GOOD MORNING, EVERYBODY. WELCOME
TO TODAY'S EDUCATION AND
FINANCE ASSEMBLY'S BUDGET
SUBCOMMITTEE NUMBER THREE. I AM
CHAIR DAVID ALVAREZ. AND TODAY
IS OUR FINAL SUBCOMMITTEE
HEARING BEFORE THE MAY REVISION.
WE'RE PLANNING ON OUR NEXT
HEARING FOR THURSDAY, MAY 16TH,
TO REVIEW THE GOVERNOR'S MAY
REVISION, BUT OBVIOUSLY, PLEASE
STAY TUNED TO THE DAILY FILE FOR
UPDATES, TODAY WE WILL BE
DISCUSSING DIFFERENT PROGRAMS.
THE STATE LIBRARY UC COLLEGE OF
THE LAW, SCHOLARSHARE CALKINS
COLLEGE SAVINGS PROGRAM. AS
NOTED IN OUR AGENDA FOR THE
STATE LIBRARY, THE GOVERNOR HAS
PROPOSED PULLING BACK AND
FOREGOING FUNDING FROM THE LOCAL
LIBRARY INFRASTRUCTURE PROGRAM,
WHICH HAS PROVIDED SIGNIFICANT
FUNDING FOR EVERYTHING FROM HVAC
SYSTEMS AND UPGRADES AT
LIBRARIES TO CONSTRUCTION
PROJECTS, TO REBUILDING AND
RENOVATING SOME LIBRARIES
IMPACTED BY FIRES AND OTHER
DISASTERS IN OUR STATE. WE WILL
ALSO LOOK AT PAST SPENDING ON
LIBRARY PROGRAMS, AS WE HAVE
DONE THROUGHOUT THE
SUBCOMMITTEES HEARINGS THIS
SPRING. WE ARE LOOKING FOR
UNSPENT FUNDING IN THE CASE THAT
THE MAY REVISE REVENUES REQUIRE
MORE CUTS FOR UC COLLEGE OF THE
LAW, A FORMERLY HASTINGS, WE
WILL DISCUSS THE GOVERNOR'S
BUDGET PROPOSAL TO PROVIDE AN
INCREASE IN OPERATIONAL FUNDING
FOR THE COLLEGE. WHILE THE
PROPOSAL IS VERY SMALL, WE NEED
TO SCRUTINIZE EVERY DOLLAR, AS
WE HAVE BEEN DOING CONSISTENTLY
IN THIS BUDGET SUBCOMMITTEE. SO
WE LOOK FORWARD TO THIS
DISCUSSION. AND THEN, FINALLY,
THE CAL KIDS PROGRAM OPENS
COLLEGE SAVINGS ACCOUNTS FOR
EVERY NEWBORN IN CALIFORNIA AND
FOR EVERY LOW INCOME, FIRST
GRADER, THERE IS A COMPLICATED
PROGRAM WITH A VERY WORTHY GOAL
TO HELP MORE STUDENTS GO AND
PREPARE THEIR MINDSET FOR
COLLEGE. BUT I HOPE WE CAN TALK
TODAY ABOUT HOW WE CAN MAKE SURE
CALIFORNIANS KNOW ABOUT THIS
PROGRAM AND TAKE ADVANTAGE OF
IT. ONLY ABOUT 7% OF FAMILIES
WITH AN ACCOUNT HAVE REGISTERED
FOR THE PROGRAM, AND THAT NUMBER
HAS TO BE HIGHER, WE WILL ALSO
OFFER PUBLIC COMMENT BOTH. NOW,
IF ANYBODY IN THE PUBLIC LIKE TO
REGISTER NOW, OR WE CAN ALSO
TAKE IT AT THE END OF THE
HEARING. I DON'T SEE ANYBODY
COMING UP. SO WE WILL TAKE
PUBLIC COMMENT AT THE END. AND
WITH THAT WE WILL START WITH OUR
FIRST ITEM. SO IF I COULD ASK
PLEASE, THE DEPARTMENT OF
FINANCE, LEGISLATIVE ANALYST'S
OFFICE AND OUR STATE LIBRARIAN
TO PLEASE COME FORWARD. AND I
WILL START WITH, DEPARTMENT OF
FINANCE AND THEN FOLLOWED IN THE
ORDER OF, THAT I PRESENTED. SO
WELCOME. AND PLEASE BEGIN. IS IT
OKAY? YEAH. GOOD MORNING. AND
GOOD TO BE WITH YOU, CHAIR,
CHAIR ALVAREZ AND ASSEMBLY
MEMBER FONG. DEVIN MITCHELL WITH
THE DEPARTMENT OF FINANCE. THE
GOVERNOR'S BUDGET PROPOSES TO
PULL BACK 131.3 MILLION ONE TIME
GENERAL FUND. OF THE 439,000,000
IN 1 TIME GENERAL FUND SUPPORT
PROVIDED FOR THE LOCAL LIBRARY
INFRASTRUCTURE GRANT PROGRAM IN
THE 2021 BUDGET ACT, THE BUDGET
ALSO FORGOES PLANNED ONE TIME
INVESTMENTS TO SUPPORT THE
PROGRAM OF 33,000,000 IN 2024,
25, 33,000,000 IN 2025, 26, AND
34,000,000 IN 20 2627. WE WOULD
ADD THAT THIS AMOUNT WAS AN
ESTIMATE BASED ON THE
INFORMATION WE WERE WORKING WITH
WHEN THE BUDGET WAS RELEASED IN
JANUARY, AND THE AMOUNT THAT IS
ULTIMATELY REVERTED WILL DEPEND
ON PROGRAM EXPENDITURES IN THE
CURRENT FISCAL YEAR.
ADDITIONALLY, DUE TO LOW
PARTICIPATION IN THE PROGRAM,
THE BUDGET ALSO PROPOSED
WITHDRAWING 34 MILLION OUT OF
THE 35 MILLION APPROPRIATED IN
THE 2021 BUDGET ACT TO EXPAND
BROADBAND ACCESS TO ISOLATED,
UNDERSERVED COMMUNITIES THROUGH
THE CALIFORNIA COLLABORATIVE
CONNECTIVITY GRANT, A
PARTNERSHIP OF LOCAL EDUCATION
AGENCIES AND REGIONAL LIBRARIES.
THIS PROPOSAL WAS INCLUDED IN AB
106 AS PART OF THE EARLY ACTION
PACKAGE THAT HAS SINCE BEEN
ADOPTED BY THE LEGISLATURE, WAS
APPROVED BY THE GOVERNOR, AND
BECAME LAW IN APRIL. FINALLY,
THE DEPARTMENT IS ALSO RECEIVING
A POSITION AUTHORITY FOR A
TRIBAL AND RURAL LIBRARIES
FOCUSED LIBRARY PROGRAMS
CONSULTANT THAT WOULD BE
SUPPORTED BY FEDERAL FUNDS FROM
THE US INSTITUTE OF MUSEUM AND
LIBRARY SERVICES. THANK YOU.
I'LL YIELD TO OTHERS ON THE
PANEL AND I'M READY TO ANSWER
ANY QUESTIONS AT THE APPROPRIATE
TIME. THANK YOU. LEO. GOOD
MORNING, CHAIR ALVAREZ. MEMBER
FONG IAN KLEIN WITH THE LAO. SO
WE'VE REVIEWED THE GOVERNOR'S
PROPOSALS, AND WE AGREE WITH
SCOOPING WHAT IS AVAILABLE TO BE
PULLED BACK FROM THE LOCAL
LIBRARY INFRASTRUCTURE GRANT
PROGRAM. JUST AS A BIT OF
BACKGROUND HERE, THE STATE
PROVIDED 439,000,001 TIME
GENERAL FUND FOR THIS PURPOSE IN
THE BUDGET ACT OF 2021, WITH AN
ADDITIONAL 50 MILLION BEING
PROVIDED IN THE BUDGET ACT OF
2022. SO A COMBINED 489 MILLION.
AND SPEAKING WITH THE STATE
LIBRARY, WE'VE IDENTIFIED THAT
AS OF JANUARY 30TH OF THIS YEAR,
OF THAT ORIGINAL 489 MILLION
APPROPRIATED FOR THE PROGRAM,
448 MILLION HAS BEEN SPENT OR
ENCUMBERED AS SHOWN IN FIGURE
ONE OF YOUR AGENDA ON PAGE FOUR.
GIVEN THAT 448 MILLION HAS BEEN
DESIGNATED AS AWARDED, WE
RECOMMEND PULLING BACK THE
PORTION THAT HAS YET TO BE
ENCUMBERED, WHICH TOTALS 4.8
MILLION. ADDITIONALLY, GIVEN THE
FISCAL CONDITION OF THE STATE,
WE HAVE NO CONCERNS WITH THE
GOVERNOR'S PROPOSAL TO PULL BACK
THE ADDITIONAL 100,000,001 TIME
GENERAL FUND THAT WAS TO BE
PROVIDED FOR THIS PROGRAM OVER
THE NEXT THREE FISCAL YEARS.
WITH THAT, I'LL PAUSE MY
COMMENTS, BUT I'M HAPPY TO
ANSWER ADDITIONAL QUESTIONS.
THANK YOU. STATE LIBRARIAN.
WELCOME. WELL, THANK YOU, MR.
CHAIR. THE ASSEMBLY MEMBER.
FONG. WHAT? HOW CAN I BE OF HELP
TO YOU? I MEAN, WHAT WOULD YOU
LIKE TO HEAR FROM THE LIBRARY?
WE'D LIKE TO HEAR YOUR COMMENTS
ON THE PARTICULARLY PARTICULAR
BUDGET ITEMS PRESENTED. WELL AS,
AS DEVIN SAID, RIGHT. THE EARLY
BUDGET ACTION HAS ALREADY SAVED
THE USED. THE 34 MILLION THAT
FOR BROADBAND TO HELP CLOSE THE
GAP BETWEEN AVAILABLE REVENUE
AND SPENDING COMMITMENTS. THE
BUILDING FORWARD PROGRAM I THINK
IS IAN SAID THAT'S THE MORE
CURRENT ESTIMATE OF WHERE WE
ARE. RIGHT. SO THE JANUARY
BUDGET IS BASED ON LIKE OCTOBER
NUMBERS, NOVEMBER HERE. IS THAT.
YEAH. RIGHT. SO MOST OF THE
ALMOST ALL OF THE 489 MILLION
FOR LOCAL LIBRARY FACILITIES HAS
GONE TO SOMETHING LIKE 272
LIBRARY PROJECTS IN 38 COUNTIES
OR SOMETHING LIKE THAT. WHAT WE
DID DO, WHEN WE TALKED WITH
FINANCE ABOUT THE WHAT THE
CONDITION OF THE BUDGET WAS
GOING TO BE IN JANUARY WAS
PROJECTS THAT WE GAVE PEOPLE WHO
HADN'T TURNED IN THEIR
PAPERWORK. WE GAVE THEM UNTIL
DECEMBER 31ST TO DO THAT. AND SO
THERE'S A LIST OF ONE, TWO,
THREE, FOUR, FIVE, SIX, SEVEN,
EIGHT, NINE, TEN PROJECTS. AND I
THINK THAT'S WHAT YOU WERE
ALLUDING TO. THE 4 MILLION OR SO
IN PROJECTS THAT WE PUT ON HOLD,
JUST BECAUSE THEY DIDN'T MEET
THAT DEADLINE, AND BECAUSE WE
THOUGHT THAT WAS THE RESPONSIBLE
THING TO DO, GIVEN THE STATE'S
FISCAL CONDITION. THANK YOU.
APPRECIATE ALL YOUR COMMENTS, WE
WILL TURN IT OVER FOR QUESTIONS
FROM, THE COMMITTEE. MR. FONG,
THANK YOU SO MUCH, MR. CHAIRMAN.
THANK YOU, TO OUR PANELISTS,
THIS QUESTION IS FOR THE, STATE
LIBRARIAN, IN TERMS OF YOU JUST
MENTIONED THE WHEN WE LOOK AT
THE REPORT, OVER $400 MILLION, I
THINK, ALLOCATED IN DIFFERENT
$489 MILLION APPROPRIATED FOR
THIS PROGRAM. BUT $4.8 MILLION
REMAIN UNENCUMBERED. WERE THERE
APPLICATIONS THAT WERE SUBMITTED
THAT WERE NOT FUNDED? YES.
THERE'S MORE THAN $300 MILLION
WORTH OF PROJECTS AND 99
DIFFERENT CITIES THAT WE HAVE
REVIEWED THAT COULD GO FORWARD.
WERE THERE MONEY TO DO SO? SO
THERE'S $5 MILLION NOT
ENCUMBERED. AND WHY IS THAT $5
MILLION NOT ENCUMBERED? IF YOU
HAD $300 MILLION IN APPLICATIONS
? WELL, THERE'S A VARIETY OF
REASONS. SO SOME OF THE PROJECTS
THAT WE PROVIDED, INITIAL MONEY
TOWARDS THAT MONEY IS ENOUGH TO
COVER THE PROJECT. AND SO THE
STATE'S CONTRIBUTION HAS
REVERTED BACK TO THE STATE.
THERE'S A MATCHING THERE'S A
MATCHING REQUIREMENT IN THIS
PROGRAM. RIGHT. SO SOME LOCAL
JURISDICTIONS HAVE OF I MEAN I'M
TELLING YOU WHAT YOU KNOW
ALREADY. BUT WITH INFLATION
RIGHT, THE COST OF A LOT OF
THESE CONSTRUCTION PROJECTS HAS
GONE UP. AND IN SOME CASES THE
PRICE HAS GONE UP SO MUCH THAT
THE LOCALS CAN'T MAKE THEIR
MATCH AND THEY'VE HAD TO ABANDON
THE PROJECT. WELL, THAT'S WHAT
WE'RE TRYING TO GET THE
INFORMATION FROM YOU. SO THIS
IS, AN OPPORTUNITY TO HEAR FROM
YOU DIRECTLY. SO I APPRECIATE
THAT. AND I'M HAPPY TO. WE CAN
DETAIL ALL THIS FOR YOU IF YOU'D
LIKE SOMETHING MORE, SPECIFIC
THAN WHAT MY RECOLLECTION IS.
THANK YOU. THANK YOU, TO OUR
STATE LIBRARIAN. I KNEW OUTSIDE
SOMEBODY ELSE, TO, TO OUR, FOR
OUR LIBRARIES, OUTSIDE OF THIS
FUNDING IN THE LAST FEW YEARS,
AND OUTSIDE OF DEVELOPMENT
IMPACT FEES THAT ARE PAID
LOCALLY, ARE THERE ANY REVENUE
SOURCES OF, OF OPPORTUNITY FOR,
TO FUND PROJECTS IN CALIFORNIA?
HOW ARE THE PROJECTS COMING
TOGETHER? YEAH. SO THERE'S, MOST
LIBRARIES ARE PARTS OF A CITY OR
COUNTY GOVERNMENT, THAT AGAIN,
I'M TELLING YOU WHAT YOU KNOW
ALREADY. THERE'S A HANDFUL OF
LIBRARIES THAT ARE SPECIAL
DISTRICTS. SACRAMENTO, FOR
EXAMPLE, IS ONE IN, WHERE WAS I
JUST THE OTHER DAY? ALTADENA IS
ONE AND SO SPECIAL DISTRICTS
HAVE A LITTLE MORE LATITUDE,
RIGHT? SO THEY CAN PASS A LOCAL
BOND MEASURE. AND THEN THERE'S A
GUARANTEED REVENUE STREAM,
RIGHT, THAT THEY CAN USE TO PAY
OFF THE, THE, THE BOND OVER
TIME. SO FOR THAT FINITE GROUP
OF LIBRARIES, THERE'S MAYBE 11
OR 12 IN CALIFORNIA. I MEAN,
THEY HAVE SOME, SOME A LITTLE
MORE FLEXIBILITY IN FINDING. YOU
KNOW, LOCAL BORROWING, RIGHT, TO
MAKE PROJECTS HAPPEN. CITIES AND
COUNTIES. RIGHT? I MEAN, AGAIN,
THIS IS SOMETHING YOU'RE
FAMILIAR WITH, RIGHT? IT'S A TWO
THIRDS MAJORITY TO PASS A BOND.
AND SOME CITIES LIKE RIVERSIDE,
A COUPLE OF YEARS AGO, THEY HAD
A $0.01 INCREASE ON THE BALLOT.
AND THEN SO THAT WAS I'M MAKING
IT UP. BUT THAT WAS LIKE, YOU
KNOW, ITEM A ON THE BALLOT AND
ITEM B WAS, OKAY, DO YOU WANT TO
SPEND THIS MONEY ON A NEW
DOWNTOWN LIBRARY IN RIVERSIDE?
AND SO THAT PASSED BY 65, LIKE,
YEAH, LET'S SPEND IT ON THE
LIBRARY. THE GENERAL SALES TAX
INCREASE. RIGHT. THAT'S ONLY A
51% VOTE. AND SO THEN RIVERSIDE
USED THAT TO CREATE THIS. IT'S
REALLY COOL. STATE OF THE ART
LIBRARY IN DOWNTOWN RIVERSIDE.
SO SOME LOCAL JURISDICTIONS CAN
DO THAT, BUT NOT THE ONES WHO.
RIGHT. NOT THE ONES WHO REALLY
BENEFIT THE MOST FROM LIBRARIES.
I'M CURIOUS, IN THE SPECIAL
DISTRICT, HAS THERE ANY
DISTRICTS BEEN FORMED MORE
RECENTLY THAT, YOU KNOW OF? I
DON'T, BUT NOT THANK YOU. NOT TO
MY KNOWLEDGE, ALTHOUGH WE JUST
GOT A SERIES OF QUESTIONS FROM
THE GAO, THE FED, THE FEDERAL
GOVERNMENT NOW IS THINKING ABOUT
USING FEDERAL LIBRARY MONEY TO
ALLOW IT TO BE USED ON CAPITAL
PROJECTS. AND SO THE GAO IS
DOING THE STUDY TO GET A SENSE
OF WHAT THE NEED IS OUT THERE.
AND SO WE JUST GOT A THING ABOUT
HOW MANY SPECIAL DISTRICTS ARE
THERE. SO WE'RE RESEARCHING
THAT. BUT TO I'VE BEEN HERE TEN
YEARS AND IN THIS JOB AND NO
ONE, NO NEW SPECIAL DISTRICTS
HAVE BEEN FORMED TO MY
KNOWLEDGE. OKAY. APPRECIATE THAT
. THANK YOU, WE WILL MOVE ON TO
ISSUE TWO IS THE WHICH IS ABOUT
THE PAST APPROPRIATIONS. WE HAVE
THE SAME PANELISTS, OBVIOUSLY.
