BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 379
                                                                  Page  1

          Date of Hearing:   April 29, 2003

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Lois Wolk, Chair
                 AB 379 (Mullin) - As Introduced:  February 14, 2003
           
          SUBJECT  :  Child care:  funding.

           SUMMARY  :  Requires that the percentage of parents who are  
          working be a factor in allocating funds for the expansion of  
          infant and toddler programs.  Specifically,  this bill  :  

          1)Adds parental workforce participation rates as a factor in the  
            formula for disbursing augmentations for the expansions of  
            child care and development programs to underserved areas.

          2)Requires the Superintendent of Public Instruction to consider  
            the percentage of infants and toddlers with working parents  
            when allocating funds for the expansion of child care and  
            development and infant and toddler programs.

           EXISTING LAW  :

          1)Requires the State Department of Education to disburse  
            augmentations to the base allocation for the expansion of  
            child care and development programs to promote equal access to  
            child development services.

          2)Requires the Superintendent of Public Instruction to develop  
            and use a formula as a guide in disbursing the augmentations,  
            giving priority to underserved areas which possess indicators  
            of need for child care and development services.

          3)Include as direct impact indicators teenage pregnancy rate,  
            the unemployment rate, area household income, or the  
            percentage of families receiving public assistance, eligible  
            for Medi-Cal or free or reduced-price meals, and any other  
            unique characteristics served by the program receiving an  
            augmentation.

           FISCAL EFFECT  :  None; affects only the allocation of funds  
          otherwise appropriated.

           COMMENTS  :  The author states that funding formula for the  
          expansion of funds for infant/toddler programs "historically has  








                                                                  AB 379
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          been based on each county's share of the statewide percentage of  
          women in the workforce" as well as the percentage receiving  
          public assistance and the number of children below the poverty  
          level.  "The first indicator counts women in the workforce,  
          regardless of whether they have children.  The author's office  
          believes a more accurate measure of need would result if the  
          formula considers parents in the workforce."

          The percentage of women in the workforce is not a current  
          statutory factor in the allocation of child care expansion  
          funds.

          The California Child Care Resource and Referral Network observes  
          that "the use of percentage vs. the number of working parents or  
          children of working parents could result in an inaccurate  
          measure of need.  For example, Mono County has the highest  
          percentage of children 0-5 with working parents, 72%, which  
          translates to 638 children.  In Los Angeles, only 49% of  
          children 0-5 have working parents, however, this translates to  
          397,242 children."  However, percentages and rates are used in  
          several factors among the direct impact indicators for purposes  
          of disbursing augmentation to the base allocation for child care  
          and development program expansion, such as teen pregnancy rates,  
          unemployment rate, and number or percentage of families  
          receiving public assistance.  The percentages can reveal which  
          areas have a greater proportional need for care.

          The California R&R Network also contends that in using data on  
          parental workforce participation, "middle and upper income  
          family numbers will be used to determine the distribution of  
          funding for low-income families.  This is not an accurate  
          measure of need for subsidized services." 
           
          PRIOR LEGISLATION:   SB 879 (Speier) of 1999-2000 contained  
          identical language to AB 529.  It passed the legislature but was  
          vetoed by the Governor.  The veto message stated, "SB 879 would  
          have the consequence of diverting child care funding from  
          underserved areas of the state."  However, the language in SB  
          879, as in AB 529, did not change the requirement that priority  
          goes to underserved areas, but listed indicators of need in  
          determining whether an area is underserved, to which parental  
          workforce participation would be added.

           REGISTERED SUPPORT / OPPOSITION  :









                                                                  AB 379
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           Support 
           
          Child Care Coordinating Council of San Mateo County

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Casey McKeever / HUM. S. / (916)  
          319-2089