BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 1187
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          Date of Hearing:   April 30, 2013

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                AB 1187 (Mansoor) - As Introduced:  February 22, 2013
           
          SUBJECT  :  Subsidized child care for foster parents

           SUMMARY  :  Would require the California Department of Social  
          Services (DSS) to amend the foster care state plan.   
          Specifically,  this bill  :   

          1)Requires DSS to amend the foster care state plan to allow  
            counties to use state subsidized child care and development  
            (CCD) funds and After School Education and Safety (ASES)  
            Program funds as part of the 50/50 match for federal Title  
            IV-E Foster Care child care funding.

          2)Aligns current requirements for counties should they choose to  
            utilize state subsidized CCD funds and/or ASES program funds  
            as their local match for federal Title IV-E Foster Care, which  
            require counties to do all of the following:

             a)   Contract with a California Department of Education  
               (CDE)-contracted child development agency (CDA) or ASES  
               program for the provision of child care for eligible foster  
               youth;

             b)   Claim the full child care costs equivalent to regional  
               child care and development market rates;

             c)   Provide the full federal Title IV-E Foster Care match to  
               the contracted CDA or ASES program; and

             d)   Consult with the CDE to ensure that the CDA or ASES  
               program is in good standing and that funds are not  
               duplicated for the same child.

           EXISTING LAW   

          1)Establishes the California Child Care and Development Services  
            Act (CCDSA) to provide a comprehensive, community-based,  
            coordinated, and cost-effective system of child care and  
            development services for children from birth to age 13 with  
            the purpose of enhancing the social, emotional, physical, and  









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            intellectual development of children.

          2)States the intent of the Legislature that all families have  
            access to child care and development services, regardless of  
            their demographic background, in order to help them attain  
            financial stability through employment, while maximizing  
            growth and development of their children, and enhancing their  
            parenting skills through participation in child care and  
            development programs.

          3)Defines CCD services as care and services designed to meet a  
            wide variety of needs of children and their families, while  
            their parents or guardians are working, in training, seeking  
            employment, incapacitated, or in need of respite. 

          4)Authorizes local government agencies or non-profit  
            organizations to contract with the CDE to operate Alternative  
            Payment Programs (APPs) and provide alternative payments and  
            support services to parents and child development providers. 

          5)Establishes eligibility criteria for subsidized child care  
            based upon lowest income first for families whose incomes are  
            70% or less of the state median income (SMI), and provides  
            first priority for children who are in child protective  
            custody (temporary custody) or are at risk of abuse or  
            neglect, as specified.

          6)Establishes the ASES program to create incentives for  
            establishing locally-driven before and after school enrichment  
            programs both during schooldays and summer, intersession, or  
            vacation days that partner public schools and communities to  
            provide academic and literacy support and safe, constructive  
            alternatives for youth.

          7)Establishes ASES program funding priorities where priority is  
            given to existing ASES programs in good status, as well as to  
            schools where at least half of the student population is  
            eligible for free or reduced cost meals. 

          8)Allows counties to utilize its general fund for purposes of  
            its nonfederal match for federal Title IV-E Foster Care  
            funding to provide child care for its foster youth. 

          9)Restricts state subsidized CCD and state ASES funds from being  
            used as nonfederal match for federal Title IV-E Foster Care  









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            funding.

          10)Pursuant to the budget, provides that state subsidized CCD  
            funds be used for federal Child Care Development Block Grant  
            match and federal Temporary Assistance for Needy Families  
            (TANF) maintenance of effort (MOE) requirements.

          11)Pursuant to the budget, allows school districts to utilize  
            ASES funds as federal Elementary and Secondary Education Act  
            (ESEA) funding match.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           Subsidized Child Care and Development 
           As provided in statute, the primary purpose of the state's  
          subsidized CCD system is to help families attain financial  
          stability through employment, while maximizing growth and  
          development of their children by providing them access to  
          quality early childhood education and development programs. 

          Income eligibility is set by the annual budget act and currently  
          sits at 70% of the SMI.  However, not all children who qualify  
          under this income eligibility get access to child care as the  
          number of eligible children far outweighs the availability of  
          subsidized child care slots. 

