BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2104
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          Date of Hearing:   March 28, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 AB 2104 (Gordon) - As Introduced:  February 23, 2012
           
          SUBJECT  :   Child care:  state preschool programs

           SUMMARY  :  Repeals and recodifies specified provisions related to 
          the Prekindergarten and Family Literacy Programs (PKFL).  
          Specifically,  this bill : 

          1)Specifies that state preschool programs are part-day and 
            full-day age and developmentally appropriate programs designed 
            to facilitate the transition of three- and four-year-old 
            children to kindergarten. 
              
          2)Repeals the provisions requiring a participating PKFL program 
            to coordinate family literacy and staff development activities 
            and instead incorporates both provisions into the section of 
            law specifying the duties of a participating California State 
            Preschool Program (CSPP) that received funds to provide family 
            literacy and staff development activities.

          3)Repeals the provisions that do the following:

             a)   Require a participating PKFL program to provide age and 
               developmentally appropriate activities for children in 
               participating classrooms that are designed to facilitate 
               their transition to kindergarten.

             b)   Authorize a local educational agency or a participating 
               PKFL program to select a family literacy and education 
               coordinator whose duties may include developing a system to 
               coordinate the provision of literacy services, creating an 
               organizational partnership between program provider, an 
               adult education program or other community provider, and 
               promoting parental involvement in participating classrooms.

             c)   Allocate $45 million to reimburse participating PKFL 
               programs on a per-child basis at the same rate that is used 
               for the state preschool program, as determined in the 
               annual Budget Act or other statute, allocated to programs 
               located within the areas of elementary schools in deciles 1 
               to 3, based on the 2005 Academic Performance Index (API).  








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             d)   Require funds for the PKFL to serve children who would 
               attend kindergarten in the subsequent academic year and 
               prohibit a child from receiving services for more than one 
               year. 

             e)   Authorize a PKFL program to provide services to children 
               in families above the income eligibility threshold at a 
               maximum of 20% of contracted slots, calculated through the 
               participating program's entire contract.

             f)   Require the California Department of Education (CDE) to 
               provide an annual report to the Department of Finance and 
               the Legislature on the number of children being served in 
               the CSPP, including the number of children served above the 
               income eligibility threshold and the age of all children 
               served.

             g)   Specify that $5 million shall be distributed to each 
               participating class at a rate of $2,500 and authorize the 
               funds to be used for compensation and support costs for 
               program coordinators, staff development, family literacy 
               services, and instructional materials.  

             h)   Restrict eligibility to participating programs that were 
               eligible to receive funds in the 2007-08 fiscal year, 
               specify that appropriation of funds beyond the amounts 
               specified in the PKFL shall be pursuant to the annual 
               Budget Act or other statute.

             i)   Authorize programs receiving PKFL funds to participate 
               in all CSPP administered by the Superintendent of Public 
               Instruction (SPI).

             j)   Require the SPI to conduct an evaluation of the 
               effectiveness of prekindergarten and family literacy 
               programs, and to the extent possible, i) require the 
               evaluation to rely on quantifiable measures of academic 
               achievement of participating children, including, but not 
               limited to, performance on the Standardized Testing and 
               Reporting Program test and the English language development 
               test administered in grade 3; and, ii) the estimated costs 
               and benefits of the programs.  

             aa)  Authorize up to $5 million of unearned contract funds 








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               for general child care programs to be used to provide 
               direct child care services for children in participating 
               classrooms to meet the child care needs of parents for the 
               portion of each day that is not covered by services 
               provided by the PKFL.

          4)Specifies that of the funds appropriated in the Budget Act of 
            2013 for CSPP, $5 million shall be distributed to qualifying 
            CSPP at a rate of $2,500 per class.  Require funds to be 
            distributed by the SPI as follows:

             a)   First priority shall be assigned to CSPP programs that 
               are located in the attendance area of elementary schools in 
               deciles 1 to 3, based on the 2005 base API, and established 
               on or before June 30, 2013.

             b)   Funds not obligated on or before July 1, 2013 shall be 
               districted through a lottery process, to CSPPs operating 
               classrooms located in the attendance area of elementary 
               schools in deciles 1 to 3 based on the most recently 
               published API.  Specifies that funds awarded through a 
               lottery process shall first be assigned to applicants that 
               will maintain the class within the attendance area of the 
               elementary school that received the original grant and 
               second priority shall be assigned to programs based on the 
               most recently published API.   

          5)Strikes the provisions that apply in order to facilitate a 
            full day of services for CSPP, and instead specifies that 
            subsequent to enrollment, a child shall be deemed eligible for 
            part-day care as long as the child is enrolled in a preschool 
            program.  

           EXISTING LAW  :

          1)Establishes eligibility for child care services and child 
            development programs administered by the CDE and requires the 
            SPI to adopt rules and regulations on eligibility, enrollment 
            and priority of services needed for implementation (Education 
            Code (EC) Section 8263).

