BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2592 (Buchanan)
          
          Hearing Date:  08/12/2010           Amended: 08/04/2010
          Consultant:  Dan Troy           Policy Vote: ED 5-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 2592 would require the Department of  
          Education to implement an early learning quality improvement  
          rating scale pilot program that reflects the cultural and  
          linguistic diversity of California's young children and that is  
          based on the final recommendations developed by the Early  
          Learning Quality Improvement System (ELQIS) Advisory Committee.   
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Quality rating scale pilot            Likely in the millions,  
          pending the final           Federal
                                            evaluation of the advisory  
          committee
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          Chapter 307 of the Statutes of 2008 (AB 1629, Steinberg)  
          established the Early Learning Quality Improvement System  
          Advisory Committee, for the purpose of identifying and improving  
          early learning programs for children from birth to age 5. The  
          Committee has been tasked with developing the policy and  
          implementation plan for an Early Learning Quality Improvement  
          System.  The advisory committee was required to submit an  
          interim report in 2009, and is required to submit a final report  
          by December 31, 2010.

          The advisory committee focused its work mainly on two of the  
          four elements of quality required to be considered, and learned  
          about existing local systems as well as features of systems from  
          19 other states.  According to the report, some of the common  
          elements found in the quality rating and improvement systems  
          from other states include standards, accountability measures,  










          program and practitioner outreach and support, financing  
          incentives, and parent/consumer education.  According to the  
          report, some of the lessons learned from other states'  
          experiences include:

                 Conduct a pilot and have the training for the rating  
               infrastructure in place before implementing the quality  
               rating system statewide.

                 Set clear standards from the outset for the rating  
               system.

                 Use environment rating scales as a core element of the  
               quality rating system, although they can be expensive to  
               administer.

                 Determine who should conduct the quality ratings,  
               recognizing that this is a key decision.

          Page 2
          AB 2592 (Buchanan)

                 Accompany ratings with financial incentives and  
               technical assistance, given that participation in most  
               quality rating systems is voluntary, and that providers are  
               taking some risk to be rated.

          The preliminary design of a quality rating system approved by  
          the committee features a non-weighted block system.  Six quality  
          elements - family involvement, ratios and group size,  
          environment rating scales, staff education and training,  
          teaching and learning, and program leadership - makeup the  
          evaluation components. According to the report, all the quality  
          criteria in each tier need to be accomplished to obtain that  
          rating, and the criteria included in each tier builds upon those  
          in previous blocks.  

          This interim report stresses that what has been developed is not  
          final.  The advisory committee is scheduled to complete the  
          design structure of the quality rating system in 2010.  

          This bill would require the Department of Education (CDE) to  
          implement a quality rating scale based on the final  
          recommendations developed by the Early Learning Quality  
          Improvement System Advisory Committee that program that reflects  
          the cultural and linguistic diversity of California's young  










          children and that is based on the final recommendations  
          developed by the Early Learning Quality Improvement System  
          (ELQIS) Advisory Committee.  The bill would require the quality  
          rating scale to be implemented on a pilot basis, with the sunset  
          date of June 30, 2017.  

          The scale would be authorized to measure the quality of services  
          of an early care and education provider; measure elements of  
          quality in an early care and education program and facility, as  
          specified; and inform parents about the quality of a facility in  
          a simple and easy to understand manner.

          CDE would be required to develop criteria for the selection of  
          early care and education providers and facilities to participate  
          in the pilot program.  The program would be reviewed annually by  
          the California State Advisory Council on Early Childhood  
          Education and Care.  CDE would use information from these annual  
          reviews for a final pilot evaluation to be submitted to the  
          Legislature on or before January 1, 2016.  

          Further, the provisions of this bill are prohibited from being  
          implemented unless federal early care and education funds are  
          provided for the purposes of this bill.

          The exact costs of the bill are difficult to estimate as the  
          final report has not been issued, the California Early Learning  
          Quality Improvement System Advisory Committee has submitted an  
          application for $10.6 million in federal funds, including $7.6  
          million for a quality rating system pilot program.  If  
          successful, the pilot would likely lead to pressure to fund a  
          graduated funding model with higher reimbursements to providers  
          that score well on the scale.