BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1902
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          Date of Hearing:   April 23, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                     AB 1902 (Bonta) - As Amended:  April 9, 2014
           
          SUBJECT  :   California State Preschool Program: part-day  
          preschool: fee

           SUMMARY  :   Repeals the requirement to assess and collect fees  
          for families with children in part-day preschool programs.   
          Eliminates the requirement for the report on fees collected from  
          families who have children enrolled in the California State  
          Preschool Program (CSPP) to report the amount of family fees  
          collected for the part-day preschool programs.  Specifies that  
          the authority provided to the Superintendent of Public  
          Instruction (SPI) to establish a fee schedule shall not apply to  
          the part-day preschool program.    

           EXISTING LAW  :

          1)Establishes eligibility for child care services and child  
            development programs administered by the California Department  
            of Education (CDE) and requires the SPI to adopt rules and  
            regulations on eligibility, enrollment and priority of  
            services needed for implementation (Education Code (EC)  
            Section 8263 et seq.).

          2)Establishes the CSPP and provides that the programs shall  
            include, but not be limited to, part-day age and  
            developmentally appropriate programs designed to facilitate  
            the transition to kindergarten for three- and four-year-old  
            children in educational development, health services, social  
            services, nutritional services, parent education and parent  
            participation, evaluation, and staff development.  (EC Section  
            8235)

          3)Specifies the following regarding part-day CSPP:

             a)   Three- and four-year-old children are eligible if a  
               family meets at least one of the following criteria:

               i)     The family is on aid;
               ii)    The family is income eligible;
               iii)   The family is homeless; or,








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               iv)    The family is one whose children are recipients of  
                 protective services, or whose children have been  
                 identified as being abused, neglected, or exploited, or  
                 at risk of being abused, neglected, or exploited.

             b)   Authorizes enrollment of children in families whose  
               income is no more than 15 percent above the income  
               eligibility threshold after all eligible three- and  
               four-year-old children have been enrolled.  Specifies that  
               no more than 10 percent of children enrolled, calculated  
               throughout the entire contract, may be filled by children  
               in families above the income threshold.  

             c)   Requires the part-day CSPP to operate for a minimum of  
               three hours per day and a minimum of 175 days per year,  
               unless the contract specifies fewer days.

             d)   Requires a participating part-day preschool program to  
               coordinate the provision of all of the following:

               i)     Opportunities for parents and legal guardians to  
                 work with their children on interactive literacy  
                 activities.
               ii)    Parenting education for parents and legal guardians  
                 to support the development of their children's literacy  
                 skills.  Specifies the types of activities that  
                 constitute parenting education.
               iii)   Staff development for teachers.  (EC Section 8238)

          4)Requires fees to be assessed and collected for families with  
            children in part-day CSPP, or families receiving wraparound  
            child care services, or both.  (EC Section 8239 (e))

          5)Requires the SPI to annually report to the Department of  
            Finance, on or before October 1 of each year, the fees  
            collected from families who have children enrolled in the  
            CSPP.  Requires the report to distinguish between family fees  
            collected for part-day preschool programs and fees collected  
            for wraparound child care services.  (EC Section 8239 (f))

          6)Defines "income eligible" as a family whose adjusted monthly  
            income is at or below 70% of the state median income (SMI),  
            adjusted for family size, and adjusted annually.  For the  
            2013-14 fiscal year, the income eligibility shall be 70% of  
            the SMI that was in use for the 2007-08 fiscal year, adjusted  








                                                                  AB 1902
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            for family size.  (EC Section 8263.1)

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   Background on child care and development programs  .   
          The CDE administers a child care and development system,  
          maintaining 1,401 service contracts with approximately 758  
          public and private agencies supporting and providing services to  
          children from birth through 12 years of age. Contractors include  
          school districts, county offices of education, cities, colleges,  
          other public entities, community-based organizations, and  
          private agencies.  In fiscal year (FY) 2013-14, $2.1 billion was  
          provided for child care and development programs from state and  
          federal funds, enrolling an estimated 340,000 children.  This is  
          down from $2.669 billion initially provided in the FY 2010-11  
          budget (prior to midyear trigger cuts) with almost 416,000  
          slots.  According to the Legislative Analyst's Office, overall  
          funding for the child care and development program has decreased  
          by almost $1 billion since 2008-09, with the elimination of  
          110,000 slots.  The Governor's proposed FY 2014-15 budget  
          provides an increase of $66 million over FY 2013-14 funds for a  
          total of $2.2 billion for child care and development programs to  
          provide an estimated 343,000 child care and preschool slots.  

