BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2104
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          ASSEMBLY THIRD READING
          AB 2104 (Gordon)
          As Amended  May 25, 2012
          Majority vote 

           EDUCATION           10-0        APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Brownley, Norby, Ammiano, |Ayes:|Fuentes, Blumenfield,     |
          |     |Buchanan, Butler, Carter, |     |Bradford, Charles         |
          |     |Eng, Grove, Halderman,    |     |Calderon, Campos, Davis,  |
          |     |Williams                  |     |Gatto, Ammiano, Hill,     |
          |     |                          |     |Lara, Mitchell, Solorio   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Repeals and makes changes to 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 receive 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 








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               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);  

             d)   Allocate $5 million to distribute to preschool 
               classrooms for parent literacy and staff development 
               activities.

             e)   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; 

             f)   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;

             g)   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;

             h)   Restrict eligibility to participating programs that were 
               eligible to receive funds in the 2007-08 fiscal year (FY), 
               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);









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             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; and,  

             aa)  Authorize up to $5 million of unearned contract funds 
               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 a family literacy supplemental grant shall be 
            made available and distributed to qualifying California state 
            preschool classrooms, as determined by the SPI, at a rate of 
            $2,500 per class.  Requires funds to be distributed by the SPI 
            according to the following priorities:

             a)   First priority shall be assigned to CSPP programs that 
               are contracted to receive funds before July 1, 2013.  
               Specifies that these programs shall receive funding until 
               their contract is terminated or the CSPP no longer provides 
               family literacy services; and,

             b)   Second priority shall be assigned to CSPP operating 
               classrooms located in the attendance area of elementary 
               schools in deciles 1 to 3 based on the most recently 
               published API.  Requires the SPI to use a lottery process 
               to implement the second priority allocations.    

          5)Specifies that a family literacy supplemental grant shall be 
            used for purposes specified in Education Code Section 8238, 
            which specifies interactive literacy, parent education, and 
            staff development activities.  

          6)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 








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            program.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, General Fund/Proposition 98 cost pressure, likely in 
          between $125,000 and $150,000, to provide additional funding for 
          PKFL classrooms.  

           COMMENTS  :  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 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; of which, 145,000 were CSPP 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 
          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 








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          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:  1) to provide access to children who live in 
          attendance areas of schools with low-performing achievements; 
          and, 2) 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 strikes the 
          allocations for the PKFL and most of the provisions outlining 
          the PKFL program, but retains a $2,500 family literacy 
          supplemental grant provided to programs located in deciles 1-3 
          areas.   
           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087 
                                                       FN: 0003978