AND SO WE ASK TO HAVE THE
LEGISLATIVE ANALYST OFFICE GO
FIRST AND PROVIDE, THEIR UPDATE
ON THE REPORT AND THEN FINANCE,
AND THEN OUR LIBRARIAN. THANK
YOU AGAIN, CHAIR ALVAREZ, MEMBER
FONG, IAN KLEIN WITH THE LAO. AS
YOU'VE HEARD IN PREVIOUS
HEARINGS, OUR OFFICE LOOKED
BEYOND THE GOVERNOR'S BUDGET TO
IDENTIFY ONE TIME FUNDING THAT
HAD BEEN PROVIDED BUT NOT YET
SPENT OR ENCUMBERED, BEGINNING
WITH THE 2122 BUDGET, AS SHOWN
IN FIGURE TWO OF YOUR AGENDA ON
PAGE EIGHT, THE STATE LIBRARY
WAS PROVIDED WITH ABOUT
200,000,000 IN 1 TIME GENERAL
FUND FOR VARIOUS INITIATIVES, OF
WHICH ABOUT 68 MILLION REMAINED
UNENCUMBERED AS OF JANUARY 1ST
OF THIS YEAR, THE VAST MAJORITY
OF THE REMAINING UNSPENT ONE
TIME FUNDING COMES FROM THE
STATEWIDE IMAGINATION LIBRARY
INITIATIVE, WHICH AS OF JANUARY
1ST HAD ABOUT $59 MILLION
UNALLOCATED, AND GIVEN THE
PROJECTED BUDGET DEFICIT, AND
CONSISTENT WITH THE
RECOMMENDATIONS THAT WE HAVE
MADE FOR OTHER AGENCIES, WE
RECOMMEND THE UNENCUMBERED AND
UNSPENT GENERAL FUND, DESIGNATED
FOR ONE TIME INITIATIVES ALSO BE
REVERTED. WITH THAT, I AM HAPPY
TO ANSWER ADDITIONAL QUESTIONS.
THANK YOU SO MUCH. YEAH, AGAIN,
I'M DEVIN MITCHELL WITH THE
DEPARTMENT OF FINANCE. NOTHING
TO ADD, ON ON THESE ITEMS IN THE
AGENDA BECAUSE THE GOVERNOR'S
BUDGET DOES NOT INCLUDE ANY
ADDITIONAL ACTION. BUT AGAIN,
HAPPY TO ANSWER QUESTIONS, THANK
YOU. THANK YOU. WELL, AS IAN
SAID FROM THE LEGISLATIVE
ANALYST'S OFFICE, THE BULK OF
THE REMAINING UNENCUMBERED
FUNDING AT THE LIBRARY IS IN THE
IMAGINATION LIBRARY. THIS IS A
PROGRAM WHERE ANY KID UNDER THE
AGE OF FIVE, ANY AGE UNDER FIVE,
CAN SIGN UP AND GET A FREE BOOK
EVERY MONTH. IT'S IN IT'S
PRESENT IN A NUMBER OF OTHER
STATES, ALL OF THEM SMALLER THAN
CALIFORNIA, AND THE PROGRAM IS
THERE'S 2.2 MILLION KIDS UNDER
THE AGE OF FIVE. AND SO WHAT
THIS FUNDING IS FOR IS THE STATE
TO PICK UP HALF THE TAB OF A
BOOK. BOOK IS ABOUT $3 A MONTH.
AND SO, THE PROGRAM IS RAMPING
UP SLOWLY. THERE'S. THERE'S
ELEMENTS OF HOW THE PROGRAM
WORKS THAT MAKE IT MORE COMPLEX.
AND IN A STATE THE SIZE OF
CALIFORNIA THAN, SAY, SOME OF
THE SMALLER STATES THAT IT'S
PRESENT IN. SO IF I WANT TO SIGN
UP MY DAUGHTER, WHICH I WOULDN'T
BECAUSE SHE'S 31, BUT IF I WERE
SIGNING UP, YOU KNOW, MY KID,
THERE HAS TO BE A LOCAL PARTNER
TO PICK UP HALF OF THE TAB FOR
THE BOOK PRESENT IN MY ZIP CODE.
AND IF THERE ISN'T, I JUST HAVE
TO WAIT. AND SO IN A COUNTY THE
SIZE OF LOS ANGELES, FOR
EXAMPLE, THERE'S 500,000 KIDS
RIGHT UNDER THE AGE OF FIVE, BUT
THERE'S A SCATTERING OF LOCAL
PARTNERS IN SOME CITIES, LIKE
LONG BEACH. I THINK GLENDALE IS
ANOTHER ONE. AND SO THAT'S BEEN,
I THINK, MORE CHALLENGING FOR,
LIKE I SAY, A STATE OF
CALIFORNIA'S SIZE AND DIVERSITY
THAN, SAY, SOME OF THE SMALLER
STATES WHERE THE PROGRAM IS
PRESENT IN. THANK YOU. SO IN
TERMS OF THE STATEWIDE
IMAGINATION LIBRARY, WE HEARD
THAT $59 MILLION IS
UNENCUMBERED. WHAT'S THE PLAN TO
SCALE IT UP? PER THE OPERATIONAL
REQUIREMENTS THAT ARE
ESTABLISHED BY THE IMAGINATION
LIBRARY, THE STATE OF CALIFORNIA
HAS TO CREATE A 500 1C3 TO
ADMINISTER THE PROGRAM. WE HAVE
THAT. THAT'S BEEN CREATED.
THEY'VE HIRED A TEAM OF OUTREACH
PEOPLE WHO ARE IN THE PROCESS OF
TRYING TO FIND. YOU KNOW, I HATE
LIKE, LOW HANGING FRUIT, BUT I
MEAN, THEY'RE TRYING TO FIND THE
SWEET SPOTS. WHERE CAN WE EXPAND
THE NUMBER OF ZIP CODES AS
RAPIDLY AS POSSIBLE WHERE THIS
PROGRAM CAN BE AVAILABLE? AND
THAT'S WHERE WE'RE AT NOW. I
MEAN, THERE'S BEEN SOME
MECHANICAL DIFFICULTIES IN
GETTING THE IRS TO PROVIDE THE
500 1C3 CERTIFICATION THAT'S
NEEDED. THERE'S BEEN, YOU KNOW,
A VARIETY OF KIND OF
ADMINISTRATIVE HURDLES THAT WE
DIDN'T EXPECT. BUT THAT'S THE
PLAN. SO TO YOUR POINT, IN L.A.
COUNTY IS L.A. CITY AND L.A.
COUNTY LIBRARIES INVOLVED YET
OR. NO, NOT YET. ARE THERE PLANS
TO GET THEM INVOLVED? WE'VE HAD
CONVERSATIONS WITH THEM. WHAT
TENDS TO WORK BETTER ARE
NONPUBLIC ENTITIES AS PARTNERS.
SO LIKE A NONPROFIT OR LIKE
UNITED WAY, FOR EXAMPLE, AND SO
THE CHAIR OF THE 500 AND 1C3 IS
THE IS JACKIE WONG, WHO HEADS
FIRST FIVE. AND SO SHE'S BEEN
WORKING TO TRY AND FIND THESE,
LARGER PARTNERSHIPS TO HELP MAKE
MORE INROADS IN LARGE POPULATION
COUNTIES LIKE LOS ANGELES IN 22
OF CALIFORNIA'S 58 COUNTIES.
ANYONE CAN CALL UP AND GET A
BOOK FOR THEIR KID, RIGHT? ALL
OF THE ZIP CODES ARE COVERED,
BUT IN LARGER COUNTIES, IT'S
SPOTTY. AND SO IN TERMS OF THE
PROGRAM, YOU MENTIONED, 2.2
MILLION KIDS CAN QUALIFY. HOW
MANY HAVE ACTUALLY SIGNED UP FOR
THE PROGRAM? I MEAN, HOW MANY
HAVE SIGNED UP NOW? YEAH, IT'S
APPROXIMATELY 70,000, 70,000 OUT
OF THE 2.2 MILLION THAT OUT OF
2.2 MILLION. YES THAT'S TRUE. SO
WHAT PERCENTAGE OF THAT. OH
LET'S SEE NOW I SHOULD HAVE
DEFINITELY SHOULD HAVE SENT
SOMEBODY ELSE. IT IS A SMALL
PERCENTAGE. ALL RIGHT. FOR MY
GUESS IS ABOUT 3. IS THAT
ACCURATE. IF YOU SAY SO. SO
GOING TO THE POINT ABOUT HOW, AS
WE HEARD, WE'RE IN A VERY
CHALLENGING BUDGET ENVIRONMENT.
HOW DO YOU WITH THE $59 MILLION.
AND YOU MENTIONED IRS OTHER
ISSUES. IS THIS SOMETHING THAT
YOU CAN SCALE UP OR IS THIS
SOMETHING THAT YOU FEEL THAT
THERE'S A LOT OF CHALLENGES
GOING FORWARD? IT CAN DEFINITELY
BE SCALED UP. THERE'S BEEN A
SLOWNESS. AND WHAT I THINK OF AS
GETTING OUT OF THE BLOCKS, I
MEAN, JUST ESTABLISHING A
NETWORK OF LOCAL PARTNERS THAT
MOVE THE BALL FORWARD, RIGHT? SO
IT'S FRUSTRATING FOR A PARENT,
RIGHT, TO CALL UP AND GET
EXCITED ABOUT GETTING THIS BOOK
AND THEN BE TOLD, HEY, YOU'RE ON
A WAITING LIST UNTIL WE FIND A
PARTNER IN YOUR ZIP CODE. SO
WE'VE TRIED TO STRUCTURE THE
GROWTH SO THAT IF YOU CALL UP
AND WANT TO SIGN UP YOUR KID,
FINE, YOU'LL GET A BOOK HERE IN
A MONTH AND SO IT IS SCALING UP.
IS IT SCALING UP? YOU KNOW, AS
RAPIDLY AS WE'D LIKE? I KNOW,
ARE THERE OPPORTUNITIES TO
PERHAPS PARTNER WITH SCHOOL
DISTRICTS OR SOMEWHERE ELSE?
THERE ARE SOME JURISDICTIONS,
THERE'S SOME COUNTIES THAT USE
LOCAL SCHOOL DISTRICTS AS A
PARTNER, THERE'S A NUMBER OF
COUNTIES WHERE FIRST FIVE IS THE
PARTNER. THERE'S SOME COUNTIES
WHERE THEY USE, YOU KNOW,
SERVICE CLUBS, RIGHT, LIKE
KIWANIS OR ROTARY. RIGHT SO IT'S
A IT'S A PROGRAM THAT WAS
STRUCTURED RIGHT. I MEAN, DOLLY
PARTON STARTED IT FOR THE TOWN
SHE GREW UP IN IN TENNESSEE. SO
I THINK I THINK THAT'S PROBABLY
THE ROUTE OF THIS, FOCUS THAT
THEY HAVE ON ENSURING THAT
THERE'S A NETWORK OF LOCAL
PARTNERS. BUT IN SOME CASES, YOU
KNOW, WE'VE THE LEGISLATION
ALLOWS FOR THE STATE TO PICK UP
THE ENTIRE COST OF A BOOK. WE'VE
HAD SOME EXISTING LOCAL PARTNERS
SAY, WELL, GOOD. WELL, LIKE LIKE
WE DON'T HAVE TWO NICKELS TO RUB
TOGETHER. WHY IS IT WHY DOESN'T
THE STATE PICK UP THE WHOLE TAB
AS OPPOSED TO Ó THE STATES
PICKING UP 50? OKAY, WE'RE GOING
TO DOUBLE OUR INVOLVEMENT IN THE
PROGRAM. SO I THINK IT'S A YOU
KNOW, IN PART IT'S A FUNCTION
MAYBE OF THE ECONOMIC
ENVIRONMENT TO SOME DEGREE A
FUNCTION OF THE ECONOMIC
ENVIRONMENT. WELL WELL, RIGHT.
SO STATE HAS A 30 WHATEVER IT
IS, STATE HAS A $40 BILLION
BUDGET HOLE. SO THAT THAT MEANS
LOCAL JURISDICTION ARE ALSO
HAVING BUDGETARY ISSUES. RIGHT.
WHICH WE KNOW BECAUSE LOCAL
LIBRARIES CONTACT US. SO WE'RE
SAYING OKAY TO SERVICE CLUBS TO
PEOPLE THAT ARE, YOU KNOW,
STRUGGLING TO GET BY OR HAVING
DIFFICULTY COPING WITH
INFLATION. RIGHT? SO THEIR
RESPONSE IS, CAN SOMEBODY ELSE
PICK UP THE TAB BECAUSE WE'RE
WE'RE STRUGGLING TO BE ABLE TO
DO IT OURSELVES. SO THAT'S WHAT
I MEAN BY THAT. WHEN WE LOOK AT
LARGE SYSTEMS LIKE LÀ PUBLIC
LIBRARY, THEY PUT ON A BOND A
FEW YEARS AGO TO CARVE OUT PART
OF THEIR BUDGET FOR LIBRARIES.
SO IT HAS BEEN A CONVERSATION
WITH, LIKE JOHN ZABEL FROM THE
LA CITY LIBRARY. I DON'T KNOW IF
IT'S ON HERE, SO I'M JUST TRYING
TO I SEE HOW WE CAN HELP. YOU
TALKED TO JOHN. I'VE TALKED TO
SKYE, PATRICK AND THEY'RE
THEY'RE WEIGHING WHETHER TO
PARTICIPATE IN IT AND HOW THAT
WORKS FOR THEM. OKAY. SO IT
SOUNDS LIKE THERE'S A LOT OF
CHALLENGES GOING FORWARD IF
YOU'RE NOT ABLE TO GET THE LARGE
SYSTEMS ON BOARD. WELL, I MEAN,
I'M TELLING YOU WHAT YOU KNOW
ALREADY. YOU'RE YOU'RE YOU'RE
FROM THAT AREA, RIGHT? SO I
MEAN, JOHN HAS 76 LIBRARIES THAT
HE HAS TO WORRY ABOUT. AND ALL
KINDS OF OTHER ISSUES. RIGHT?
SKYE HAS SHE'S THE SECOND
LARGEST LIBRARY JURISDICTION IN
THE COUNTRY, BEHIND NEW YORK
PUBLIC LIBRARY. SO IT'S LIKE
THEIR BUDGET IS TIGHT. WE'RE
ASKING THEM TO DO SOMETHING ELSE
. LIKE, DO THEY HAVE THE
CAPACITY TO DO IT? IT ISN'T THAT
THEY DON'T CARE FOR THE PROGRAM,
IT'S JUST THAT THEY HAVE THEIR
HANDS FULL DOING DELIVERING
FIRST CLASS SERVICE TO THE
PEOPLE IN THEIR JURISDICTION.
ALL RIGHT. IS THERE ANYTHING
ELSE THAT YOU GUYS LIKE TO ADD?
OKAY, THANK YOU SO MUCH. THANK
YOU FOR YOUR QUESTIONS. I
APPRECIATE YOUR ANSWERS. THANK
YOU. THANKS, MADAM. ALL RIGHT.
THANK YOU SO MUCH. PANELISTS,
WE'LL INVITE OUR THIRD PANEL UP.
PEACEI COLLEGE OF THE LAW, SAN
FRANCISCO. WELCOME.
ALL RIGHT. WELCOME, WE'RE ON
ISSUE NUMBER THREE, BUDGET
OVERVIEW FOR THE UC COLLEGE OF
THE LAW. WE HAVE, GABRIELA
CHAVEZ WITH THE DEPARTMENT OF
FINANCE, HE AND KLEIN WITH THE
LAO DAVID FAGIN, CHANCELLOR AND
DEAN OF UC COLLEGE OF THE LAW,
SAN FRANCISCO. AND DAVID SEWARD,
CHIEF FINANCIAL OFFICER, UC
COLLEGE OF THE LAW, SAN
FRANCISCO. WELCOME GOOD MORNING,
CHAIR AND MEMBERS. ASSEMBLY
MEMBER FONG GABRIELA CHAVEZ WITH
THE DEPARTMENT OF FINANCE. THE
COLLEGE OF THE LAW, SAN
FRANCISCO, IS AFFILIATED WITH
THE UNIVERSITY OF CALIFORNIA
SYSTEM, BUT IS GOVERNED BY ITS
INDEPENDENT BOARD OF DIRECTORS.
THE COLLEGE PRIMARILY ENROLLS
STUDENTS SEEKING A JURIS DOCTOR,
JD, BUT IT ALSO OFFERS THREE LAW
RELATED MASTER'S PROGRAMS,
INCLUDING A HEALTH JOINT HEALTH
POLICY AND LAW PROGRAM WITH UC
SAN FRANCISCO, THE COLLEGE OF
THE LAW, SAN FRANCISCO EXPECTS
TO ENROLL APPROXIMATELY 1053
RESIDENT STUDENTS IN 2024, 25,
988 WILL BE JD STUDENTS. THE
TOTAL RESIDENCE FEE FOR THE JD
PROGRAM IN 20 2425 IS 50,625.
THE GOVERNOR'S BUDGET INCLUDES
AN INCREASE OF 2.2 MILLION IN
ONGOING GENERAL FUND TO SUPPORT
OPERATING COSTS. THIS REPRESENTS
A 3% IN BASE AUGMENTATION. HAPPY
TO ANSWER ANY QUESTIONS YOU MAY
HAVE. OKAY. THANK YOU SO MUCH.
OUR NEXT PRESENTER MORNING
MEMBER FONG INCLINE WITH THE LAO
. AS MENTIONED BY DEPARTMENT OF
FINANCE, THE GOVERNOR'S BUDGET
INCLUDES A $2.2 MILLION GENERAL
FUND BASE AUGMENTATION THÀNH. WE
RECOMMEND THE LEGISLATURE REJECT
THIS PROPOSAL GIVEN THE FISCAL
CONDITION OF THE STATE. UNLIKE
UC OR CSU, WHICH HAD THEIR
PROPOSED BASE AUGMENTATIONS
DEFERRED, THE GOVERNOR
GOVERNOR'S BUDGET, IT WAS
EXPLAINED TO US THAT THE COLLEGE
OF THE LAW WAS PROVIDED WITH
THEIR BASE AUGMENTATION. AS THE
COLLEGE IS A SMALLER AGENCY WITH
LESS ACCESS TO BORROWING AND
SMALLER RESERVES. HOWEVER, EVEN
WITHOUT A BASE AUGMENTATION, THE
SCHOOL WOULD STILL BE ABLE TO
COVER SOME COMPONENTS OF THEIR
2425 SPENDING PLAN, AS SHOWN ON
PAGE 16 OF YOUR AGENDA. THEY
WOULD COVER THIS FROM REVENUE
GENERATED FROM OTHER SOURCES,
PRIMARILY TUITION REVENUE, WHICH
THE COLLEGE ANTICIPATES WILL
GENERATE 2.3 MILLION IN 2425.
