BILL ANALYSIS                                                                                                                    Ó



                                                                  AB 1
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          ASSEMBLY THIRD READING
          AB 1 ( John A. Perez)
          As Introduced  December 6, 2010
          Majority vote 

           SUMMARY  :  Restores $233.5 million in funding for the California 
          Work Opportunity and Responsibility to Kids (CalWORKs) Stage 3 
          child care development services for fiscal year 2010-11, 
          retroactive to November 1, 2010.

           EXISTING LAW  :  Requires that child care be provided in three 
          stages to recipients of benefits under the CalWORKs program.  
          The first stage of child care begins upon the entry of a person 
          into the CalWORKs program.  The 2nd stage of child care begins 
          when a county determines that the work or approved work activity 
          of the recipient is stable or when a recipient is making the 
          transition off of aid and child care is available through a 
          local stage 2 program.  The 3rd stage of child care, which is 
          administered by programs contracting with the State Department 
          of Education, begins when a funded child care space becomes 
          available for the child or children of the eligible CalWORKs 
          recipient. 

           FISCAL EFFECT  :  Reappropriates $118,000,000 in unobligated 
          balances appropriated in the Budget Act of 2009 and from federal 
          Child Care and Development Block Grant, and appropriates 
          $115,534,000 from the Proposition 98 General Fund.   The bill 
          would declare that it makes appropriations for the usual and 
          current expenses of the state, thereby taking immediate effect. 

           COMMENTS  :  Under this bill, the State Department of Education is 
          required to use these funds for families that were receiving, or 
          would have been eligible to receive, CalWORKs Stage 3 child care 
          development services, on or after October 31, 2010.

          Governor Schwarzenegger's veto of $256 million in CalWORKs Stage 
          3 Proposition 98 General Funding created Proposition 98 
          settle-up, and this bill reduces that future obligation. 


           Analysis Prepared by  :   Sara Bachez / BUDGET / (916) 319-2099

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                                                                  AB 1
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