BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       SB 1123                                      
          S
          AUTHOR:        Liu                                          
          B
          VERSION:       April 3, 2014
          HEARING DATE:  April 22, 2014                               
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          FISCAL:        Yes                                          
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          CONSULTANT:    Mareva Brown                                 
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                                     SUBJECT
                                         
                      Child care and development services

                                     SUMMARY  

          This bill renames general child care, "California Strong  
          Start" services, and increases standards for Title 5  
          general child care and development programs serving  
          children from birth to age three to require, among other  
          things, providers to have at least one teacher in each  
          classroom that holds a child development teacher permit.  
          This bill would deem a child eligible for the remainder of  
          a program year subsequent to enrollment in a state or  
          federally funded child care and development program. It  
          also would expand the definition of children who are  
          "income eligible" for child care services to include a  
          family that is eligible for Cal-Fresh or Medi-Cal, or has a  
          school aged child eligible for free or reduced-price lunch.  
          This bill also establishes a home visitation program for  
          children who are enrolled in some preschool programs.

                                     ABSTRACT  

           Existing law:

                                                         Continued---




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             1)   Establishes in California the Child Care and  
               Developmental Services Act to provide comprehensive,  
               coordinated, and cost-effective system of child care  
               and development services for children from infancy to  
               13 years of age and their parents, including a full  
               range of supervision, health, and support services  
               through full- and part-time programs. (EDC 8200, et  
               seq.)

             2)   Requires the Superintendent of Public Instruction  
               to develop standards for the implementation of quality  
               programs and establishes 14 indicators of quality  
               including parent involvement, quality educational  
               programming, and other items. (EDC 8203)

             3)    Establishes a state preschool program,  
               administered by the Superintendent, to include,  
               part-day age and developmentally appropriate programs  
               designed to facilitate the transition to kindergarten  
               for three- and four-year-old children, as specified.  
               Additionally, establishes enrollment priorities for  
               children in state-funded transitional kindergarten.  
               Sets as the first priority children who are abused or  
               neglected, as specified, followed by eligible  
               four-year-old children, as defined. (EDC 8235, EDC  
               8236)

             4)   Establishes general child care and development  
               programs, administered by the Superintendent of Public  
               Instruction to include age and developmentally  
               appropriate (center-based) activities for children,  
               supervision, parenting education and involvement,  
               social services including identification of child and  
               family needs and referral to appropriate agencies,  
               among other elements. (EDC 8240)

             5)   Requires the Superintendent to contract with  
               entities to operate family child care home education  
               networks that support educational objectives for  
               children in licensed family child care homes serving  
               families that are eligible for subsidized child care.  
               (EDC 8245)

             6)   Grants priority enrollment in child care programs  





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               to children who have been abused or neglected, as  
               specified, and sets priorities for enrollment of other  
               children into subsidized child care slots. (EDC 8263,  
               et seq.)

             7)   Establishes three progressive stages of child care  
               services for children of families participating in the  
               California Work Opportunity for Kids (CalWORKs)  
               program and states Legislative intent that as families  
               pass through these stages, they experience no break in  
               their child care services due to a transition between  
               the three stages of child care services. The stages  
               are as follows:

                  a.        Stage One begins when families enter the  
                    CalWORKs program. Families in this stage are  
                    entitled to services.
                  b.        Stage Two begins when the county  
                    determines that the recipient's work or approved  
                    work activity is stable. Families in this stage  
                    are entitled to services.
                  c.        Stage Three begins when a funded space is  
                    available. CalWORKs recipients are eligible for  
                    the third stage of child care, as are former  
                    recipients if they have an income that does not  
                    exceed 70 percent of the state median income.  
                    Families in this stage are not entitled to  
                    services but generally receive them.

           This bill:
           
             1)   Makes numerous findings and declarations,  
               including:

                  a.         The first three years of life are a  
                    period of dynamic and unparalleled brain  
                    development in which children acquire the ability  
                    to think, speak, learn, and reason. 
                  b.        During these first 36 months, children  
                    need good health, strong families, and positive  
                    early learning experiences to lay the foundation  
                    for later school success. 
                  c.        Low-income infants and toddlers are at a  
                    greater risk for a variety of poorer outcomes and  
                    vulnerabilities, such as later school failure,  





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                    learning disabilities, behavior problems,  
                    developmental delay, and health impairments.
                  d.        The most effective way to help babies and  
                    toddlers is to promote positive parent-child  
                    relationships
                  e.        High quality learning services for  
                    infants and toddlers strengthen family engagement  
                    and parent-child relationships; focus workforce  
                    development on provider-child relationships;  
                    promote teacher-child interaction and a language  
                    rich learning environment; support dual language  
                    learning; serve as a gateway to comprehensive  
                    services; and promote a choice of quality service  
                    options.

