BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 311


                                                                    Page  1





          Date of Hearing:  July 1, 2015


                           ASSEMBLY COMMITTEE ON EDUCATION


                              Patrick O'Donnell, Chair


          SB  
          311 (Beall) - As Amended June 1, 2015


          SENATE VOTE:  40-0


          SUBJECT:  Child Care and Development Services Act: preschool:  
          Alum Rock Union Elementary School District: pilot project.


          SUMMARY:  Authorizes the Alum Rock Union Elementary School  
          District (ARUESD)  to develop and implement an individualized  
          eligibility part-day preschool subsidy plan for children  
          residing in the school district.  Specifically, this bill:  


          1)Establishes the following definitions:


             a)   "School district" as the ARUESD, located in the County  
               of Santa Clara.


             b)   "Preschool program" as a state-funded part-day preschool  
               program that operates in the ARUESD.  


          2)Authorizes the ARUESD, as a pilot project, to develop and  
            implement an individualized eligibility part-day preschool  








                                                                     SB 311


                                                                    Page  2





            subsidy plan for children residing in the school district for  
            purposes of attending a preschool program in the school  
            district.  Requires the plan to ensure that child care  
            subsidies received by a preschool program are used to address  
            local needs, conditions, and priorities of families in the  
            school district and for preparing children for kindergarten  
            and grades 1 to 12, inclusive.


          3)Requires the ARUESD, before implementing the plan and in  
            consultation with any preschool program and the Santa Clara  
            Office of Education, to develop an individualized eligibility  
            part-day preschool subsidy plan that shall include both of the  
            following:


             a)   Notwithstanding any other law, eligibility to  
               participate in the preschool program shall be based on  
               either of the following conditions:


               i)     The child is eligible for free or reduced-price  
                 meals, as that term is used in subdivision (a) of  
                 Education Code (EC) Section 42238.01.


               ii)    The child is a foster youth, as that term is used in  
                 subdivision (b) of EC Section 42238.01.


             b)   Notwithstanding any other law, children up to the age of  
               admission into first grade shall be allowed to participate  
               in the preschool program.


          4)Requires the plan to be submitted to, and approved by, the  
            Santa Clara County Local Child Care Planning Council and the  
            Early Education and Support Division of the California  
            Department of Education (CDE).








                                                                     SB 311


                                                                    Page  3







          5)Specifies that upon approval of the plan, the ARUESD, in  
            consultation with the preschool program, the Santa Clara  
            Office of Education, and First 5 Santa Clara, shall do the  
            following:


             a)   Prepare and submit an annual report to the Legislature  
               and the CDE that summarizes the success of the pilot  
               project; and, 


             b)   Submit a final report to the Legislature in accordance  
               with the procedures established in the Government Code and  
               the CDE on or before December 31, 2022, that shall provide  
               recommendations as to whether the pilot project should  
               continue as a permanent program.


          6)Authorizes the ARUESD to implement the pilot project until  
            January 1, 2022, at which date the district shall terminate  
            the plan and implement the state's requirements for subsidized  
            part-day preschools.  Specifies that a child enrolling for the  
            first time in a preschool program in the school district after  
            January 1, 2022 shall not be enrolled in the pilot project  
            established by this bill and shall be subject to existing  
            state laws and regulations regarding preschool eligibility.


          7)Specifies that additional state funds shall not be  
            appropriated for purposes of implementing this bill.


          8)Sunsets on January 1, 2023, and as of that date is repealed,  
            unless a later enacted statute, that is enacted before January  
            1, 2023, deletes or extends that date.










                                                                     SB 311


                                                                    Page  4





          9)Finds and declares that a special law is necessary because of  
            the unique circumstances of the ARUESD, in the County of Santa  
            Clara.  The school district has a high level of children who  
            live in poverty, children who are English language learners,  
            children who are part of a minority group, and children who  
            are exposed to violence in their community. The school  
            district is particularly focused on significantly increasing  
            pupil achievement and parent engagement and this bill will  
            achieve this by offering preschool services to children and  
            families in the school district.