           Prioritizing eligibility and triaging access to CCD programs  
          The state currently uses CCD subsidized program funding in a  
          number of ways, yet with one primary purpose.  One of the  
          primary purposes it provides are subsidized child care slots to  
          low-income needy families that enable parents to seek out and  
          obtain work.  Without that fundamental access, it further  
          restricts the limited opportunities low-income families, single  
          parent or otherwise, have to become employed.  According to the  
          California Budget Project, 75% of the individuals who receive  
          cash assistance from the California Work Opportunity and  
          Responsibility to Kids (CalWORKs) program, the state's  
          welfare-to-work program, are children.<1>  Without this  
          fundamental social services program, families facing the current  
          ---------------------------
          <1> "Cuts and Consequences: Key Facts About the CalWORKS Program  
          in the Aftermath of the Great Recession" - Slide 16. The  
          California Budget Project. February 2012.  
           http://www.cbp.org/documents/120224_CalWORKs_KeyFacts.pdf  








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          reality of the restructured CalWORKs program, i.e., the two-year  
          truncated program, have little opportunity to develop and  
          demonstrate the necessary workforce skills that merit  
          employment.  Without available subsidized CCD program slots for  
          children, many CalWORKs families face the reality of foregoing  
          work opportunities to remain at home to care for their children.  


          Within the current structure is also the important  
          acknowledgement and recognition that children in the foster care  
          system are deserving of much needed early child care and  
          development access.  To accommodate for this access and provide,  
          as much as possible, the opportunity for age-eligible foster  
          care children to experience and benefit from CCD programs, is  
          the statutory priority for children who are 1) in child  
          protective services, 2) at-risk of neglect or abuse, or 3)  
          provided priority due to their families' income. Recognizing the  
          dynamic of the pressures of balancing the need to serve both  
          populations; low-income and CalWORKs children, and eligible  
          foster youth, the state has sought out an equilibrium that  
          serves to balance the needs of both. 

          The state's subsidized CCD system attempts to balance the  
          established priority needs of needy and eligible low-income  
          youth with the needs of eligible foster youth through the  
          prioritization of access to child care.  Compounded within this  
          approach is that the needs of both populations far outweighs the  
          available supply of subsidized CCD program slots.  Recognizing  
          that the priority of the subsidized CCD system is primarily to  
          serve families struggling to meet CalWORKs welfare-to-work  
          requirements, which have been substantially reduced through the  
          adoption of the state's effort to realign social welfare  
          programs to counties, the desire to provide funding to serve  
          these families with available CCD slots competes with the  
          priority to serve children in foster care. 

          In an attempt to serve both populations, the state has adopted  
          policies that place first priority of enrollment in CCD programs  
          for children being served by the child protective services  
          system and children at risk of abuse and neglect.  Remaining  
          child care slots are then made available based upon the  
          lowest-income child first.  In essence, it is not difficult to  
          use emergency room terminology, i.e. triaging, with how the  
          state addresses the substantial yet unmet need for child care.   
          Inherently, this is an unfair scenario; placing children of  









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          varying needs in unfair and undesirable situations waiting for  
          much needed child care where it can become almost unfathomable  
          and immoral to decide which child deserves the care the most.

          For purposes of foster youth, the state has several mechanisms  
          it uses to prioritize their eligibility for child care.  First,  
          any child who is placed into child protective services, i.e. a  
          child in temporary custody but not yet ruled a dependent of the  
          court (foster care) or is deemed to be at risk of abuse and  
          neglect is provided first priority for placement into an  
          available subsidized CCD program slot.  If a foster youth does  
          not meet this criteria, the CDE, for purposes of income  
          eligibility, quantifies them as a "family of one," meaning that  
          they have no income and therefore are placed at the top of the  
          "lowest income first" list. 

           Understanding Supply and Demand  
          In 1997, the state developed a nine county pilot program to  
          consolidate waiting lists for subsidized child care programs to  
          better organize and prioritize enrollment of eligible and needy  
          children.  This nine-county pilot was expanded statewide and  
          made permanent in 2005.  Referred to as the Centralized  
          Eligibility List (CEL), it not only became a valuable tool to  
          help prioritize enrollment based upon eligibility and need, it  
          also helped to demonstrate the need for subsidized child care  
          and funding county-by-county and statewide. 

