BILL ANALYSIS                                                                                                                                                                                                    






                          SENATE COMMITTEE ON EDUCATION
                               Gloria Romero, Chair
                            2009-2010 Regular Session
                                         

          BILL NO:       SB 1099
          AUTHOR:        Correa
          AMENDED:       April 5, 2010
          FISCAL COMM:   Yes            HEARING DATE:  April 21, 2010
          URGENCY:       No             CONSULTANT:Lynn Lorber

           SUBJECT  :   State child care funds: matching federal funds.

           KEY POLICY ISSUE 

           Should state child care and development funds to be counted  
          as a match for federal child care dollars?

           SUMMARY
           
          This bill allows state child care funds to be counted as a  
          match for federal funds for subsidized child care for foster  
          children.

           BACKGROUND  

          Current law:

              Establishes eligibility criteria for subsidized child  
               care, including children who are recipients of  
               protective services or who have been or are at risk of  
               being abused, neglected or exploited.  

              Gives first priority for enrollment to neglected or  
               abused children who are recipients of child protective  
               services, or who are at risk of being neglected or  
               abused.  (Education Code  8263)

          The federal government provides funding to states:

              For child welfare services, including services for  
               foster youth.  

              To partially cover the costs of subsidized child care  
               for low-income and neglected or abused children.  The  
               federal Child Care and Development Block Grant includes  
               a maintenance of effort requirement.



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          Title IV-E of the Social Security Act (42 USC 670) requires  
          states that accept federal funds to serve foster youth to  
          have a foster care state plan.  California's state plan  
          allows counties to use federal matching funds to provide  
          subsidized child care to foster parents.  Current law  
          requires counties to match the federal funds dollar for  
          dollar.  (Welfare & Institutions Code 11410 & 15200.5)


           ANALYSIS  

           This bill  allows state child care and development funds to be  
          counted as a match for federal funds for subsidized child  
          care for foster children.  Specifically, this bill:

          1)   Requires the Department of Social Services to amend the  
               foster care state plan to allow state child care and  
               development funds as the non-federal match for Title  
               IV-E child care for children receiving protective  
               services, foster children, and children at risk of abuse  
               and neglect.

          2)   Prohibits the state funds from being used for any other  
               match for federal funds and clarifies that the source of  
               state child care funds are those administered by the  
               California Department of Education's (CDE) child  
               development division.

          3)   Requires the county to do all of the following if state  
               child care funds are to be used as the match for federal  
               funds:

               a)        Contract with a child care agency under  
                    contract with CDE that is willing to participate.
               b)        Claim the full child care costs of federally  
                    eligible Title IV-E children, at a rate that is  
                    comparable with regional child care and development  
                    costs.
               c)        Provide the full federal Title IV-E funding to  
                    the local child care contractor, who must use these  
                    funds as matching funds and enroll and serve  
                    children identified by the county as children  
                    receiving protective services, foster children, or  
                    children at risk of abuse or neglect.

           STAFF COMMENTS  



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           1)   Need for the bill  :  According to the author, "30 percent  
               of the 80,000 children in foster care are five years of  
               age or younger, and an additional 15,000 are in the  
               primary grades.  These young children and others who are  
               at risk of abuse or neglect are eligible to receive  
               child care and development services.  Increasing the  
               federal funds that provide these services will increase  
               the number of California children who can be helped."

           2)   How would this work  ?  State and county child care funds  
               subsidize child care for low-income, foster, and other  
               at-risk children.  County child care funds may be  
               counted toward a match of federal child care funds.   
               This bill would also allow state child care funds to  
               count toward the match.  This bill does not shift funds;  
               the same state child care funds would continue to be  
               spent on a subsidized child care "slot" but could also  
               be counted toward the federal match if spent on a slot  
               for a child receiving child welfare services.

           3)   Draw more federal funds  .  This bill increases the pool  
               of funds (state, county, or a combination of both) that  
               may count toward the federal match.  This 
           
                should attract additional federal funds, and should  
               therefore free up state child care funds.

           4)   Could we serve more children  ?  Any "freed up" state  
               child care funds must be spent on child care.  The state  
               could use those funds to offset recent reductions to  
               child care funding, or serve additional slots and move  
               some families off of the waiting list.  
           
           5)   Double-dipping  ?  This bill prohibits state funds from  
               being counted toward the federal match if those funds  
               are already being used as a match for other child care  
               funding.  State child care funds are currently used to  
               meet the Maintenance of Effort for the federal Child  
               Care and Development Block Grant.  State child care  
               funds appropriated above that required match, and used  
               to serve certain at-risk children, would be allowed to  
               count toward the match for federal child welfare funds.  
           
           SUPPORT
           
          None received.



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           OPPOSITION
           
          None received.