           CSPP  .   This bill  repeals the requirement to assess and collect  
          fees for the part-day CSPP and the requirement to report the  
          corresponding amount collected in the annual report on fees  
          collected through the CSPP.  The CSPP offers part-day and  
          full-day preschool programs through contracts with local  
          educational agencies, private contractors, and colleges.  These  
          programs are required to comply with not just health and safety  
          standards under Title 22 regulations, but also higher  
          developmental and teacher qualification standards under Title 5  
          regulations adopted by the CDE.  A part-day program operates at  
          a minimum of three hours per day.  The FY 2014-15 proposed  
          budget for CSPP is $509 million for 136,755 slots, an increase  
          of 573 slots from the prior year.  Priority for enrollment goes  
          to four- or three-year-old neglected or abused children who are  
          recipients of child protective services or recipients who are at  
          risk of being neglected or abused, without regard to income.   
          Second priority goes to four-year-old children who were enrolled  
          in CSPP as a three-year-old; followed by four-year-old children  
          with the lowest income ranking.  Three-year-old children may be  
          enrolled after four-year-olds are enrolled.  Income eligibility  
          is 70% of the SMI ($46,896 for a family of four).








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           Part-day CSPP fees  .  As part of the FY 2012-13 budget act, SB  
          1016 (Committee on Budget and Fiscal Review), Chapter 38,  
          Statutes of 2012, required fees to be assessed and collected for  
          the part-day preschool program, beginning July 1, 2012.  The fee  
          is collected according to a family fee schedule based on the  
          income of the family and family size.  For example, a family of  
          four earning $2,860 a month or $34,320 annually is assessed  
          $3.45 per day or $69 per month if the child attends daily.  If  
          the family receives wrap around child care services in order to  
          get full day care, the family pays the full day fee.  A child at  
          risk of abuse, neglect or exploitation; a family receiving child  
          protective services or a family that has a certification from a  
          county child welfare agency that child care services is  
          necessary; and a family receiving CalWORKs may be exempt from  
          family fees.   



           ------------------------------------------------------------------- 
          |                               Family                              |
          |                                Fee                                |
          |                              Schedule                             |
           ------------------------------------------------------------------- 
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |       |       |       |       |       |       |       |       |       |       |       |       |       |
          | Part?t| Full?t|Family |Family |Family |Family |Family |Family |Family |Family |Family |Family |Family |
          | ime   | ime   |       |       |       |       |       |       |       |       |       |       |       |
          |       |       | Size  | Size  | Size  | Size  | Size  | Size  | Size  | Size  | Size  | Size  | Size  |
          | Daily |Daily  |       |       |       |       |       |       |       |       |       |       |       |
          | Fee   |Fee    | 1 or  |   3   |   4   |   5   |   6   |   7   |   8   |   9   |   10  |   11  |   12  |
          |       |       | 2     |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 1,820 |  1,950| 2,167 | 2,513 |  2,860|  2,925|  2,990|  3,055| 3,120 |  3,185| 3,250 |
          |1.00   | 2.00  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 1,893 |  2,028| 2,253 | 2,614 |  2,974|  3,042|  3,109|  3,177| 3,245 |  3,312| 3,380 |
          |1.25   | 2.50  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 1,965 |  2,106| 2,340 | 2,714 |  3,089|  3,159|  3,229|  3,299| 3,369 |  3,440| 3,510 |
          |1.50   | 3.00  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,038 |  2,184| 2,426 | 2,815 |  3,203|  3,276|  3,349|  3,421| 3,494 |  3,567| 3,640 |
          |1.75   | 3.50  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|