I'LL PAUSE MY COMMENTS HERE, BUT
I'M HAPPY TO ANSWER ADDITIONAL
QUESTIONS. THANK YOU SO MUCH,
GOOD MORNING, ASSEMBLY MEMBER
FONG, I'M DAVID FAGAN,
CHANCELLOR AND DEAN OF UC LAW,
SAN FRANCISCO, FORMERLY UC
HASTINGS LAW, LET ME BEGIN BY
EXPRESSING MY DEEP GRATITUDE TO
THE CALIFORNIA LEGISLATURE AND
THE ADMINISTRATION FOR THE
STRONG SUPPORT WE'VE RECEIVED
OVER THE YEARS. I'VE BEEN A
FACULTY MEMBER AT UC LAW, SAN
FRANCISCO SINCE 1987, AND DEAN
SINCE 2016. THE STATE HAS BEEN
AN EXTRAORDINARY SUPPORTER,
INDEED PARTNER OF OUR
INSTITUTION THROUGHOUT MY TIME
AT THE SCHOOL, AND I HOPE THAT
THE STATE HAS APPRECIATED WHAT
WE'VE ACCOMPLISHED WITH THAT
SUPPORT FOR OVER 50 YEARS, WE
HAVE HAD A ROBUST ADMISSIONS
POLICY OF ENSURING ACCESS TO
UNDERREPRESENTED GROUPS,
INCLUDING THOSE WHO HAVE
OVERCOME SYSTEMIC DISADVANTAGES
AND THOSE THAT ARE FIRST
GENERATION COLLEGE STUDENTS THAT
WORK HAS LED HAS BEEN LED BY OUR
LEGAL EDUCATION OPPORTUNITY
PROGRAM, BEGUN IN 1973, WHICH
APPROXIMATELY 20% OF OUR CLASS
IS DEDICATED TO STUDENTS WHO
HAVE SUCCESSFULLY OVERCOME
SEVERE DISADVANTAGES. OVER THE
LAST FIVE YEARS, WE HAVE
EXPANDED THAT COMMITMENT AND OUR
FIRST GEN PROGRAM, AND NOW ABOUT
24% OF OUR CLASS WERE THE FIRST
IN THEIR FAMILIES TO GO TO
COLLEGE. IN ADDITION, SINCE I
BECAME DEAN IN 2016, WE HAVE
INITIATED AN EXPANSION OF OUR
FOOTPRINT IN THE HEART OF SAN
FRANCISCO, WHICH HAS PRIMARILY
INVOLVED THE BUILDING OF STUDENT
HOUSING. IN AUGUST OF 2023, WE
OPENED OUR NEW 14 STORY BUILDING
WITH 656 UNITS OF HOUSING THAT
HOUSING IS NOT JUST FOR UC LAW
STUDENTS, BUT IS OPEN TO
GRADUATE STUDENTS FROM BAY AREA
PROGRAMS, INCLUDING A THIRD
DEDICATED TO UCSF LEARNERS AND
ADDITIONAL UNITS OCCUPIED BY
GRADUATE STUDENTS FROM OTHER
INSTITUTIONS OF HIGHER EDUCATION
IN THE BAY AREA. IN SHORT, WE
ARE THANKFUL FOR THE STATE'S
BUDGET SUPPORT THROUGHOUT OUR
146 YEAR HISTORY AND FULLY
ENDORSE THE GOVERNOR'S BUDGET
RECOMMENDATION FOR THE COLLEGE
THIS YEAR. WE WILL UNDERSTAND
THE BUDGET CHALLENGES FACED BY
THE STATE OF CALIFORNIA AND
APPRECIATE THE LAWS
RECOMMENDATIONS. SEEKING AVENUES
TO REDUCE SPENDING, INCLUDING
IDENTIFYING THE GOVERNOR'S PLAN
FOR UC LAW THIS YEAR. HOWEVER,
THE LAW ITSELF EXPLAINS WHY IT'S
RECOMMENDATION ISN'T VIABLE FOR
UC LAW. QUOTE, THE GOVERNOR DOES
NOT PROPOSE TO DEFER THIS BASE
AUGMENTATION THÀNH AS HE DOES
WITH THE UC AND CSU BASED
AUGMENTATION, AS THE
ADMINISTRATION INDICATES. THAT
TOOK A DIFFERENT APPROACH FOR UC
LAW BECAUSE IT IS A SMALL AGENCY
WITH LESS ACCESS TO BORROWING,
UNQUOTE. I WANT TO NOTE THAT WE
DO NOT EXPECT DECLINING JD
ENROLLMENTS. OUR TARGET THIS
YEAR IS THE SAME AS IT WAS LAST
YEAR. THAT IS, WE EXPECT TO
BRING IN A CLASS OF
APPROXIMATELY 400 JD STUDENTS.
FINALLY, AS NOTED BY THE LAW,
OUR TUITION IS LOWER THAN HER
SISTER UC LAW SCHOOLS, WHICH OF
COURSE IS A POSITIVE FACTOR FOR
A SCHOOL THAT SEEKS TO SERVE THE
PUBLIC INTEREST. WE LIKELY WILL
NEED TO CONTINUE TO INCREASE
TUITION OVER TIME, BUT THE
PROVISION OF AN AFFORDABLE LEGAL
EDUCATION REPRESENTS A CORE
INSTITUTIONAL VALUE IN SUMMARY,
WE RUN A FIRST RATE LAW SCHOOL
LEGALLY IN TERMS OF STAFFING AND
COMPENSATION IN A WAY THAT
SPECIFICALLY ADVANCES THE
STATE'S INTEREST IN DIVERSIFYING
THE LEGAL PROFESSION. THÀNH. BUT
WE DEPEND ON STATE SUPPORT TO
ACHIEVE OUR PUBLIC MISSION.
THANK YOU FOR YOUR TIME, AND I
LOOK FORWARD TO ANSWERING ANY
QUESTIONS. I'M JOINED BY MY CFO,
DAVID SEWARD, HERE ON THE PANEL.
THANK YOU SO MUCH, MR. SEWARD.
DID YOU WANT TO MAKE ANY
COMMENTS, NO. I'M JUST HERE TO
SUPPORT THE DEAN, THANK YOU SO
MUCH, PANELISTS. A COUPLE QUICK
QUESTIONS. SO WHEN WE LOOK AT
PAGE 17, IT MENTIONS THE STUDENT
HOUSING, PROJECT. CAN YOU GIVE
US THE LATEST UPDATE ON THE
STUDENT HOUSING PROJECT,
CERTAINLY, THIS IS FOR THE
RENOVATION OF OUR 1929 HIGH RISE
BUILDING, WHICH WE WERE ABLE TO,
DECAMP THE RESIDENCE FROM UPON
THE OPENING OF THE NEW HOUSING
FACILITY AT 188. THE PROJECT IS
UNDERWAY. WE ARE FULLY
CONTRACTOR. DEMOLITION HAS
BEGUN, AS HAS, HAZARDOUS
MATERIAL ABATEMENT. SO WE ARE IN
PROCESS, IT'S GOING TO BE A TWO
PHASE PROJECT IN ORDER TO SORT
OF MANAGE THE SOME OF THE
PROJECT RISKS INVOLVED IN
RENOVATING AN OLD 1929 BUILDING.
SO WITH THE STATE SUPPORT, WE
ARE INVOLVED IN THAT FIRST
PHASE. IT WILL GENERATE AN
ADDITIONAL AT A MINIMUM 252
ADDITIONAL HOUSING UNITS. AND
WITH THE COMPLETION OF THAT
PROJECT IN 27, WE SHOULD BE
PUSHING ABOUT 1000 UNITS OF
HOUSING OR GRADUATE AND
PROFESSIONAL SCHOOL STUDENTS
FROM THROUGHOUT THE BAY AREA.
THANK YOU. AND IN TERMS OF GOING
FORWARD, WHETHER THE COLLEGE'S
ENROLLMENT PLANS OVER THE NEXT
SEVERAL YEARS. SO WE EXPECT IN
THE FORESEEABLE AND NEAR FUTURE
THAT WILL REMAIN STEADY AT
AROUND 400 PER CLASS. SO, TOTAL
AROUND 1100 OVER TIME. WE ARE
MONITORING THE SITUATION. THÀNH
ON THE BACKSIDE, OF COURSE,
EMPLOYMENT VERY OFTEN DRIVES
WHAT THE ENROLLMENT EXPECTATIONS
SHOULD BE, AND WITH THE ONSET OF
ARTIFICIAL INTELLIGENCE, YES, WE
NEED TO BE MINDFUL OF REGARDING
CHANGES IN THE POSSIBLE MARKET
FOR LAWYERS AS WELL AS WHERE
THEY MIGHT BE PLACED, WHETHER
THEY MIGHT END UP MORE IN
PRODUCT COUNSEL POSITIONS WITH
TECH COMPANIES AS OPPOSED TO
ASSOCIATES AND BIG LAW FIRMS, SO
WE'RE ALWAYS MONITORING THE
EMPLOYMENT SITUATION AS WE
CONTEMPLATE WHAT THE ENROLLMENT
SITUATION WOULD BE. GREAT. THANK
YOU SO MUCH. THANK YOU, MR.
CHAIR. THANK YOU. ONE QUESTION.
THANK YOU ALL FOR BEING HERE.
ONE QUESTION WE'VE REALLY
FOCUSED ON THIS COMMITTEE IS ON
ENROLLMENT OF CALIFORNIANS. I
DON'T KNOW IF YOU ALREADY
TOUCHED ON THAT ALREADY TODAY,
BUT CAN YOU GIVE US A SUMMARY OF
YOUR ENROLLMENT AND WHERE
STUDENTS COME FROM? I'M HAPPY TO
DO THAT. SURE OUR NONRESIDENT
ENROLLMENT IS ROUGHLY 10% OF THE
TOTAL STUDENT BODY. UNDER THE
EDUCATION CODE, THERE IS A
DIFFERENT STANDARD APPLIED TO
GRADUATE AND PROFESSIONAL SCHOOL
STUDENTS. SO OUR ENTERING CLASS
WILL TYPICALLY PULL IN 8 TO 10.
MANY OF THESE STUDENTS BECOME
RESIDENTS. AND AS THEY GO INTO
THEIR SECOND AND THIRD YEARS,
SURE. BUT WE DO NOT, RELY ON
NONRESIDENTS AS A SIGNIFICANT,
REVENUE SOURCE BECAUSE OF THAT
FACT. IS IT TUITION HIGHER,
THOUGH, FOR NONRESIDENTS, YES.
IT IS A $7,000 PREMIUM FOR THE
NONRESIDENTS, OF THE PROGRAM.
OKAY. THANK YOU. THANK YOU ALL.
APPRECIATE YOUR TIME, THANK YOU
FOR BEING HERE. WE'LL HOLD THE
ISSUE OPEN AND WE'LL MOVE ON TO
ISSUE NUMBER FOUR, WHICH IS CAL
KIDS UPDATE. WE HAVE, THE
EXECUTIVE DIRECTOR OF THE
SCHOLARSHARE INVESTMENT BOARD,
THE CHILDREN'S SAVINGS ACCOUNTS
INITIATIVES FROM THE BOARD, THE
LEGISLATIVE ANALYST OFFICE, AND
THE DEPARTMENT OF FINANCE. AND
WE'LL ASK THE, SCHOLARSHARE
INVESTMENT BOARD TO BEGIN, THIS
PANEL AND THEN MOVE ON TO THE
LAO AND FINANCE. WELCOME TO ALL
OF YOU. AND THANKS FOR BEING
HERE. PLEASE BEGIN. SO THANK
YOU, MR. CHAIR. AND MEMBERS OF
THE COMMITTEE. MY NAME IS JULIO
MARTINEZ, AND I'M THE EXECUTIVE
DIRECTOR OF THE SCHOLARSHARE
INVESTMENT BOARD, WHICH OVERSEES
THE STATE'S 5 TO 9 COLLEGE
SAVINGS PLAN AND ITS
INITIATIVES, SUCH AS CAL KIDS, I
AM JOINED BY MY COLLEAGUE NOAH
LIGHTMAN, WHO SERVES AS MANAGER
FOR THE CAL GETS PROGRAM AND IS
HERE TO HELP ANSWER ANY
QUESTIONS THAT YOU MAY HAVE. I
FIRST WANT TO THANK THE
SUBCOMMITTEE AND ITS STAFF FOR
HISTORICALLY BEING SUPPORTIVE OF
THE SCHOLARSHARE INVESTMENT
BOARD AND ITS EFFORTS TO HELP
FAMILIES ACROSS THE STATE
PREPARE FINANCIALLY AND SAVE FOR
THE COST OF HIGHER EDUCATION,
INCLUDING THE CREATION OF
CALKINS, WHICH IS THE LARGEST
STATEWIDE SAVINGS PROGRAM OF ITS
KIND IN THE NATION. I AM HERE
THIS MORNING TO PROVIDE YOU WITH
AN UPDATE ON THE CAL PROGRAM,
AND IS MY HOPE TO LEAVE YOU WITH
A GREATER UNDERSTANDING OF HOW
THE PROGRAM IS STRUCTURED, THE
POSITIVE IMPACT IT IS HAVING ON
FAMILIES, AND IDENTIFY SOME
OPPORTUNITIES WHERE THE
LEGISLATURE CAN CONTINUE TO BE
SUPPORTIVE TO ENSURE ITS
CONTINUED SUCCESS. I WOULD FIRST
LIKE TO PROVIDE SOME BACKGROUND
ON HOW THE CALKINS PROGRAM WAS
CREATED AND HOW IT HAS EVOLVED
OVER THE YEARS. IN 2019, THE CAL
KIDS PROGRAM WAS ORIGINALLY
ESTABLISHED AS A UNIVERSAL AT
BIRTH CHILDREN'S SAVINGS ACCOUNT
PROGRAM THAT THAT WOULD PROVIDE
A SMALL SEED AMOUNT FOR ALL
BABIES BORN IN THE STATE,
REGARDLESS OF INCOME, HOUSEHOLD
INCOME. HOWEVER, DUE TO THE
PANDEMIC, THE PROGRAM WAS PLACED
ON HOLD. UNFORTUNATELY, THEN IN
2021, WHEN THE STATE HAD A
BUDGETARY SURPLUS, THE
LEGISLATURE AND THE
ADMINISTRATION REVISED BOTH THE
SCOPE AND SCALE OF THE CAL
PROGRAM TO INCREASE THE SEED
AMOUNT OF NEWBORN CHILDREN AND
INCLUDE LOW INCOME AND OTHER
VULNERABLE PUBLIC SCHOOL
STUDENTS. THEREFORE, THE PROGRAM
NOW HAS TWO COMPONENTS WITH SOME
NUANCE. FIRST, THE ORIGINAL
UNIVERSAL APP BIRTH COMPONENT
THAT AUTOMATICALLY AUTOMATICALLY
CREATES ACCOUNTS AND FUNDS
ACCOUNTS FOR ALL BABIES BORN IN
THE STATE, REGARDLESS OF
HOUSEHOLD INCOME, ON OR AFTER
JULY 1ST OF 2022. HOWEVER, THOSE
BABIES BORN IN THE INITIAL YEAR
OF THE PROGRAM FROM JULY 1ST OF
2022 THROUGH 2023 OF JUNE 30TH
RECEIVE A SEED AMOUNT OF $25.
THOSE BABIES BORN AFTER JULY 1ST
OF 2023 NOW RECEIVE A SEED
AMOUNT THAT IS HIGHER AT $100.
ALL BABIES, REGARDLESS, ALL
BABIES, RECEIVE THE SUPPLEMENTAL
INCENTIVES, WHICH IS $25 FOR
HAVING THEIR PARENTS LOG IN AND
CLAIM THE ACCOUNT, AND $50 FOR
OPENING OR, A SCHOLARSHIP 59 OR
LINKING AN EXISTING ONE AND
LINKING IT TO THEIR CALKAS
ACCOUNT. NOW LET'S MOVE ON TO
THE SECOND COMPONENT, WHICH
AUTOMATICALLY ENROLLS LOW INCOME
PUBLIC SCHOOL STUDENTS IN THE
FIRST THROUGH 12TH GRADE,
ENROLLED DURING THE 2122
ACADEMIC YEAR, AND IT AWARDS
THEM, AWARDS THEM WITH A MINIMUM
OF $500. STUDENTS WHO ARE
IDENTIFIED AS HOMELESS AND
FOSTER YOUTH GET AN ADDITIONAL
$500 FOR A MAXIMUM AWARD OF
$1,500. THEN IN SUBSEQUENT
YEARS, AS THE KIDS GET OLDER IN
SCHOOL, WE ACTUALLY CREATE
ACCOUNTS FOR THE INCOMING FIRST
GRADERS WITH THE SAME AMOUNTS
BETWEEN 500 AND $1500. SO THIS
PROGRAM CONTINUES TO GROW EVERY
YEAR WITH THE INCOMING, NEW
FIRST GRADERS. THIS CONTEXT IS
IMPORTANT BECAUSE THE CALCHESS
PROGRAM IS UNIQUELY DIFFERENT
COMPARED TO OTHER CSA PROGRAMS
ACROSS THE COUNTRY. CSA PROGRAMS
TYPICALLY HAVE A STARTING POINT
FOR CHILDREN, SUCH AS BIRTH,
KINDERGARTEN, AND FIRST GRADE,
AND THIS ALLOWS FOR THE GRADUAL
AND STEADY GROWTH AND MATURATION
OF A PROGRAM YEAR AFTER YEAR.
CALC IS, ON THE OTHER HAND, WAS
LAUNCHED AT THE CSA PROGRAM THAT
SERVES A VERY WIDE DEMOGRAPHIC
THAT INCLUDES ALL NEWBORNS. LIKE
I MENTIONED, REGARDLESS OF
HOUSEHOLD INCOME AND LOW INCOME
PUBLIC SCHOOL STUDENTS ENROLLED
IN FIRST THROUGH 12TH GRADE,
SOME OF WHICH HAD ALREADY
GRADUATED AND ENROLLED IN OUR
COLLEGES AND TRAINING PROGRAMS
BY THE TIME IT LAUNCHED. DESPITE
THE NUANCED DESIGN OF THIS
INNOVATIVE AND STILL RELATIVELY
NEW PROGRAM, I AM PROUD TO SHARE
WITH THE SUBCOMMITTEE SOME OF
THE PROGRAM'S ACHIEVEMENTS TO
DATE. AS OF MARCH 31ST, CALKINS
HAS HAD OVER 300,000 FAMILIES.
CLAIM THEIR CALKINS ACCOUNTS.
NEARLY 25,000 STUDENTS HAVE
REDEEMED AND USED THEIR FUNDS
FOR HIGHER EDUCATION EXPENSES.
