BILL ANALYSIS Ó AB 1944 Page 1 Date of Hearing: March 26, 2014 ASSEMBLY COMMITTEE ON EDUCATION Joan Buchanan, Chair AB 1944 (Garcia) - As Introduced: February 19, 2014 SUBJECT : Child care: administration: preferred placement of children of 11 or 12 years of age SUMMARY : Deletes the requirement for parents eligible for child care and development services to complete a form certifying that a before or after school program is not available for their 11 or 12 year old children. Specifically, this bill : 1)Deletes that provision specifying that a before or after school program shall be considered not available when the parent certifies in writing, on a form provided by the California Department of Education (CDE) that is translated into the parent's primary language, the reason or reasons why the program would not meet the child care needs of the family. 2)Deletes the provision requiring each contractor to report annually to the CDE the amount of savings resulting from the requirement to place an 11 or 12 year old in a before or after school program. 3)Deletes the provision requiring the CDE to annually report to the Legislature the amount of savings statewide. EXISTING LAW : 1)Specifies that the preferred placement for children who are 11 or 12 years of age and who are otherwise eligible for subsidized child care and development services shall be in a before or after school program. Children who are 11 or 12 years of age shall be eligible for subsidized child care services only for the portion of care needed that is not available in a before or after school program. (Education Code (EC) Section 8263.4(a)) 2)Specifies that a before or after school program shall be considered not available when a parent certifies in writing, on a form provided by the CDE that is translated into the parent's primary language, the reason or reasons why the AB 1944 Page 2 program would not meet the child care needs of the family. The reasons why a before or after school program shall be considered not available shall include, but not be limited to, any of the following: a) The program does not provide services when needed during the year, such as during the summer, school breaks, or intersession. b) The program does not provide services when needed during the day, such as in the early morning, evening, or weekend hours. c) The program is too geographically distant from the child's school of attendance. d) The program is too geographically distant from the parents' residence. e) Use of the program would create substantial transportation obstacles for the family. f) Any other reason that makes the use of before or after school care inappropriate for the child or burdensome on the family. (EC Section 8263.4 (d)) 3)Specifies that if an 11 or 12 year old child who is enrolled in a subsidized child development program becomes ineligible for subsidized child care and is disenrolled from the before or after school program, or if the before or after school program no longer meets the child care needs of the family, the child shall be given priority to return to the subsidized child care services upon the parent's notification of the contractor of the need for child care. (EC Section 8263.4 (e)) 4)Specifies that the savings generated each contract year shall remain with each alternative payment program, child development center, or other contractor for the provision of child care services, except for care provided to CalWORKs recipients. Requires each contractor to report annually to the CDE the amount of savings resulting from this implementation, and requires the CDE to report annually to the Legislature the amount of savings statewide resulting from AB 1944 Page 3 that implementation. (EC Section 8263.4 (g)) FISCAL EFFECT : Unknown COMMENTS : Background on child care and development programs . 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 through 12 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) 2013-14, $2.1 billion was provided for child care and development programs from state and federal funds, enrolling an estimated 340,000 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. According to the Legislative Analyst's Office, overall funding for the child care and development program has decreased by almost $1 billion since 2008-09, with the elimination of 110,000 slots. The Governor's proposed FY 2014-15 budget provides an increase of $66 million over FY 2013-14 funds for a total of $2.2 billion for child care and development programs to provide an estimated 343,000 child care and preschool slots. Eligibility . State and federal subsidized child care is provided through two ways: 1) eligibility for CalWORKs, or 2) based on income and need for child care services. CalWORKs is a temporary cash aid program for families with children. The child care program is administered in three stages to help a family transition from immediate, short-term child care needs to stable, long-term child care as a family becomes stable and is no longer reliant on CalWORKs aid. Subsidized child care services are intended to assist recipients in engaging in work or education/training required for receiving aid. Non-CalWORKs families and former CalWORKs recipients can also receive subsidized child care if they meet income eligibility of 70% of state median income ($46,896 for a family of four) or if they are recipients of child protective services and if they can show need for child care services. Preferred placement of children 11 or 12 years of age. SB 1104 (Committee on Budget and Fiscal Review), Chapter 229, Statutes of 2004, made a number of changes to social services programs, AB 1944 Page 4 