BILL ANALYSIS
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|SENATE RULES COMMITTEE | SCR 44|
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THIRD READING
Bill No: SCR 44
Author: Corbett (D)
Amended: 8/18/09 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 7-0, 7/1/09
AYES: Romero, Huff, Alquist, Liu, Maldonado, Padilla,
Simitian
NO VOTE RECORDED: Hancock, Wyland
SENATE APPROPRIATIONS COMMITTEE : 9-3, 7/23/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price,
Runner, Wolk, Yee
NOES: Cox, Denham, Walters
NO VOTE RECORDED: Wyland
SUBJECT : Child Care
SOURCE : California Alternative Payment Program
Association
DIGEST : This resolution requests the California
Department of Education, in an open meeting, to review the
regional market rate methodology and implementation
guidelines that set reimbursement rates for certain child
care providers, as specified.
ANALYSIS : Currently, the state subsidizes child care
through two main categories of providers:
CONTINUED
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1.Title 22 (Alternative Payment Programs/vouchers) licensed
and licensed-exempt general child care providers.
Licensed providers are reimbursed up to a maximum ceiling
of the 85th percentile of the rates charged by private
providers in the area offering the same type of child
care (the 85th percentile of the 2005 Regional Market
Rate survey). License-exempt care providers are
generally reimbursed up to 90 percent of the maximum rate
(85th percentile) received by licensed providers. This
formula is an attempt to ensure that low-income families
can receive similar levels of child care service as
higher-income families in the same region.
2.Title 5 providers contract directly with the California
Department of Education for licensed child care and
preschool. These providers are reimbursed with the
Standard Reimbursement Rate, $34.38 per full day of
enrollment ($716.25 per month).
This resolution only affects Title 22 programs.
The California Department of Education conducts a biennial
market rate survey to determine the market rate ceilings
for each county by center and licensed family child care
home.
The Governor proposed a reduction in the reimbursement rate
ceiling, from the 85th percentile of the 2005 Regional
Market Rates to the 75th percentile of the 2007 Regional
Market Rate, for a savings of $38.7 million (Proposition
98). This proposal was rejected by the Budget Conference
Committee.
This resolution:
1.Requests the California Department of Education (CDE) to
review the current regional market rate methodology and
implementation guidelines, and question whether adherence
to the current regional market rate system has resulted
in sufficient access for working poor families.
2.Requests that the CDE hold an open meeting where all
vested stakeholders are fully versed in the methodology
used for the regional market rate survey.
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3.Requests the CDE to review the regional market rate
methodology and implementation guidelines.
According to 2007 regional market rate survey, the
methodology used in this survey involved sampling and
estimation that was based first on statistical
socio-economic modeling of zip codes into "market
profiles." Licensed providers were then sampled based on
the zip code of their physical location. Reimbursement
ceilings were then calculated at the market profile level
for care setting, age of the child, and time category
(hourly, daily, weekly, monthly). County and sub-county
estimates become the weighted averages of the market
profiles within their jurisdictions. This survey relied
heavily on the Community Care Licensing database as a
source of provider information.
Many child care providers who are reimbursed using the
regional market rate believe that the current survey
methodology relies too heavily on median home values and
incomes, which may not necessarily have any effect on
private child care rates charged in that area.
FISCAL EFFECT : Fiscal Com.: Yes
SUPPORT : (Verified 8/17/09)
California Alternative Payment Program Association (source)
Community Resources for Children
County Welfare Directors Association of California
Davis Street Family Resource Center
Siskiyou Child Care Council
Valley Oak Children's Services
YMCA Childcare Resource Service
DLW:nl 8/20/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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