          The state annually appropriated $7.9 million to operate all 58  
          county CELs and the statewide CEL.  Unfortunately, due to the  
          ongoing budget deficit at the time, funding for CEL was  
          eliminated in the Budget Act of 2011 (Senate Bill 87, Chapter  
          33).  At the time of its elimination, there were approximately  
          240,000 eligible and needy children waiting for a subsidized  
          child care slot to open up.  Since then, some counties have  
          pursued maintaining their own CEL with existing local funds, but  
          it remains difficult to accurately estimate the total number of  
          needy and eligible families and children waiting for subsidized  
          child care. 

          However, using the number of eligible and needy children who  
          were on the statewide CEL in 2011, and taking into account the  
          nearly $700 million, or 42% of subsidized child care funding  
          that has been cut from the budget over the past five years, it  
          is not unreasonable to estimate that the number of eligible and  
          needy children waiting for subsidized child care surpasses  









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          300,000 children in need of care statewide.

           ASES Program
           The ASES Program was established by Proposition 39 in 2002,  
          which provides school districts with grant based funding for  
          after school programs in three-year terms.  This proposition  
          amended California Education Code (EC) sections 8482-8482.55 to  
          expand and rename the former Before and After School Learning  
          and Safe Neighborhood Partnerships Program as the ASES Program. 

          According to CDE, ASES programs are created through partnerships  
          between schools and communities to provide literacy support,  
          academic enrichment, and safe, constructive alternatives for  
          students in kindergarten through grade nine (K-9).  Funding is  
          designed to provide elementary and middle schools that submit  
          applications to establish before and after school programs with  
          a three-year grant.  According to the CDE, by definition, an  
          ASES program is one that receives ASES grant funding.

           Need for the Bill  
          In support as the sponsor of the bill, Orange County writes:

               AB 1187 would authorize the use of designated state child  
               care and development funds administered by the State  
               Department of Education and After School and Education and  
               Safety Program Funds, in addition to county funds,  as the  
               non-federal match  for specified child care for children  
               receiving protective services, foster children, and  
               children at risk of abuse and neglect, pursuant to criteria  
               specified in the bill. 

               AB 1187 entails no displacement of currently funded  
               children.  Instead, with additional federal funding  
               utilized for foster children, current State CDE funding to  
               serve additional non-foster children may also become  
               available.  Non-MOE state funds used for child care and  
               development programs and the after school education and  
               safety program could be doubled if leveraged with federal  
               Title IV-E child care funding.  This change could be  
               brought about at no additional cost to the state, the  
               public, and the private agencies contracting with CDE to  
               provide child care related services.  No other State  
               General Fund monies, besides CDE CDD program funds and  
               after school education and safety funds, would need to be  
               utilized for drawing down Title IV-E child care funds.









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           Leveraging state CCD and ASES funds to draw down federal dollars  
          Under current state budget authority, CCD and ASES funds are  
          identified for specific purposes.  Regarding CCD funds, they are  
          used in two primary ways to draw down available and permissible  
          federal funds.  First, they are used as a match for the federal  
          Child Care and Development Block Grant (CCDBG) Fund.  The  
          required match is a one-to-one, or otherwise 50/50 match, where  
          for each dollar the state spends on child care, the state can  
          draw down a dollar in federal CCDBG money.  Second, because the  
          state spends more money than it draws down in CCDBG funding,  
          there are remaining funds available to be identified for TANF  
          MOE. 

          States are required to meet federal TANF MOE requirements, which  
          replaced state match requirements with the adoption of welfare  
          reform, are generally 75 to 80% of the pre-welfare reform  
          spending amount that existed prior to the conversion from the  
          Aid to Families with Dependent Children (AFDC) program to TANF  
          in 1996.

          Under federal law, states are not allowed to use one dollar of  
          its funds for two different federal match or MOE purposes,  
          rather it must be a one-to-one match typically used to meet the  
          same goals.  For example, typically, a federal dollar allocated  
          for child care cannot be matched with a state dollar allocated  
          for non-child care purposes.  As a result, the state is required  
          to be specific on what funding it uses to meet specific federal  
          grant requirements, such as CCDBG and TANF.  Under current  
          permissions, the state currently uses CCD and ASES funding for  
          specific federal match and MOE purposes, which includes several  
          purposes; CCDBG, TANF and ESEA. 