NEARLY 30,000 PARTICIPANT
FAMILIES BEGAN SAVING ON THEIR
OWN THROUGH THE STATE'S 5 TO 9
COLLEGE SAVINGS PLAN. OF THOSE
FAMILIES OR FAMILIES OF PARENTS
OF NEWBORNS HAVE SAVED AN
AVERAGE OF $3,200 TO DATE. FOR
THOSE PARENTS OF STUDENTS, THE
AVERAGE AMOUNT SAVED IS AROUND
$2,500. THESE FIGURES ARE THEIR
DIRECT ARE A DIRECT RESULT OF
TWO MAIN FACTORS. THE FIRST IS
THE MARKETING SUPPORT THAT CIB
HAS RECEIVED FROM THE
SUBCOMMITTEE AND THE
ADMINISTRATION, WHICH HAS
ALLOWED US TO MAIL NOTIFICATIONS
TO EACH PARTICIPANT AND THEIR
FAMILIES, IT ALSO HAS ALLOWED US
TO WORK WITH OUR MEDIA VENDOR TO
ADVERTISE A PROGRAM USING
DIGITAL AD DISPLAYS, SOCIAL
MEDIA AND OUT-OF-HOME
ADVERTISEMENTS. THE SECOND ARE
THE PARTNERSHIPS THAT THE CIB
TEAM HAS DEVELOPED WITH KEY
STAKEHOLDER GROUPS ACROSS THE
STATE IN ALL 58 COUNTIES, AND
THEY INCLUDE SCHOOL
SUPERINTENDENTS, PRINCIPALS,
COUNSELORS, PUBLIC INFORMATION
OFFICERS, STATEWIDE
ASSOCIATIONS, HOSPITALS, THE
HIGHER EDUCATION SEGMENTS,
COMMUNITY BASED ORGANIZATIONS,
AND ELECTED OFFICIALS, TO NAME A
FEW. WHILE THE OVERALL
PARTICIPATION RATE TO DATE FOR
NEWBORNS AND SCHOOL AGED
CHILDREN CAN UNDERSTANDABLY BE
VIEWED AS LOW, I THINK IT IS
IMPORTANT TO REMEMBER THE
FOLLOWING. THE PROGRAM IS STILL
RELATIVELY NEW EACH YEAR. THE
PROGRAM IS ADDING APPROXIMATELY
700,000 NEW CHILDREN, AND IT
TAKES TIME TO BUILD TRUST AMONG
FAMILIES WHO ARE GENERALLY VERY
SKEPTICAL ABOUT PROGRAMS THAT
OFFER FREE MONEY. LASTLY, OVER
THE PAST 3 OR 4 MONTHS, CIB HAS
BEEN ABLE TO MAKE SOME
MODIFICATIONS MODIFICATIONS TO
THE WAY IT APPROACHES ITS
MARKETING AND OUTREACH
STRATEGIES AND PRACTICES THAT
HAVE PROVEN TO BE BOTH
SUCCESSFUL AND PROMISING FOR
ACTIVITIES GOING FORWARD. NUMBER
ONE, WHEN THE PROGRAM FIRST
LAUNCHED, MARKETING WAS BROADLY
DESIGNED TO TARGET EITHER
NEWBORNS, SCHOOL AGED CHILDREN,
OR BOTH. MORE RECENTLY, CIB HAS
DEVELOPED MULTIPLE UNIQUE
STRATEGIES FOR SMALLER SUBGROUPS
OR PARTICIPANTS, WHICH INCLUDE
NEWBORNS, STUDENTS, AND FIRST
THROUGH 12TH GRADE HIGH
SCHOOLERS OR HIGH SCHOOL SENIORS
RATHER STUDENTS PURSUING. AND
LASTLY NUMBER FOR THE PURSUING
THOSE STUDENTS PURSUING
POST-SECONDARY EDUCATION, OR
PERHAPS THOSE THAT ARE
CONTEMPLATING IT. FOR EXAMPLE,
THIS SPRING IN APRIL, CIB
LAUNCHED ITS FIRST MARKETING AND
OUTREACH CAMPAIGN, DIRECTED ONLY
AT HIGH SCHOOL SENIORS IN THE
CLASS OF 2024. THIS CAMPAIGN
CONSISTS OF MAIL TO ALLIE'S
COLLEGE, ACCESS ORGANIZATIONS,
DIRECT MAIL TO THE SENIORS
THEMSELVES, DIGITAL AND SOCIAL
MEDIA, AND EMAIL. IN JUST OVER A
FIVE WEEK PERIOD, CIB HAS BEEN
ABLE TO INCREASE THE NUMBER OF
SENIORS THAT HAVE CLAIMED
ACCOUNTS FROM 26,000 TO 45,000,
WHICH IS A 74% INCREASE. YET WE
STILL ARE ONLY HALFWAY, MAYBE A
THIRD OF THE WAY THROUGH THIS
CAMPAIGN, WHICH SHOULD RUN
BETWEEN THROUGH JUNE AND
POSSIBLY EVEN JULY. WITH RESPECT
TO NEWBORNS AND THEIR FAMILIES.
CIB HAS RECENTLY PARTNERED WITH
THE RECORDER, REGISTRAR OFFICES
FOR THE COUNTIES OF LOS ANGELES,
RIVERSIDE, FRESNO AND SONOMA
COUNTY SO THAT THE MARKETING
MATERIALS ARE ATTACHED TO THE
BABY BIRTH CERTIFICATES. THIS
HAS CONTRIBUTED TO A SHARP
INCREASE IN CLAIMS DURING THE
FIRST QUARTER OF 2024. CAL KIDS
HAS HAD OVER 21,000 CLAIMS FOR
NEWBORNS. THIS IS A GREATER
NUMBER THAN THE TOTAL OF NEWBORN
CLAIMS WE HAD IN THE PREVIOUS
SIX QUARTERS. THERE ARE ALSO
OTHER FACTORS THAT CONTRIBUTED
TO THIS GROWTH, BUT I THINK IS
THE POINT IS WE'RE LEARNING AND
THINGS ARE IMPROVING IN THE
FALL, WE PLAN TO APPLY SIMILAR
TACTICS AND STRATEGIES TO THOSE
STUDENTS IN POST-SECONDARY
EDUCATION, BECAUSE BEGINNING
THIS FALL, WE WILL HAVE NOW
THREE COHORTS OF STUDENTS
ENROLLED IN OUR COLLEGES OR
PERHAPS TRAINING PROGRAMS,
APPRENTICESHIP PROGRAMS
STATEWIDE THAT COULD USE THESE
MONIES. YET I THINK WE JUST NEED
TO BUILD STRONGER RELATIONSHIPS
WITH THOSE AGENCIES TO BUY IN
FROM PARTNERS IS REALLY, REALLY
MATTERS. WHILE CIB MAILS
INFORMATION TO ALL OF OUR
POTENTIAL PARTNERS, INCLUDING
ALL SCHOOL DISTRICTS AND
INDIVIDUAL LEAS IN ALL 58
COUNTIES, IT IS ONE ON ONE
MEETINGS AND POWERPOINT
PRESENTATIONS WITH
SUPERINTENDENTS, PRINCIPALS,
COUNSELORS AND PUBLIC
INFORMATION OFFICERS THAT REALLY
INSPIRE KEY OFFICIALS TO GO
BEYOND SIMPLY PUTTING A FLIER IN
A KID'S BACKPACK. SOME OF THESE
SCHOOL DISTRICTS ARE ACTUALLY
HAVING FAIRS WHERE THEY BRING IN
THEIR THEIR, THEIR CHROMEBOOKS,
AND THEY'RE ACTUALLY HELPING
THEM WALK THROUGH THE PROCESS
AND NOT SIMPLY SENDING AN EMAIL
OUT TO PARENTS. THEREFORE, IT'S
REALLY IMPORTANT TO NOTE THAT
WHILE THE PARTICIPATION RATE FOR
STUDENTS IS 8% STATEWIDE, THERE
ARE COUNTY OFFICES OF EDUCATION
IN DISTRICTS AND SCHOOLS THAT
HAVE PARTICIPATION RATES WELL
ABOVE 20. THREE THERE IS GREATER
URGENCY TO CLAIM AN ACCOUNT AS
THE CHILDREN GET OLDER AND
CLOSER TO GRADUATION FROM HIGH
SCHOOL. I THINK THIS IS LOGICAL
AND AS I TOUCHED ON EARLIER, CIB
IS DEVELOPING TARGETED
STRATEGIES AND CAMPAIGNS
DIRECTED AT OLDER STUDENTS,
ESPECIALLY SENIORS IN HIGH
SCHOOL AND THOSE ALREADY
PURSUING THEIR POST-SECONDARY
EDUCATION. HOWEVER, IT'S
IMPORTANT TO REMEMBER THAT
FAMILIES WITH YOUNGER CHILDREN
OFTEN DELAY PARTICIPATING
PARTICIPATION IN PROGRAMS LIKE
THESE BECAUSE THEY'RE NOT READY
TO START PLANNING FINANCIALLY
FOR THE COST OF THEIR CHILDREN'S
HIGHER EDUCATION. THEY HAVE
UNTIL AGE 26 TO CLAIM THESE
ACCOUNTS, SO THERE REALLY IS NO
SENSE OF URGENCY FOR THE FOR THE
PARENTS THAT ARE, THAT HAVE
YOUNGER CHILDREN, ESPECIALLY IF
THOSE PARENTS, ARE LOW INCOME
THE MOST. I THINK WHAT MATTERS
MOST, HOWEVER, IS THAT THE CHILD
AND THEIR PARENTS KNOW THAT THEY
HAVE A COLLEGE SAVINGS ACCOUNT
ALREADY CREATED FOR THEM. AND
THE LAST POINT, I THINK I KNOW
I'VE BEEN TALKING FOR A VERY
LONG TIME, AND I APPRECIATE YOUR
PATIENCE IS FOR IS DATA SHARING
OKAY. SO PARTNERS ARE
CONTINUALLY COMING TO CIB ASKING
FOR DATA BECAUSE ESPECIALLY ON
THE STUDENT, SIDE, BECAUSE IT
ONLY IT'S ONLY IT ONLY APPLIES
TO LOW INCOME STUDENTS AND THEY
DON'T REALLY KNOW WHO THEY ARE
RIGHT, ON THEIR COLLEGE CAMPUSES
BECAUSE WE CAN'T GIVE THEM
SPECIFIC INFORMATION ABOUT THESE
STUDENTS. SO WE HAVE NOW ENTERED
INTO A DATA USAGE AGREEMENT WITH
THE RIVERSIDE COUNTY OFFICE OF
EDUCATION, WHICH NØ WILL
PROBABLY SPEAK TO YOU IN A
SECOND, THANKS TO THE
SUBCOMMITTEE THAT AUTHORIZED
THAT PILOT PROJECT. AND WE LOOK
FORWARD TO SEEING WHAT KIND OF
POSITIVE OUTCOMES COME OUT OF
IT, AND ITS IMPLICATIONS FOR THE
POSSIBLE EXPANSION TO OTHER LA
STATEWIDE. AS SUCH, WE LOOK
FORWARD TO CONTINUING TO MAKE
IMPROVEMENTS TO THIS PROGRAM TO
ENSURE THAT MANY, AS MANY
ELIGIBLE FAMILIES CLAIM THEIR
ACCOUNTS AND CONSIDER SAVING ON
THEIR OWN. WE ALSO LOOK FORWARD
TO CONTINUING TO WORK WITH YOUR
OFFICES TO PROMOTE THE PROGRAM,
WHICH CAN BE DONE USING OUR
DIGITAL MARKETING ASSETS AND
HELPING FACILITATE PRESENTATIONS
TO YOUR CONSTITUENTS AND
COMMUNITY PARTNERS. WITH THAT,
WE'D BE HAPPY TO ANSWER ANY
QUESTIONS THAT YOU HAVE. THANK
YOU. THANK YOU, WE'LL GO TO THE
LAO THEN. GOOD MORNING, CHAIR
ALVAREZ AND ASSEMBLY MEMBER FONG
LISA KING WITH THE LAO. I'LL
FOCUS MY COMMENTS ON A COUPLE OF
TECHNICAL ITEMS, STARTING FIRST
WITH A BRIEF UPDATE ON CASELOAD
ADJUSTMENTS IN THE CAL KIDS
PROGRAM AND THEN TURNING TO
UNSPENT FUNDS REMAINING IN
SCHOLARSHARE BUDGET REGARDING
CASELOAD ADJUSTMENTS. AS YOU MAY
KNOW, THE STATE BUDGETS FOR THE
CAL KIDS PROGRAM, BASED ON
PROJECTIONS OF THE NUMBER OF
NEWBORNS AND FIRST GRADERS IN
THE PAST TWO YEARS. THE ACTUAL
NUMBER OF NEWBORNS AND FIRST
GRADERS HAS COME IN SOMEWHAT
LOWER THAN PROJECTED, LEADING
CAL KIDS COSTS TO COME IN LOWER
THAN BUDGETED BY A COMBINED 120
MILLION ACROSS THOSE TWO YEARS.
AS PART OF THE NORMAL BUDGET
PROCESS, THE ADMINISTRATION HAS
REFLECTED THE SAVINGS FROM THESE
CASELOAD ADJUSTMENTS IN THE
GOVERNOR'S BUDGET. SEPARATE FROM
THESE CASELOAD ADJUSTMENTS THAT
ARE ALREADY REFLECTED. WE'VE
BEEN WORKING WITH SCHOLAR
SHARED. IDENTIFY ANY UNSPENT
FUNDS THAT REMAIN AVAILABLE IN
THEIR BUDGET AND COULD
POTENTIALLY BE REVERTED TO
ADDRESS THE STATE DEFICIT. IN
TOTAL, WE'VE IDENTIFIED 26.5
MILLION IN THESE UNSPENT FUNDS,
WITH THAT AMOUNT COMING FROM TWO
PREVIOUS ALLOCATIONS. FIRST,
THERE WAS A ONE TIME ALLOCATION
PROVIDED IN 20 1920 OF 25
MILLION TO LAUNCH THE CAL KIDS
PROGRAM FOR NEWBORNS. THIS ONE
TIME ALLOCATION HAS LARGELY NOT
BEEN NEEDED BECAUSE THE STATE
HAS SINCE BEGUN PROVIDING
ONGOING FUNDING FOR THAT SAME
PURPOSE, SO WE RECOMMEND
REVERTING THE REMAINING 17
MILLION FROM THAT ALLOCATION.
THE SECOND PLACE WHERE THERE ARE
UNSPENT FUNDS IS AN ONGOING
ALLOCATION THAT WAS PROVIDED IN
20 2223 FOR A FINANCIAL LITERACY
OUTREACH INITIATIVE FOR CAL KIDS
PARTICIPANTS. SCHOLARSHARE IS
CURRENTLY IN THE PROCESS OF
DEVELOPING THIS INITIATIVE, AND
SO THE FIRST TWO YEARS OF
FUNDING PROVIDED HAS LARGELY NOT
BEEN SPENT. WE RECOMMEND
REVERTING A COMBINED 9.5 MILLION
FROM THOSE FIRST TWO YEARS FOR
THIS INITIATIVE. UNDER THIS
APPROACH, YOU COULD STILL RETAIN
THE ONGOING FUNDING FOR THIS
INITIATIVE IN 2024, 25 AND
ONWARD IN ORDER TO SUPPORT IT
ONCE IT'S UP AND RUNNING. THANK
YOU. I'M HAPPY TO TAKE ANY
QUESTIONS. THANK YOU. THE
DEPARTMENT OF FINANCE. GOOD
MORNING, JESSICA DIKEMAN,
DEPARTMENT OF FINANCE I DON'T
HAVE A FORMAL PRESENTATION
PREPARED, BUT I'M AVAILABLE FOR
QUESTIONS AT THE APPROPRIATE
TIME. THANK YOU, I'LL START. I
ACTUALLY HAVE A SERIES OF
QUESTIONS. FIRST, I'D SAY I AM A
FAN OF SCHOLARSHARE. I HAVE TWO
CHILDREN, AND I STARTED MY 529
ACCOUNTS THERE OVER TEN YEARS
AGO. I APPRECIATE THE PLATFORM.
IT'S EASY TO USE AND VERY, VERY
GOOD. I WANT TO ASK ABOUT THE
PARTICIPATION AND ACTUALLY WHAT
I'M GOING TO ASK OF, OF MR.
MARTINEZ IS IF YOU CAN SUBMIT
YOUR TESTIMONY THAT YOU PROVIDED
IN WRITING BECAUSE YOU GAVE A
LOT OF FIGURES THAT I COULD NOT
WRITE THEM ALL DOWN. SO I'D
APPRECIATE ANY, YOU CAN PROVIDE
IN WRITING. I WAS TRYING TO KEEP
TRACK OF THE DIFFERENT NUMBERS,
BUT IT WAS THERE WERE THERE WERE
A LOT OF NUMBERS. SO I GUESS THE
FIRST QUESTION WOULD BE, IS THE
$1.8 BILLION PROVIDED IN 21, 22
WENT TO, LOW INCOME STUDENTS OF
ALL GRADE LEVELS, FOR THAT YEAR.
HOW MUCH OF THAT ACTUALLY HOW
MANY, HOW MANY ACCOUNTS WERE
ACTUALLY CREATED AS A RESULT OF
THAT? MR. CHAIR, IF YOU DON'T
MIND, I'LL HAVE ASKED NOAH
LIGHTMAN TO ANSWER THAT QUESTION
FOR YOU. PLEASE. YEAH. THANK
YOU, MR. CHAIR. ABOUT 3.4
MILLION ACCOUNTS WERE CREATED
FOR A VERY LARGE COHORT OF,
FIRST THROUGH 12TH GRADERS FROM
THE 2122 ACADEMIC YEAR. SO AT
3.4 MILLION, YOU SAID, AND IT'S
AT $500 PER STUDENT. SO ABOUT A
$1.7 MILLION COST. AM I DOING
THE MATH CORRECTLY? WELL, THE
ACTUAL COST IS A LITTLE BIT
HIGHER BECAUSE SOME OF THE
STUDENTS, IF THE FOSTER YOUTH,
THEY GET AN ADDITIONAL INCENTIVE
OF $500. IF THEY'RE HOMELESS
STUDENTS, THEY GET AN ADDITIONAL
, DEPOSIT OF $500. SO THERE ARE
SOME CHILDREN, A SMALL SUBSET OF
ROUGHLY 2 TO 3000 CHILDREN
ACROSS THE STATE THAT QUALIFY
FOR THE MAXIMUM AMOUNT OF 1500.
