BILL ANALYSIS �
AB 1673
Page 1
Date of Hearing: April 25, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1673 (Mitchell) - As Amended: April 9, 2012
Policy Committee: Education
Vote:7-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires children enrolled in the following federal
and state child care and development programs to be eligible for
these programs for 12 months, unless the child no longer resides
in the state or is deceased:
1)The migrant child care program.
2)The state preschool program (full and part-day).
3)CalWORKS child care programs, except for stage one.
4)A child care program established at a higher education
institution.
FISCAL EFFECT
GF and federal fund cost pressure of $700,000 to establish
12-month eligibility for children enrolled in state and federal
child care programs, as specified. This assumes at least 250
children will be eligible for child care for an additional three
months.
COMMENTS
1)Background . California provides federal and state child care
and development programs, including state preschool (full and
part-day), California Work Opportunity and Responsibility to
Kids (CalWORKS), and non-CalWORKS. The following table
summarizes these programs:
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| | Summary of Activities |2011-12 Budget Act |
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| | | Funding1 |
|--------------------+----------------------------+-------------------|
|State Preschool |Provides full or part-day |$374 |
| |early childhood education |million |
| |programs for three to | |
| |five-year old children from | |
| |low-income families. This | |
| |is the only program that | |
| |does not require the | |
| |parents to be working or | |
| |engaged in some other | |
| |qualifying activity. | |
| | | |
| |�Administered by the State | |
| |Department of Education | |
| |(SDE)] | |
|--------------------+----------------------------+-------------------|
|CalWorks Child Care |Recipients of CalWORKs | $1 billion |
| |assistance are eligible for | |
| |subsidized child care. This | |
|(Stage 1, 2, and 3) |care is administered in | |
| |three stages and recipients | |
| |are currently entitled to | |
| |two years after a family is | |
| |transitioned off cash aid. | |
| |All CalWORKs providers are | |
| |paid through a voucher | |
| |reimbursement system based | |
| |on regional market rates. | |
| | | |
| |� Administered by the | |
| |Department of Social | |
| |Services (DSS), except for | |
| |State 1, which is | |
| |administered by SDE] | |
|--------------------+----------------------------+-------------------|
|Non-CalWORKS Child |Low-income families not |$933 |
|Care |receiving CalWORKs |million |
| |assistance also are | |
|(General Child Care |eligible for subsidized | |
|- Title 5 centers |child care, though demand | |
|and family child |typically exceeds funded | |
|care homes, |slots. The General Child | |
|alternative payment |Care Program is comprised | |
|programs, and |of centers and homes that | |
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|migrant and |directly contract with the | |
|severely |state to provide care. The | |
|handicapped |Alternative Payment program | |
|programs) |providers are paid through | |
| |vouchers similar to | |
| |CalWORKs child care | |
| |programs. | |
| | | |
| |�Administered by SDE] | |
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1These programs were funded with a mix of GF/98 (state preschool
only), GF ($1 billion), and federal funds ($941 million).
2)Purpose . Existing law requires child care contractors to
recertify service eligibility and need according to the
following schedule: (a) six months for families due to
actual/risk of abuse, neglect, or exploitation and (b) 12
months for all other families. Current law also requires
contractors to inform families of their responsibility to
report any changes in family income, family size, or need for
services within five calendar days. Any changes reported may
lead to a contractor terminating a family's ability to receive
services.
According to a 2010 report by the Center for Law and Social
Policy (CLASP) entitled: Adopting 12-month Subsidy
Eligibility: Impacts on Children, Families, and State Child
Care Programs, "Creating a secure and trusting relationship
between children and their caregivers is critical for
children's healthy development. When a child care arrangement
is stable, or without disruptions, it better lends itself to
developing secure attachments between young children and their
caregivers."
According to the author, "The Child Care and Development Block
Grant Act (The Act) does not prescribe a specific eligibility
period for families receiving child care. Nor does the Act
address the frequency of, or need for, re-determining
eligibility once it is established." The author also contends
establishing a 12 month eligibility policy is consistent with
federal guidance issued, which states: "12 month eligibility
�is] consistent with the goals of both programs integrity and
child-focused, family-friendly policies. A 12 month
eligibility period ensures regular, periodic eligibility
reviews while also reducing the administrative burden on
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states and minimizing disruption to children and families."
3)The governor's proposed 2012-13 Budget for child care . The
January budget proposal contains $1.9 billion in funding for
child care programs. This amount includes $1.5 billion in
funding for programs administered by SDE and $442 million in
funding for Stage 1 child care administered by DSS. This
reflects a reduction of $450 million GF or approximately 20%
of the total program when compared to the 2011- 12 fiscal
year. The Department of Finance estimates that this will
result in 62,000 fewer child care slots in the budget year
(this total includes preschool slots).
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081