          2)Establishes the CSPP, comprised of funding from State 
            Preschool, PKFL, and General Child Care center-based programs, 
            for part-day and full-day services for three- and four-year 
            old children.  (EC Section 8235)  








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          3)Establishes the PKFL, which provides child development and 
            family literacy services to those who reside in the attendance 
            areas of elementary schools in deciles 1-3.  Specifies that 
            eligibility is limited to children who would be attending 
            kindergarten the subsequent year.  Allocates $50 million from 
            the Budget Act, of which $45 million is to reimburse 
            participating programs at the same rate as that is used for 
            the CSPP and $5 million is to be allocated to each 
            participating class at a rate of $2,500 per class per year for 
            program coordinator compensation and support costs, staff 
            development, family literacy services, and instructional 
            materials.  (EC Section 8238-8239)   

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   Background  .  The CDE administers a child care and 
          development system, maintaining 1,401 service contracts with 
          approximately 758 public and private agencies supporting and 
          providing services to children from birth to 13 years of age. 
          Contractors include school districts, county offices of 
          education, cities, colleges, other public entities, 
          community-based organizations, and private agencies.  In fiscal 
          year (FY) 2011-12, $2.017 billion was provided for child care 
          and development programs from state and federal funds, enrolling 
          an estimated 345,000 children.  This is down from $2.669 billion 
          initially provided in the FY 2010-11 budget (prior to midyear 
          trigger cuts) with almost 416,000 slots.  

          The PKFL program, established through AB 172 (Chan), Chapter 
          211, Statutes of 2006, provides child development and family 
          literacy services to those who reside in the attendance areas of 
          deciles 1-3 elementary schools.  Eligibility is limited to 
          children who would be attending kindergarten the subsequent 
          year; attendance is limited to one year.  AB 172 allocated $45 
          million for provider reimbursement and $5 million for family 
          literacy and support activities, allocated at $2,500 per class 
          for this purpose.  AB 172 directed an additional $5 million from 
          the general child care and development program to provide "wrap 
          around" service to enable families receiving services under the 
          PKFL to receive full day care.    

          According to the SPI, the sponsor of this bill, this bill 
          consolidates the PKFL into the CSPP to streamline all statutory 
          funding requirements for CSPP.  The SPI states that prior to the 








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          enactment of AB 2759 (Jones), Chapter 308, Statutes of 2008, 
          there were three separate preschool and child care programs, the 
          State Preschool programs, PKFL, and general child care and 
          development programs.  AB 2759 consolidated the programs into 
          the CSPP.  According to the California Department of Education 
          (CDE), at the request of then Governor Schwarzenegger, the PKFL 
          statutes were left in the Education Code.  The SPI states, 
          "Although AB 2759 removed much of the administrative burden at 
          the local and state level, the retention of the PKFL statute 
          continues to create confusion and require burdensome 
          administrative actions for both the CDE and child care 
          providers."   

          Since the enactment of AB 2759, the $50 million budget line item 
          for the PKFL program was folded into the funding for CSPP in FY 
          2009-10.  While the original PKFL grantees have maintained 
          funds, the CDE now gives contractors a choice to operate the 
          program under the PKFL or CSPP.   

          The intent of the PKFL were two-folds:  to provide access to 
          children who live in attendance areas of schools with 
          low-performing achievements and to provide interactive literacy 
          activities, activities in which parents or legal guardians 
          actively participate in facilitating the acquisition by their 
          children of prereading skills through guided activities.  This 
          bill will retain $5 million for family literacy activities 
          provided to programs located in decile 1-3 areas.  However, the 
          estimated 12,000 slots created just for children who reside in 
          low-achieving areas will be folded into the CSPP.  The slots 
          will no longer be reserved for programs located in low achieving 
          elementary school areas.  According to the CDE, in 2009, 80% of 
          all preschool programs (including those participating in PKFL) 
          were located within the attendance areas of deciles 1 -3 
          schools.   

          Consolidating the programs was a recommendation of the 
          Legislative Analyst's Office (LAO), in its analysis of the FY 
          2007-08 budget.  The LAO argues that the PKFL is almost the same 
          program as the state preschool program, using the same income 
          eligibility criteria and providing the same rate as the state 
          preschool programs, with the only difference being that 
          allocations are to contractors serving children in the 
          attendance area of deciles 1-3 schools.  Having separate 
          programs result in different application and selection processes 
          and separate tracking and reporting work for state staff and 








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          providers.  

           Committee amendment  :  Staff recommends adding a cross reference 
          to Education Code Section 8238, which specify requirements for 
          CSPP contractors that receive family literacy and staff 
          development program funds, in Section 8238.4, the section 
          setting aside the $5 million for those purposes.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Superintendent of Public Instruction Tom Torlakson (sponsor)
          California State PTA

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087