BILL ANALYSIS Ó
AB 2150
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2150 (Santiago) - As Introduced February 17, 2016
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|Policy |Human Services |Vote:|7 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill changes eligibility determination and
redetermination for subsidized child care. Specifically, this
bill:
1)For purposes of establishing initial income eligibility for
subsidized child care services, updates the state median
income (SMI) threshold for entering families to 70% of the
current SMI.
2)For purposes of establishing ongoing income eligibility for
subsidized child care services, updates the income threshold
at which families exit to 85% of the current SMI.
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3)Guarantees eligibility for child care for 12 months upon
receiving a child care subsidy.
4)Eliminates the required interim reporting during the 12 month
eligibility period unless family income exceeds 86% SMI or the
initial certification is on the basis of seeking employment,
in which case the family must report at six months.
FISCAL EFFECT:
1)Unknown, potentially major costs to the California Department
of Education (CDE), estimated in the range of $1 million to $5
million annually, due to increased caseload for CalWORKs
stages 2 and 3 childcare. With existing data we are unable to
identify the percentage of children leaving childcare due to
loss of eligibility. This estimate assumes between 2% and 10%
of the existing number of children leaving childcare each
month would instead continue childcare under this bill.
2)Administrative costs to CDE of approximately $40,000 in FY
2016-17 and $23,000 in FY 2017-18 to update regulations.
COMMENTS:
1)Purpose. This bill brings the State into compliance with the
newly authorized federal Child Care and Development Block
Grant which brought about a number of changes, including
establishing a 12-month eligibility redetermination period for
families, regardless of changes in income and other criteria.
According to the author, "In California, burdensome reporting
rules cause eligible families to churn between child care
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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."
2)Background. California offers subsidized child care to parents
participating in CalWORKs and to families transitioning off
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.
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).
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
AB 2150
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