                                                                  AB 1902
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          |$      | $     | 2,111 |  2,262| 2,513 | 2,915 |  3,317|  3,393|  3,468|  3,544| 3,619 |  3,694| 3,770 |
          |2.00   | 4.00  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,184 |  2,340| 2,600 | 3,016 |  3,432|  3,510|  3,588|  3,666| 3,744 |  3,822| 3,900 |
          |2.25   | 4.50  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,257 |  2,418| 2,686 | 3,116 |  3,546|  3,627|  3,707|  3,788| 3,869 |  3,949| 4,030 |
          |2.65   | 5.30  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,329 |  2,496| 2,773 | 3,217 |  3,661|  3,744|  3,827|  3,910| 3,993 |  4,076| 4,160 |
          |3.05   | 6.10  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,402 |  2,574| 2,860 | 3,317 |  3,775|  3,861|  3,946|  4,032| 4,118 |  4,204| 4,290 |
          |3.45   | 6.90  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,475 |  2,652| 2,946 | 3,418 |  3,889|  3,978|  4,066|  4,154| 4,243 |  4,331| 4,420 |
          |3.85   | 7.70  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,548 |  2,730| 3,033 | 3,518 |  4,004|  4,095|  4,186|  4,277| 4,368 |  4,459| 4,550 |
          |4.25   | 8.50  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,621 |  2,808| 3,120 | 3,619 |  4,118|  4,212|  4,305|  4,399| 4,492 |  4,586| 4,680 |
          |4.65   | 9.30  |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,693 |  2,886| 3,206 | 3,719 |  4,232|  4,329|  4,425|  4,521| 4,617 |  4,713| 4,810 |
          |5.05   | 10.10 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,766 |  2,964| 3,293 | 3,820 |  4,347|  4,446|  4,544|  4,643| 4,742 |  4,841| 4,940 |
          |5.45   | 10.90 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,839 |  3,042| 3,380 | 3,920 |  4,461|  4,563|  4,664|  4,765| 4,867 |  4,968| 5,070 |
          |5.85   | 11.70 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,912 |  3,120| 3,466 | 4,021 |  4,576|  4,680|  4,784|  4,888| 4,992 |  5,096| 5,200 |
          |6.25   | 12.50 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 2,985 |  3,198| 3,553 | 4,122 |  4,690|  4,797|  4,903|  5,010| 5,116 |  5,223| 5,330 |
          |6.65   | 13.30 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 3,057 |  3,276| 3,640 | 4,222 |  4,804|  4,914|  5,023|  5,132| 5,241 |  5,350| 5,460 |
          |7.05   | 14.10 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          | $     | $     | 3,130 |  3,354| 3,726 |  4,323|  4,919|  5,031|  5,142|  5,254| 5,366 |  5,478| 5,590 |
          | 7.45  | 14.90 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|








                                                                  AB 1902
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          | $     | $     | 3,203 |  3,374| 3,749 |  4,348|  4,948|  5,061|  5,173|  5,286| 5,398 |  5,510| 5,623 |
          | 7.60  | 15.20 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     | 3,283 |  3,393| 3,770 | 4,373 |  4,976|  5,089|  5,202|  5,315| 5,428 |  5,541| 5,655 |
          |7.75   | 15.50 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |  3,413| 3,792 | 4,399 |  5,006|  5,120|  5,233|  5,347| 5,461 |  5,575| 5,688 |
          |7.90   | 15.80 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |  3,432| 3,813 | 4,423 |  5,033|  5,148|  5,262|  5,376| 5,491 |  5,605| 5,720 |
          |8.05   | 16.10 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |  3,518| 3,835 | 4,448 |  5,062|  5,177|  5,292|  5,407| 5,522 |  5,637| 5,752 |
          |8.23   | 16.45 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |       | 3,856 | 4,473 |  5,090|  5,206|  5,322|  5,437| 5,553 |  5,669| 5,785 |
          |8.43   | 16.85 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |       | 3,880 | 4,500 |  5,121|  5,237|  5,354|  5,470| 5,586 |  5,703| 5,819 |
          |8.63   | 17.25 |       |       |       |       |       |       |       |       |       |       |       |
          |-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
          |$      | $     |       |       | 3,908 | 4,534 |  5,159|  5,276|  5,394|  5,511| 5,628 |  5,745| 5,863 |
          |8.88   | 17.75 |       |       |       |       |       |       |       |       |       |       |       |
           ------------------------------------------------------------------------------------------------------- 
           ----------------------------------------------------------------------------------------------------------- 
          |        |        |        |        |        |        |        |        |        |        |        |        |
          |    Mont|        |        |        |        |        |        |        |        |        |        |        |
          |    hly |        |        |        |        |        |        |        |        |        |        |        |
          |    Inco| 3,283  |  3,518 | 3,908  | 4,534  |  5,159 |  5,276 |  5,394 |  5,511 | 5,628  |  5,745 |5,863   |
          |     me |        |        |        |        |        |        |        |        |        |        |        |
          |    Ceili|        |        |        |        |        |        |        |        |        |        |        |
          |    ngs |        |        |        |        |        |        |        |        |        |        |        |
           ----------------------------------------------------------------------------------------------------------- 

