BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1944
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1944 (Garcia)
          As Introduced  February 19, 2014
          Majority vote 

           EDUCATION           5-1         APPROPRIATIONS      13-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Buchanan, Olsen,          |Ayes:|Gatto, Bocanegra,         |
          |     |Gonzalez, Nazarian,       |     |Bradford,                 |
          |     |Williams                  |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Linder, Pan, Quirk,       |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Ch�vez                    |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Deletes the requirement for parents eligible for child  
          care and development services to complete a form certifying that  
          a before or after school program is not available for their 11  
          or 12 year old children.  Specifically,  this bill  : 

          1)Deletes the provision specifying that a before or after school  
            program shall be considered not available when the parent  
            certifies in writing, on a form provided by the California  
            Department of Education (CDE) that is translated into the  
            parent's primary language, the reason or reasons why the  
            program would not meet the child care needs of the family.  

          2)Deletes the provision requiring each contractor to report  
            annually to the CDE the amount of savings resulting from the  
            requirement to place an 11 or 12 year old in a before or after  
            school program.

          3)Deletes the provision requiring the CDE to annually report to  
            the Legislature the amount of savings statewide.  
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, unknown annual General Fund costs, not likely to  
          exceed $250,000.  This assumes children no longer choose to be  
          served by before and after school programs and are instead  
          served by state child care programs.








                                                                  AB 1944
                                                                  Page  2



           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,  
          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.  


          State and federal subsidized child care is provided through the  
          following:  1) eligibility for California Work Opportunity and  
          Responsibility to Kids (CalWORKs), or 2) based on income and  
          need for child care services.  CalWORKs is a temporary cash aid  
          program for families with children.  Child care is administered  
          in three stages to help a family transition from immediate,  
          short-term child care needs to stable, long-term child care as a  
          family becomes stable and is no longer reliant on CalWORKs aid.   
          Subsidized child care services are intended to assist recipients  
          in engaging in work or education/training required for receiving  
          aid. 

          Non-CalWORKs families and former CalWORKs recipients can also  
          receive subsidized child care if they meet income eligibility of  
          70% of state median income ($46,896 for a family of four) or if  
          they are recipients of child protective services and if they can  
          show need for child care services.  

          SB 1104 (Budget and Fiscal Review Committee), Chapter 229,  
          Statutes of 2004, made a number of changes to social services  
          programs, including subsidized child care programs, in order to  
          achieve fiscal savings.  One of the changes included the policy  








                                                                  AB 1944
                                                                  Page  3


          statement that it is the preference of the state to place  
          children 11 or 12 years of age in after school programs (the  
          After School Education and Safety (ASES) Program through the  
          2002 voter approved initiative, Proposition 49, and the  
          federally funded 21st Century High School After School Safety  
          and Enrichment for Teens Program prior to accessing subsidized  
          child care services.  This provision was later amended to  
          include before school programs. 

          The ASES program provides almost $550 million annually for  
          before and after school programs for kindergarten through grade  
          nine students.  School districts and county offices of education  
          are eligible for grants, although local governments and  
          nonprofit organizations working in partnership with local  
          educational agencies may also apply.  The program requires  
          before school programs to operate one and a half hours a day and  
          after school programs to operate immediately after school until  
          6 p.m. for a minimum of 15 hours per week.  Not every school has  
          an ASES program.    

          Under SB 1104, a parent who is eligible for subsidized child  
          care service may seek child care services if he or she is unable  
          to obtain before or after school program enrollment for his or  
          her 11 or 12 year old child, if the hours of service are  
          insufficient, or if the before or after school programs do not  
          work for the parents (too far from school, too far from home,  
          etc.).  Any savings generated by the enrollment of 11 and 12  
          year old children in a before or after school program may be  
          maintained by the contractor for provision of services to other  
          children.  Child care contractors are required to provide  
          parents with a form that must be available in a parent's primary  
          language.  Parents must certify on the form why a before or  
          after school program does not work for them.  Contractors are  
          required to submit an annual report to the CDE with the amount  
          of savings incurred as a result of 11 and 12 year old children  
          enrolling in a before or after school program instead of  
          subsidized child care and development programs. The CDE is  
          required to submit an annual report to the Legislature  
          indicating the amount of savings collected statewide.  

          This bill deletes the requirement for parents to complete the  
          form indicating why a before or after school program does not  
          work for the family, the requirement for the contractor to  
          submit an annual savings report to the CDE, and the requirement  








                                                                 AB 1944
                                                                  Page  4


          for CDE to submit an annual savings report to the Legislature.   
          According to the author, agencies report that parents that do  
          not complete the form or return an incomplete report have found  
          their child eliminated from an existing child care slot, while  
          agencies must devote time to track families with 11 and 12 year  
          old children and submit an annual report to the CDE.  Agencies  
          have reported that the staff time needed to track families and  
          to submit the report far exceed the amount of savings that  
          result in placement of 11 and 12 year old children in before or  
          after school programs.  The author states, "This proposal would  
          continue to support the placement of subsidized 11 and 12 year  
          old children in before and after school programs but eliminate  
          burdensome certified documentation required of parents and the  
          annual reports required from child care agencies."  

          The chart below is derived from the CDE's November 2013 report  
          to the Legislature:  


           ----------------------------------------------------------------- 
          |                                                                 |
          |     Preferred Placement for Children Ages Eleven or Twelve      |
          |                                                                 |
           ----------------------------------------------------------------- 
          |---------------------+---------------------+---------------------|
          |                     |     FY 2010-11      |     FY 2011-12      |
          |---------------------+---------------------+---------------------|
          |Number of agencies   |         104         |         107         |
          |that reported        |                     |                     |
          |---------------------+---------------------+---------------------|
          |Number of children   |         813         |         436         |
          |who were served by   |                     |                     |
          |before or after      |                     |                     |
          |school programs      |                     |                     |
          |instead of           |                     |                     |
          |CDE-subsidized child |                     |                     |
          |care and development |                     |                     |
          |programs             |                     |                     |
          |---------------------+---------------------+---------------------|
          |Estimated Savings    |      $484,318       |$258,233             |
          |(As to Education     |                     |                     |
          |Code Section         |                     |                     |
          |8263.4(g))           |                     |                     |
          |                     |                     |                     |








                                                                  AB 1944
                                                                  Page  5


           ----------------------------------------------------------------- 
          Source:  California Department of Education:  Report to the  
          Legislature:  Preferred Placement for Children Ages Eleven or  
          Twelve:  Savings Resulting from Implementation

           
           The California Alternative Payment Program Association, the  
          sponsor of the bill, states, "This change is needed by families  
          who consistently have reported that the before and after school  
          programs simply do not meet their full time, off hour, and year  
          round care needs.  The change is also needed by community based  
          contractors whose cost to oversee, track and submit annual  
          reports far outweighs any savings."  

           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087  



                                                                FN: 0003796