BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1042 (Hancock) - Child care:  state preschool programs:  age  
          of eligibility
          
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          |Version: February 12, 2016      |Policy Vote: ED. 8 - 1          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 11, 2016    |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  This bill expands eligibility for the California State  
          Preschool Program (CSPP) by adjusting the date of eligibility by  
          three months to include younger three-year-olds.


          Fiscal  
          Impact:  Potential significant loss of savings to the state to  
          the extent certain providers are able to expand services to  
          younger three-year-olds. This bill could also add to the  
          existing number of eligible children not being served if not all  
          providers can accommodate the expanded eligibility, thereby  
          adding to the existing pressure for the state to fund all its  
          eligible children.  However, at-risk children and eligible  
          four-year-olds would continue to have priority in the program.  
          (Proposition 98) (See Staff Comments)









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          Background:  The CSPP is one of four major preschool programs in  
          California.  Existing law establishes CSPP for purposes of  
          providing part-day and full-day developmentally appropriate  
          programs designed to facilitate the transition to kindergarten  
          for three- and four-year-old children in educational  
          development, and to provide health, social, and nutritional  
          services, as well as parent education and participation,  
          evaluation, and staff development.  Existing law specifies that  
          children are eligible for a CSPP if the family is currently a  
          CalWORKs cash aid recipient, meets specified income eligibility  
          requirements, is homeless or if the child is the recipient of  
          protective services, or has been, or is at risk of being,  
          identified as neglected, abused, or exploited.  (Education Code  
          § 8263)  

          Existing law requires that first priority go to three- or  
          four-year-old neglected or abused children who are recipients of  
          child protective services, or who are at risk of being  
          neglected, abused, or exploited.  After this priority is  
          satisfied, then the next priority is given to eligible  
          four-year-old children who are not enrolled in a state-funded  
          transitional kindergarten program before enrolling eligible  
          three-year-old children. (Education Code § 8235 and 8236)  

          Existing law requires that a child enrolled in a CSPP be three-  
          or four-years-old on or before September 1 in the fiscal year in  
          which they enroll. (Education Code § 8208)

          Existing law defines Transitional Kindergarten as the first year  
          of a two year kindergarten program that uses a modified  
          kindergarten curriculum that is age and developmentally  
          appropriate, and requires schools, as a condition of receiving  
          apportionments for Transitional Kindergarten, to admit a child  
          who will have his or her fifth birthday between September 2 and  
          December 2.  (EC § 48000 (c))


          The Governor's Budget proposes to create an Early Education  
          Block Grant by consolidating Proposition 98 funding for CSPP,  
          Transitional Kindergarten, and the Preschool Quality Rating and  
          Improvement System.  This proposal consolidates a total of $1.7  
          billion.  The proposal intends to extend the goals of the Local  
          Control Funding Formula to promote local flexibility to develop  
          programs that address the needs of the community, to allocate  








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          funding based on factors such as population and need, and to  
          prioritize services for low-income and at-risk children.  The  
          Administration has engaged stakeholders on the development of  
          the block grant to inform additional details of the program  
          which is anticipated to be included in the May Revision.


          Proposed Law:  
            This bill changes the definition of eligible three-year-old  
          children to those who will have their third birthday on or  
          before December 1 of the fiscal year in which they are enrolled  
          in a CSPP, thereby expanding eligibility by three months.


          Related  
          Legislation:  SB 858 (Chapter 32, Statutes of 2014), the  
          education omnibus trailer bill, included Legislative intent to  
          provide quality preschool opportunities for all low-income  
          children whose families wish to enroll them, and that the state  
          provide all low-income four-year-old children from working  
          families with full-day, full-year early education and care.


          Staff  
          Comments:  According to the author, with more families enrolling  
          four-year old children in Transitional Kindergarten, some state  
          preschool providers struggle to fill their programs with  
          eligible four-year-olds.  This bill intends to give providers  
          the ability to fill existing slots that would otherwise remain  
          vacant with younger three-year olds.  If providers are unable to  
          fill existing slots and spend the funding that they are  
          allocated, it returns to the state as savings, available for  
          reallocation for other Proposition 98 purposes.  For example,  
          the Budget Act of 2015 reappropriates $34.1 million originally  
          allocated in the Budget Act of 2013 for the CSPP.  If this bill,  
          as intended, results in the ability for providers to spend more  
          of their allocation and send less back to the state, the state  
          would lose potentially significant savings.  For context, if 10  
          percent of the savings in the 2013-14 fiscal year were instead  
          spent by some providers on services to younger three-year-old  
          children, the state could incur a loss in savings of about $3.4  
          million.  This could translate to roughly 700 additional  
          part-day preschool slots for three-year-olds.









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          Because the number of available slots for CSPP is determined by  
          the annual budget, priority is given to certain children as CSPP  
          is unable to serve all eligible children.  According to  
          estimates from the American Institutes for Research, over 33,000  
          income-eligible four-year-olds were not participating and/or do  
          not have access to slots in any publicly supported school  
          readiness program including the CSPP, other state Title 5  
          programs, TK, and federal Head Start in 2014 (and about 137,000  
          eligible three-year-olds).  This bill does not add additional  
          slots for CSPP.  As noted above, it expands eligibility by  
          allowing providers that are able, to serve younger  
          three-year-olds than currently permitted.  In other areas this  
          could add to the list of eligible children not being served if  
          those providers are unable to accommodate the expanded  
          eligibility.  However, at-risk children and eligible  
          four-year-olds would continue to have priority in the program.


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