OKAY. SO OUT OF THE 3.4 MILLION,
IT SOUNDS LIKE SEVERAL THOUSAND
ACTUALLY RECEIVE THE 1000 OR
$1500 AS OPPOSED TO JUST THE
500. SO I GUESS MY QUESTION IS,
AND DEFINITELY WOULD APPRECIATE
THE FIGURES OF ALL THOSE
ACCOUNTS AND WHO THEY WERE
CREATED, OBVIOUSLY NOT BY NAME,
BUT, DISAGGREGATED DATA, HOW
MUCH OF THE 1.8 BILLION WAS
ACTUALLY HAS ACTUALLY BEEN
UTILIZED? GREAT QUESTION.
BECAUSE THESE THESE ACCOUNTS ARE
AUTOMATICALLY CREATED AND FUNDED
THE MOMENT WE GET THE DATA FROM
BOTH. WHEN THIS CASE, WE'RE
TALKING ABOUT THE LOW INCOME
PUBLIC SCHOOL STUDENTS, ONCE WE
GET THE DATA FROM THE
DEPARTMENT, STATE, DEPARTMENT OF
EDUCATION, WE USE THAT DATA TO
AUTOMATICALLY CREATE THE
ACCOUNTS AND FUND THE ACCOUNTS.
SO ALL OF THE CHILDREN WHOM
WE'VE BEEN NOTIFIED OF HAVE AN
ACCOUNT IN THEIR NAME. THAT'S
3.4 MILLION STUDENTS. THAT IS
CORRECT. AND HOW MANY ELIGIBLE
STUDENTS DO WE HAVE IN
CALIFORNIA IN THAT ORIGINAL
COHORT OF STUDENTS, IN 21, 22
YEAR, 2122, WE HAD ROUGHLY 3.4
MILLION CHILDREN, AND IT WAS
ESTIMATED TO BE ROUGHLY 3.6
INITIALLY TO MISS KING'S POINT.
INITIALLY IT WAS ESTIMATED TO BE
MUCH HIGHER, BUT IT ENDED UP
BEING MUCH LOWER. SO I
UNDERSTAND THAT ACCOUNTS WERE
CREATED FOR CHILDREN, BUT THEY
STILL HAVE TO TAKE A STEP AND
ACTION IN ORDER FOR THAT ACCOUNT
TO BE THEIR ACCOUNT. IT'S NOT
JUST IT'S SITTING THERE RIGHT
NOW. IT'S WAITING FOR THEM TO
CLAIM IT, BUT IT HASN'T BEEN
UNCLAIMED. MAYBE MY QUESTION
WOULD BE HOW MUCH OF IT HAS NOT
BEEN CLAIMED? OUT OF ALL THE
ACCOUNTS CREATED? OKAY, SO AT
THE MOMENT, YOU'RE ASKING ALL
AROUND FOR BOTH NEWBORN AND
SCHOOL AGE OR JUST SCHOOL AGE
CHILDREN. THIS IS WHY I'D LIKE
TO SEE YOUR REPORT IN WRITING
FIGURES. BECAUSE I IT'S HARD TO
KEEP TRACK. SO TELL ME, LET'S
START WITH KATE. LET'S START
WITH ONE SO YOU CAN HAVE IT IN
YOUR HANDS. SURE. WE'LL TAKE
WE'LL TAKE A COPY THE CHAIR AND
GIVE HIM THIS PAPER FOR THE
MEMBERS, PLEASE. AND FOR STAFF.
DO YOU ONLY HAVE ONE OF THOSE?
THERE YOU GO. AND I'LL SHARE.
I'LL SHARE THEM. OH, SO IS THIS.
IS THIS DIFFERENT THAN WHAT'S ON
PAGE 20? IT SHOULD BE THE SAME.
OKAY, SO THEN WE HAVE THAT
BEFORE US. SO YOU. SO HERE'S A
BREAKDOWN OF THE 3.6 MILLION
STUDENTS ENROLLED IN GRADES.
FIRST TO 12. SINCE THAT'S WHO
THE ACCOUNTS WERE OPENED OR
CREATED FOR, 7.4 OF THOSE HAVE
ACTUALLY BEEN REGISTERED OR I
CALLED IT CLAIM, BUT REGISTERED.
IS THAT CORRECT? THAT IS
CORRECT. BUT I WOULD LIKE TO
NOTE THAT THE 3.6 MILLION
ACCOUNTS THAT ARE NOTED HERE
ALSO INCLUDE THE INCOMING COHORT
OF STUDENTS THAT CAME IN IN THE
2223 COHORT. SO INITIALLY WE HAD
ROUGHLY 3.4 MILLION IN THE
FIRST, IF IT CAN GIVE A
BACKGROUND IN THE FIRST YEAR OF
THE PROGRAM, THE PROGRAM TOOK A
SNAPSHOT OF ALL FIRST TO 12TH
GRADERS, ALL IN ONE. THEY CAME
IN ONE CHUNK. SO THAT WAS 3.4
MILLION CHILDREN. NOW, THE
PROGRAM IS NOT THAT. IT'S NOT
IT'S STATIC. IT'S NOT DYNAMIC.
MEANING THAT THE KIDS WILL THE
NUMBER OF KIDS WILL NOT CHANGE
UNLESS THEY OPT OUT OF THE
PROGRAM. BUT WE CAN'T ADD
CHILDREN TO THE PROGRAM. RIGHT.
SO THE ONLY ONES BEING ADDED ARE
THE NEWBORNS OR THE FIRST
GRADERS. CORRECT. SO EACH YEAR
THAT THE PROGRAM GETS OLDER. SO
THE FIRST GRADERS MOVE ON TO
SECOND GRADE, WE NOW INCLUDE
ROUGHLY 270,000 INCOMING FIRST
GRADERS TO THE PROGRAM, ALONG
WITH THE ROUGHLY 450,000 OR LESS
NEWBORNS EVERY YEAR. LET ME ASK
ABOUT HAWAII. AND MAYBE IF THE
EPA AND FINANCE WANT TO JUMP IN
ON THIS, YOU KNOW, IN THE K
THROUGH 12 DISCUSSIONS WE'VE
HAD, WE'RE HAVING DIFFICULTY
IDENTIFYING WHO ARE FREE AND
REDUCED. I ASSUMING THIS IS TIED
TO SIMILAR INCOME LEVELS AS FREE
AND REDUCED, WE'RE HAVING
DIFFICULTIES IN ACCOUNTING FOR
THAT. AND THEREFORE THE COST OF
OUR, MEALS PROGRAM HAS BEEN
INCREASING FROM THE STATE
BECAUSE THE FEDERAL GOVERNMENT,
HAS NOT PARTICIPATING. IF WE DO
NOT HAVE THE DATA TO PROVE THAT
WE HAVE THOSE STUDENTS. I'M
TRYING TO UNDERSTAND WHERE WE'RE
GETTING THE 3.4 MILLION FIGURE
FROM THE 200. ADDITIONALLY,
EVERY SINGLE YEAR, HOW ARE WE?
HOW ARE WE ACCOUNT? WHOSE DATA
ARE WE USING TO ACCOUNT FOR
THAT? BECAUSE WE'RE NOT
COLLECTING THAT LEVEL OF
SPECIFICITY WITH ALL OF OUR
STUDENTS IN THE STATE OF
CALIFORNIA. SO HOW DO WE KNOW?
HOW ARE WE ESTIMATING THESE
NUMBERS? OKAY MR. YOU WANT ME TO
TAKE A STAB AT THIS OR GO FOR
IT? LET'S START WITH YOU, AND
THEN I'LL GO TO EACH PERSON. SO
MR. CHAIR, I THINK IN THE VERY
BEGINNING, THAT'S WHAT WE KIND
OF STRUGGLED WITH. AND HOW DO WE
IDENTIFY WHO IS LOW INCOME AND
WHO IS NOT LOW INCOME. SO WE
WORKED VERY CLOSELY WITH THE
DEPARTMENT OF FINANCE AND ALSO
WITH THE STATE DEPARTMENT OF
EDUCATION AND WHAT WAS
RECOMMENDED IS THAT WE UTILIZE,
ESPECIALLY DURING THE PANDEMIC,
BECAUSE DURING THE PANDEMIC, ALL
CHILDREN IN CALIFORNIA WERE
RECEIVING FREE AND REDUCED
LUNCH. SO THAT WASN'T REALLY A
GOOD MARKER FOR US. SO WE RELIED
ON IS REALLY WHAT IS CONSIDERED
A UNDUPLICATED PUPIL. AND AN
UNDUPLICATED PUPIL IS A STUDENT
THAT IS EITHER RECEIVING FREE
AND REDUCED LUNCH, IS EITHER,
WHOSE PARENTS OR THEMSELVES ARE,
PARTICIPATING IN CALWORKS
MEDI-CAL, ALL THOSE KIND OF
PROGRAMS. AND IT'S REALLY A
COMBINATION THAT IS USED TO
CREATE A PROFILE OF THESE
CHILDREN AND ALSO THE
SUPPLEMENTAL INCOME, FORMS THAT
THEY COLLECT AT SCHOOLS. AND SO
THAT'S WHAT CREATED THE PROFILE
WITHIN THE STATE DEPARTMENT OF
EDUCATION IS MY UNDERSTANDING,
THE WAY WE UNDERSTAND IT. SO
THEY PROVIDE THAT DATA TO US.
OKAY. AND SO ALL THAT WELL, JUST
SO YOU KNOW, WE HAVE A VERY LOW
RETURN RATE ON THE FORMS FROM,
PARENTS. SO THAT'S NOT A VERY
GOOD SOURCE OF INFORMATION OR AT
LEAST NOT A GOOD THOROUGH
SOURCE. I THINK THERE'S MORE
INFORMATION TO GATHER FINANCE.
DO YOU WANT TO PROVIDE INPUT ON
HOW YOU CALCULATED THESE
FIGURES? SO I HAVE THE SAME
INFORMATION AS MY COLLEAGUE AT
SCHOLARSHARE. SO I WILL HAVE TO
GET BACK TO YOUR OFFICE ON THAT.
OKAY. MY COLLEAGUE AT THE LEO
MAY HAVE. YEAH. DO YOU HAVE ANY
ADDITIONAL I MEAN, WHEN THE
LEGISLATURE APPROPRIATED THIS
MONEY, THEY MUST HAVE SAID WE
COUNTED THIS NUMBER OF CHILDREN
USING, YOU KNOW, SUCH AND SUCH
FORMULA. IS THIS THE FORMULA
THAT WAS USED? SO WHEN THE
FUNDING WAS INITIALLY
APPROPRIATED FOR THIS PROGRAM,
THE ADMINISTRATION RAN THOSE
ESTIMATES BASED ON OUR REVIEW OF
THEIR NUMBERS. OUR UNDERSTANDING
ALIGNS WITH WHAT MY COLLEAGUES
ON THE PANEL HAVE SHARED, THAT
THAT THAT LINE OF QUESTIONING IS
BECAUSE, JUST CURIOUS WHETHER
THOSE NUMBERS ARE CORRECT OR
NOT. AND SO HOW MUCH OF THE,
THE, THE, THE COUNTS THAT GET
CREATED ARE ALIGNED WITH THE
REALITY OF HOW MANY STUDENTS ARE
ACTUALLY ELIGIBLE, WHICH I THINK
IS REQUIRES SOME MORE WORK. WHAT
WHAT HAPPENED? THE ACCOUNTS ARE
CREATED. ARE THEY CREATED LIKE
ANY OTHER? ARE THEY ARE THEY
TARGETED DADE FUNDS? WHAT KIND
OF FUND? WHAT KIND OF ACCOUNT IS
CREATED? THAT'S A VERY GOOD
QUESTION. SO BECAUSE SEB WAS
CHARGED WITH CREATING A PROGRAM
OF THIS SCALE WITHIN AN 11 MONTH
PERIOD, NOT ONLY DID WE HAVE THE
INVESTMENTS TO BE FOCUSED ON, OF
COURSE, THE YOUNGEST OF
CHILDREN, BUT ALSO WE'RE TALKING
ABOUT CHILDREN THAT WERE ALREADY
OF AGE TO REDEEM AND USE THEIR
MONIES. RIGHT. SO WHAT WE DID
WAS TO JUST EASE THE
IMPLEMENTATION. WE SPLIT THE
CHILDREN INTO TWO DIFFERENT
GROUPS. SO THE CHILDREN THAT ARE
NEW BORN ALL THE WAY THROUGH
FIFTH GRADE, THEIR THEIR MONEY
IS INVESTED IN A 5 TO 9 ACCOUNT
THAT IS ENROLLMENT YEAR BASED,
MEANING THAT DEPENDING ON THEIR
AGE AND WHEN WE ANTICIPATE THEN
WHEN THEY'RE GOING TO BE
ENROLLED, IT'S LIKE A TARGET
DATE FUND. SURE. RIGHT. THE
SECOND PART WAS A NON 5 TO 9
INVESTMENT THAT IS GUARANTEED TO
PROVIDE A RATE OF RETURN BETWEEN
1 AND 3. RIGHT NOW, I BELIEVE
IT'S ROUGHLY AT EITHER A 2.6. SO
IT'S A GUARANTEED RATE OF
RETURN. IT'S NOT GOING TO
FLUCTUATE. IT'S ONLY GOING TO
MOVE UPWARDS IN SMALL
INCREMENTS. BUT IT'S GUARANTEED.
AND SO THAT'S HOW WE INVESTED
THEIR MONIES UP UNTIL THIS POINT
OKAY. SO EVERYBODY ABOVE SIXTH
GRADE IS IN A 1 TO 3. WHAT IF
THEY OPEN THE ACCOUNT CAN THEN
THEY CHANGE THEIR INVESTMENT
CHOICE OKAY. SO THIS ACCOUNT
THAT WE'RE TALKING ABOUT, THE
CALC IS ACCOUNT FOR WHETHER IT'S
A NEWBORN OR A SCHOOL AGED CHILD
. THAT ACCOUNT IS OWNED BY THE
STATE. SO WE CONTROL THOSE
MONIES OKAY. NOW WE NAME THE
BENEFICIARY RIGHT. SO THE
BENEFICIARY WILL BE ELIGIBLE FOR
THESE MONIES SHOULD THEY BECOME
ENROLLED. AND THEY MAKE A
REQUEST. RIGHT NOW, WHAT WE
ENCOURAGED FAMILIES TO DO IS TO
OPEN UP THEIR OWN SCHOLARSHIP
I-29, WHICH AVOIDS THEM HAVING
TO CO-MINGLE MONEY WITH THE
STATE BY OPENING THEIR OWN
SCHOLARSHIP 5 TO 9 ACCOUNT. THEY
CAN ACTUALLY LOG IN TO THEIR
CALKAS PORTAL AND LINK THE
ACCOUNTS WHERE THEY CAN SEE
THEIR OWN PERSONAL SAVINGS AND
THE STATE'S INVESTMENT IN THEIR
CHILDREN, ALL IN ONE LOCATION.
OKAY, SO THE STATE ACCOUNT IS
NOT STATIC, BUT ESSENTIALLY IT
IS. IT'S STANDALONE. YOU CANNOT
CONTRIBUTE TO IT. OBVIOUSLY YOU
CAN'T WITHDRAW FROM IT. WHAT IS
THE, WHAT IS THE PLAN OR WHAT'S
THE THOUGHT IF AT SOME AGE,
AFTER. SO WHOEVER WAS IN 12TH
GRADE THAT FIRST YEAR IS NOW
THEORETICALLY IN THEIR SECOND
YEAR OF COLLEGE, AFTER THEY
COMPLETE COLLEGE, WHAT HAPPENS
WITH THE ACCOUNT IF IT DOESN'T
GET UTILIZED FOR THEIR
EDUCATION? THE ACCOUNT BY DESIGN
WILL REMAIN OPEN AND AVAILABLE
TO THEM UNTIL AGE 26. OKAY. AND
THAT IS UMBER THAT WE
ON BECAUSE WE UNDERSTAND THAT A
LOT OF CHILDREN ARE YOUNG PEOPLE
RIGHT OUT OF HIGH SCHOOL. EITHER
WORK, JOIN THE MILITARY, OR DO
OTHER THINGS ENTREPRENEURSHIP,
RIGHT TO OPEN A SMALL BUSINESS.
BUT ULTIMATELY WE MADE IT
AVAILABLE UNTIL THEIR AGE 26.
ONCE THEY TURN 26, THAT MONEY
AUTOMATICALLY REVERTS BACK INTO
THE FUND. OKAY.
WHAT ARE THE STATISTICS ON ON,
SO THE FIRST TWO 12TH GRADE,
YOU'VE GOT TO BE LOW INCOME AND
YOU'VE GOT TO, I ASSUME,
DEMONSTRATE THAT YOU ARE LOW
INCOME IN SOME WAY WHEN YOU
RESPOND TO THOSE LETTERS THAT WE
ALL GOT AS PARENTS. AND THOSE OF
US WHO DON'T THINK WE QUALIFY
DIDN'T RESPOND. BUT HOW IS THE
INCOME, HOW IS HOW DO YOU VERIFY
THAT THEY ARE LOW INCOME STUDENT
THE IDENTIFICATION OF STUDENTS
THAT ARE DEEMED LOW INCOME IS
THROUGH THE LOCAL CONTROL
FUNDING FORMULA, WHERE SCHOOLS
TAKE THAT SNAPSHOT IN THE FALL
AND THE FALL CENSUS STATES. I
THINK IT'S LIKE A SECOND WEEK IN
OCTOBER, AND IT'S A COMBINATION
OF FACTORS. LIKE WE MENTIONED
EARLIER, IT'S THROUGH THE
SUPPLEMENTAL FORM THAT THEY
SUBMIT THE SUPPLEMENTAL INCOME
FORM, BUT ALSO BECAUSE AND ALSO
IT WAS ORIGINALLY, I THINK,
DESIGNED TO KIND OF MAYBE USE
FREE AND REDUCED LUNCH AS A
FACTOR. BUT THAT ONLY BECAME ONE
OF MANY FACTORS. THE OTHER
FACTORS INCLUDE, LIKE I
MENTIONED EARLIER, THEIR
PARTICIPATION IN PROGRAMS LIKE
CAL KIDS, CAL WORKS. I GUESS THE
QUESTION IS VERIFICATION. WE NOW
PROVIDE FREE MEALS TO EVERY
STUDENT IN CALIFORNIA SO THAT NO
LONGER MATTERS, AND THEY'RE NOT
EVEN REQUIRED TO SUBMIT ANY
INCOME VERIFICATION FOR THAT,
YOU HAVE YOU HAVE SCHOOLS LIKE
THE ONES THAT MY CHILDREN ATTEND
THAT ARE, TITLE ONE SCHOOLS, SO
LOW INCOME SCHOOLS. BUT MY
CHILDREN, WOULD NOT BE
CONSIDERED LOW INCOME IF WE
ACTUALLY DID A, YOU KNOW,
SUBMITTED OUR, OUR, OUR, INCOME
INFORMATION. AND SO THEY SHOULD
NOT BE ENTITLED TO THIS PROGRAM
PRESUMABLY. AND AGAIN, YOU KNOW,
WE DIDN'T PURSUE IT BECAUSE WE
KNEW WE WEREN'T ENTITLED, BUT
HOW ARE WE VERIFYING THAT
STUDENTS ARE ENTITLED OR ARE WE
JUST IF YOU SEND IT TO A SCHOOL
WHICH QUALIFIES AS A LOW INCOME
SCHOOL AND YOU'VE GOT STUDENTS
AT THAT SCHOOL THAT ARE NOT LOW
INCOME, YOU SEND A LETTER TO
THEM, THEY REPLY THAT WE WANT TO
CLAIM THE ACCOUNT. IT JUST GETS
CLAIMED. THERE'S NO ADDITIONAL
STEP REQUIRED. OKAY. I THINK I'M
GOING TO ALLOW MY WELL, FIRST OF
ALL, WE'VE ALREADY NÓ WE'VE
ALREADY IDENTIFIED THE STUDENTS
AND ONLY THOSE STUDENTS THAT ARE
DEEMED ELIGIBLE RECEIVE A
NOTIFICATION LETTER. NOT EVERY
STUDENT IN THE SCHOOL. WHICH
MAKES IT A CHALLENGE TOO, RIGHT?
