BILL ANALYSIS Ó
AB 2150
Page 1
Date of Hearing: April 12, 2016
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Susan Bonilla, Chair
AB 2150
(Santiago) - As Introduced February 17, 2016
SUBJECT: Subsidized child care and development services:
eligibility periods
SUMMARY: Provides for changes to eligibility determination and
redetermination for subsidized child care.
Specifically, this bill:
1)Requires a family, upon establishing initial or ongoing
eligibility for subsidized child care services, to:
a) Be considered to meet all eligibility requirements for a
period of not less than 12 months, unless the family
established eligibility on the basis of seeking employment,
as specified;
b) Receive subsidized child care services for not less than
12 months prior to having their eligibility redetermined,
unless the family established eligibility on the basis of
seeking employment, as specified; and
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c) Not be required to report changes to income or other
changes for at least 12 months, unless the family attains
an income that exceeds the threshold for ongoing
eligibility, as specified.
2)Requires a family that establishes initial eligibility on the
basis of seeking employment to receive services for not less
than six months and further requires a family that establishes
ongoing eligibility for subsidized child care to receive
services for six additional months unless the family becomes
otherwise eligible, as specified.
3)Requires a family to report increases in income that exceed
the threshold for ongoing income eligibility, as specified,
and further requires the family's ongoing eligibility to be
redetermined at that time.
4)Permits a family to, at any time, voluntarily report income or
other changes for purposes of reducing a family's fees,
increasing a family's subsidy, or extending the period of the
family's eligibility prior to redetermination.
5)Specifies that, for purposes of establishing initial income
eligibility for subsidized child care services, "income
eligible" means that a family's adjusted monthly income is at
or below 70% of the state median income (SMI) based on the
most recent data published by the United States Census Bureau
for a family of the same size.
6)Defines, for purposes of establishing ongoing income
eligibility for subsidized child care services, "ongoing
income eligible" to mean that a family's adjusted monthly
income is at or below 85% of the SMI based on the most recent
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data published by the United States Census Bureau for a family
of the same size.
7)Authorizes any family that receives first priority for
subsidized child care services, as specified, to be exempt
from family fees for up to 12 months.
8)Makes technical amendments, including removing provisions that
specify or refer to eligibility determination periods that
conflict with the provisions contained in this bill.
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)States the intent of the Legislature that all families have
access to child care and development services, through
resource and referral where appropriate, and regardless of
demographic background or special needs, and that families are
provided the opportunity to attain financial stability through
employment, while maximizing growth and development of their
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children, and enhancing their parenting skills through
participation in child care and development programs. (EDC
8202)
4)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 and 8241)
5)To allow for maximum parental choice, authorizes the operation
of Alternative Payment Programs (APPs) and provision of
alternative payments and support services to parents and child
care providers by local government agencies or non-profit
organizations that contract with CDE. (EDC 8220)
6)Establishes rules and requirements for APPs and providers, as
contracted agencies with CDE, to observe, including but not
limited to accounting and auditing requirements, attendance
monitoring requirements, referral requirements where
applicable, and reimbursement and payment procedures. (EDC
8220 et seq.)
7)Requires the Superintendent of Public Instruction to adopt
rules and regulations regarding eligibility, enrollment, and
priority of services. (EDC 8263)
8)Requires the Superintendent to adopt rules, regulations, and
guidelines to facilitate funding and reimbursement procedures
for subsidized child care. (EDC 8269)
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9)Requires the Superintendent to establish a family fee schedule
for subsidized child care, as specified, contingent on income
and subject to a cap. (EDC 8273)
FISCAL EFFECT: Unknown.
COMMENTS:
Subsidized child care: Subsidized child care may be available
to low-income families through a number of programs.
Additionally, California offers State Preschool Programs to
eligible three-and four-year-olds.
California offers subsidized child care to parents participating
in CalWORKs and to families transitioning off of and no longer
receiving aid. This child care is offered in three "stages";
DSS administers Stage 1, and CDE administers Stages 2 and 3.
CDE also administers non-CalWORKs child care. The largest
programs are: General Child Care, which includes contracted
centers and family child care homes; the California State
Preschool Program, which includes contracted centers and family
child care homes for three- and four-year olds; and APPs, which
provide vouchers that can be used to obtain child care in a
center, family child care home, or from a license-exempt
provider. Waitlists for non-CalWORKs child care are common.