          10)Contains an urgency clause due to the fact that the start of  
            the 2015-16 school year begins in August.  This bill will  
            prevent needless hours and paperwork to certify eligibility  
            past the August start date. Therefore, in order to eliminate  
            the barriers for families to access state preschool and to  
            remove the paperwork burden on families and agencies in time  
            for the new school year, it is necessary for this bill to take  
            effect immediately.


          EXISTING LAW:   


          1)Establishes eligibility for child care services and child  
            development programs administered by the CDE and requires the  
            Superintendent of Public Instruction (SPI) to adopt rules and  
            regulations on eligibility, enrollment and priority of  
            services needed for implementation (EC Section 8263).

          2)Specifies that in order to be eligible for federal and state  
            subsidized child development services, families must meet at  
            least one requirement in each of the following areas:

             a)   A family is (A) a current aid recipient, (B) income  
               eligible, (C) homeless or (D) one whose children are  
               recipients of protective services, or whose children have  
               been identified as being abused, neglected, or exploited,  








                                                                     SB 311


                                                                    Page  5





               or at risk of being abused, neglected, or exploited; and,

             b)   A family needs the child care services (A) because the  
               child is identified by a legal, medical, social services  
               agency, or emergency shelter as (i) a recipient of  
               protective services or (ii) being neglected, abused, or  
               exploited, or at risk of neglect, abuse or exploitation, or  
               (B) because the parents are (i) engaged in vocational  
               training leading directly to a recognized trade,  
               paraprofession or profession, (ii) employed or seeking  
               employment, (iii) seeking permanent housing for family  
               stability, or (iv) incapacitated. (EC Section 8263(a))

          3)Establishes the California State Preschool Program (CSPP) and  
            provides that the programs shall include, but not be 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.  (EC Section 8235).

          4)Defines "income eligible" as a family whose adjusted monthly  
            income is at or below 70% of the state median income (SMI),  
            adjusted for family size, and adjusted annually.  For the  
            2014-15 fiscal year, the income eligibility shall be 70% of  
            the SMI that was in use for the 2007-08 fiscal year, adjusted  
            for family size.  (EC Section 8263.1)



          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, absorbable local costs to implement the pilot; minor  
          and absorbable administrative costs to the CDE related to  
          contract monitoring and review of the pilot plan and reports;  
          and potential significant cost pressure to scale this pilot  
          statewide, which would result in changes in eligibility,  
          allowing for self-certification of income eligibility and  
          allowing children to participate in the program that are older  








                                                                     SB 311


                                                                    Page  6





          than four years old.  


          COMMENTS:  Purpose of the bill.  The author states that the  
          ARUESD "has one of the highest numbers of low income families  
          and a high violence rate within the East of San Jose.  As a  
          result of the various barriers, academic performances have been  
          highly impacted amongst children and youth residing in the Alum  
          Rock community.  This bill will reduce the paper work burden for  
          eligibility requirements on families.  ARUESD already has in  
          place a universal free and reduced lunch program for all  
          students.  If new students wanted to participate in the pilot  
          project, families would have to fill out double the paper work  
          for eligibility under current state requirements.  The Child  
          Development funding, unlike K-12, is not permissive.  This bill  
          allows alternatives for children and families to qualify for  
          this service."  


          According to the CDE, in 2013-14, ARUESD had an enrollment of  
          12,570, of which, 11,183 (89%) were eligible for the free and  
          reduced-price meals (FRPM) program.    


          CSPP.  The CSPP offers part-day and full-day preschool programs  
          through contracts with local educational agencies, private  
          contractors, and colleges.  These programs are required to  
          comply with health and safety standards under Title 22  
          regulations and higher developmental and teacher qualification  
          standards under Title 5 regulations adopted by the CDE.  Income  
          eligibility is 70% of the SMI ($46,896 for a family of four).   
          Part-day preschool operates three hours per day for 175 days.   
          The General Child Care program provides "wrap around" to provide  
          full-day care.  The 2015-16 budget recently passed by the  
          Legislature provides 9,500 new slots to the CSPP part-day and  
          full-day programs.    