             2)   States legislative intent to strategically use  
               state and federal funds to provide a stable,  
               comprehensive, and adequately funded early learning  
               and educational support system for children from birth  
               to five years of age that promotes access to safe,  
               high-quality, part-day and full-day services that  
               support the development of the whole child, especially  
               for those children who need it most, with specified  
               elements.

             3)   Adds to the list of elements required in a quality  
               preschool program parent support and, for infants and  
               toddlers, continuity of care and the assignment of  
               primary caregivers.

             4)   Requires that four-year-old children who are  
               enrolled in state-funded transitional kindergarten  
               programs shall be deemed eligible for supplemental  
               education and care services through the California  
               State Preschool program if they are also eligible for  
               free and reduced-price lunch, Cal-Fresh or Medi-Cal  
               programs, or if their family's adjusted monthly income  
               is at or below 70 percent of the state median income,  
               adjusted for family size, and adjusted annually.

             5)   Removes the requirement that families whose  
               children participate in part-day preschool pay a  
               family fee.

             6)   Renames general child care services to California  





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               Strong Start services and defines it as including  
               children from birth to their third birthdays. Services  
               include parent engagement and learning, home  
               visitation, full- and part-day programs, nutrition  
               services and referrals to other programs as needed.  
               Requires the Superintendent to develop standards for  
               high-quality, evidence-based care, as specified.

             7)   Establishes both a family engagement grant and a  
               voluntary home visitation supplemental grant, based  
               upon Department of Social Services evidence-based  
               research, for a consortium of providers with a lead  
               agency, as described.

             8)   Requires that children, who are found eligible for  
               state- or federally subsidized child development  
               services, shall be deemed eligible for the remainder  
               of the program year, in order to promote continuity of  
               services.

             9)   Adds to existing definition of "income eligible"  
               for state and federally funded child development  
               services the following:

                  a.        That a family is eligible for Cal-Fresh  
                    or Medi-Cal, or has a school-aged child eligible  
                    for free or reduced-price lunch.
                  b.        For the 2014-15 fiscal year and each year  
                    thereafter, the income eligibility limits shall  
                    not be less than 70 percent of the state median  
                    income for the prior fiscal year, adjusted for  
                    family size, as specified.

             10)  Establishes a sunset date for existing staffing  
               ratios for center-based programs of July 1, 2019, and  
               establishes new ratios for child care and development  
               service provides. Family child care home education  
               networks are exempted.

             11)  Requires child care and development services  
               providers to have at least one teacher in each  
               classroom that holds at a minimum a child development  
               teacher permit, as specified, no later than July 1,  
               2019.






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             12)  Requires the Commission on Teacher Credentialing  
               shall review and amend the Child Development Permit  
               Matrix, to include additional hours and the addition  
               of in-classroom coaching, as specified, no later than  
               July 1, 2017.

             13)  Increases the rate adjustment factors for various  
               children between birth and 36 months in various child  
               care settings.

             14)  Removes the family fee requirement for families  
               whose children attend part-day preschool.
           
                                 FISCAL IMPACT  

          This bill has not been analyzed by a fiscal committee

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill:
           
          The author states that the most effective way to help  
          infants and toddlers is to promote positive parent-child  
          relationships. While these components are incorporated into  
          other models, such as Early Head Start, they are not  
          typically included in subsidized child care programs. This  
          bill would establish grants for child care and development  
          programs to create home visitation and early engagement  
          projects. The author also states that this bill is needed  
          to give providers choices that enable greater funding  
          flexibility and allow services to be tailored to fit  
          community needs.  Specifically it gives additional grant  
          money to fund parent engagement and home visiting programs.  
           It also outlines flexible rations that will allow  
          providers to more easily braid funding streams.

