BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2592
                                                                  Page  1

          Date of Hearing:   May 19, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 2592 (Buchanan) - As Amended:  April 27, 2010 

          Policy Committee:                              EducationVote:5-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the State Department of Education (SDE) to  
          implement a quality rating scale based on the recommendations  
          submitted by the Early Learning Quality Improvement System  
          (ELQIS) advisory committee.  Specifically, this bill: 

          1)Requires the quality rating system to do all of the following:  


             a)   Measure elements of quality of an early care and  
               education (ECE) provider. 

             b)   Measure elements of quality of an ECE program,  
               including, but not limited to: learning environments;  
               adult-child interactions; adult to child ratios; provider  
               education and professional qualifications; and parent and  
               family involvement.  

             c)   Inform parents and other consumers of ECE services about  
               the quality of a facility in a simple and easy to  
               understand manner. 

          2)Requires the California State Advisory Council on Early  
            Childhood Education and Care to conduct an annual review of  
            the program and provide ongoing recommendations for the  
            improvement of the quality rating scale. 

          3)Requires SDE to develop any rules and regulations necessary  
            for implementation of this measure.  

           FISCAL EFFECT  

          1)On-going GF/98 costs of $3 million to $12 million to SDE to  







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            implement a quality rating scale based on recommendations by  
            the ELQIS advisory committee.      

          2)One-time GF/98 costs, of at least $2.5 million, to SDE to  
            implement a quality ratings scale, as specified.   

           COMMENTS  

           1)Background  .  SB 1629 (Steinberg), Chapter 307, Statutes of  
            2008, established the ELQIS advisory committee to develop  
            recommendations on how to evaluate and improve the quality of  
            child development programs providing services from birth to  
            age five, including preschool.  This measure also required the  
            advisory committee to establish a framework for future  
            resources necessary to achieve and maintain higher quality  
            programs.   The advisory committee is required to complete its  
            report by December 31, 2010.  

            According to SDE, it has received $2 million to spread over  
            three years from the First 5 Commission to support the ELQIS  
            advisory committee. 

           2)Purpose  .  According to the California Early Learning Quality  
            Improvement System (CAEL QIS) Advisory Committee's 2009  
            Interim Report, it has met and "focused the majority of its  
            work this year on the first two SB 1629 tasks--assessing the  
            current status of early learning and care programs in  
            California and examining quality rating and improvement system  
            (QRIS) models in counties and other states, and framing the  
            initial elements of the quality rating structure and  
            improvement system for California. Some preliminary work has  
            also begun on the third legislatively assigned task, to  
            develop a funding model aligned with the QRIS."

            The CAEL QIS report also states: "The second year will focus  
            on more specific recommendations for the implementation of an  
            early learning quality improvement system for California,  
            including the programs that will be eligible to participate,  
            the funding model, and recommendations for how various  
            resources can best complement the statewide funding model to  
            improve the early learning and care system."

            This bill, sponsored by Preschool California, requires the SDE  
            to implement a quality rating scale based on the  
            recommendations submitted by the ELQIS advisory committee, as  
            specified.  







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          3)Federal Early Learning Challenge Fund (ELCF)  .  President  
            Obama's 2011 proposed budget proposes $9.3 billion in total  
            funding over 10 years for the ELCF.  The ELCF is designed to  
            make competitive grants to states to improve the quality of  
            early learning programs to help children enter kindergarten  
            ready to succeed.  The author indicates California may be  
            eligible for between $100 million and $200 million from the  
            ELCF.   Specifically, the fund is designed to provide monies  
            for two components: 
           
             (a)Quality Pathway Grants: awards to high-capacity states  
               pursuing models of reform and excellence in early learning,  
               including  establishing the elements of a comprehensive,  
               high quality early learning system.

             (b)Development Grants: awards to a set of states that show  
               promise for strengthening and expanding their early  
               learning systems, but need additional assistance to launch  
               a standards-based, outcomes-driven system.

            According to the author, "Draft legislation in Congress has  
            identified the quality rating scale as the primary vehicle for  
            an early learning systems change, and it is likely to be a  
            requirement for states to compete for grant funds."  
           
          1)Is this bill premature  ?  This bill requires SDE to implement a  
            quality rating scale based on the recommendations submitted by  
            the ELQIS advisory committee.  The advisory committee,  
            however, has not completed its final report and is not  
            required to until December 31, 2010.  

            The interim report submitted in December 2009 describes the  
            state's current progress toward designing a quality rating  
            system.  The report also indicates the need to refine and  
            complete recommendations for this system.  

            Likewise, while the author indicates this bill is necessary  
            for California to qualify for federal ELCF monies, the federal  
            ELCF has not been established nor has funding been  
            appropriated for this purpose.  

            Given the state's severe fiscal crisis and the proposed  
            reductions to child care programs ($316 million for the  
            20010-11 proposed budget), the committee may wish to consider  
            whether it is appropriate to implement a quality rating system  







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            based on the possibility of receiving federal funding for this  
            purpose.  Also, the committee may wish to consider allowing  
            the ELQIS advisory committee to finish its work and consider  
            its final report recommendations prior to implementing a  
            rating system.  
             
           2)Legislative Analyst Office (LAO) report on quality ratings  
            system for child care programs  .  In January 2007, the LAO  
            released a report entitled Developing Safety and Quality  
            Ratings for Child Care.  This report provides three options  
            for the state to consider regarding child care safety and  
            quality.  Specifically, Option 3 Plus: Expanding on the Basic  
            Quality Rating System, is similar to what is currently being  
            considered by the ELQIS advisory committee with regard to  
            "developing quality criteria that would provide a more  
            comprehensive picture of the child care environment and  
            on-site, direct assessment of individual providers."  
           
             According to the LAO, the following three cost factors will  
            influence implementation costs of this rating system: (a) a  
            mandatory or voluntary system; (b) whether or not technical  
            assistance and financial incentives will be provided; and (c)  
            the number and type of assessments (e.g., use of a direct  
            observational tool and frequency of assessments and ratings).   
                 

            The LAO report indicates that federal Child Care Development  
            Block Grant (CCDBG) funds may be used for this purpose.   
            Federal law requires states to set-aside a portion of their  
            CCDBG funding for quality activities.  For the 2010-11 FY, the  
            state is expected to receive approximately $520 million in  
            CCDBG funds.  Of this amount, SDE is using $97 million for  
            quality activities, such as professional development for child  
            care providers, licensing inspections of child care  
            facilities, curriculum materials for child care providers, and  
            tuition assistance to providers for college coursework. 

           3)California State Advisory Council on Early Childhood Education  
            and Care  .  In November 2009, Governor Schwarzenegger signed  
            Executive Order S-23-09 establishing the California State  
            Advisory Council on Early Childhood Education and Care (state  
            advisory council).  The federal Improving Head Start for  
            School Readiness Act of 2007 requires states to establish  
            state advisory councils in order to receive Head Start grants  
            designed to increase collaboration among early childhood  
            education providers.  The American Recovery and Reinvestment  







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            Act of 2009 provides grants of at least $500,000 to support  
            states in establishing these councils and in developing  
            statewide early childhood education plans. 

            The executive order also designated the ELQIS advisory  
            committee, established pursuant to SB 1629, as a committee of  
            the state advisory council.   

           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081