Contracted providers are funded through the receipt of the
Standard Reimbursement Rate (SRR) based on the number of
children enrolled and the hours of care provided. Families may
also be required to pay a family fee if they earn above a
certain threshold income for their family size. The current SRR
is $38.29 per child for a full day of care. Adjustment factors
are applied to the SRR in some instances to reflect the
increased cost of care for the different ages and needs of
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children.
The Regional Market Rate (RMR) survey calculates the market
rates for child care in each of California's 58 counties and
uses these to establish maximum child care reimbursement rates
for child care services for families in various APPs or other
voucher child care programs. States are required to conduct a
market rate survey every two years, but are not required to use
the most recent survey to set rates. Reimbursement rates for
licensed providers accepting vouchers are currently derived by
applying a formula to the 2009 RMR. License-exempt providers
are reimbursed at 65% of the Family Child Care Home ceilings.
In Santa Clara County, for example, the full-time daily RMR for
a preschool-age child in a child care center is $69.77. For
that same child in a family child care home, the RMR is $57.88,
and with a license-exempt provider, the RMR is $37.62.
Families are typically eligible for subsidized child care if
their income is less than 70% of the 2007-08 State Median Income
(about $42,000 per year for a family of 3), if the parents have
a need related to work, training, or education, and if the
children are up to 12 years old (or 21 years old for youth with
exceptional needs). The following table shows current income
ceilings by family size:
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---------------------------------------------
| Family | Family Monthly | Family Yearly |
| Size | Income | Income |
| | | |
| | | |
|----------+-----------------+----------------|
| 1-2 | $3,283 | $39,396 |
| | | |
| | | |
|----------+-----------------+----------------|
| 3 | $3,518 | $42,216 |
| | | |
| | | |
|----------+-----------------+----------------|
| 4 | $3,908 | $46,896 |
| | | |
| | | |
|----------+-----------------+----------------|
| 5 | $4,534 | $54,408 |
| | | |
| | | |
|----------+-----------------+----------------|
| 6 | $5,159 | $61,908 |
| | | |
| | | |
|----------+-----------------+----------------|
| 7 | $5,276 | $63,312 |
| | | |
| | | |
|----------+-----------------+----------------|
| 8 | $5,394 | $64,728 |
| | | |
| | | |
|----------+-----------------+----------------|
| 9 | $5,511 | $66,132 |
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| | | |
| | | |
|----------+-----------------+----------------|
| 10 | $5,628 | $67,536 |
| | | |
| | | |
|----------+-----------------+----------------|
| 11 | $5,745 | $68,940 |
| | | |
| | | |
|----------+-----------------+----------------|
| 12 | $5,863 |$70,356 |
| | | |
| | | |
---------------------------------------------
(Source: California Department of Education)
Families may be charged a "family fee" depending on their
income. For a family of 3, for example, subsidized child care
remains at no cost for families earning less than $1,950 per
month. However, with incomes between $1,950 a month and the
monthly income ceiling of $3,518, a family fee is charged, the
amount of which increases with income, but never to surpass 10%
of a family's income. For a family of three with a monthly
income of $1,950, the family fee per month for full-time care is
$42; for a family of three earning $3,518 per month, this fee is
$345.
Across the various subsidized child care programs, there are
estimated to be over 195,000 slots (not including State
Preschool). State Preschool contains over 157,000 additional
slots.
Child Care and Development Block Grant (CCDBG): The federal
Child Care and Development Block Grant Act of 2014 (P.L.
113-186) reauthorized the Child Care and Development Block Grant
Act of 1990. This reauthorization brought about a number of
changes aimed at addressing health and safety requirements,
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quality of care, and consumer and provider education.
One specific change adopted by this reauthorization establishes
a 12-month eligibility redetermination period for families,
regardless of changes in income (provided income does not exceed
85% of State median income, the maximum income ceiling allowable
under federal law) or temporary changes in participation in
work, training, or education activities.