BECAUSE IF YOU EVEN EVEN LIKE
TITLE ONE SCHOOLS, IT'S NOT 100%
THAT ALL CHILDREN ARE, YOU KNOW,
CONSIDERED LOW INCOME. RIGHT.
AND THAT'S WHY I THINK A LOT OF
SCHOOLS DO STRUGGLE AND SAY,
WELL, YOU KNOW WHAT? HOW DO WE
INSTEAD OF HAVING EVERYBODY GO
THROUGH THE EXERCISE AND
DISAPPOINT SOME CHILDREN, THAT'S
WHY THERE'S A LITTLE BIT OF
HESITATION FROM SCHOOLS, BUT
NONETHELESS, IT'S, IT'S
IMPORTANT. AND SO THAT SCHOOLS
HAVE DONE SOME REALLY CREATIVE
THINGS. AND SO I THINK I'M GOING
TO ALLOW MY COLLEAGUE NOAH
LIGHTMAN, TO KIND OF RESPOND TO
THAT AS WELL. THANK YOU, MR.
CHAIR, FOR THE QUESTION. NOAH
LIGHTMAN, STAFF SERVICES MANAGER
WITH THE PROGRAM, I WANT TO
CLARIFY AN IMPORTANT ASPECT OF
THE PROGRAM. WE AT THE
SCHOLARSHARE INVESTMENT BOARD DO
NOT DETERMINE ELIGIBILITY.
ELIGIBILITY IS DICTATED IN
STATUTE BASED OFF OF THE LOCAL
CONTROL FUNDING FORMULA. LIKE
MR. MARTINEZ DESCRIBED BEFORE,
ALL OF THE STUDENTS ARE BASED ON
DATA THAT SCHOOLS SUBMIT TO THE
STATE DEPARTMENT OF EDUCATION.
THE STATE DEPARTMENT OF
EDUCATION THEN TAKES FROM THEIR
CAL PADS DATA. ESSENTIALLY, THE
LIST OF UNDUPLICATED PUPILS, AND
SHARES THAT WITH US. SO WE AT
THE SCHOLARSHARE INVESTMENT
BOARD DO NOT VERIFY SOMEONE'S
INCOME STATUS. OKAY. I THINK
THAT REQUIRES SOME FOLLOW UPS.
BUT, OF THE NEWBORNS. THEN LET'S
FOCUS ON NEWBORNS. SINCE WE SORT
OF EXHAUSTED THE FIRST TO 12TH
GRADE CONVERSATION NEWBORNS,
EVERYBODY GETS THE 20 NØ $50.
NOW IT'S, IF YOU'RE IF YOU WERE
BORN DURING THE FIRST YEAR OF
THE PROGRAM, YOU GET $25
AUTOMATICALLY. AND NOW EVERY
BABY AFTER JULY 1ST OF 2023 GETS
A MINIMUM OF $100, A 100, OKAY,
PLUS SOME ADDITIONAL
SUPPLEMENTAL INCENTIVES THAT WE
OFFER THEM AS WELL, AND THAT
ALSO IS THE TYPE OF ACCOUNT,
BECAUSE I'VE SEEN ON YOUR
WEBSITE, I TRY TO GET EVERYBODY
I KNOW TO OPEN A 529, ACTUALLY,
THAT DOES NOT REQUIRE, THE
MATCHING OR THE YOU'VE HAD SOME
PROMOTIONS ON THERE THAT YOU'LL
GET 100 IF YOU PUT IN LIKE 25
AUTOMATICALLY OR SOMETHING, YOU
KNOW, AUTOMATIC DEPOSITS EVERY
MONTH, $100 IS $100 WITHOUT ANY
STRINGS ATTACHED. ESSENTIALLY
THAT IS CORRECT. OKAY. AND SO
SINCE, YEAR 2020 3RD JULY OF
2023, EVERY NEWBORN GETS 100.
AND SO WE'VE HAD 667,000, NEW
BIRTHS, WHICH I THINK THAT DATA
IS MORE RELIABLE BECAUSE THOSE
ARE ALL RECORDED, OF WHICH
42,000 OF NEWBORNS, OR
PERCENTAGE OF 6, HAVE ACTUALLY
ENROLLED. DO WE HAVE A, ANY
DATA? I DON'T I DON'T THINK YOU
YOU YOU WOULD, AS TO WHO WHO
THOSE ENROLLEES ARE, ARE THEY
ACTUALLY, FROM A PARTICULAR
REGION OF THE STATE? ARE THEY,
FROM A POTENTIAL, INCOME?
STRATUS THAT'S, THAT'S, YOU KNOW
, OF NOTE, WHAT DATA DO YOU HAVE
ON THE REGISTRATIONS OF THE
NEWBORNS? THAT'S A VERY GOOD
QUESTION. WE HAVE A LOT OF
DEMOGRAPHIC DATA, AND I'M GOING
TO LET NOAH LIGHTMAN, KIND OF
EXPLAIN, WHAT KIND OF DATA WE
HAVE AND HOW WE'RE MONITORING
THAT. YEAH. THANK YOU, MR.
CHAIR. SO THE DEPARTMENT OF
PUBLIC HEALTH DOESN'T COLLECT
INFORMATION ON NEWBORN PARENTS
INCOME STATUS, BUT THEY DO
COLLECT INFORMATION ON ON RACIAL
DEMOGRAPHICS OF BOTH PARENTS,
AND WHAT WE CAN PROVIDE AFTER
THE COMMITTEE IS AN UPDATE ON,
WHO IS ACTUALLY ENGAGING IN THE
PROGRAM BASED ON THAT
INFORMATION AS WELL AS, LIKE YOU
SAID, DEMOGRAPHIC, GEOGRAPHICAL
DATA, WHERE THERE'S LARGER
UPTAKE. SO WE CAN IMAGINE THAT
IN LARGER COUNTIES LIKE SAN
DIEGO, LOS ANGELES, RIVERSIDE,
FOR EXAMPLE, THERE'S LARGER
UPTAKE, SMALLER COUNTIES,
THERE'S A LITTLE BIT LESS. AND
THIS IS WHERE, OUR OUTREACH
EFFORTS ARE REALLY FOCUSED TO
MAKE SURE THAT WE'RE PARTNERING
WITH DIFFERENT COUNTY OFFICES,
LOCAL HEALTH INSTITUTIONS WITH
OFFICES, HEAD START PROGRAMS,
ETC. IN ORDER TO GET THE WORD
OUT. BUT HAPPY TO FOLLOW UP WITH
THAT INFORMATION AFTER THE
COMMITTEE HEARING. OKAY. LOOK
FORWARD TO THAT, THEN TO THE
LAO. SO THEN BECAUSE THE
ACCOUNTS WERE CREATED FOR THE
AMOUNTS, SORT OF THE MORE
SIGNIFICANT AMOUNTS, INCLUDING
THE WHAT WAS ANTICIPATED SURPLUS
OF 2122, WHICH WAS NOT, BUT THAT
MONEY WAS TRULY COMMITTED IN, IN
THE WAY THAT THERE WAS ACCOUNTS
CREATED. THE ONLY AVAILABLE
UNSPENT FUNDS, ACCORDING TO YOUR
ANALYSIS AT THE MOMENT. I HEARD
TWO, AND AGAIN, NUMBERS
EVERYWHERE HERE. SO, $17 MILLION
AND I ONLY WROTE DOWN THE
NUMBER. I DON'T REMEMBER WHAT
THAT WAS FOR. AND THEN $9
MILLION FROM THE I THINK THAT
WAS THE OUTREACH AND MARKETING
PROGRAM. CAN YOU, CONFIRM THAT
THAT'S THE CASE? THAT'S CORRECT.
THE 17 MILLION IS FROM THE
INITIAL ONE TIME ALLOCATION
PROVIDED IN 2019, 20 TO LAUNCH
THE PROGRAM. AND THE 9.5 MILLION
IS FROM THE FIRST TWO YEARS OF
THE ONGOING APPROPRIATION FOR
FINANCIAL LITERACY OUTREACH.
IT'S 5 MILLION ANNUALLY. GOT IT?
DO YOU HAVE ANY FURTHER THOUGHTS
ON THE UNCLAIMED ACCOUNTS? WE
HAVE NOTHING TO ADD BEYOND WHAT
THE PANELISTS HAVE SHARED. OKAY
THAT'S TALKING BEES. AS MR.
MURATSUCHI LIKES TO SAY IN THIS
COMMITTEE, THAT'S A LOT OF MONEY
. YES. SO MY UNDERSTANDING
CREATIVE WAYS TO USE THAT IN
THIS YEAR'S BUDGET, WELL, MY
UNDERSTANDING FROM HOW STATUTE
IS STRUCTURED IS THAT THE FUNDS
WILL REMAIN IN THE ACCOUNTS
UNTIL THE STUDENTS ARE REACH AGE
26. AND SO WE HAVEN'T LOOKED
INTO CHANGES TO THAT PARTICULAR
POLICY. SO MAYBE 26 YEARS FROM
NOW WE'LL SEE A LOT OF
REVERSIONS. AND, OKAY, WELL,
HOPEFULLY NOT ACTUALLY HOPEFULLY
PEOPLE SIGN UP BECAUSE THIS IS
PEOPLE MONEY THAT ALTHOUGH I
WOULD SAY, I WANTED TO ASK MORE
QUESTIONS. JUST I'M FASCINATED
BY 529 I THINK THEY'RE, THEY'RE
REALLY IMPORTANT. I KNOW THAT IN
PERSONAL EXPERIENCE, TALKING TO
CHILDREN AND, YOU KNOW, NIECES
AND NEPHEWS ABOUT THERE'S AN
ACCOUNT WAITING FOR YOU. LIKE
IT? IT JUST SORT OF INGRAINED IN
THEIR MIND THAT COLLEGE IS SORT
OF AN OPTION FOR THEM THAT THEY
SHOULD CONSIDER FOR THEIR
FUTURE. AND SO I ASSUME, I
HAVEN'T READ THE RESEARCH, BUT I
ASSUME THERE'S SOME RESEARCH
THAT SHOWS THAT I WOULD JUST BE
CAN BE MORE INTERESTED IN
LEARNING ABOUT THE IMPACTS,
PARTICULARLY IN, IN THESE IN
THESE TYPES OF PROGRAMS WHERE
WE'RE CREATING IT FOR THEM AND
THE FAMILIES NOT REALLY ENGAGED.
I DON'T KNOW THAT THE I'M NOT
SURE WHETHER THE IMPACT THE
RESEARCH SHOWS THAT THE IMPACT
IS THERE JUST BECAUSE THERE'S AN
ACCOUNT THERE, AND NOT BECAUSE
THE FAMILY KNOWS AND TALKS
ABOUT, AS A RESEARCHER, I
FASCINATED BY RESEARCH. I THINK
THAT'S SOMETHING THAT I'D BE
INTERESTED IN LEARNING MORE
ABOUT. LIKE WHAT? WHAT IS IT
ABOUT THE 529 ACCOUNT THAT LEADS
TO THE, WHAT'S DESCRIBED IN OUR
AGENDA AS A TOOL TO INCREASE,
COLLEGE ACCESS AND COMPLETION,
SO WE CERTAINLY LOOKING FURTHER
INTO THAT, BUT HOPE THAT,
ENROLLMENT CONTINUES TO, TO
GROW, GIVEN THAT IT'S INTENDED
TO GO TO THE STUDENTS WHO REALLY
COULD USE THE SUPPORT, THE MOST.
KNOWING ALSO, THOUGH, THAT WE
HAVE FINANCIAL AID NEEDS, ONCE
YOU DO REACH LIKE WHAT CHAIR OF
HIGHER EDUCATION AND HIS BUDGET
LETTER, WHICH I READ THIS
WEEKEND, WANTS TO MAKE SURE THAT
, LIKE I DO THAT WE LOOK AT, CAL
GRANT EQUITY AS A WAY TO ALSO
PROVIDE FINANCIAL SUPPORT FOR
STUDENTS WHO NEED IT. SO THERE
ARE NEEDS ON BOTH ENDS AND SO
INTERESTED IN HOW THIS PROGRAM
REALLY CREATES THAT CERTAINTY
FOR STUDENTS IN THE LONG TERM. I
APPRECIATE YOU ANSWERING MY
QUESTIONS. MR. FONG, DO YOU HAVE
SOME QUESTIONS OR THOUGHTS?
THANK YOU SO MUCH, MR. CHAIR,
AND THANK YOU FOR UPLIFTING THE
CAL GRANT EQUITY AND THE
FINANCIAL AID REFORM THAT WE'RE
ADVOCATING FOR HERE AND THESE
VERY CHALLENGING TIMES. AND
THANK YOU SO MUCH TO ALL OF YOU
FOR THE PRESENTATION HERE TODAY.
WHEN I LOOKED AT PAGE 19 OF THE
REPORT, IT SAYS THERE IS ALSO A
PILOT PROGRAM TO ALLOW SCHOLARS
HERE TO ENTER A DATA SHARING
AGREEMENTS WITH RIVERSIDE AND
L.A. UNIFIED SCHOOL DISTRICT. I
WANTED TO GET A SENSE AS TO HOW
THOSE PARTNERSHIPS ARE WORKING,
AND HAVE YOU SEEN INCREASED
PARTICIPATION THROUGH THAT, DATA
SHARING AGREEMENTS? THANK YOU
FOR THE QUESTION, ASSEMBLYMAN
FONG. BUT I'M GOING TO LET NOAH
LIGHTMAN ANSWER THAT QUESTION.
YEAH, THANK YOU, MR. FONG. SO
LAST SUMMER, THE LEGISLATURE
MANDATED THAT WE ENTER INTO AN
AGREEMENT WITH RIVERSIDE COUNTY,
TO SUPPORT EFFORTS AROUND
IDENTIFYING ELIGIBLE STUDENTS
WHO HAVE AND HAVE NOT CLAIMED
THEIR CALC ACCOUNT. SO FOLLOWING
THE CONVERSATIONS WITH
DEPARTMENT OF EDUCATION, WE
WORKED WITH RIVERSIDE COUNTY
OFFICE OF EDUCATION TO DEVELOP A
LITTLE BIT OF A WORKAROUND THAT
WOULDN'T CONFLICT WITH FEDERAL
LAW, AROUND, DOING A DATA
SHARING PROCESS WITH THEM. GIVEN
THAT THE DATA THAT WE'RE
RECEIVING IS DIRECTLY FROM THE
DEPARTMENT OF EDUCATION, SO IT
TOOK ABOUT SIX, SEVEN MONTHS TO
ACTUALLY CREATE THIS DATA
SHARING AGREEMENT. AND JUST A
COUPLE OF WEEKS AGO, WE ACTUALLY
COMPLETED OUR FIRST ACTUAL DATA
EXCHANGE PROCESS, AND SO, YOU
KNOW, WE LOOK FORWARD TO WORKING
WITH THEM ON A QUARTERLY BASIS.
BUT SPECIFICALLY, HAS THAT
INCREASED, PARTICIPATION OR JUST
MORE? YOU'RE SORT OF ASSESSING
THE DATA. I THINK WE'LL FIND OUT
OVER TIME. SO, SO JUST A COUPLE
OF WEEKS AGO, WE DID OUR FIRST
DATA TRANSFER. AND WE'RE LOOKING
FORWARD TO SEEING THE RESULTS
OVER TIME. SOUNDS GOOD. AND THEN
SECONDLY, IN TERMS OF MR.
MARTINEZ, YOU ALSO MENTIONED THE
STATEWIDE MARKETING AND OUTREACH
PROGRAM WAS PART OF THE FUNDS
SPENT FOR ETHNIC MEDIA AND TO
REALLY TARGET FAMILIES, IN
LANGUAGE. YES, I'LL LET NOAH
SPEAK TO THAT, BUT ABSOLUTELY.
WE LAST PRIOR TO THIS RECENT
ALLOCATION OF $8 MILLION, WHICH
WE WERE ABOUT TO WHICH WE'RE IN
THE PROCESS OF AWARDING AND
FINALIZING THE RFP FOR THAT. THE
PREVIOUS YEAR, WE WERE AWARDED
BY THE LEGISLATURE, AND WE
REALLY APPRECIATED THE $1
MILLION THAT WE'RE CURRENTLY
USING NOW IN OUR MARKETING
EFFORTS AND ALL THAT NOAA KIND
OF TALK ABOUT SOME OF THE SOME,
SOME OF THE EFFORTS THERE THAT
THAT HAVE BEEN UNDERWAY. AS MR.
MARTINEZ WAS DESCRIBING, WE DID
A FALL MEDIA CAMPAIGN WHERE WE
EMPLOYED A VENDOR CALLED
CROSSINGS TELEVISION THAT HELPED
US CREATE MESSAGES IN A VARIETY
OF DIFFERENT LANGUAGES. BUT
BEYOND THAT, JUST AS A PROGRAM,
LANGUAGE ACCESS IS CRITICAL. SO
A FEW OF THE WAYS THAT WE ARE
ADDRESSING THAT IS WE HAVE OUR
WEBSITE TRANSLATED INTO A
VARIETY OF LANGUAGES, AS ANYONE
CAN SELECTED ON THE CAL ORG
WEBSITE. WE'RE ALSO IN THE
PROCESS OF TRANSLATING OUR
PORTAL INTO ADDITIONAL LANGUAGES
, CURRENTLY IT'S TRANSLATED INTO
SPANISH, TAGALOG, VIETNAMESE AND
CHINESE, AND THEN RIGHT NOW,
WE'RE ALSO IN THE PROCESS OF
TRANSLATING A NUMBER OF OUR
MARKETING MATERIALS INTO A HOST
OF A DIFFERENT ADDITIONAL
LANGUAGES. SO WE ACTUALLY JUST
DID A SURVEY OF OVER 3000
ELIGIBLE PARTICIPANTS TO GIVE US
A BETTER SENSE OF WHAT ARE WE
DOING? WELL, WHAT COULD WE BE
DOING BETTER, THAT WHOLE PROCESS
RESULTED US REALLY IN REVAMPING
OUR ENTIRE MARKETING TOOLKIT.
