BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                    AB 1679


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          Date of Hearing:   March 29, 2016


                        ASSEMBLY COMMITTEE ON HUMAN SERVICES


                                Susan Bonilla, Chair


          AB 1679  
          (Weber) - As Introduced January 19, 2016


          SUBJECT:  Child care:  state preschool programs:  eligibility:   
          military families


          SUMMARY:  Expands and codifies emergency regulations that  
          exclude all or a portion of the basic allowance for housing  
          provided to active duty military personnel from income  
          considerations for purposes of determining eligibility for state  
          preschool.


          Specifically, this bill:


          1)Declares a number of Legislative findings related to military  
            families and the importance of preschool for child  
            development, including that preschool can be a determining  
            factor in the early academic success of a pupil from a  
            military family by providing educational enrichment, as well  
            as a stable and nurturing learning environment.


          2)Expresses the intent of the Legislature to ensure that  
            military families have access to the preschool services their  
            children need.









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          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  
            for children of active military personnel, as specified, when  
            determining eligibility for state preschool services.


          EXISTING LAW:


          1)Requires the Superintendent of Public Instruction to  
            administer all state preschool programs, which include, but  
            are not limited to, part-day age- and developmentally  
            appropriate programs designed to facilitate the transition to  
            kindergarten for three- and four-year-old children in  
            educational development, health services, social services,  
            nutritional services, parent education and parent  
            participation, evaluation, and staff development.  (EDC  
            8235(a))


          2)Authorizes a part-day state preschool program to provide  
            services to children in families with incomes up to 15% above  
            the income eligibility threshold, as specified, provided all  
            other eligible three- and four-year-olds have been enrolled.   
            Further specifies that no more than 10% of the children  
            enrolled under a provider's entire contract can be children in  
            families above the income eligibility threshold.  (EDC  
            8235(c))


          3)Requires families to meet certain criteria in order to be  
            eligible for federal and state subsidized child development  
            services, including that a family must be either a current aid  
            recipient, income eligible, homeless, or one whose children  
            are recipients of protective services or have been identified  
            as being abused, or neglected, as specified.  (EDC 8263)









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          4)Establishes the income eligibility limit for child development  
            services, including state preschool, at 70% of the State  
            median income that was in use for the 2007-08 fiscal year,  
            adjusted for family size, as specified.  (EDC 8263.1)


          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:


          State preschool programs:  The California State Preschool  
          Program provides both part-day and full-day services to eligible  
          three- and four-year-olds.  These services include  
          developmentally appropriate curriculum, parent education, meals  
          and snacks, and referral to social and health services for  
          families.  State preschool can be offered in various settings,  
          including child care centers, family child care network homes,  








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          school districts, or county offices of education.


          As with the rest of the subsidized child care system in  
          California, children are eligible for state preschool if their  
          families are one of the following: current aid recipients,  
          income eligible, homeless, or one in which children are  
          recipients of protective services or children have been  
          identified as being, or at risk of being, abused, neglected, or  
          exploited.  However, state preschool differs from the subsidized  
          child care system in a few ways.  For one, state preschool  
          prioritizes four-year-olds for enrollment, and then serves  
          three-year-olds if slots remain after enrolling all eligible  
          four-year-olds.  Additionally, parents do not have to be working  
          (or meeting related criteria) to be eligible for state  
          preschool; however, this is a requirement for other child care  
          programs.  State preschool also may serve some families whose  
          incomes exceed the eligibility cut-off by up to 15%.  


          For 2015-16, there are an estimated 98,956 part-day state  
          preschool slots, and an estimated 58,504 full-day slots.  Over  
          the last two years, the state has augmented funding to provide  
          $247 million for additional state child care and preschool  
          slots, with over two-thirds of that funding going to state  
          preschool slots. 


          Military compensation and allowances:  As of August 2013, there  
          were almost 169,000 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  








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          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 2016 rates in  
          California, the beginning BAH amounts for service members with  
          dependents range from $807 per month in Twentynine Palms and  
          $846 in China Lake, up to $3,351 per month in Santa Clara County  
          and $4,002 in San Francisco.  All of these rates increase  
          according to rank.  


          Because this bill proposes to exclude from state preschool  
          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, "Because of  








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          disruptions in their school lives from frequent involuntary  
          relocations, children from military families are at risk of  
          academic setbacks and delayed graduation.  Stress from  
          deployments can also affect academic performance, social  
          development and mental health.  Access to preschool will help  
          provide routine, stability and an academic, social and  
          developmental foundation to mitigate many of these issues.





          The Basic Allowance for Housing (BAH) is a non-discretionary  
          housing allowance given to active duty members of the military  
          to seek housing when there is limited availability on base or  
          when the military housing is privately operated.  This is a  
          product of the Department of Defense's (DOD) move toward  
          public-private partnerships in military housing as part of the  
          Military Housing Privatization Initiative.  Some military  
          housing was transferred to private operation, and military  
          personnel now receive a monthly BAH that increases their income  
          above the income ceiling levels for preschool programs.  The BAH  
          did not show up as income when military housing was strictly  
          operated by the DOD, so military families who met the low-income  
          eligibility threshold were granted admission to the state-funded  
          preschools.


          Prior to 2007, the BAH was inaccurately calculated as income  
          when determining a family eligibility to receive access to  
          state-funded preschool.  This excluded a significant number of  
          families from this vital program, while also putting a number of  
          preschool facilities at risk of closure because of lack of  
          enrollment.  In 2007, then Superintendent of Public Instruction  
          (SPI) Jack O'Connell issued an emergency regulation (California  
          Code of Regulations, Title 5, Education, Section 18134),  
          allowing preschool contractors with written approval from the  
          Department of Education to exclude the BAH given to military  
          families from being factored into eligibility for state  








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          preschool. 


          More recently, waivers have been issued to local education  
          agencies by the California Department of Education, allowing  
          them to exclude this amount without seeking individual case  
          approval.  [This bill] seeks to continue this trend of allowing  
          access to preschool by codifying the SPI's emergency regulation  
          and streamlining the process for determining military family  
          eligibility."

          Recommended amendments:  In order to maintain consistency with  
          the originating regulations, and make clear that state program  
          vacancies are to first be filled by children pursuant to all  
          statutorily mandated priorities, committee staff recommends the  
          following amendments starting on line 25 of page 2 of the bill:
          
              25


            8236.2.    a)   For purposes of determining eligibility for  
          state 
              26


          preschool services pursuant to this article, the income of an 
              27


          individual who is on federal active duty, state active duty,  
          active 
              28


          duty for special work, or Active Guard and Reserve duty in the 
              29


          military does not include the amount of the basic allowance for 








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              30


          housing pursuant to Section 403 of Title 37 of the United States  

              31


          Code provided to the individual that is equal to the lowest rate  
          of 
              32


          the allowance for the military housing area in which the  
          individual 
              33


          resides.
           b) Nothing in this Section shall supersede the priority for  
          federal and state subsidized child development services included  
          in this Chapter.


           PRIOR LEGISLATION:


          


          AB 170 (Saldaņa), 2007, contained provisions identical to the  
          provisions in this bill that exclude 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.










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          AB 427 (Weber), 2015, was similar to this bill, in that it would  
          have excluded 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.  It died on the Senate Appropriations  
          Committee suspense file.





          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Academy of Pediatrics, CA (AAP-CA)


          California Alternative Payment Program Association (CAPPA)


          First 5 California


          Los Angeles County Office of Education





          Opposition









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          None on file.




          Analysis Prepared by:Myesha Jackson/Daphne Hunt / HUM. S. /  
          (916) 319-2089