participant’s qualifications, as specified. These activities may include the use of job clubs to identify the participant’s qualifications, as specified. (WIC 11325.22)
11. Requires a participant to work with the county welfare department to develop and agree on a WTW plan on the basis of an assessment of the individual’s skills and needs. The assessment must include the participant’s work history and employment skills, knowledge, and abilities; the participant’s educational history and present educational competency level; the participant’s need for supportive services in order to obtain the greatest benefit from the employment and training services; an evaluation of the chances for employment given the current skills of the participant and the local labor market conditions; local labor market information; and physical limitations or mental conditions that limit the participant’s ability for employment or participation in WTW activities. (WIC 11325.4)

This Bill:

Requires that a CalWORKs recipient who satisfies the criteria listed below shall be entitled to receive the advance or reimbursement for necessary supportive services and shall not be required to enter into a WTW plan; complete job club; or complete an assessment.

• 1. Attending a publicly funded postsecondary educational institution full time and making satisfactory progress at that institution; or
  2. Attending a publicly funded postsecondary educational institution part time and meeting hourly WTW participation rates, based on the number of academic units and the hours of study time required for those academic units.

Requires that, for purposes of calculating whether a recipient is meeting the hourly participation requirement, the number of hours for study time shall be three hours of study time for each academic unit.

Requires that, if a recipient’s academic units and study time do not meet the total number of hours required, the county shall assist the recipient in meeting the required hours by allowing the recipient to submit a proposal for meeting those hours based on the full array of options available to the recipient, which the county shall apply to satisfy the hourly participation requirement.

Prohibits a recipient of the advance or reimbursement for necessary supportive services from being subject to WTW requirements.

Provides that a recipient who is earning a high school diploma or the equivalent, or attending a publicly funded postsecondary educational institution and making satisfactory progress at that institution, is deemed to meaningfully increase the likelihood of employment and entitled to an extension of the 24-month clock.

Requires that a recipient who is attending a publicly funded postsecondary educational institution shall provide verification that they are making satisfactory progress at the beginning of each term when that information is available from the institution the recipient attends.

Provides that “full time,” “part time,” and “making satisfactory progress” shall be determined according to the rules and regulations of the publicly funded postsecondary educational institution that the individual attends.

Requires that an individual who meets the criteria for an advance or reimbursement for necessary supportive services shall be required to sign a simplified education participation agreement each academic semester or quarter.

Requires the county to make a copy of the simplified education participation agreement available to the individual 30 days prior to the registration for each semester or quarter. Requires the agreement document to be returned to the county after the individual registers for classes for the semester or quarter.

Requires the simplified education participation agreement to include all of the following information:

1. The educational schedule for the semester or quarter;
2. A description of the various supportive services that the recipient is entitled to, if necessary;
3. A request for the supportive services the individual wishes to receive;
4. The number of academic units for which the individual has enrolled;
5. Class times for the purposes of receiving child care assistance, if required by law;
6. Transportation and parking costs; and
7. Any other costs that are necessary for attending the publicly funded postsecondary educational institution.

Requires the simplified education participation agreement to be mailed to the recipient for completion and be returned by mail or by electronic means, if the county has the capacity to make the agreement electronically available. Requires that, if the county requires the agreement to be returned by mail, the county shall include a postage-prepaid envelope for that purpose. Permits the recipient to request, in writing, to meet with a county employer to receive assistance with completing this simplified education participation agreement.

Requires a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity full time at a publicly funded postsecondary educational institution shall receive an advance of $500 for each semester or $250 for each quarter, and a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity part time at a postsecondary educational institution shall receive an advance of $250 for the purpose of paying costs associated with attending the postsecondary educational institution 10 days before the beginning of the academic semester or quarter, as specified.

Requires that the advance shall be considered a standard allowance for ancillary services for books and college supplies.

Permits a recipient to request actual costs for ancillary services, as specified, if the recipient provides verification of expenses that exceed advance for books and college supplies that are required for the classes in which the individual is enrolled.

Requires the county to issue payment for actual costs for ancillary services within 15 days of the recipient’s request.

Permits a county to elect to satisfy the requirements of the advance in the form of a book voucher or other means of payment to a store or stores that carry the books required for the recipient. The county may only exercise this option if the county makes all required books available to the recipient at least 10 days before the start of the semester or quarter to ensure that the participant has the required books on the first day of class.

Requires the amounts of the advance shall be adjusted upward annually by the increase, if any, in the United States Transportation Consumer Price Index for All Urban Consumers published by the United States Department of Labor, Bureau of Labor Statistics (BLS).

