BILL ANALYSIS Ķ AB 427 Page 1 Date of Hearing: April 28, 2015 ASSEMBLY COMMITTEE ON HUMAN SERVICES Kansen Chu, Chair AB 427 (Weber) - As Amended March 26, 2015 SUBJECT: Early primary programs: child care services: eligibility: military families SUMMARY: Excludes all or a portion of the basic allowance for housing provided to active duty military personnel from counting as income for purposes of determining eligibility for child care and development programs. Specifically, this bill: 1)Makes a number of legislative findings related to military families and the role of early education in providing stability and routine for children whose parents are deployed. 2)States the intent of the Legislature to ensure that military families have access to the child care development services that their children need. 3)Excludes the amount of the basic allowance for housing equal to the lowest rate of the allowance for the military housing area in which an individual resides from income calculations AB 427 Page 2 for children of active military personnel, as specified, when determining eligibility for services under the Child Care and Development Services Act. EXISTING LAW: 1)Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years old and their parents and including a full range of supervision, health, and support services through full- and part-time programs. (EDC 8200 et seq.) 2)Defines "child care and development services" to mean services designed to meet a wide variety of children's and families' needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. (EDC 8208) 3)Requires the Superintendent of Public Instruction to administer general child care and development programs to include, among other things as specified, age- and developmentally-appropriate activities, supervision, parenting education and involvement, and nutrition. Further allows such programs to be designed to meet child-related needs identified by parents or guardians, as specified. (EDC 8240, 8241) 4)Establishes requirements families must meet in order to be eligible for federal and state subsidized child development services, and grants priority enrollment to children who have been or are at risk of being abused or neglected, as specified. (EDC 8263) AB 427 Page 3 5)Provides, pursuant to federal law, a basic allowance for housing to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay. (37 U.S.C. 403) 6)Authorizes a State Preschool contractor located on or in close proximity to a military base, with prior written approval, as specified, to exclude from the child care eligibility and rankings determination the amount of the basic allowance for housing provided to an individual on federal active duty, state active duty, active duty for special work, or Active Guard and Reserve duty in the military whose family resides on a military base or in military housing. Requires program vacancies to first be filled by children pursuant to all statutorily mandated priorities for State Preschool programs. (Title 5, CCR, Section 18134) FISCAL EFFECT: Unknown COMMENTS: Child development programs: Child care and development services are provided throughout California pursuant to requirements and standards included in the Child Care and Development Services Act. Among other supports, the state's child development system accommodates parents by ensuring their children are served in a healthy and safe environment while they are at work, in training or seeking employment, and it grants families access to programs that will help children with their social, emotional, educational and physical development. General child care and development programs are funded with federal and state dollars, and serve children from birth through 12 years of age. AB 427 Page 4 Subsidized child care eligibility and prioritization: Certain eligibility and prioritization rules apply to subsidized child care in California. For non-CalWORKs subsidized child care, a family must meet both eligibility and need criteria. The eligibility criteria include: currently receiving aid, being income-eligible, being homeless, or having children who are recipients of protective services or who have been identified as being, or are at risk of being, abused, neglected, or exploited. Families must also meet the need criteria, meaning either the child has to have been identified by a legal, medical, or social services agency or emergency shelter as being a recipient of protective services or being (or at risk of being) abused, neglected or exploited, or the parents need to be employed or seeking employment, engaged in vocational training, seeking permanent housing for family stability, or incapacitated. In addition to making care for their children more financially accessible for low-income families, subsidized child care helps to ensure that providers can operate in low-income communities where child care would otherwise be unavailable. Military compensation and allowances: A report prepared for the US Department of Defense revealed that in 2012, there were 155,985 active duty military personnel in California. In addition to basic pay, which is provided to a uniformed service member based on his or her grade (or rank) and years of service, there are a number of allowances the federal government provides to service members when it cannot meet an individual's specific needs. These allowances include a basic allowance for housing (BAH), which is provided to service members that don't live in government-provided housing. The amount of the BAH is adjusted based on pay grade and whether a service member has dependents. This allowance is also adjusted based on the local median rental rates across different geographic locations (called military housing areas), but it is not designed to cover all costs. According to 2015 rates in California, the beginning BAH amounts for service members with dependents range from $840 per month in China Lake and $849 in Twentynine Palms up to $2,925 per month in Santa Clara County and $3,651 in San Francisco. All of these AB 427 Page 5 rates increase according to rank. Because this bill proposes to exclude from child care eligibility calculations the amount of a service member's BAH that is equal to the lowest rate of the allowance for the military housing area in which the individual resides, it will exclude the entire allowance for beginning-rank service members, while excluding only a portion of the rate for higher ranking service members. Income calculations for state preschool: Section 18134 of Title 5 of the California Code of Regulations provides for an exception to the calculation of the adjusted monthly income for military personnel enrolling their children in state preschool. More specifically, the regulations allow a state preschool contractor to exclude the BAH from consideration when determining eligibility and income ranking for families that include specified active military personnel (consistent with the individuals identified in this bill), provided the contractor has prior written approval from the California Department of Education (CDE). The regulation also requires the state preschool program for which this exclusion is provided to be on or in close proximity to a military base, and it requires that first priority for program vacancies be provided to children pursuant to all statutorily mandated priorities, which are consistent with the priorities outlined for subsidized child care programs. Need for this bill: According to the author, "Currently, due to an emergency regulation passed back in 2007, preschool contractors with written approval from the Department of Education can exclude the Basic Allowance for Housing given to military families from being factored into eligibility for state preschool. This bill simply seeks to both streamline and expand this process, by codifying the exclusion of the BAH along with expanding it to more childcare services. Many of these military AB 427 Page 6 families should be eligible for state funded childcare services, but they do not qualify because an earmarked affordable housing allowance inflates their calculated income. These children are a population in need and deserve to have access to high quality childcare." Recommended amendment: Because this bill applies to the entire Chapter within the Education Code that establishes and sets forth requirements of the Child Care and Development Services Act, this bill applies to child care services and overrides the current regulation relative to the exclusion of the BAH for state preschool eligibility determinations. As stated by the author, this bill expands the scope of the current BAH exclusion and eliminates the requirement that a state preschool contractor be granted approval from CDE prior to excluding the BAH from consideration. While quality child care is essential for all parents to gain and retain employment in the civilian workforce, the stability child care can provide to military families is, additionally, directly linked to an active military member's readiness for service. Still, without providing an increase in the number of funded child care slots, this bill could potentially cause children from military families receiving a BAH, though also deserving of quality child care, to crowd out the other priority categories of children, including abused, neglected, and at-risk children, with often far fewer resources. Efforts to increase access to adequate child care for military families should most definitely be made; however, this must be done with care so as to not consequently diminish access for other vulnerable populations. AB 427 Page 7 In order to not jeopardize access to child care for other vulnerable children, committee staff recommends that this bill be amended to maintain the prioritization for Child Care and Development Services Act programs provided for in current law. PRIOR LEGISLATION: AB 170 (Saldaņa), 2007, would have excluded the basic allowance for housing provided to military families from being counted in state preschool services eligibility determinations. It died on the Assembly Appropriations Committee suspense file. Title 5, CCR, Section 18134 was subsequently established through emergency regulations. REGISTERED SUPPORT / OPPOSITION: Support American Federation of State, County and Municipal Employees AB 427 Page 8 (AFSCME), AFL-CIO San Diego County Office of Education (SDCOE) Educational Enrichment Systems Military Child Education Coalition Opposition None on file. Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089