AND SO WITH THAT, OUR OUR GOAL
IS TO TRANSLATE THAT CONTENT
INTO AS MANY LANGUAGES AS
POSSIBLE. WE ALSO DO HAVE A CALL
CENTER THAT HAS AGENTS AVAILABLE
NOT JUST IN ENGLISH BUT SPANISH
AS WELL. AND THEY USE A LANGUAGE
. LINE TWO SHOULD CALLERS CALL
IN ADDITIONAL LANGUAGES? THANK
YOU FOR THAT. AND THEN, IN TERMS
OF THE PARTICIPATION FOR THE
COUNTS THAT ARE REGISTERED, WHAT
IS THE PARTICIPATION
PARTICIPATION LEVEL OF PARENTS
CURRENTLY CONTRIBUTING TO THE
ACCOUNTS? YES, THAT'S A VERY
GOOD QUESTION. ASSEMBLY MEMBER
AND THAT IS SOMETHING THAT IS
SHOWING SOME PROMISING RESULTS,
ESPECIALLY AMONG FAMILIES THAT
ARE LOW INCOME. SO WE HAVE HAD.
APPROXIMATELY. WHERE IS IT AT?
HERE. GIVE ME A SECOND HERE.
JUST TO CLARIFY, IS THIS ALSO
THE ONE THAT'S IN OUR AGENDA?
WOULD IT BE CALLED THE LINKED
ACCOUNTS? YES. OKAY. THANK YOU.
YES SO AS YOU CAN TELL BY THE.
YEAH, THE TOP TWO LINES, FOR
NEWBORNS AND STUDENTS, BUT ALL
THE WAY FAR TO THE RIGHT WHERE
IT SAYS NEW SCHOLARSHARE 5 TO 9
ACCOUNTS OPEN AND LINKED. OKAY,
SO WE HAD IF YOU LOOK AT IT,
IT'S ACTUALLY RELATIVELY EQUAL
BETWEEN THE NUMBER OF
PARTICIPANTS THAT ARE NEWBORN
AND SCHOOL AGE, ROUGHLY AROUND
ALMOST 15,000 ACCOUNTS HAVE BEEN
OPENED BY THESE FAMILIES. RIGHT.
AND WHAT'S INTERESTING IS THAT
WE OFFER AN INCENTIVE FOR THE
PARENTS OF NEWBORNS. IF YOU OPEN
AND LINK AN EXISTING OR A NEW
ACCOUNT TO THE KALKI'S ACCOUNT
WITH A SCHOLARSHIP ACCOUNT, YOU
GET AN ADDITIONAL $50 RIGHT? FOR
THE STUDENTS, THERE IS NO
ADDITIONAL INCENTIVE, ALTHOUGH
WE HAVE OFFERED A TWO WEEK
PROMOTION JUST TO KIND OF TEST
IT AND SEE IF IT WOULD WORK AND
ACTUALLY PROVIDE US SOME GOOD
RESULTS THAT WE HOPE TO APPLY IN
THE FUTURE. THEY ARE OPENING
ACCOUNTS, AND SO THE AVERAGE
BALANCE FOR A PARENT OF A
NEWBORN IS $3,200.32 80. IN IN
THIS DURING THIS TIME PERIOD, IN
THIS SHEET THAT WE GAVE YOU AND
FOR THE STUDENTS, IT'S 2533 THAT
THEY'RE SAVING. THANK YOU. AND
THEN LASTLY, IN TERMS OF THE
FOSTER AND HOMELESS, I THINK
ANYTHING WE CAN DO TO CONTINUE
TO AMPLIFY THAT AND TO REALLY
GET MORE FOLKS REGISTERED, I
THINK IS CRITICAL AS WE LOOK AT
EXPANDING OPPORTUNITIES FOR
STUDENTS, THERE. SO WE AGREE
WITH YOU 100. I THINK WHEN WE
WORK WITH SCHOOL DISTRICTS AND
DIFFERENT NONPROFITS AND CBOS
ACROSS THE STATE, WE ARE
DEFINITELY TRYING TO GET AS MANY
OF THESE STUDENTS, ESPECIALLY
BECAUSE THEY'RE JUST THE MOST
VULNERABLE AND THEY HAVE THE
MOST, YOU KNOW, FINANCIAL
INVESTMENT IN THEIR NAME TO KIND
OF CLAIM THESE ACCOUNTS. AND SO
WE ARE DEFINITELY WORKING HARD
AT THAT AS WELL. THANK YOU.
THANK YOU FOR THE ROBUST
PRESENTATION. THIS IS A PROGRAM
THAT I THINK IS VERY CRITICAL TO
HELPING TO EXPAND COLLEGE GOING
RATES. AND TO REALLY LOOK AT
THAT GOING FORWARD AND TO SO
LOOK FORWARD TO SEEING
ADDITIONAL DATA AS THIS PROGRAM
CONTINUES TO MOVE FORWARD. THANK
YOU SO MUCH. THANK YOU, MR.
CHAIR. THANK YOU, THANK YOU.
YEAH. THIS IS WHERE I WAS GOING
WITH MY QUESTIONS. I HAVE A I
HAVE A SENSE WHEN YOU LOOK AT
THE NEWBORN ACCOUNTS AND THE
STUDENT ACCOUNTS. SO THE
STUDENTS ACCOUNTS ARE ALL LOW
INCOME INDIVIDUALS AND THE
NEWBORNS ARE ALL INCOME. AND WE
GOT THE SAME NUMBER ROUGHLY OF
ACCOUNTS FOR BOTH. AND YOU LOOK
AT THE AMOUNTS THAT ARE BEING
SAVED, THOSE ARE HIGHER AMOUNTS
FOR THE NEWBORNS IN TERMS OF THE
AVERAGE ACCOUNT, WHICH TO ME
JUST SORT OF SIGNALS THE
PARTICIPATION OF THIS PROGRAM IS
LIKELY HIGHER AMONG PEOPLE WITH
HIGHER INCOMES AS OPPOSED TO OUR
INTENDED OUTCOME OF, YOU KNOW,
TRYING TO GET FOLKS WITH LOWER
INCOME. AND THE ONES THAT WE I
WOULD ASSUME THE DATA SHOWS THAT
AND THAT THE INTENT OF THIS WHEN
THE LEGISLATURE MOVED THIS, AND
CERTAINLY MY INTENT GOING
FORWARD IS THAT STUDENTS WHO
OTHERWISE WOULD NOT SEE COLLEGE
AS A PATHWAY WOULD AS A RESULT
OF AN ACCOUNT. BUT IF IT'S IF
IT'S NOT, IF THE THOSE WHO ARE
OPTING IN AND PARTICIPATING IN
OUR ACTIVE ARE FROM INCOME
LEVELS THAT WOULD OTHERWISE
GOING TO BE COLLEGE MINDSET
READY, THEN I'M NOT SURE WE'RE
MEETING ITS INTENDED GOAL. SO
THOSE ARE THAT'S WHERE MY
QUESTIONS ARE ABOUT, WHO'S
PARTICIPATING AND GETTING MORE
DATA ON THAT. SO WE'LL LOOK
FORWARD TO HAVING THAT CONTINUED
DISCUSSION. MR. CHAIR, IF I
COULD RESPOND TO THAT. AND THOSE
ARE SOME VERY VALID POINTS.
OKAY. WHEN THE PROGRAM WAS FIRST
CONCEIVED AND DESIGNED AND IT
WAS SUPPOSED TO BE AT BIRTH,
UNIVERSAL, AND IT'S FOR A
REASON. I MEAN, WE FOLLOW THE
RESEARCH AND IT'S CONSIDERED
BEST PRACTICE. AND THE PRIMARY
REASON IS BECAUSE WHEN YOU HAVE
AN ALL INCLUSIVE PROGRAM, IT
DOESN'T BECOME A LABELED A LOW
INCOME PROGRAM. RIGHT. AND LET'S
BE HONEST, PEOPLE WITH MEANS
WILL ALWAYS HAVE A WAY TO, YOU
KNOW, TO PAY FOR HIGHER
EDUCATION, NOT NECESSARILY WITH
A $25 THAT WE SEATED IN THEIR
ACCOUNT, BUT BY REMOVING THAT
STIGMA, IT BECOMES OPEN ENDED TO
EVERYBODY WITHOUT THE TERM LOW
INCOME IN THERE AND THE REALITY
IS, THOUGH, THE VAST MAJORITY OF
PEOPLE THAT ARE TAKING ON
STUDENT LOAN DEBT ARE MIDDLE
CLASS FAMILIES, AND NOW
INCREASINGLY SO IS LOW INCOME
FAMILIES. SO WELL, WE UNDERSTAND
THE, THE, THE, THE ARGUMENT THAT
VERY OFTEN IS MADE, WHICH IS TO
KIND OF FUND, YOU KNOW, PROGRAM
RAIMES SUCH AS A CAL GRANT
PROGRAMS AT A GREATER CLIP. WE
STRONGLY SUPPORT THAT AS WELL.
BUT THE REALITY IS THE AVERAGE
CALIFORNIAN IS OWING BETWEEN 22
AND $30,000 IN STUDENT LOAN DEBT
WHEN THEY GRADUATE. MIND YOU,
I'VE BEEN DOING THIS FOR ALMOST
A DECADE, AND MY SON IS 17 YEARS
OLD, AND NOW WE'RE LOOKING AT
SCHOOLS AND EVEN THOUGH I KNEW
THIS AND I'VE BEEN PREACHING
THIS, I NEARLY FELL OFF MY
CHAIR. WHEN YOU KIND OF GO TO
THESE PRESENTATIONS ON THESE
COLLEGE CAMPUSES, WHEN THEY TELL
YOU JUST HOW MUCH IT IS, EVEN AT
UC DAVIS FOR EXAMPLE, FOR YEARS,
INCLUDING HOUSING THAT USED TO
BE A SMALL MORTGAGE FOR FAMILIES
HERE IN CALIFORNIA. RIGHT. AND
WE KNOW THAT. AND SO REALLY,
WHAT THIS PROGRAM IS DESIGNED TO
DO IS REALLY INSPIRE JUST A
THOUGHT DISCUSSION ABOUT THE
FINANCING OF EDUCATION, BECAUSE
FAMILIES WILL DO OTHER TWO
THINGS, NOT PREPARE AND TAKE ON
A LOT OF STUDENT LOAN DEBT OR
JUST SAY, YOU KNOW WHAT HIGHER
EDUCATION ISN'T REALLY JUST FOR
MY CHILD. WE'RE GOING TO LOOK AT
OTHER OPTIONS. SO WE JUST WANT
TO KIND OF CURTAIL THAT BECAUSE
THE RESEARCH DOES SHOW THAT
FAMILIES THAT DO HAVE SAVINGS
ACCOUNTS, EVEN AS LITTLE AS
$500, ARE THREE TIMES MORE
LIKELY TO GO TO COLLEGE. AND
FOUR TIMES MORE LIKELY TO
COMPLETE IT. SO REALLY, IT'S AN
INSPIRATIONAL TOOL. BY NO MEANS
DID WE EVER HAVE. WE WERE UNDER
THE ILLUSION THAT THE $500 THAT
WERE INVESTING IN THESE
CHILDREN, OR EVEN THE 1500, WAS
GOING TO PAY THEIR WAY THROUGH
COLLEGE THIS IS REALLY DESIGNED
TO PROMOTE AND INSPIRE AND HAVE
THESE DISCUSSIONS IN THE
HOUSEHOLD. AND WE THINK IT'LL I
MEAN, THERE'S A LOT OF RESEARCH
THAT'S BEARING FRUIT, THAT'S
SHOWING SOME POSITIVE RESULTS.
AND WE WOULD BE MORE THAN HAPPY
TO SHARE THAT WITH YOU. BUT I
THINK THESE PROGRAMS IN GENERAL,
I MEAN, THEY'RE STILL KIND OF
RELATIVELY YOUNG. THE OLDEST
PROGRAM IS REALLY MAINE
STATEWIDE PROGRAM MAINE. THEY'VE
BEEN AROUND FOR ABOUT MAYBE 16
YEARS. AND SO THEY'RE BARELY
GETTING TO THEIR FIRST COHORT OF
GRADUATES. BUT THERE IS A
GROWING BODY OF RESEARCH, AND
HOPEFULLY WE'LL BE ABLE TO
DEMONSTRATE WITH THIS INNOVATIVE
PROJECT THAT IT IS INSPIRING
MORE KIDS TO GO TO SCHOOL. WELL,
YEAH. NO, I LOOK FORWARD TO
CERTAINLY READING RESEARCH THAT
YOU REFERENCED PROBABLY SHOULD
GO BACK AND SEE WHAT DISCUSSIONS
WERE HAD IN THE LEGISLATURE WHEN
THIS WAS FIRST THOUGHT OF AND
WHAT THE GOALS WERE, BECAUSE,
THERE COULD BE DIFFERENT GOALS
FOR SUCH A PROGRAM, AS YOU
STATED. AND IF IT'S DEFINITELY
NOT TO, LESSEN THE FINANCIAL
BURDEN BECAUSE IT'S NOT THIS
AMOUNT OF MONEY, EVEN IN A, I
MEAN, DEFINITELY IN A 1 TO 3% IS
NOT GOING TO GROW, MAYBE PAYS
FOR BOOKS AND ONE YEAR'S WORTH.
AND THAT'S ABOUT IT, SO, SO I
GET THAT. I GUESS I JUST NEED TO
WE NEED TO REALLY REFINE WHAT IS
OUR INTENT WITH THIS IS THE
INTENT TO GET THAT COLLEGE
MINDSET GOING, IS THE INTENT TO
GET MORE MIDDLE INCOME FAMILIES,
WHICH I AGREE, YOU KNOW, IT'S
BECOMING MORE MORE DIFFICULT FOR
THEM TO GET THEM TO BE ENTICED
INTO COLLEGE SAVINGS BECAUSE
THEY WILL NOT HAVE, POTENTIAL
FINANCIAL AID FROM THE STATE
AVAILABLE BECAUSE THEY DON'T
MEET INCOME. AND IF THAT'S THE
CASE, THEN MAYBE WE SHOULD
INVEST MORE IN TRYING TO ENTICE
MORE MIDDLE INCOME FAMILIES. I
THINK I LIKE TO UNDERSTAND WHAT
WHAT ARE WE TRYING TO ACCOMPLISH
WITH THE PROGRAM, AND, AND I
THINK THAT'S WHERE I NEED TO
SPEND SOME TIME REVIEWING, THE
LAST THING I'LL SAY IS, OUR
QUESTION, I GUESS I'D ASK IS,
WHILE IT'S MINIMAL LOW INCOME
STUDENTS WHO DO HAVE COLLEGE
SAVINGS, THEN IS THIS GOING TO
COUNT TOWARDS THEIR, STUDENT OR
FAMILY? I DON'T KNOW WHAT THE
NUMBER THE LETTERS ARE NOW, BUT
THE FAMILY CONTRIBUTION WHEN
THEY DO THEIR FINANCIAL AID
BECAUSE USUALLY 529 ACCOUNTS
COUNT AS PART OF YOUR ASSETS.
AND SO THERE THAT REDUCES YOUR
FINANCIAL AID. AND FOR A LOT OF
LOW INCOME FAMILIES, AGAIN,
WHILE IT'S NOT GOING TO BE
PROBABLY MORE THAN A COUPLE
THOUSAND DOLLARS IF YOU MEET ALL
OF THESE DIFFERENT CRITERIA,
PROBABLY BY THE TIME THEY GET
THE FUNDING, IT'S STILL $2,000
LESS THAT THEY CAN. IT'S A 2000
ADDITIONAL ASSET THAT THEN
COUNTS TOWARDS THEIR FAMILY
CONTRIBUTION TOWARDS COLLEGE
WITH THEIR CONVERSATIONS ABOUT
THE IMPACTS OF THAT WHEN THIS
WAS ENVISIONED. YES. MR. CHAIR,
SO THE WAY THE PROGRAM IS
DESIGNED IS THAT DISBURSEMENTS
FROM THIS PROGRAM, THEY GO
DIRECTLY TO THE INSTITUTION OF
HIGHER EDUCATION. THAT'S WHAT
HAPPENS WHEN YOU LOG IN. WHEN
YOU'RE READY TO GO, YOU HAVE TO
MEET CERTAIN CRITERIA, RIGHT?
YOU HAVE TO BE 17 YEARS OF AGE.
YOU HAVE TO BE ENROLLED AT A AT
A QUALIFIED INSTITUTION OF
HIGHER EDUCATION. AND THEN YOU
CHECK OFF A CERTAIN
SELF-CERTIFICATIONS THAT YOU
RESIDED IN CALIFORNIA FOR THE
PAST 12 MONTHS. AND THEN YOU
TYPE IN AND IT WILL AUTOFILL ALL
OF THE ELIGIBLE INSTITUTIONS.
RIGHT? SO LET'S SAY YOU GO INTO
UC DAVIS, YOU PUT THE AMOUNT IN
WHOLE OR IN PART THAT MONEY IS
SENT DIRECTLY TO THE
INSTITUTION, NEVER TOUCHES THE
HANDS OF THE STUDENT. SO THAT
MONEY IS TREATED LIKE A
SCHOLARSHIP. OKAY, OKAY. NOW
FAMILIES THAT SAVE WITH A 529
PLAN ARE SUBJECT TO THE IMPACTS
THAT YOU'RE REFERRING TO ON THE
529, BUT THAT IS SAVINGS ON
THEIR OWN. OKAY APPRECIATE
CLARIFICATION ON THAT QUESTION.
THANK YOU. THANK YOU ALL FOR
BEING HERE. CAN I JUST ADD SOME
COMMENTS? I REALIZED I DIDN'T
GET AN OPPORTUNITY TO RESPOND TO
MISS KING AND HER
RECOMMENDATIONS FROM THE ALEO,
IF I MAY. SURE. GO AHEAD. OKAY.