           Unclear on remaining CCD and ASES funds for federal Title IV-E  
          Foster Care match  
          Although well intended, it is unclear whether AB 1187 will  
          accomplish its stated goal of drawing down additional federal  
          Title IV-E Foster Care funds to provide additional child care  
          funding for foster youth.  Given that the state provides several  
          mechanisms to prioritize child care for foster youth and that  
          the funding the state uses for foster youth child care services  
          is already identified for other federal match and MOE purposes,  
          should this measure seek to further encroach upon limited  
          funding already used to draw down other needed federal funds?










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           Ability to adequately identify foster youth served in CCD and  
          ASES programs 
           Currently, according to CDE, it does not have the ability to  
          identify whether it's CCD and ASES programs are serving foster  
          youth.  Due to the contractual system the CDE uses to provide  
          subsidized child care, CDE lacks the ability to identify the  
          children it serves as foster youth.  Although a child is  
          assessed as to whether he or she is in child protective services  
          or is at-risk of abuse or neglect for purposes of prioritization  
          for enrollment in a CCD program, the CCD program oftentimes does  
          not know that the child is a foster youth. 

          Additionally, due to current implementation of the California  
          Longitudinal Pupil Achievement Data System (CALPADS), the  
          state's student-level longitudinal data system, and federal and  
          state child welfare and pupil privacy laws it is difficult for  
          school districts to know whether it does or does not have a  
          foster youth enrolled, including in an ASES program.  Although  
          school districts may know on a case-by-case basis as identified  
          by its Foster Youth Liaison, not all districts have a foster  
          youth liaison, nor do they have the authority to compel a youth  
          to identify that they are in foster care. 

          As a result, it is unclear whether the state has the mechanisms  
          necessary to 1) identify its foster youth served by CCD or ASES  
          programs, 2) quantify the amount of funds it uses to provide CCD  
          or ASES services for that foster youth, and 3) whether those  
          funds could be used for federal Title IV-E Foster Care match.

           Title IV-E Child Welfare Waiver Capped Allocation Demonstration  
          Project  
          In 2007 the Counties of Los Angeles and Alameda implemented the  
          Title IV-E Child Welfare Waiver Demonstration Capped Allocation  
          Project (CAP).  The purpose of the CAP is to support counties  
          with the flexible use of federal and state foster care funds  
          under a capped funding allocation to assist child welfare and  
          probation to develop and implement alternative services as a  
          means to improve outcomes for children and their families. 

          According to DSS, in its proposal to extend the CAP by another  
          five years, it states:

               The California Department of Social Services (CDSS) has  
               requested a five-year extension of the current Title IV-E  
               Child Welfare Waiver Demonstration Capped Allocation  









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               Project (CAP).  The current prohibition on the use of Title  
               IV-E Foster Care funding for service provision continues to  
               hinder the state's ability to address the individualized  
               services and specialized needs of children, youth and  
               families served by the Child Welfare Services (CWS) and  
               Probation systems.  In response to systemic and practice  
               changes within child welfare and probation, CDSS has placed  
               more emphasis on child and family well-being; therefore,  
               additional programmatic changes in these areas are proposed  
               to be targeted in the waiver extension implementation. 

               The two counties (Los Angeles and Alameda) have identified  
               that participating in the current project allowed them to  
               provide direct, individualized services to children and  
               families in their communities in meeting the goals of their  
               projects.  Evaluation findings suggest that the use of  
               flexible funding under the CAP facilitated the  
               participating counties' pursuit of expanded programs and  
               improved outcomes for children and families.  In addition,  
               both child welfare and probation in each county operated  
               within their capped allocations and were successful in  
               reducing the number of children and youth entering foster  
               care.