          What does this bill do?  This bill establishes a preschool pilot  








                                                                     SB 311


                                                                    Page  7





          project for the ARUESD.  According to the sponsor, Kidango, and  
          the author, the purpose of the bill is to allow Kidango to  
          reduce the amount of paper work and administrative time required  
          to determine eligibility and to use CSPP as a "wraparound"  
          service for children in transitional kindergarten (TK) and  
          kindergarten.  The bill authorizes the district to develop and  
          implement the pilot, but the school district does not currently  
          have a contract with the CDE to provide preschool services.   
          Kidango, an early childhood education and preschool provider  
          with a number of sites throughout the Bay Area, has a contract  
          with CDE to provide state subsidized preschool.  This pilot,  
          however, is intended to apply only to Kidango's services for  
          children who reside and attend schools in the ARUESD, targeting  
          approximately 200 kids.  The school district's role is in  
          providing classrooms and playground space.  As such, the bill  
          needs to be amended to clarify that the preschool program is  
          authorized to participate in the pilot project.  Staff  
          recommends an amendment to clarify that ARUESD and a preschool  
          program, defined as an agency that holds a CSPP contract and  
          that has a memorandum of understanding with ARUESD, are  
          authorized to develop the pilot.   


          Using eligibility for federal meal programs to determine  
          eligibility.  This bill will allow Kidango to use eligibility  
          for FRPM to constitute eligibility, instead of determining  
          eligibility using the CSPP application and income eligibility of  
          70% of the SMI.  According to the sponsor, this will allow the  
          agency to reduce time and costs to establish eligibility under  
          the CSPP.  According to the CDE, CSPP eligibility requires proof  
          of income, while the FRPM does not.  The FRPM is a federally and  
          state funded program that provides free or very low cost meals  
          to needy children in schools.  According to the sponsor, the  
          children enrolled in the pilot may include three- or  
          four-year-old children, in addition to children already enrolled  
          in the ARUESD.  The three- or four-year-old children will not be  
          enrolled in the FRPM program.  Instead, these children may be  
          eligible for the child and adult care food program (CACFP).  The  
          CACFP is also a federally and state funded program that  








                                                                     SB 311


                                                                    Page  8





          subsidizes meals and snacks served at child care, preschool,  
          family day care homes and at adult day care programs.  Staff  
          recommends adding the CACFP as another method for determining  
          eligibility for CSPP.  


          Income eligibility for both the FRPM and the CACFP programs is  
          the same and is established by the federal government.  For the  
          free meal category, household income must be at or below 130% of  
          the federal poverty guidelines.  For the reduced-price category,  
          household income must be between 130% and 185% of federal  
          poverty guidelines.  When compared by family size, the income  
          ceilings for the CSPP and the FRPM and CACFP are fairly  
          comparable.  Below are examples of family ceilings for a family  
          of 3 and 4:


              Comparison of income eligibility for CSPP, FRPM and CACFP  
                                      programs:





           ----------------------------------------------------------------- 
          |         | California  |  Free or Reduced   |  Free or Reduced   |
          |         |    State    | Price Meal Program | Price Meal Program |
          |         |  Preschool  |and Child and Adult |and Child and Adult |
          |         |   Program   |Care Food Program   | Care Food Program  |
          |         |             |         (Free)     |  (Reduced Price)   |
          |         |             |                    |                    |
          |         |             |                    |                    |
          |---------+-------------+--------------------+--------------------|
          |Family   |   $42,216   |      $26,117       |      $37,167       |
          |of 3     |             |                    |                    |
          |         |             |                    |                    |
          |         |             |                    |                    |
          |---------+-------------+--------------------+--------------------|
          |Family   |   $46,896   |      $31,525       |      $44,863       |








                                                                     SB 311


                                                                    Page  9





          |of 4     |             |                    |                    |
          |         |             |                    |                    |
          |         |             |                    |                    |
           ----------------------------------------------------------------- 
                 


          These examples show that the federal food program income  
          ceilings are lower than the CSPP; therefore, if a child is  
          eligible for either CACFP or the FRPM program, the child would  
          be eligible for CSPP.  Using the meal programs as proxies for  
          eligibility for CSPP would work.  The issue for the Committee to  
          consider is whether the state should provide eligibility for  
          CSPP without verification of income.  While there is potential  
          for enrolling children who do not meet income eligibility, the  
          fact that 89% of the district is comprise of low income students  
          eligible for FRPM reduce that likelihood.  


