BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                     AB 427


                                                                    Page  1





          Date of Hearing:  May 27, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          427 (Weber) - As Amended May 6, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill excludes all or a portion of the basic allowance for  
          housing received by active duty military personnel from income  
          calculations, for purposes of determining eligibility for child  
          care and development programs. 








                                                                     AB 427


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          FISCAL EFFECT:


          1)Minor and absorbable costs to the California Department of  
            Education (CDE) to amend its regulations and train employees  
            on the new requirements.


          2)Statewide, if there is no additional appropriation to support  
            the increased number of families who would become eligible for  
            subsidized childcare as a result of this bill, waiting lists  
            would grow.


          COMMENTS:


          1)Purpose. 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 (BAH)  
            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 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." 



            When housing allowances are excluded, more military families  
            would qualify for childcare.  










                                                                     AB 427


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            With waiting lists common statewide, excluding BAH would give  
            military families enrollment priority over other  
            income-eligible families. 





          2)Basic Allowance for Housing.  The United States Government, in  
            addition to providing a base salary, provides additional  
            monthly allowances for various purposes (e.g., for clothing,  
            housing), all of which are reported as monthly or annual  
            income on the military's Leave and Earnings statement. The  
            amounts of the allowances vary according to rank, length of  
            service, and geographic location. The BAH is provided to those  
            military personnel who do not live in military housing units  
            or units that are no longer military-operated housing units.  
            In California, the beginning BAH for personnel with dependents  
            range from the mid $800's for areas such as Twenty Nine Palms  
            and China Lake, to $3,651 for San Francisco. The ranges  
            increase according to rank. This bill proposes to exclude the  
            BAH as income for purposes of determining eligibility for  
            childcare programs. 

          3)State Preschool. Current 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.










                                                                     AB 427


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            This bill expands the BAH exclusion to additional types of  
            childcare and eliminates the requirement for a state preschool  
            contractor to be granted written approval from CDE prior to  
            excluding the BAH from eligibility considerations.


          4)Prior Legislation. AB 170 (Saldaņa), 2007, was held in this  
            Committee's suspense file, would have excluded the basic  
            allowance for housing provided to military families from being  
            counted in state preschool services eligibility  
            determinations.  Title 5, CCR, Section 18134 was subsequently  
            established through emergency regulations.






          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081