BILL ANALYSIS Ó
AB 188
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
188 (Cristina Garcia) - As Introduced January 27, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill increases the allowable reimbursable amount included
in contracts for alternative payment programs (APPs) for child
care by adding 3% for making eligibility determinations.
AB 188
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FISCAL EFFECT:
Significant costs of approximately $36 million (GF) to increase
the reimbursement rate by 3%.
COMMENTS:
1)Purpose. According to the author, "APPs are only funded based
on the reimbursements to providers that are actually 'put out
the door' in the form of a child care payment. The child care
payment is made once a working family is deemed income
eligible for a child care subsidy and has chosen a child care
provider. All of the work leading up to the actual enrollment
of an income eligible family that will result in a child care
payment to a provider is not reimbursed?Without a remedy, APPs
will experience greater caseworker turnover and families
needing child care will have to wait longer?" This bill seeks
to increase funding to APPs for their administrative work.
2)Background. There are currently 76 APPs contracted with the
California Department of Education (CDE), funded through state
and federal funds, to provide an array of support and payment
services that enable eligible low-income families to access
subsidized child care. APPs administer vouchers and case
manage the families in CalWORKs Stages 2 and 3 as well as the
APP. These administrative agencies process the payments for
the vouchers, insure compliance from providers, and assist
families in finding the right child care for their children.
APPs can charge up to 17.5 percent of the total contract for
these services. This rate was reduced from 19 percent in the
2010-11 budget as a cost saving tool.
APPs have shrunk, consolidated, and even ceased operating as
AB 188
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the costs of operations have climbed while the number of
vouchers has shrunk, resulting in lower contract amounts.
3)Governor's Budget. The Governor's Budget increases spending
on child care and early childhood education programs by $101
million over the current year. The increase reflects an
increasing cost of care in the CalWORKs programs, increases in
the Regional Market Rate enacted last year, growth, and COLA.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081