Also, according to the federal Administration for Children and
Families' (ACF) Office of Child Care:
"The [CCDBG Act] specifies that a State must provide for a
graduated phase-out of assistance for families whose income
has increased at the time of re-determination, but still does
not exceed the federal income limit of 85% of State Median
Income (SMI). Providing a graduated phase-out promotes
continuity by allowing for wage growth, a tapered transition
out of the child care subsidy program, and supports long-term
financial stability to help families get to a point where they
no longer need the subsidy. Sudden withdrawal of support can
destabilize and undermine a family's pathway to financial
stability.
ACF strongly encourages States and Territories to consider how
to continue to support families through access to financial
assistance for child care until they have achieved financial
stability. Pending additional guidance from ACF, this could
be achieved through policies such as establishing a second
income eligibility threshold at re-determination (e.g.,
establishing a different eligibility threshold for families
first applying for assistance and those already receiving
assistance, sometimes called an 'exit threshold') or by
granting a sustained period of continued assistance to the
family before termination. The law allows the exit threshold
to be set as high as 85% of SMI. States could adjust co-pays
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for families during this period to create a gradual shift in
how families must adjust their budget to cover the full cost
of care once they are no longer receiving a subsidy, but
should consider how to do this in a way that minimizes
paperwork and reporting burdens on working families."
Need for this bill: According to the author:
"In California, burdensome reporting rules cause eligible
families to churn between child care programs and long waiting
lists for the programs. Churning disrupts children's school
readiness and development; makes it impossible for child care
providers to balance ledgers or plan for quality investments;
and burdens employers and education providers to sign off on
endless paperwork.
There is broad consensus among child care administrators,
advocates, and parents that the state's current reporting
rules are harmful, and that establishing more stability within
the child care system will create better outcomes for
children."
The co-sponsors of this bill, Parent Voices and the Child Care
Law Center, write the following in support of the bill:
"The intent of this bill is to promote continuous child care
assistance for children and families for an extended period of
time. Working low-income families often experience rapid and
multiple changes in income and work-related activities.
Retention of child care during a temporary hardship such as
unemployment or extended illness alleviates stress on children
and families and facilitates parents' smooth transition back
into the workforce. Stable child care is critical to
strengthen parents' ability to work, improve their prospects
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in the job market, and increase their earning potential. In
addition, continuity creates the stable conditions children
need for their healthy development and school-readiness.
Research shows that children's educational and developmental
outcomes improve when they have continuity in their child care
arrangements. Frequent changes in child care arrangements are
associated with higher levels of stress and negative behavior
in young children?
[This bill] is an extraordinary opportunity to remove unjust
and unjustified, red-tape reporting rules that cause eligible
families to churn in and out of child care programs; put their
jobs at risk; disrupt children's school readiness and
development; force them to turn down job promotions, make it
impossible for child care providers to balance ledgers or plan
for quality investments while accepting subsidized children;
and burden employers and education providers who are required
to sign off on endless paperwork."
REGISTERED SUPPORT / OPPOSITION:
Support
A Stronger California Advocates Network
Advancement Project
American Federation of State, County and Municipal Employees
(AFSCME), AFLCIO
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Butte County Child Abuse Prevention Council
California Alternative Payment Program Association (CAPPA)
California Child Development Administrators Association (CCDAA)
California Community College CalWORKs Association (CCC CWA)
California Work & Family Coalition
Center for Community Change Action
Child Care Alliance of Los Angeles
Child Care Law Center -co-sponsor
Child Care Resource Center
Children Now
Children's Council of San Francisco
Choices for Children
Coalition of California Welfare Rights Organizations, Inc.
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Community Action Partnership of San Luis Obispo County, Child
Care Resource Connection
Community Child Care Council (4Cs) of Alameda County
Equal Rights Advocates (ERA)
Marin Child Care Council
Marin Family Child Care Association
Mimi and Peter Hass Fund
National Association of Social Workers, CA Chapter (NASW-CA)
National Council of Jewish Women-CA (NCJW-CA)
Oakland Unified School District
Our Family Coalition
Parent Voices - co-sponsor
Raising California Together
Services Employees International Union (SEIU)
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The Friends Committee on Legislation (FCLCA)
The Young Women's Freedom Center
UDW/AFSCME Local 3930
W. Haywood Burns Institute
Western Center on Law and Poverty
Women's Foundation of California
2 individuals
Opposition
None on file.
Analysis Prepared by:Daphne Hunt / HUM. S. / (916) 319-2089
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