          Extending eligibility to children enrolled in TK and  
          kindergarten.  Under current law, priority for enrollment for  
          CSPP goes to four- or three-year-old neglected or abused  
          children who are recipients of Child Protective Services or  
          recipients who are at risk of being neglected or abused, without  
          regard to income.  Second priority goes to four-year-old  
          children who were enrolled in CSPP as a three-year-old, followed  
          by four-year-old children with the lowest income ranking.   
          Three-year-old children may be enrolled after four-year-olds are  
          enrolled.  This bill provides CSPP eligibility to children up to  
          the age of admission into first grade, which means that children  
          in TK and kindergarten are eligible to be enrolled in CSPP.  


          TK program.  TK was established in 2010 when the date by which a  
          child turns five for enrollment in kindergarten was changed from  
          December 2 to September 1.  TK is a modified kindergarten  
          program for the children with fall birthdays displaced as result  
          of the change. According to the sponsor, the purpose of this  
          part of the bill is to enable children in TK and kindergarten  








                                                                     SB 311


                                                                    Page  10





          enrolled in the district to receive preschool services after  
          school ends.  The district's TK and kindergarten are part-day  
          programs.  By expanding eligibility to children in kindergarten,  
          this bill may potentially expand eligibility to children who may  
          be up to six years of age.  Even as a pilot, the Committee may  
          wish to consider whether this is a good and appropriate use of  
          CSPP funds, especially given that there currently are not enough  
          slots to provide services to all eligible three- and  
          four-year-old children.  If the district wishes to extend the  
          number of hours for kindergarteners, the district may consider  
          offering extended day kindergarten (full-day), seek state after  
          school program funds, or use its local control funding formula  
          for this purpose.  


          Current regulations authorize children enrolled in TK who are in  
          need of before or after school services to be enrolled in the  
          General Child Care and Alternative Payment Programs, but not the  
          CSPP.  While extending CSPP to children old enough for TK also  
          goes beyond age limitations, it is at least somewhat consistent  
          with preschool; the children are at most five years old and  
          budget trailer bill language enacted last year expresses the  
          intent of the Legislature for the TK curriculum to be aligned to  
          the state preschool learning foundations.   Staff recommends an  
          amendment to authorize children up to the age of admission into  
          kindergarten to be eligible to participate in the pilot.  The  
          effect is that children enrolled in TK would be eligible to  
          participate in the pilot.          


          The plan.  The bill requires ARUESD to develop a plan that  
          specifies the eligibility criteria and submit the plan to the  
          Santa Clara County Local Child Care Planning Council and the  
          Early Education and Support Division of the CDE for approval.   
          Staff recommends the following:


          1)Rather than submitting the plan to the Santa Clara County  
            Local Child Care Planning Council, require the plan or  








                                                                     SB 311


                                                                    Page  11





            modification to the plan to be submitted to the governing  
            board of the ARUESD and the CDE.


          2)Require the CDE to approve or disapprove the plan or  
            modifications to the plan within 30 days of submission and  
            specify that disapproval of the plan or modifications to the  
            plan shall be based on nonconformance with this bill or  
            conflicts with federal law. 


          3)Specify that the plan shall include, but is not limited to,  
            the following:


             a)   Increasing access to preschool in the school district to  
               prepare children for TK and kindergarten.


             b)   Provision of supplemental services to children in TK.


             c)   Provision of parent education, parent engagement and  
               family support services.


             d)   Systems to facilitate transition of children and their  
               families from Head Start and preschool to TK and  
               kindergarten.


             e)   Increasing collaboration between preschool, TK and  
               kindergarten teachers.