            Source:  California Department of Education


           Impact of family fees  .  According to contractors, the fee has  
          deterred families from enrolling in or remaining in the CSPP and  
          has resulted in a significant workload increase to assess and  
          collect the fee.   Families that do enroll but are unable to pay  
          drop out of the program after a few months, some without ever  
          paying the fee.  Contractors also report that they have slots  
          that are not filled due to the fees.  An example:  Options - A  
          Child Care and Human Services Agency located in southern  








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          California report that parents leave as soon as they learn of  
          the fee.  As a result, Options has not been able to fill all of  
          their CSPP classes, has closed a number of classes this year and  
          anticipates closing additional classes next year.  Additionally,  
          the agency reports that over 100 families have not kept up with  
          the fees and will be terminated from the program.  These are low  
          income families that are financially strapped.  According to the  
          CDE, almost 71.6% of families that participate in part-day CSPP  
          have incomes that are 40% or lower of the SMI.           

           Amount of fees collected  .  The CDE reports that between July and  
          December 2013, $5.372 million was collected from part-day  
          preschool program family fees.  When annualized, the CDE  
          projects receiving $10.7 million a year.  This does not result  
          fully in the expansion of slots.  The budget was reduced by $3.4  
          million; an amount the Legislative Analyst's Office predicted  
          would be collected in fees.  
           
          Budget Subcommittee action last year  .  The Assembly Budget  
          Subcommittees 1 on Health and Human Services and 2 on Education  
          Finance approved a motion to repeal the part-day CSPP fee during  
          last year's budget hearings.  It was not ultimately adopted in  
          the FY 2013-14 budget.  

           Revised fee schedule  .  AB 86 (Budget Committee), Chapter 48,  
          Statutes of 2013, required the SPI to modify the family fee  
          schedule.  The fees are based on the same income levels, but  
          instead of a daily fee, the fee is a monthly amount based on the  
          number of hours, or the anticipated number of hours, required by  
          the family per month.  The revised fee schedule is intended to  
          be easier to implement and is expected to be implemented  
          beginning July 1.  

           Arguments in support  .  The author states, "Family fees for  
          part-day preschool have reduced access to valuable early child  
          education programs by creating a financial hardship for families  
          and have generated a large administrative burden for CSPP  
          contractors, including the use of additional time and resources  
          to manage the high turnover in enrollment and the complex system  
          of collecting fees, which compromise the stability of the  
          classroom." 

          The California Children and Families Commission (First 5  
          California) states, "The imposition of this fee has caused an  
          undue burden on both families and on State Preschool programs.   








                                                                  AB 1902
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          For low-income families eligible for state preschool services,  
          even a few dollars per day to pay for these fees can impose  
          significant cost resulting in fewer children receiving the high  
          quality early education services they need in order to be ready  
          for kindergarten, and to succeed in school and in life."  

          Research has shown that high quality early education programs  
          can affect future academic achievement.  A 2009 report by the  
          RAND Corporation concludes that preschool can be a solution for  
          raising achievement overall and in narrowing achievement gaps  
          between groups of students.  

           Related legislation  .  SB 1123 (Liu), pending in the Senate,  
          modifies Title 5 general child care and development programs  
          serving children from birth to age three, including the  
          elimination of the part-day CSPP fees.        
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Child Development Administrators Association  
          (co-sponsor)
          Superintendent of Public Instruction Tom Torlakson (co-sponsor)
                                   Advancement Project 
          Alameda County Board of Supervisors
          Alameda County Early Care and Education Planning Council
          Bakersfield City School District
          California Child Care Resource and Referral Network
          California Children and Families Commission
          California Head Start Association
          Chabot College Children's Center
          Child Care Alliance of Los Angeles
          Children Now
          Community Action Marin
          Community Child Care Council of Alameda County
          Continuing Development Incorporated/Child Development Centers
          Davis Street Family Resource Center
          Early Edge California
          Hughson State Preschool
          Isla Vista Youth Projects
          Junior Leagues of California State Public Affairs Committee
          Kernville Union School District Preschool
          Lake County Office of Education, Child Development Programs
          Lemon Grove School District
          Local Early Education Planning Council of Santa Clara County








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          Options - A Child Care and Human Services Agency
          Orange Children & Parents Together
          Riverside Unified School District's Early Childhood Department
          San Diego County Office of Education
          San Mateo County Child Care Partnership Council
          Santa Barbara County Child Care Planning Council
          Shasta County Office of Education Early Childhood Services
          Many individuals

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087