SO THE FIRST ONE IS THE $17
MILLION FROM THE ORIGINAL $25
MILLION APPROPRIATION. I JUST
WANT TO MAKE A COUPLE OF
COMMENTS. ONE IS, YEAH, THAT
MONEY SAT AROUND FOR QUITE A BIT
IN THERE, UNUSED, BUT FIRST,
MORE OF A TECHNICAL,
CLARIFICATION IN WITHIN THE 17
MILLION, THERE IS 1.25 MILLION
THAT WAS ALLOCATED FOR ADMIN
SUPPORT. OKAY NOT ALL OF IT WAS
DESIGNED FOR INCENTIVES. OKAY
AND THEN THE REST SIB KIND OF
LOOKED AT IT AS A RAINY DAY FUND
BECAUSE I WOULD LIKE TO JUST
REMIND, THE COMMITTEE THAT THE
SUPPLEMENTAL INCENTIVE STRUCTURE
THAT IS THAT IS AVAILABLE TO
NEWBORNS IS NOT AVAILABLE 100%
TO EVERY ELIGIBLE CHILD. IT'S
DESIGNED BASED ON CERTAIN
ASSUMPTIONS. SO THE ASSUMPTIONS
WERE BACK IN THE DAY WHEN THE
PROGRAM FIRST GOT APPROVED, WAS
THAT 20% OF TOTAL NEWBORNS WOULD
CLAIM THEIR ACCOUNT, AND OF
THOSE 20 OF THOSE 90,000
CHILDREN, 20% OF THEM, 10% WOULD
ACTUALLY OPEN A SCHOLARSHIP, 5
TO 9 ACCOUNT AND LINK IT SO THAT
IT'S A FLUCTUATING NUMBER THAT'S
GOING TO BECOME AN UNFUNDED
LIABILITY FROM NOW UNTIL THEY'RE
AGE 26. AND WE'RE TALKING ABOUT
EVERY INCOMING COHORT OF, OF
NEWBORNS. AND SO I JUST WANT TO,
YOU KNOW, WE UNDERSTAND I MEAN,
I THINK WE KIND OF UNDERWENT
THIS VERY SIMILAR, PRACTICE,
EXERCISE WHEN IT CAME TO THE
GOVERNOR'S SCHOLARSHIP PROGRAM A
FEW YEARS BACK WHERE SOME MONEY
WAS CLAWED BACK. BUT I THINK AS
LONG AS THERE'S AN UNDERSTANDING
THAT THERE IS A LIABILITY THAT
EXISTS WITHIN CAL KIDS FOR THESE
YOUNG PARTICIPANTS. OKAY. THANK
YOU. OKAY. AND THEN LASTLY, WITH
RESPECT TO THE RECOMMENDATIONS
FOR THE FINANCIAL LITERACY
MONEY, THE 4.5 MILLION AND THE 5
MILLION, BOTH FROM 22, 23 AND
2324, THE REASON WHY THOSE
MONIES ARE STILL THERE UNSPENT
IS NOT BECAUSE WE DIDN'T HAVE
THE OPPORTUNITY, EXCEPT WE ONLY
HAD THREE PEOPLE RUNNING CAL
KIDS. OKAY, NOT ONLY WERE THEY
CHARGED WITH, YOU KNOW, PUTTING
UP THE PROGRAM, LAUNCHING IT,
AND ACTUALLY MARKETING IT AND,
YOU KNOW, OPERATING IT, WE WERE
ALSO CHARGED, IF YOU RECALL,
WITH $5 MILLION TO PROVIDE A
GRANT PROGRAM TO LOCAL CSA
PROGRAMS. AND THAT TOOK SOME
TIME TO DO AS WELL, AND WHICH WE
DID VERY SUCCESSFULLY. WE JUST
DIDN'T GET ENOUGH TIME OR STAFF
RESOURCES OR BANDWIDTH TO GET
AROUND TO ACTUALLY IMPLEMENTING
THIS FINANCIAL LITERACY PROGRAM.
BUT THANKS TO THE LEGISLATURE
AND THE ADMINISTRATION, WE WERE
FUNDED WITH NGUYEN POSITION LAST
YEAR TO HIRE SOMEONE TO ACTUALLY
PUT THIS PROGRAM TOGETHER. NOW
IT TOOK US TILL NOVEMBER TO
ACTUALLY FIND SOMEONE QUALIFIED
ENOUGH TO ACTUALLY PUT THE
PROGRAM TOGETHER. SO WE'VE HAD
THEM SINCE NOVEMBER AND NOW
SINCE THEN, OUR SSM ONE LEVEL
MANAGER HAS DEVELOPED. HE'S DONE
A LANDSCAPE REVIEW OF ALL BEST
PRACTICES ACROSS THE COUNTRY,
PROGRAMS THAT ACTUALLY EXIST AND
ARE DOING WELL, AND ACTUALLY
CONSULTED WITH EXPERTS. AND HE'S
GOT A STRATEGY THAT HE WANTS TO
PUT IN PLACE. SO ALL I WOULD
LIKE TO ASK THE COMMITTEE IS TO
CONSIDER POSSIBLY RESTORING ALL
OR SOME OF IT FOR FUTURE USE,
BECAUSE I THINK THERE'S A LOT OF
GOOD THAT CAN BE DONE TO USE
THESE MONIES TO EDUCATE FAMILIES
, ESPECIALLY THOSE THAT ARE LOW
INCOME AND CAN BENEFIT FROM
FINANCIAL WELLNESS PROGRAMS,
MODULES AND EDUCATION TO BREAK
DOWN THE BARRIERS THAT PREVENT
FAMILIES FROM ACTUALLY
PARTICIPATING IN THE PROGRAM.
AND THAT WOULD BE OUR REQUEST.
THANK YOU. I DON'T WANT TO SPEAK
FOR THE LAO, BUT JUST REMIND YOU
THAT THE RECOMMENDATION ALSO TO
MAINTAIN THE 5 MILLION ONGOING
FOR THAT PROGRAM. SO THERE IS NO
RECOMMENDATION TO ON AN ONGOING
BASIS, THIS WOULD BE A ONE TIME.
BUT I HEAR YOUR POINT. THANK
YOU. THANK YOU ALL, WITH THAT,
WE WILL HAVE SOME PUBLIC
COMMENTS. IF THERE IS ANYBODY IN
THE PUBLIC WHO'D LIKE TO MAKE
COMMENT, THIS IS THE TIME TO DO
SO. WE'LL GIVE YOU ONE MINUTE TO
PLEASE STATE YOUR NAME AND SHARE
YOUR, THOUGHTS, COMMENTS OR
QUESTIONS ON TODAY'S AGENDA. AND
WE WILL. WE'LL BEGIN. SIR. THANK
YOU. WELCOME, CHAIR. PERSON
ALVAREZ, ASSEMBLY MEMBER FONG
AND COMMITTEE STAFF. MY NAME IS
NICOLO DELUCA. I'M HERE ON
BEHALF OF THE CITY OF SAN
LEANDRO. I JUST WANT TO COMMENT.
AS IT RELATES TO THE STATE
BUILDING FOR LIBRARY FACILITIES
IMPROVEMENT PROGRAM, THE CITY
WAS SO GRATEFUL TO GET 4 MILLION
BACK IN 23 TO BUILD A BRAND NEW
LIBRARY IN SAN LEANDRO. AS OF
THIS TIME, OVER 2 MILLION HAS
NOT YET BEEN DISPERSED. SO
CERTAINLY THERE'S SOME ANXIETY
AND SOME FEAR ABOUT ANY FUNDS
BEING FROZEN OR CLAWED BACK OR
WHAT HAVE YOU. SO WE JUST REALLY
WANT TO HIGHLIGHT THE CRITICAL
NEED FOR THOSE $2 MILLION TO,
AGAIN, CREATE A BRAND NEW
LIBRARY. I ALSO WANT TO THANK
COMMITTEE STAFF FOR THE THOROUGH
ANALYSIS AND REALLY APPRECIATE
ALL YOUR HARD WORK. SO THANK YOU
VERY MUCH. THANK YOU. GOOD
MORNING, LETICIA GARCIA, ON
BEHALF OF RIVERSIDE COUNTY
SUPERINTENDENT OF SCHOOLS, ON
ITEM NUMBER FOUR, CAL KIDS,
WE'RE THE PROUD, PILOT, COUNTY
IN PARTNERSHIP WITH THE
SCHOLARSHARE INVESTMENT BOARD,
AS YOU HEARD EARLIER, WE'VE HAD
OUR FIRST DATA SHARE, JUST A
COUPLE OF WEEKS AGO, VERY
EXCITED ABOUT, MOVING FORWARD,
IN A MORE ROBUST WAY. SO ONE OF
THE SPECIFIC THINGS THAT OUR
EDUCATION EXPERTS ARE ASKING US
IS THAT WE, CONSIDER, ESPECIALLY
AS WE ENTER INTO THIS LAST YEAR
OF THE PILOT, THE TWO YEAR PILOT
PROGRAM IS THAT WE HAVE DATA
SHARES ON A MORE FREQUENT BASIS,
RIGHT NOW IT'S QUARTERLY. WE'D
LIKE TO SEE THOSE ON A WEEKLY
BASIS, IDEALLY, JUST A COUPLE OF
THINGS THAT WE'RE DOING BECAUSE
I KNOW THERE'S A LOT OF INTEREST
IN THIS PROGRAM, WE ARE HOSTING
THE STATE TREASURER TOMORROW,
AND MR. LIGHTMAN IN RIVERSIDE
COUNTY, WE'RE GOING TO SEE THREE
FINANCIAL LITERACY LESSONS
TAKING PLACE LIVE. ONE IN A
SECOND GRADE CLASSROOM, ANOTHER
ONE IN MIDDLE SCHOOL, ANOTHER
ONE IN HIGH SCHOOL. AND THE
CULMINATING EXPERIENCE IS THAT
THE KIDS ARE GOING TO CLAIM
THEIR ACCOUNTS. SO WE'RE GOING
TO SEE MANY MORE KIDS CLAIMING
THEIR ACCOUNTS TOMORROW. YOU'RE
ALL MORE THAN WELCOME TO, YOU
KNOW, WE'D LOVE TO HOST YOU ON
ONE OF THESE SITE VISITS. AND
THEN IN ADDITION, WE ARE
SUBMITTING A PROPOSAL TO THE
CALIFORNIA SCHOOL BOARDS
ASSOCIATION, THEIR ANNUAL
CONFERENCE IN DECEMBER, TO
CO-HOST A WORKSHOP WITH THE WITH
SCHOLARSHARE SO THAT WE CAN
BRING THE BEST PRACTICES THAT
OUR COUNTY IS DOING, AND THEN
ELEVATE THE NUMBERS OF. THANK
YOU VERY MUCH. HI. MY NAME IS
DEBBIE RAUSCHER, AND I'M WITH
JOHN BURTON ADVOCATES FOR YOUTH.
I'M HERE TO REQUEST THAT THE
ASSEMBLY INCLUDE LANGUAGE IN THE
BUDGET TRAILER BILL TO EXPAND
ACCESS TO CAL KIDS FOR FOSTER
YOUTH, SIMILAR TO THAT PROPOSED
BY ASSEMBLY MEMBER MCCARTY IN AB
2508, WHEN THE LEGISLATURE
ADOPTED CAL KIDS, THE INTENTION
WAS TO PROVIDE ENHANCED DEPOSITS
FOR FOSTER YOUTH. HOWEVER, THESE
DEPOSITS ARE LIMITED TO CHILDREN
WHO HAPPEN TO BE IN FOSTER CARE
ONLY IN THE FIRST GRADE,
EXCLUDING ANYBODY WHO ENTERS THE
FOSTER CARE SYSTEM AFTER THE
FIRST GRADE. FROM THESE
PAYMENTS, AMONG ALL STUDENT
GROUPS IN CALIFORNIA, FOSTER
YOUTH FACED THE GREATEST
BARRIERS TO ACHIEVING THEIR
EDUCATIONAL GOALS. JUST 10%
OBTAIN A DEGREE, A RATE THAT IS
ONE THIRD THE OVERALL STATE
COMPLETION RATE, ABUSE AND
NEGLECT IN THE HOME, REMOVAL
FROM FAMILY AND FREQUENT MOVES
CONTRIBUTE TO THESE POOR
OUTCOMES. WHILE RECOGNIZING THE
MAJOR BUDGET CHALLENGES THIS
YEAR, FOSTER YOUTH REPRESENT
LESS THAN 1% OF ALL CALKINS
ACCOUNTS, AND THIS CHANGE COULD
BE EASILY ACCOMMODATED WITHIN
THE EXISTING PROGRAM BUDGET.
THANK YOU. THANK YOU FOR YOUR
TESTIMONY. GOOD MORNING,
POSITION WITH, YOU ASPIRE ALSO
HERE, ON BEHALF OF THE NORTHERN
CALIFORNIA COLLEGE PROMISE
COALITION, HERE TO ALSO ECHO,
THE ASKED, FOR THIS BODY TO
INCLUDE, THE ASSEMBLY TO INCLUDE
BUDGET TRAILER BILL LANGUAGE TO
EXPAND CAL KIDS FOR FOSTER
YOUTH, WE KNOW THAT 93% OF
FOSTER YOUTH IN CALIFORNIA WANT
TO ATTEND COLLEGE, BUT THEY,
OFTEN CITE AFFORDABILITY
CONCERNS, AS A REASON THAT THEY
DON'T, PLUS, THE STUDIES HAVE
SHOWN, THAT EVEN WITH THE
COLLEGE SAVINGS OF LESS THAN
$500, SIMILAR TO WHAT WAS ECHOED
EARLIER, THE SENTIMENT OF HAVING
THAT FUNDING CAUSES STUDENTS TO
WANT TO GO TO COLLEGE MORE. AND
WE SEE THE STUDIES SHOW THAT 25%
MORE LIKELIHOOD FOR CHILDREN
WITH, $500 OR MORE, TO WANT TO
ATTEND COLLEGE AND 64% MORE
LIKELY TO WANT TO STAY IN
COLLEGE, AND THEN LASTLY, 46% OF
ALL FOSTER YOUTH, ENTER THE
SYSTEM AFTER THE AGE OF SIX. AND
THESE ARE, NEARLY, YOU KNOW,
HALF, ARE INELIGIBLE FOR THE
ADDITIONAL FUNDING INTENDED FOR
THE SUPPORT OF FOSTER YOUTH
SYSTEM, UNDER THE CURRENT
EXISTING. WHICH IS WHY WE WANT
TO EXPAND THE PROGRAM. SO THANK
YOU SO MUCH. GOOD MORNING. MY
NAME IS WEDNESDAY POPE, AND I AM
A CURRENT STUDENT AT FOLSOM LAKE
COLLEGE, MAJORING IN BUSINESS
ADMINISTRATION. AND I WILL BE
TRANSFERRING TO A FOUR YEAR
UNIVERSITY THIS FALL. I WANT TO
ECHO THE REQUEST THAT THE
ASSEMBLY INCLUDE BUDGET TRAILER,
BILL LANGUAGE TO EXPAND CAL KIDS
FOR FOSTER YOUTH. THE CAL KIDS
PROGRAM CURRENTLY ONLY APPLIES
TO STUDENTS IN FOSTER CARE IN
THE FIRST GRADE. UNFORTUNATELY,
STUDENTS LIKE ME ARE NOT
ELIGIBLE FOR THIS VITAL PROGRAM.
I SPENT OVER EIGHT YEARS IN AND
OUT OF FOSTER CARE STARTING AS A
NEWBORN. HOWEVER NEVER IN THOSE
EIGHT YEARS WAS I ACTUALLY IN
FOSTER CARE. IN THE FIRST GRADE.
I'M ALSO A FIRST GENERATION
COLLEGE STUDENT. GROWING UP,
NEITHER MY BIOLOGICAL PARENTS
NOR MY FOSTER PARENTS ENCOURAGED
ME TO PLAN FOR COLLEGE. DESPITE
THIS LACK OF SUPPORT, I STILL
ENROLLED IN COLLEGE. HOWEVER,
EVEN WITH FINANCIAL AID, I
STRUGGLED TO MAKE ENDS MEET.
HAVING A CAL KIDS ACCOUNT COULD
HAVE SENT THE MESSAGE TO ME THAT
COLLEGE WAS POSSIBLE MOTIVATED
ME TO ENGAGE IN COLLEGE PLANNING
, AND PROVIDED ME WITH RESOURCES
TO MEET MY BASIC NEEDS WHILE IN
SCHOOL. THANK YOU FOR YOUR TIME.
THANK YOU. GOOD MORNING, MR.
CHAIR AND MEMBERS. I'M CHRISTINA
DECARO HERE ON TWO ISSUES BEFORE
YOU TODAY FOR TWO CLIENTS.
FIRST, I'M REPRESENTING THE
CALIFORNIA LIBRARY ASSOCIATION
ON THE ISSUE OF THE LIBRARY
INFRASTRUCTURE GRANTS. YOUR
ANALYSIS DOES AN EXCELLENT JOB
OF CAPTURING THE VERY STRONG
CONCERNS THAT WE HAVE WITH THE
SUGGESTED CLAWBACK OF ANY
UNENCUMBERED FUNDS THAT COULD BE
DIRECTED FOR CRITICAL PUBLIC
LIBRARY INFRASTRUCTURE PROJECTS.
AND THESE ARE THE GRANTS THAT
HAVE BEEN USED FOR SERIOUS ADA
COMPLIANCE ISSUES, SEISMIC
SAFETY UPGRADES, CREATION OF
FAMILY RESTROOMS, HVAC
INSTALLMENTS. THESE ARE
LIBRARIES THAT ARE BEING USED AS
COOLING CENTERS FOR OUR PUBLIC
TO PULL BACK. EVEN ONE OF THE
GRANT CHECKS FOR THESE PROJECTS
WOULD BE ABSOLUTELY DEVASTATING.
ON ISSUE NUMBER TWO, PERTAINING
TO CAL KIDS, I'M REPRESENTING
THE CALIFORNIA PUBLIC TELEVISION
GROUP. ALL OF THE PBS STATIONS
IN THE STATE. OUR GROUP RECENTLY
MET WITH THE STATE TREASURERS
TEAM, AND WE TALKED ABOUT HOW
COULD WE USE OUR BULLY PULPIT TO
REACH ALL THE FOLKS THAT ARE IN
NEED OF THESE ACCOUNTS? WE ARE
STANDING AT THE READY TO HELP IN
ANY WAY WE CAN. PBS, OF COURSE,
REACHES MORE CHILDREN AND
PARENTS IN LOW INCOME HOMES THAN
ANY OTHER CHILDREN'S TELEVISION
NETWORKS. SO AS WE SAY, WE'RE
WE'RE READY TO ROLL UP OUR
SLEEVES AND SEE WHAT WE CAN DO
TO HELP IN THAT REGARD. THANK
YOU, THANK YOU, THANK YOU ALL.
APPRECIATE YOUR TESTIMONY. AND
WITH THAT CONCLUDES OUR MEETING
TODAY AGAIN, NOTICE THAT WE ARE
LIKELY TO MEET ON MAY 16TH AFTER
THE MAY REVISION. WE'RE
ADJOURNED