BILL ANALYSIS �
AB 1902
Page 1
ASSEMBLY THIRD READING
AB 1902 (Bonta)
As Amended April 9, 2014
Majority vote
EDUCATION 7-0 APPROPRIATIONS 13-4
-----------------------------------------------------------------
|Ayes:|Buchanan, Olsen, Ch�vez, |Ayes:|Gatto, Bocanegra, |
| |Gonzalez, Nazarian, | |Bradford, |
| |Weber, Williams | | Ian Calderon, Campos, |
| | | |Eggman, Gomez, Holden, |
| | | |Linder, Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Bigelow, Donnelly, Jones, |
| | | |Wagner |
-----------------------------------------------------------------
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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, General Fund and Proposition 98 (1988) costs in the
range of $5 million to $10 million. The California Department of
Education (CDE) reports that roughly $5 million was collected
from part-day preschool fees through December 2013, roughly the
halfway point of collections. If the state were to eliminate
the fee revenue and not provide additional funding, the state
could lose roughly 3,000 part-day preschool slots.
COMMENTS : 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,
AB 1902
Page 2
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 child care and
development programs 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.
This bill repeals the requirement to assess and collect fees for
the part-day CSPP and the requirement for the SPI 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 state median income ($46,896 for a family of
four).
As part of the FY 2012-13 budget act, SB 1016 (Budget and Fiscal
Review Committee), 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 $69 per month if
AB 1902
Page 3
the child attends daily. If the family receives wrap around
child care services in order to get full day care, the family
pays the full day fee. A child at risk of abuse, neglect or
exploitation; a family receiving child protective services or a
family that has a certification from a county child welfare
agency that child care services is necessary; and a family
receiving California Work Opportunity and Responsibility to Kids
may be exempt from family fees.
-------------------------------------------------------------------
| Family |
| Fee |
| Schedule |
-------------------------------------------------------------------
|-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
| | | | | | | | | | | | | |
| Part?t| Full?t|Family |Family |Family |Family |Family |Family |Family |Family |Family |Family |Family |
| ime | ime | | | | | | | | | | | |
| | | Size | Size | Size | Size | Size | Size | Size | Size | Size | Size | Size |
| Daily |Daily | | | | | | | | | | | |
| Fee |Fee | 1 or | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| | | 2 | | | | | | | | | | |
|-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
|$ | $ | 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 | | | | | | | | | | | |
|-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
|$ | $ | 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 | | | | | | | | | | | |
AB 1902
Page 4
|-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
|$ | $ | 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 | | | | | | | | | | | |
|-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------|
| $ | $ | 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 |
AB 1902
Page 5
|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
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 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.
AB 1902
Page 6
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.
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, 2014.
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."
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087
FN: 0003652