BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 833
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|Author: |Bonta |
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|Version: |June 16, 2015 Hearing |
| |Date: June 24, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Olgalilia Ramirez |
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Subject: Child care and development services: individualized
county child care subsidy plan: County of Alameda
SUMMARY
This bill authorizes the County of Alameda to establish a pilot
program for purposes of developing and implementing an
individualized county child care subsidy plan that meets the
particular needs of families in the community until January 1,
2021.
BACKGROUND
1)Existing law establishes the Child Care and Developmental
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 including a full range of supervision, health, and
support services through full- and part-time programs.
(Education Code § 8200, et seq.)
2)Existing law states legislative intent that all families have
access to child care and development services, regardless of
demographic background or special needs, that families are
provided the opportunity to attain financial stability through
employment, while maximizing growth and development of their
children, and enhancing their parenting skills through
participation in child care and development programs, among
other things. (EC § 8202)
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3)Existing law establishes several programs providing subsidized
child care and development services that service low-income
families who are working, seeking work, in training, or
providing community service. These programs are administered
by the California Department of Education (CDE) and require
the Superintendent of Public Instruction (SPI) to adopt rules
and regulations on eligibility, enrollment, family fees,
provider rates, and priority services. (EC § 8235 and 8263)
4)Existing law authorizes a pilot project in San Mateo County
(since 2004) and San Francisco City and County (since 2006)
that allows the counties to develop and implement an
individualized county child care subsidy plan in recognition
of the high-cost of living in those counties. (EC § 8235 and
8263)
ANALYSIS
This bill:
1)Authorizes the County of Alameda to establish a 5-year pilot
program for purposes of developing and implementing an
individualized county child care subsidy plan that meets the
particular needs of families in the county, as specified, to
include the following:
a) An assessment to identify the county's goal for
its subsidized child care system, as specified.
b) A local policy to eliminate state-imposed
regulatory barriers that constrain the county from meeting
its desired outcomes for subsidized child care, as
specified.
c) Recognition that funding sources utilized by
direct child care service contractors in the county are
eligible to be included in the county's plan.
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d) Measurable outcomes to evaluate the success of
the plan in achieving county and state child care goals.
2)Requires the plan to be submitted to the specified local planning
council, and upon approval the county board of supervisors
shall do all of the following:
a) Hold at least one public hearing before voting on the
plan.
b) Submit an approved plan to Early Education and
Support Division (EESD) for review provided that board
votes in its favor.
3)Requires the California Department of Education's (CDE) Early
Education and Support Division (EESD) to review and either
approve or disapprove any modification of the plan within 30
days of receiving it. Specifies that the EESD may only
disapprove those portions of the plan that are not in
conformance with the provisions of this bill or that are in
conflict with federal law.
4)Requires the county to prepare and submit a report summarizing
the success of the county's plan, as specified, to the
Legislature, the Department of Social Services (DSS), and the
CDE each year.
5)Requires a participating contractor to receive any increases or
decrease in funding that the contractor would have received
had the contractor not participated in the plan.
6)Makes various legislative findings and declarations related to
the unique circumstances in the County of Alameda that
condition a special law including the high-cost of living.
7)Defines county to mean County of Alameda for the purposes of this
bill.
STAFF COMMENTS
1)Need for bill. According to the author, families seeking quality
child care are adversely affected by the high cost of living
in Alameda County. The author further notes that families who
earn just enough to meet housing costs are deemed ineligible
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for subsidized child care, at the same time agencies receiving
insufficient state reimbursement rates are unable to cover
programing and operational costs. As a result, child care
subsidy funds allocated to the county are not fully expended
thereby reducing access to quality child care. This bill
seeks to maximize state allocated funding and efficiently use
child care subsidy funds to meet local conditions.
2)Provider Reimbursement Rates. California has established two
methodologies for determining the reimbursement rates for
child care and development services:
a) The Regional Market Rate (RMR) is determined by the RMR
survey and varies depending on the geographical location of
the provider. The RMR is based on a survey of licensed
centers and family child care homes measuring child care
rates of similar socio-economic conditions. Rate ceilings
are established for each county according to estimates of
the 85th percentile of rates for the various types of child
care settings. The county rate ceilings are differentiated
by the age of the child (infant, preschool, school age),
full-day or part-day care, and frequency of care (days per
week). Families may choose a child care provider that
charges a rate above the RMR, but the provider would only
be reimbursed at the RMR. Current law requires the RMR
survey to be updated every two years. The Budget Act of
2014 based the RMR on the 2009 survey, thereby providing a
lower rate than if based on the most recent survey.
b) Standard Reimbursement Rate (SRR). Child care and
development providers that contract directly with the
California Department of Education (CDE) must meet Title 5
requirements in addition to those of Title 22 (have units
in Early Childhood Education, provide an educational
component to child care). Title 5 providers are reimbursed
using the SRR, which is a specific rate established in
statute. The SRR is $36.10 per child per day for full-day
care and $21.22 per child per day for part-day care, or a
maximum of $9,025 per year based on 250 days of operation.
1)Why Alameda County? According to the author, provider
reimbursement rates do not cover a reasonable amount of the
actual cost of care. Child care costs vary based on the age
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of a child, with infant care representing the highest amount.
In Alameda, the average cost for full-time infant care in a
child care center is $13,330 per year. The cost of living in
Alameda is reported to be well above the state median. A
family of three in Alameda County would need more than $67,000
for minimal housing, child care, food, transportation and
health care compared to state median of about $42,000 per year
for a family of three. Subsequently, to be eligible for
subsidized child care and development services state
regulations require a family's adjusted monthly income to be
at or below 75% of the state median income. The author assert
this pilot project will address the unintended consequences
that impact families living in a high cost county. As such,
this bill seeks to provide Alameda County limited local
flexibility to assess and address local conditions of working
families in the county through a child care subsidy pilot
plan.
Current law has authorized two other Bay Area pilot projects
in recognition of the high-cost of living in those counties.
This pilot project seeks similar recognition with the
increased state oversight, as specified in the bill.
2)Unspent Allocation. According to the Assembly Appropriations
Fiscal Effect, "this bill would allow Alameda County to retain
unspent child care funds that otherwise would revert to the
General Fund. Between 2011-12 and 2013-14, The County was
unable to spend approximately 5% of its contracted amounts
each year, and returned over $10 million in unspent child care
funding to the state. That funding is a combination of GF,
Prop 98 funding and federal funds. Historically, such
reversions have been redistributed for child care purposes in
subsequent budget years."
3)Related Legislation.
SB 311 (Beall, 2015) authorizes a pilot project at Alum Rock
Union Elementary School District, located in Santa Clara
County that allows the district to create a part-day
pre-school subsidy plan until January 1, 2022. SB 311 was
approved by this Committee 8-0, and is currently in the
Assembly Education Committee.
SUPPORT
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American Federation of State, County and Municipal Employees
(AFSCME)
BANANAS
California School Employees Association
Early Edge California
East Bay Association for Education of Young Children
East Bay Community Foundation
Frist 5 Alameda County
Kidango
National Association of Social Workers
The Bay Area Council
Via Nova Children's School
OPPOSITION
None received.
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