BILL ANALYSIS Ó AB 47 Page 1 GOVERNOR'S VETO AB 47 (McCarty) As Enrolled September 16, 2015 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: | | (June 3, |SENATE: |29-11 | (September 10, | | |56-22 |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: | | (September 11, | | | | | |69-4 |2015) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: ED. SUMMARY: Establishes the Preschool for All Act of 2015 and requires, on or before June 30, 2018, all eligible children who AB 47 Page 2 are not enrolled in transitional kindergarten to have access to the California State Preschool Program (CSPP) the year before they enter kindergarten, if their parents wish to enroll them and contingent upon the appropriation of sufficient funding in the annual Budget Act for this purpose. 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 Senate amendments clarify that eligible children who shall have access to the state preschool program are those who do not have access to transitional kindergarten, changes the effective date from January 1, 2017 to June 30, 2018, and strikes the intent of the Legislature to provide all low-income children with access to a CSPP or a transitional kindergarten program. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Cost pressures in the low hundreds of millions to provide all eligible children that do not have access to transitional kindergarten access to the CSPP the year before they enter kindergarten. 2)Administrative costs to the California Department of Education (CDE) of 8.0 positions and about $917,000, including travel costs for additional site visits. (General Fund) 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 AB 47 Page 3 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 (LAO), 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 state median income ($46,896 for a family of four). Part-day preschool operates three hours per day for 175 days. The General Child Care program provides "wrap around" to provide full-day care. Fiscal Year (FY) 2014-15 budget increases. In FY 2014-15, CSPP received $664 million in Proposition 98 (1988) 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 AB 47 Page 4 slots. The FY 2015-16 budget provides an additional $265 million for child care and development programs, which includes an additional 9,500 slots for the CSPP and an additional 6,800 slots for the Alternative Payment Program. What does this bill do? This bill provides all eligible children who are not enrolled in transitional kindergarten with access to the CSPP the year before they enter kindergarten, if their parents wish to enroll them and contingent upon sufficient funding provided in the annual Budget Act. Transitional kindergarten is a modified kindergarten program provided by school districts for children who turn five-years-old between September 2 and December 2. 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 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." AB 47 Page 5 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. Arguments in support. First 5 California supports this 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, AB 47 Page 6 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." GOVERNOR'S VETO MESSAGE: The bill would require state preschool programs to be available to all children, who are not already in transitional kindergarten and are eligible for subsidies, by June 30, 2018, contingent on a sufficient appropriation. Last year's education omnibus trailer bill already codified the intent to make preschool and other full-day, full year early education and care opportunities available to all low-income children. The discussion on expanding state preschool - which takes into account rates paid to providers as well as access and availability for families - should be considered in the budget process, as it is every year. A bill that sets an arbitrary deadline, contingent on a sufficient appropriation, is unnecessary. Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087 FN: 0002480 AB 47 Page 7