FISCAL IMPACT

This bill has not yet been analyzed by a fiscal committee.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “student parents on CalWORKs face an uphill battle in attaining a college education. After their first year of being a college student on CalWORKs, they must complete an additional 20-30 hours of core activities. This can lead to these students dropping out of college to meet these hours or receiving reduced benefits so they can continue going to school. This effectively punishes low-income parents for seeking a college education. SB 1232 ensures our student-parents have an opportunity to complete their education before timing out of CalWORKs” Specifically, the bill would exempt student parents on from entering into a WTW plan, completing job club and completing assessment.

According to the author, “CalWORKs students receive funds for books, but often get those funds too late, so they fall behind in their studies because they cannot buy their books in time. Our bill would require county welfare agencies to disperse these books funds prior to the academic term beginning.”

Education, Employment, and Earnings

The long-term earning potential for a person with a college degree is the highest it has been in decades. The Public Policy Institute of California (PPIC) reports that typical full-time worker with a bachelor’s degree earned $81,000 in 2017, while the typical worker with a high school diploma earned $36,000. Educational attainment is also associated with lower unemployment and less strain on the social safety net, as well as higher tax revenue and greater civic participation.^[1]

Employment data from the BLS shows a strong correlation between educational attainment and income level.^[2] BLS data indicates that median weekly earnings in 2017 for those with doctoral and professional degrees were more than triple those with less than a high school diploma. Additionally, those with higher the levels of education had lower rates of unemployment.

Data from the Social Security Administration demonstrates the substantial difference in lifetime earnings by educational attainment.^[3] Men with bachelor's degrees earn approximately $900,000 more in median lifetime earnings than high school graduates. Women with bachelor's degrees earn $630,000 more. Men with graduate degrees earn $1.5 million more in median lifetime earnings than high school graduates. Women with graduate degrees earn $1.1 million more.

According to the PPIC, by 2025, California will face a shortfall of 1 million college graduates.^[4] At the same time, college students in California are experiencing unprecedented levels of housing and food insecurity, making a college education less accessible, especially for low-income students.

CalWORKs

CalWORKs, the state’s largest anti-poverty program, provides temporary cash assistance aimed at moving children out of poverty and helping qualified low income families meet their basic needs, such as rent, clothing, utility bills, food and other items needed to ensure children are cared for at home and safely remain with their families.  In addition to cash assistance, adult CalWORKs recipients are provided education, employment and training services designed to help remove barriers to work and promote self-sufficiency.   These services are typically outlined in a WTW plan.

CalWORKs provides cash assistance to more than 383,000 families and 450,000 children. CalWORKs is funded with a mix of federal TANF money, state, and county funds. CDSS is the designated state agency responsible for program supervision at the state level. The counties are responsible for administering the program at the local level.

In order to be eligible for CalWORKs, families must meet income and asset tests including net income below the Maximum Aid Payment, based on family size and county of residence. For example, a family of three living in a higher cost-of-living region could qualify to receive CalWORKs benefits if their monthly adjusted income is no more than $1,453. The same family living in a lower cost-of-living region would qualify if their monthly adjusted income is no more than $1,379. As of October 2019, the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $878. The same family living in a lower cost-of-living county would be eligible for up to $834 per month.

According to the CalWORKs Annual Summary dated March 2020, the average CalWORKs grant for families participating in WTW during Fiscal Year 2019-20 was $689 per month.

Sequence of Employment-Related Services

After a person has been determined to be eligible for the CalWORKs program, the sequence of employment-related services starts with orientation and appraisal. After orientation and appraisal, recipients may be required to participate in job search and job club; family stabilization; substance abuse, mental health, or domestic violence services, whichever is appropriate. However, the county may determine that the recipient should skip these activities and go straight to assessment. Upon referral to assessment, participants work with the county welfare department to develop and agree on WTW plans that are based on participants’ skills and needs. A recipient who has not received a high school diploma or its equivalent may choose to participate in a high school education or equivalency program.

Welfare-to-Work (WTW)

A key component of the federal welfare reform of the mid-1990s was the encouragement of job training and employment. Current CalWORKs rules reflect this focus on training and employment by limiting the length of time adults may receive benefits and requiring recipients to perform certain activities as a condition of receiving benefits.

Under the CalWORKs program rules, adults may not receive CalWORKs cash benefits for more than 48-months throughout the entirety of their lifetime. During those 48 months, adults may receive a total of 24 months of WTW services and activities, if they meet program requirements. Adult benefits in the CalWORKs program are contingent upon participation in WTW activities, which are designed to promote job readiness and self-sufficiency. WTW activities include subsidized and unsubsidized employment, community service, adult basic education, community college, job skills, training, mental health counseling, substance abuse treatment, and other activities necessary to assist recipients in obtaining employment.

