BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 273
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 273 (Rendon) - As Amended:  April 8, 2013 

          Policy Committee:                              Education  
          Vote:6-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes the California Partnership for Infants and  
          Toddlers Act of 2013 (CPIT Act), which provides supplemental  
          funding to serve infants and toddlers from birth to three years  
          of age.  Specifically, this bill:

          1)Requires the Superintendent of Public Instruction (SPI), on or  
            before March 1, 2014, to apply to the California Children and  
            Families Commission (First 5 California) for moneys received  
            pursuant to the California Children and Families (CCF) program  
            to provide funding to agencies who serve infants and toddlers  
            via a supplemental grant.    

          2)Establishes that the moneys received by the SPI for these  
            purposes are continuously appropriated and are required to be  
            expended by the SPI by making supplemental grants available to  
            qualifying general child care and development of infant and  
            toddler agencies that serve these children at an amount not  
            less than $2,500 annually per child.  

          3)Requires the moneys received to be used to offer support  
            services to enrolled children and families, including, but not  
            limited to, health and nutrition, home visitation, early  
            childhood mental health, parental involvement, and  
            supplemental early learning services.  

          4)Requires the SPI, in consultation with First 5 California, to  
            determine which general child care and development infant and  
            toddler contracting agencies and support services qualify for  
            funding.  Further requires the SPI to establish standards to  
            ensure quality child care, based on the federal Early Head  








                                                                  AB 273
                                                                  Page  2

            Start program model and other evidence-based services provided  
            to these children.  

          5)Requires the SPI to minimize and simplify the administrative  
            and reporting requirements for contracting agencies.  Further  
            requires the SPI, on or before March 1, 2017, to submit a  
            report to the Legislature evaluating the effectiveness of the  
            supplemental grants with regard to supporting the healthy  
            development and school readiness of children.

           FISCAL EFFECT  

          1)Annual GF/98 costs, of at least $2.5 million, to provide a  
            supplemental grant for infant and toddlers, as specified.  The  
            author has indicated he is working with First 5 about  
            utilizing their revenue as a funding source for this measure.   
            The First 5's November 2012 Financial Statement indicated its  
            child care account has a surplus of $25,000.  At this time, it  
            is unclear 

            if these funds or any other of the commission's funds are  
            available to implement this measure.

          2)According to the LAO, the Governor's proposed 2013-14 Budget  
            "does not contain notable reductions for child care and  
            preschool programs.  Based primarily on minor changes in  
            funding for the three stages of CalWORKs child care, overall  
            funding for child care and preschool programs would increase  
            by $12 million (one percent) compared to the revised  
            current-year level.  The Governor proposes only very small  
            changes (less than $1 million) in GF spending for non-CalWORKs  
            child care programs and in Proposition 98 spending for State  
            Preschool. Additionally, the Governor's proposal does not  
            include a cost-of-living adjustment (COLA) for any child care  
            or preschool program, as the 2012-[Budget Act] suspended COLAs  
            for these programs through 2014-15."

           COMMENTS  

           1)Purpose  .  In the 2013 State of the Union, President Obama  
            challenged Congress to expand early childhood education  
            programs.  Specifically, the president's proposed 2014 Budget  
            provides $1.4 billion "to establish a new Early Head  
            Start-Child Care partnership [to] support communities that  
            extend the availability of Early Head Start as well as child  








                                                                  AB 273
                                                                  Page  3

            care providers that can meet high standards of quality for  
            infants and toddlers."  At this time, there are no further  
            details on this proposal.  

            According to the author, "Research shows that children who  
            participated in Early Head Start had significantly larger  
            vocabularies and scored higher on standardized measures of  
            cognitive development, and that children and parents had more  
            positive interactions, and parents provided more support for  
            learning. Many different home visiting programs have been  
            shown to significantly reduce the occurrence of child  
            maltreatment and abuse, and improve children's health and  
            school success."  This bill proposes to augment child care  
            programs that serve children from birth to age three, as  
            specified.   

           2)How many infants and toddlers are currently being serviced in  
            general child care centers  ? General child care programs,  
            administered by SDE, are state and federally funded programs  
            that use centers, and family child care home networks operated  
            or administered by either public or private agencies and local  
            educational agencies. These agencies provide child development  
            services for children from birth through 12 years of age and  
            older children with exceptional needs.  According to SDE, the  
            following chart details the number of infants and toddlers  
            served in Title 5 child care centers over the last three  
            years:  

 ---------------------------------------------------  -------------------------------------------------- 


           



                  Source: SDE Monthly Child Care Report Oct. 2009 (archived  
                 data), Oct. 2010 (archived data), Oct. 2011 (preliminary  
                 data). 
                 Note: Data represents a "point in time" and does not  
                 reflect annual aggregate figures.  Counts represent the  
                 total number of unduplicated children served in Title 5  
                 Child Care Centers under the age of 36 months.  

            Title 5 general child care centers (licensed centers and  
            family child care homes) that have direct service contracts  








                                                                  AB 273
                                                                  Page  4

            with SDE earn a standards reimbursement rate (SSR).   
            Specifically, contractors are paid at a daily SSR for each  
            eligible child they serve.  The SSR is the same in all regions  
            of the state, with additional funds provided to centers that  
            care for infants, toddlers, and children with special needs.   
            In the 2011-12 fiscal year, the SSR full-day rate was $58.45  
            for infants and $48.13 for toddlers.

            This bill proposes a supplemental grant of not less than  
            $2,500 for infants and toddlers served in general child care  
            programs.     

           3)The California Children and Families Commission (First 5  
            California)  established by the enactment of Proposition 10 in  
            November 1998, is funded by a tax on tobacco products  
            equivalent to $.50 per pack of cigarettes.  Current law  
            establishes the California Children and Families Trust Fund  
            (Trust Fund) to receive this tax revenue and requires the  
            revenues to be appropriated for the purposes of promoting,  
            supporting, and improving the development of children from  
            birth to five years of age and to offset certain revenue  
            losses to tobacco education and prevention programs. 

           4)Previous related legislation  .  AB 2286 (Bonilla) increased the  
            subsidized child care rates for infant and toddler care.  This  
            bill was held on this committee's Suspense File in May 2012.  

           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081