          In August 2012, CDSS requested a Letter of Intent (LOI) from  
          counties electing to participate in the waiver extension.  The  
          CDSS received 23 LOI's including Alameda and Los Angeles  
          Counties.  Currently, there are 21 counties that continue to  
          express interest in participating in the project.  Within their  
          LOI, each county identified preliminary strategies to be  
          implemented under the project.  These counties include: Alameda,  
          Contra Costa, Fresno, Inyo, Lake, Los Angeles, Mariposa,  
          Mendocino, Nevada, Orange, Riverside, Sacramento, San Diego, San  
          Mateo, Santa Clara, Santa Cruz, Shasta, Solano, Sonoma, Tulare  
          and Yolo.

          It is unclear how the CAP would interact with AB 1187 should it  
          be adopted.  Under the measure's intended proposal, the state  
          would draw down additional federal Title IV-E funds to provide  
          child care for foster youth.  However, the purpose of the CAP is  
          to operate within a capped funding allocation; meaning no  
          additional dollars are allocated beyond the amount the county  
          already receives. 

           RECOMMENDED AMENDMENTS









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          There are a number of uncertainties as to how and whether this  
          measure can accomplish its goal.  Its intended goal is  
          meritorious, but the manner in which it seeks to achieve its  
          goal does not seem feasible.  Recognizing that the author has  
          touched upon the possibility that there could be state funding  
          available for match with federal Title IV-E Foster Care funding,  
          and that the state continues to need adequate resources to serve  
          foster youth, this measure should be amended to explore whether  
          there is sufficiently available CCD and ASES program funding  
          that could be used for this purpose rather without negatively  
          impacting current fiscal and programmatic requirements, i.e.,  
          other federal match or MOE purposes.

          Specifically, staff recommends the following amendments:

          Delete pages two and three of the bill and replace with the  
                                                       following language to read:

          Section 11411 of the Welfare and Institutions Code is added to  
          read:

           11411(a) No later than December 1, 2014, the State  
          Superintendent of Public Instruction and the Director of the  
          Department of Social Services, shall, in collaboration, report  
          to the Senate and Assembly Budget, Education and Human Services  
          Committees on whether there are sufficiently available state  
          child care and development and After School Education and Safety  
          Program funds on a year-over-year basis to use as nonfederal  
          match for federal Title IV-E Foster Care child care funds. The  
          Superintendent and the Director shall consider all of the  
          following in their report:
             1)   The amount of state child care and development funds,  
               including preschool funds, used as nonfederal match for the  
               federal Child Care and Development Block Grant.
             2)   The amount of state child care and development funds,  
               including preschool funds, used as maintenance of effort  
               for the federal Temporary Assistance for Needy Families  
               Block Grant. 
             3)   The amount of state After School Education and Safety  
               Program funds used as nonfederal match for the federal  
               Elementary and Secondary Education Act.
             4)   The amount of state child care and development funds,  
               including preschool funds, and state After School Education  
               and Safety Program funds that are used for any other  









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               nonfederal match grant purposes or for maintenance of  
               effort purposes. 
             5)   Whether the Department of Education and the Department  
               of Social Services are able to accurately calculate and  
               quantify the number of foster youth being served in state  
               subsidized child care and development and After School  
               Education and Safety Programs for purposes of sufficiently  
               meeting federal Title IV-E Foster Care child care match  
               requirements. 
             6)   Whether using state child care and development funds,  
               including preschool funds, and state After School Education  
               and Safety Program funds to draw down additional federal  
               Title IV-E Foster Care funding would negatively, or  
               otherwise impact the state's ability to successfully  
               participate in the Title IV-E Child Welfare Waiver  
               Demonstration Capped Allocation Project.
             7)   Whether using child care and development funds,  
               including preschool funds, and state After School Education  
               and Safety Program funds to draw down additional federal  
               Title IV-E Foster Care funding would negatively, or  
               otherwise impact the delivery of subsidized child care or  
               after school services.
             8)   Whether using child care and development funds or After  
               School Education and Safety Program funds for federal Title  
               IV-E Foster Care child care purposes would negatively  
               impact the state's ability to meet any other federal grant  
               requirements for which these funds are currently being used  
               for nonfederal match or maintenance of effort purposes. 
          (b) This section shall become inoperative and be repealed on  
          January 1, 2015.
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County of Orange Board of Supervisors

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089 












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