BILL ANALYSIS Ó AB 47 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON EDUCATION Patrick O'Donnell, Chair AB 47 McCarty - As Amended April 22, 2015 SUBJECT: State preschool program SUMMARY: Expresses the intent of the Legislature that no later than January 1, 2017, the State Budget shall include an appropriation for the California State Preschool Program (CSPP) sufficient to provide all children who are eligible for the program, and whose parents wish to enroll them, the opportunity to enroll in the program in the year before they enter kindergarten. The bill finds and declares that studies have shown that high-quality preschool significantly improves children's school readiness and school performance, that quality preschool provides a return of $15,000 for every child served, and that investment in high-quality preschool will result in savings in prison expenditures. The bill further expresses the intent of the Legislature that all low-income children have access to either a state preschool program or a transitional kindergarten program and to provide funds to expand the CSPP to provide full day, full year preschool for all eligible low-income children. EXISTING LAW: 1)Establishes eligibility for child care services and child AB 47 Page 2 development programs administered by the California Department of Education (CDE) and requires the Superintendent of Public Instruction (SPI) to adopt rules and regulations on eligibility, enrollment and priority of services needed for implementation (Education Code (EC) Section 8263). 2)Specifies that in order to be eligible for federal and state subsidized child development services, families must meet at least one requirement in each of the following areas: a) A family is (A) a current aid recipient, (B) income eligible, (C) homeless or (D) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited; and, b) A family needs the child care services (A) because the child is identified by a legal, medical, social services agency, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse or exploitation, or (B) because the parents are (i) engaged in vocational training leading directly to a recognized trade, paraprofession or profession, (ii) employed or seeking employment, (iii) seeking permanent housing for family stability, or (iv) incapacitated. (EC Section 8263(a)) 3)Establishes the CSPP and provides that the programs shall include, but not be limited to, part-day age and developmentally appropriate programs designed to facilitate the transition to kindergarten for three- and four-year-old children in educational development, health services, social services, nutritional services, parent education and parent participation, evaluation, and staff development. (EC Section 8235). 4)Defines "income eligible" as a family whose adjusted monthly income is at or below 70% of the state median income (SMI), adjusted for family size, and adjusted annually. For the AB 47 Page 3 2014-15 fiscal year, the income eligibility shall be 70% of the SMI that was in use for the 2007-08 fiscal year, adjusted for family size. (EC Section 8263.1) FISCAL EFFECT: None. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: Background on child care and development programs. The CDE administers a child care and development system, maintaining over 1,300 service contracts with approximately 750 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. According to the Legislative Analyst's Office, overall funding for the child care and development programs decreased by almost $1 billion between 2008-09 and 2012-13, with the elimination of 110,000 slots. Last year, state and federal funds provided an increase of $281 million, with a $2.4 billion allocation for child care and development programs, offering 355,000 slots. CSPP. The CSPP offers part-day and full-day preschool programs through contracts with local educational agencies, private contractors, and colleges. These programs are required to comply with health and safety standards under Title 22 regulations and higher developmental and teacher qualification standards under Title 5 regulations adopted by the CDE. Priority for enrollment goes to four- or three-year-old neglected or abused children who are recipients of Child Protective Services or recipients who are at risk of being neglected or abused, without regard to income. Second priority goes to four-year-old children who were enrolled in CSPP as a three-year-old, followed by four-year-old children with the lowest income ranking. Three-year-old children may be enrolled after four-year-olds are enrolled. Income eligibility is 70% of the SMI ($46,896 for a family of four). Part-day preschool AB 47 Page 4 operates three hours per day for 175 days. The General Child Care program provides "wrap around" to provide full-day care. FY 2014-15 budget increases. In FY 2014-15, CSPP received $664 million in Proposition 98 General fund for the part-day preschool program. The 2014-15 budget included 7,500 additional slots for preschool, plus an additional 4,000 slots that would be effective on June 15, 2015. According to the CDE, when