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: 8/26/09 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 Legislature to hold
one or more joint legislative hearings and requests the
Department of Education to participate in the hearing or
hearings, on or before April 1, 2010, to review
California's current regional market rate methodology and
implementation guidelines for subsidized child care. The
bill also requests that all vested stakeholders be included
in the planning and implementation process being undertaken
by the department to establish new rates or a new rate
CONTINUED
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structure.
Senate Floor Amendments of 8/26/09 provide a legislative
forum, rather than an open meeting of the Department of
Education, to discuss the regional market rate methodology.
Specifically, the amendments delete language requesting
the Department of Education to hold an open meeting to
review the current regional market rate methodology. The
amendments instead state that it is the intent of the
legislature to hold one or more joint legislative hearings
and requests that the Department of Education participate
in the joint hearings. The amendments also recast
provisions to reflect the joint legislative hearings rather
than an open meeting conducted by the Department of
Education.
ANALYSIS : Currently, the state subsidizes child care
through two main categories of providers:
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.
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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. States that the Legislature intends to hold one or
more joint legislative hearings and requests the
Department of Education to also participate in the
joint legislative hearing or hearings to review
California's current regional market rate methodology
and implementation guidelines, question whether
adherence to the current regional market rate system
has resulted in sufficient access for working poor
families, and execute any recommended changes to the
current methodology.
2. States that the Legislature requests that all vested
stakeholders be included in the planning and
implementation process being undertaken by the
Department of Education to establish new rates or a
new rate structure. The discussion items are to
include, but not be limited to, the regional market
rate history, current methodology, federal and state
requirements, and the regulations and implementation
guidelines used to implement the regional market rate.
3. States that the joint legislative hearing or hearings
take place on or before April 1, 2010, so that any
recommended changes to the current regional market
rate methodology can be considered in budget
negotiations.
Background
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
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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 8/27/09)
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 8/27/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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