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Supporters urge $17 million renewal for CA RISE employment social enterprise grants; LAO questions long‑term outcomes
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Summary
The governor proposed $17 million to continue CA RISE, a statewide capacity‑building and grant program for employment social enterprises that employ people with barriers to work; grantees reported placements and interim outcomes while LAO urged caution pending rigorous long‑term evaluation.
The subcommittee heard testimony on a $17 million one‑time request to continue the CA RISE program, a statewide grant and capacity‑building effort supporting employment social enterprises (ESEs) that hire people facing employment barriers.
Terrilyn Gray, director of the Governor's Office of the Small Business Advocate, told the committee CA RISE provides capital and technical assistance to ESEs and would finance grants of $100,000 to $500,000 and administrative support for CalOSBA to manage the program. Gray said the program (launched in 2023) is designed to accelerate economic mobility for individuals with employment barriers and that initial grantees had already produced interim outputs, including serving 61 grantees in the first round and "supporting currently 13,000 jobs" in program calculations.
The Legislative Analyst's Office recommended rejecting the proposal given evidence drawn from the LA RISE evaluation (a county program modeled in part for CA RISE). LAO summarized that while LA RISE participants experienced higher earnings and employment while in the program, rigorous evaluation found no persistent long‑term employment gains after program exit. LAO urged the Legislature to require additional reporting and a rigorous third‑party evaluation before funding a second round.
Several CA RISE grantees and program representatives testified in support, describing placements, wages, and wraparound services for participants with homelessness, criminal justice histories, behavioral health needs and other barriers. Speakers from Downtown Streets, Beacon House Association of San Pedro, San Jose Conservation Corps, UC Theater and others gave examples of job placements, average wages and other participant outcomes. Redf (a national funder/partner) and many local ESE leaders emphasized capacity building and long‑term organizational impact.
The subcommittee held the item open; members requested additional evidence on long‑term participant outcomes and the program's distinction from LA RISE and other local models.