the 4,000 part day slots were offered to contractors and school districts, the CDE received requests for over 32,301 slots. The Governor's proposed 2015-16 budget includes funds for 153,177 slots, 38,913 more slots than in 2008-09. What does this bill do? This bill states the intent of the Legislature to appropriate sufficient funds no later than January 1, 2017 to provide all eligible children with access to the CSPP the year before they enter kindergarten. The author states, "A powerful body of research shows that investing in quality early education is highly effective in promoting student academic success. Early intervention in a child's education increases cognitive, language, social, and emotional development. This leads to increased high school graduation rates, college attendance, decreasing crime, and builds a stronger middle class. Recently, California has led the way with historic reforms with the common core standards and the local control funding formula. Though both reforms strive to create greater quality and equity in California's public education system, these reforms will not close the achievement gap before a child first enters a kindergarten classroom. AB 47 Page 5 AB 47 expands on last year's commitment from the Governor and Legislature to expand the state preschool program for all low income families who do not have access to one year of state preschool or transitional kindergarten. Now is the time to make a wise investment to expand preschool to all eligible low income students." What is the estimated need? It is challenging to determine the full extent of the need of families that meet eligibility criteria. From 2005 to 2011, funds were provided to establish centralized eligibility lists (CEL), providing data on the number of families waiting for subsidized care in all 58 counties. While some counties voluntarily maintained the CEL, there is no longer a statewide source of data collection. The LAO estimates approximately 31,500 four-year-old children who have need for full-day preschool out of 250,000 four-year-olds who meet eligibility criteria. Value of preschool. Studies, such as those from the RAND corporation, have shown that quality early childhood education programs have a number of benefits, including improving children's readiness for school, higher test scores, reduced grade-level retention, higher rates of school completion, and higher likelihood of college attendance. Committee amendment. Staff recommends striking the intent provision in the bill and insert the following: "No later than January 1, 2017, there shall be access to the state preschool program for all children who are eligible for the program in the year before they enter kindergarten, and whose parents wish to enroll them. It is the intent of the Legislature to provide sufficient funding in the state budget for this purpose." AB 47 Page 6 Arguments in support. First 5 California supports the bill and states, "A powerful body of research shows that investing in high-quality preschool programs enhances the quality of care and education that children receive. Studies conclude that high-quality preschool programs improve school readiness and lead to better long-term academic achievement. Research also shows a child's brain develops most dramatically during the early years of life. The school and life success of at-risk children can be significantly increased through high-quality early learning programs, which also are essential to preventing the achievement gap. In California, too many children miss out on a critical developmental window of opportunity. Only half of California's low-income, preschool-aged children are served in State Preschool or Head Start, and only one-quarter of all children are eligible for the current transitional kindergarten program." Arguments in opposition. California Right to Life Committee, Inc. (CRLC) states, "CRLC does not support early childhood education by governmental schools. Young children need parental guidance in their early years, especially. When this is not possible, families should locate childcare within their families or in private agencies." REGISTERED SUPPORT / OPPOSITION: Support Early Edge California (sponsor) AB 47 Page 7 Advancement Project Bay Area Council California Catholic Conference California Federation of Teachers California State PTA Children Now (prior version) Compton Unified School District Fight Crime: Invest in Kids California First 5 California First 5 Fresno County First 5 Santa Clara County Insurance Commissioner Dave Jones (prior version) Jumpstart: Children Fist AB 47 Page 8 LAUP Los Angeles Area Chamber of Commerce Los Angeles Urban League Lutheran Office of Public Policy - California MISSION: READINESS National Association of Social Workers, California Chapter (prior version) North Bay Leadership Council Parent Institute for Quality Education Sacramento City Unified School District Santa Clara County Office of Education United Way (prior version) AB 47 Page 9 Opposition California Right to Life Committee, Inc. Analysis Prepared by:Sophia Kwong Kim / ED. / (916) 319-2087