          Reports.  The bill requires an annual report to be submitted by  
          the school district summarizing the success of the pilot.   
          However, the bill does not define the measurements of success.   
          Staff recommends using increase in the enrollment of very  








                                                                     SB 311


                                                                    Page  12





          low-income kids (using the number of kids eligible for free  
          meals under the FRPM program) as a measure of success.  


          Privacy considerations.  Staff recommends an amendment to  
          require any sharing of information between the school district  
          and Kidango to be in accordance with the federal Family  
          Educational Rights and Privacy Act of 1974.    


          Sunset date.  The bill currently sunsets on January 1, 2023.   
          Staff recommends changing the sunset date to June 30, 2021 to  
          make the pilot a five and a half year pilot (assuming that  
          implementation begins on January 1, 2016 and will end at the end  
          of the fiscal year in 2021).  


          Other pilots.  The Legislature has authorized other pilot  
          projects in San Mateo County and the city of county of San  
          Francisco that provides limited local flexibility to adjust  
          eligibility rules, provider rates and family fees to accommodate  
          higher cost of living and higher cost to provide care in these  
          areas.  AB 833 (Bonta), pending in the Senate Education  
          Committee, authorizes Alameda to establish a similar pilot.   
          This bill is different than the other pilots in that it only  
          applies to CSPP and not all early development programs, and the  
          flexibilities granted by this bill are limited to funds received  
          by one agency rather than on a countywide basis.             


          Urgency clause.  This bill contains an urgency clause and  
          states, as a reason, because the start of the 2015-16 school  
          year begins in August.  Staff notes that even if the bill is  
          signed by mid-July, it would be difficult for the pilot to take  
          effect by August.  As amended, the bill requires a plan  
          developed by the school district and the preschool program to be  
          approved by the ARUESD governing board and the CDE.  Once the  
          plan is submitted to the CDE, CDE would have 30 days to review  
          and to approve or disapprove the plan.  If modifications are  








                                                                     SB 311


                                                                    Page  13





          required, CDE would have an additional 30 days for review.        
                                                                                           


          Related legislation.  AB 833 (Bonta), pending in the Senate  
          Education Committee, authorizes the County of Alameda to, as a  
          pilot project, develop and implement an individualized county  
          child care subsidy plan.


          Prior related legislation.  AB 260 (Gordon), Chapter 731,  
          Statutes of 2013, extended the sunset dates of the San Francisco  
          and San Mateo County individualized county child care subsidy  
          plans to 2016 and 2018, respectively.


          AB 86 (Committee on Budget), Chapter 48, Statutes of 2013,  
          extended the sunset data of the San Francisco individualized  
          county child care subsidy plan to 2015.


          SB 1016 (Committee on Budget and Fiscal Review), Chapter 38,  
          Statutes of 2012, extended the sunset date of the San Francisco  
          individualized county child care subsidy plan to 2014.


          AB 1610 (Committee on Budget), Chapter 724, Statutes of 2010,  
          extended the sunset date of the San Francisco individualized  
          county child care subsidy plan to 2013.


          SB 1225 (Yee), held in the Senate Appropriations Committee  
          suspense file in 2010, would have extended the sunset date of  
          the San Francisco individualized county child care subsidy plan  
          to 2016.  


          AB 1304 (Simitian), Chapter 61, Statutes of 2008, extended the  
          sunset date of the San Mateo County individualized county child  








                                                                     SB 311


                                                                    Page  14





          care subsidy plan to 2014.


          SB 701 (Migden), Chapter 725, Statutes of 2005, established the  
          San Francisco individualized county child care subsidy plan  
          pilot project, to sunset in 2011. 


          AB 1326 (Simitian), Chapter 691, Statutes of 2003, established  
          the San Mateo County individualized county child care subsidy  
          plan pilot project.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Alum Rock Union Elementary School District


          Alameda County Board of Supervisors


          First 5 Santa Clara County


          Kidango


          Santa Clara County Office of Education


          Numerous individuals










                                                                     SB 311


                                                                    Page  15







          Opposition


          None on file




          Analysis Prepared by:Sophia Kwong Kim / ED. / (916)  
          319-2087