including subsidized child care programs, in order to achieve fiscal savings. One of the changes included the policy statement that it is the preference of the state to place children 11 or 12 years of age in after school programs (the After School Education and Safety (ASES) Program through the 2002 voter approved initiative, Proposition 49, and the federally funded 21st Century High School After School Safety and Enrichment for Teens Program (ASSETs)) prior to accessing subsidized child care services. This provision was later amended to include before school programs. The ASES program provides almost $550 million annually for before and after school programs for kindergarten through grade 9 students. School districts and county offices of education received grants, although local governments and nonprofit organizations working in partnership with local educational agencies may also apply. The program requires before school programs to operate one and a half hours a day and after school programs to operate immediately after school until 6 p.m. for a minimum of 15 hours per week. Not every school has an ASES program. Under SB 1104, a parent who is eligible for subsidized child care service may seek child care services if he or she is unable to obtain before or after school program enrollment for his or her 11- or 12-year-old child, if the hours of service are insufficient, or if the before or after school programs do not work for the parent (too far from school, too far from home, etc.). Any savings generated by the enrollment of 11- and 12-year-old children in a before or after school program may be maintained by the contractor for provision of services to other children. Child care contractors are required to provide parents with a form that must be available in a parent's primary language. Using the form, parents must certify why the before or after school program does not work for them. Contractors are required to submit an annual report to the CDE with the amount of savings derived and the CDE is required to submit an annual report to the Legislature indicating the amount of savings statewide. This bill deletes the requirement for parents to complete the form indicating why a before or after school program does not work for the family, deletes the requirement for the contractor to submit an annual savings report to the CDE, and deletes the requirement for CDE to submit an annual savings report to the AB 1944 Page 5 Legislature. According to the author, agencies report that parents that do not complete the form or return an incomplete report have found their child eliminated from an existing child care slot, while agencies must devote time to track families with 11- and 12-year-old children and submit an annual report to the CDE. Agencies have reported that the staff time needed to track families and to submit the report far exceed the amount of savings that result in placement of 11- and 12-year-old children in before or after school programs. The author states, "This proposal would continue to support the placement of subsidized 11 and 12 year old children in before and after school programs but eliminate burdensome certified documentation required of parents and the annual reports required from child care agencies." The chart below is derived from the CDE's November 2013 report to the Legislature: ----------------------------------------------------------------- | | | Preferred Placement for Children Ages Eleven or Twelve | | | ----------------------------------------------------------------- |---------------------+---------------------+---------------------| | | FY 2010-11 | FY 2011-12 | |---------------------+---------------------+---------------------| |Number of agencies | 104 | 107 | |that reported | | | |---------------------+---------------------+---------------------| |Number of children | 813 |436 | |who were served by | | | |before or after | | | |school programs | | | |instead of | | | |CDE-subsidized child | | | |care and development | | | |programs | | | AB 1944 Page 6 |---------------------+---------------------+---------------------| |Estimated Savings | $484,318 |$258,233 | |(As to EC Section | | | |8263.4(g)) | | | | | | | ----------------------------------------------------------------- Source: California Department of Education: Report to the Legislature: Preferred Placement for Children Ages Eleven or Twelve: Savings Resulting from Implementation The Committee may wish to consider whether the minimal savings achieved through the preferred placement policy are worth the human and financial costs by parents, child care contractors and the CDE. Arguments in support . The California Alternative Payment Program Association, the sponsor of the bill, states, "This change is needed by families who consistently have reported that the before and after school programs simply do not meet their full time, off hour, and year round care needs. The change is also needed by community based contractors whose cost to oversee, track and submit annual reports far outweighs any savings." REGISTERED SUPPORT / OPPOSITION : Support California Alternative Payment Program Association (sponsor) Child Care Links Child Development Associates Choices for Children/CDI Community Resources for Children Davis Street Family Resource Center Del Norte Child Care Council Family Resource & Referral Center Marin Child Care Council North Coast Opportunities (NCO) Solano Family & Children's Services Supportive Services, Inc. Valley Oak Children's Services YMCA Childcare Resource Service Opposition AB 1944 Page 7 None on file Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087