Unless they are exempt, an adult parent in a one-parent assistance unit (this is a group of persons living in the same home who have been determined eligible for CalWORKs and for whom cash aid has been authorized) is required to participate in WTW activities for an average of 20 hours per week, if the parent has a child less than six years of age. An adult in a one-parent assistance unit is required to participate in WTW activities for an average of 30 hours per week during the month, if the parent does not have a child less than six years of age. In a two-parent assistance unit, one or both adults must participate in WTW activities for a combined average of 35 hours per week.

CalWORKs requirements also limit the time during which a WTW participant may engage in certain educational activities to a cumulative of 24 months. However, a participant may obtain an extension for up to six months, which shall be reevaluated every six months under certain circumstances. Absent an extension, a CalWORKs recipient who is attending school may be required to complete an additional 20-30 hours of core activities. Fulltime education is not considered a core activity.

CalWORKs for College Students

CalWORKs recipients enrolled in WTW are typically required to work 20-30 hours per week in order to receive full CalWORKs benefits. Failure to meet work requirements, may cause the families’ CalWORKs benefits to be reduced. This bill proposes to exempt CalWORKs students (full-time and part-time) from WTW requirements, job club and assessment.

The cost for college books can be prohibitive for CalWORKs recipients; thus, CalWORKs rules permit a recipient to obtain an advance for supportive services (including ancillary expenses for books and transportation). Ancillary expenses include the costs to purchase books, tools and other expenses related to WTW activities.   Expenses for transportation can include but are not limited to gas for a vehicle, a bus pass, taxi fare, parking costs, etc., necessary to complete WTW activities.  Under current law, such payments “shall be advanced to the participant, wherever necessary, and when desired by the participant, so that the participant need not use his or her funds to pay for these services.” Typically, in order to receive reimbursement for supportive services, including ancillary expenses, a recipient must have a signed WTW plan. However, supportive services can be provided to a client at any point after they have come onto aid to mitigate barriers to participation. 

Related/Prior Legislation:

SB 374 (Glazer) would have required that a CalWORKs eligible individual participating in an educational activity full time and making satisfactory progress, as specified, receive a standard allowance of $500; be deemed to be meeting all WTW requirements, including the hourly participation requirements; be entitled to advance payments for allowance or reimbursement and other necessary supportive services, as specified; and is entitled to an extension of the 24-month cumulative participation period, as specified. This bill was held in Senate Appropriations Committee.

AB 818 (Burke, Chapter 141, Statutes of 2017) clarified that a high school education or its equivalent, and education obtained subsequent to the acquisition of a high school diploma or its equivalent, is presumed to meaningfully increase the likelihood of employment for purposes of a recipient requesting an extension of the CalWORKs 24-month clock.

AB 227 (Mayes, 2017) would have created the CalWORKs Educational Opportunity and Attainment Program to offer education grants and stipends to eligible CalWORKs participants who complete certain educational programs. It is did not pass out of this committee.

AB 1994 (Lopez, 2016) would have created the CalED program to provide a one-time $500 supplement to eligible CalWORKs participants upon successful completion of a high school equivalency examination. It was held in the Assembly Appropriations Committee.

AB 2448 (Burke, 2016) would have changed CalWORKs requirements regarding permissible welfare-to-work activities to facilitate a recipient’s completion of a high school equivalency program. It was vetoed by the Governor.

COMMENTS

According to the author, CalWORKs student parents are often unable to buy books before classes begin because they do not receive their funds from the county in time. In these scenarios, students might not buy books, which puts them behind in their coursework, or they buy books with their own funds or on credit, further straining them financially.

This bill seeks to make it easier for CalWORKs parents to continue their postsecondary education by providing a cash aid to pay for books and other costs associated with attending school and by exempting them from other CalWORKs requirements. SB 1232 is similar to SB 374 (Glazer, 2019), which was held in Senate Appropriations Committee. However, this bill takes a slightly different approach from SB 374, which appears to make implementation more feasible.

This bill permits fulltime students to receive a $500 advance for costs associated with postsecondary education. Part time students would receive $250. In the event a recipient’s actual costs associated with books and college supplies exceed the amount of the advance, the bill permits a recipient to request to be paid the actual cost. The bill also permits counties to satisfy the requirement for an advance in the form of a book voucher, which is a current practice in some counties. Additionally, this bill excuses CalWORKs parents who are attending postsecondary school from the following elements of the CalWORKs program: WTW requirements, job club and assessment. This is intended to free the students from time-consuming program components that may not be appropriate for a person who is seeking higher education. However, such students might benefit from supportive services provided via WTW. Therefore, the committee recommends amending the bill to preserve the option for CalWORKs parents who are higher education students to receive WTW supportive services, such as childcare and behavioral health, by entering into a WTW plan.

The committee also suggests the following amendments, which are intended to clarify that cash aid for educational expenses is a “standard allowance,” which currently exists as a CalWORKs benefit. These amendments also delete reference to high school education, as it is redundant to other provisions of the CalWORKs program. The remaining amendments are technical.

On page 3, line3:

(a) Notwithstanding any other law, a person who satisfies the criteria in subdivision (b) shall be entitled to receive the advance or reimbursement for necessary supportive services standard allowance for ancillary services for books and college supplies pursuant to Section 11323.21, and shall not be required to do any of the following:

(1) Enter into a welfare-to-work plan, as provided in Section 11325.21, except for the purpose of supportive services.

(2) Complete job club, as provided in Section 11325.22.

(3) Complete an assessment, as provided in Section 11325.4.

On page 3, line 33:

(c) A recipient who is earning a high school diploma or the equivalent, or attending a publicly funded postsecondary educational institution and making satisfactory progress at that institution, is deemed to meaningfully increase the likelihood of employment as described in Section 11322.87.

On page 4, line 10:

(f) (1) To receive supportive services, an individual who meets the requirements of this section shall be required to sign a simplified education participation agreement welfare-to-work plan each academic semester or quarter. The county shall make a copy of the simplified education participation agreement welfare-to-work plan available to the individual 30 days prior to the registration for each semester or quarter. The agreement document plan shall be returned to the county after the individual registers for the classes of the semester or quarter.

(2) The simplified education participation agreement plan shall include all of the following information:

On page 4, line 32:

(3)  The simplified education participation agreement plan shall be mailed to the recipient for completion and shall be returned by mail or by electronic means, if the county has the capacity to make the agreement electronically available. If the county requires the agreement to be returned by mail, the county shall include a postage-prepaid envelope for that purpose. The recipient may request, in writing, to meet with a county employer employee to receive assistance with completing this simplified education participation agreement.

On page 5, line 3:

(a) A CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity full time at a publicly funded postsecondary educational institution in accordance with Section 11322.84 shall receive an allowance advance of $500 for each semester or $250 for each quarter, and a CalWORKs eligible individual who provides the county evidence that the individual is participating in an educational activity part time at a postsecondary educational institution, in accordance with Section 11322.84, shall receive an allowance advance of $250 for the purpose of paying costs associated with attending the postsecondary educational institution 10 days before the beginning of the academic semester or quarter.

(b) For the purposes of this section, the amounts set forth in subdivision (a) shall be considered a standard allowance for ancillary services for books and college supplies.

(c) A recipient may request reimbursement for actual costs for ancillary services pursuant to Section 11323.2 if the recipient provides verification of expenses that exceed the applicable amount set forth in subdivision (a) for books and college supplies that are required for the classes in which the individual is enrolled. The county shall issue payment within 15 20 days of the recipient’s request.

On page 5, line 36:

(1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services may implement, interpret, or make specific this section by means of all-county letters or similar written instructions from the department until regulations are adopted. These all-county letters or similar instructions shall have the same force and effect as regulations.

(2) The department shall adopt emergency regulations no later than January 1, 2023. The department may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, an emergency regulation previously adopted under this section.

(3) The initial adoption of emergency regulations pursuant to this section and one readoption of emergency regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. Initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be exempt from review by the Office of Administrative Law. The initial emergency regulations and the one readoption of emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State and each shall remain in effect for no more than 180 days, by which time final regulations shall be adopted.

POSITIONS

Support:

Coalition of California Welfare Rights Organizations

County Welfare Directors Association of California (CWDA)
National Association of Social Workers, California Chapter
SEIU California
Student Senate for California Community Colleges
University of California Student Association
Western Center on Law & Poverty, INC.

Oppose:

None received

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1. https://www.ppic.org/wp-content/uploads/californias-future-higher-education-january-2020.pdf ↑

2. https://www.bls.gov/careeroutlook/2018/data-on-display/education-pays.htm ↑

3. https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html ↑

4. https://www.ppic.org/publication/californias-need-for-skilled-workers/#fn-1 ↑