           Child care 
           
          Approximately 300,000 children are served by California'  
          subsidized child care and development system. Of that  
          number, one-quarter are infants and toddlers, or birth  
          through age 36 months. Another third of the population is  
          preschool-aged children, ages 3 to 5, depending upon the  
          age of entry to kindergarten, and the remaining 41 percent  
          are school-aged children. Oversight of child care programs  





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          in California is shared by the California Department of  
          Social Services (CDSS) and the state Department of  
          Education (CDE). CDSS licenses day care centers and family  
          child care homes, while CDE oversees the content of  
          education programs in Title V schools. 

          Below is a chart describing the populations served and the  
          standards set for each of the types of child care settings.  
           

          (Chart removed due to technical issues.)
           

          Between 2008-09 and 2012-13, child care and preschool  
          programs saw a reduction in state funding of approximately  
          $984 million, and a reduction of approximately 110,000  
          slots. In addition to reducing slots, several policy  
          changes were made to reduce state spending, including  
          freezing rates for license-exempt providers at 2005 levels  
          and at 2007 levels for center based care. Additional cost  
          savings included the implementation of family fees for  
          part-day preschool, lowering income eligibility thresholds  
          from 75 percent to 70 percent of the state median income  
          (SMI) and exempting CalWORKs recipients with very young  
          children from work requirements, thereby eliminating the  
          need for child care. This exemption has since been  
          rescinded and CDSS and the counties are re-engaging these  
          households in welfare-to-work requirements, with associated  
          child-care needs.

           CalWORKs and child care
           
          The California Work Opportunity and Responsibility to Kids  
          (CalWORKs) program provides monthly income assistance and  
          employment-related services aimed at moving children out of  
          poverty and helping families meet basic needs.  Federal  
          funding for CalWORKs comes from the Temporary Assistance  
          for Needy Families (TANF) block grant.  The average monthly  
          cash grant for a family of three on CalWORKs (one parent  
          and two children) is $463.  According to recent data from  
          the California Department of Social Services, more than  
          500,000 families rely on CalWORKs, including more than 1  
          million children.  Nearly 80% of the children are under age  
          12.






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          Child care for CalWORKs is an entitlement for families in  
          Stage 1 or 2 of the program - either beneficiaries who are  
          new to the program or those who have become "stable" as  
          defined by the county. The majority of CalWORKs child care  
          recipients use license-exempt (home) care, care in family  
          child care homes or child care in Title 22 day care  
          centers. Those who access child care in Title V centers are  
          typically enrolled in Stage 3 CalWORKs, which designated  
          for families who have not received cash aid for the prior  
          two years. Stage 3 families are not statutorily entitled to  
          child care subsidies; however the Legislature has continued  
          its practice of funding all families. Families exit Stage 3  
          status when their income exceeds 70 percent of the SMI or  
          their child ages out of the program. The current figure  
          that the state uses as the SMI is $42,216 for a family of  
          three. The quality initiatives in this bill primarily  
          affect families in Stage 3 CalWORKs child care.
           
           Quality initiatives
           
          A number of initiatives in recent years have underscored  
          the interest in increasing quality markers in early  
          childhood education. President Obama in his 2013 State of  
          the Union address underscored his intention to focus on  
          quality preschool education by investing additional  
          resources in federal programs and creating grants to states  
          that meet quality benchmarks, including state-level  
          standards for early learning and qualified teachers in  
          every preschool classroom. Other elements of the initiative  
          include voluntary, evidence-based home visiting programs  
          and the development of new, high-quality preschool programs  
          for 4-year-olds at or below 200 percent of the poverty  
          line. This bill addresses many of these elements. 

          Researchers over the past several decades have demonstrated  
          the importance of child-caregiver bonding. A September 2012  
          research paper urged states to consider methods to provide  
          more continuity of care for infants and toddlers in light  
          of research which demonstrates that critical attachments to  
          caregivers are less likely to show aggression, more likely  
          to be outgoing and more likely to form secure  
          relationships. The report noted that access to sensitive,  
          responsive caregiving may be particularly protective for  
          infants and toddlers growing up in families struggling with  
          poverty and life stress, as one in five children under age  





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          3 who live in extreme poverty are estimated to face three  
          or more risks to their development (National Center for  
          Children in Poverty, n.d.).<1> This bill would require that  
          children who are accepted into a child care center have the  
          right to that slot, regardless of whether their parents  
          maintain eligibility for care. 

           Related legislation

           SB 837 (Steinberg) 2014, expands eligibility for  
          transitional kindergarten to all four-year olds, phased in  
          over a four year period beginning in the 2015-16 school  
          year. 

          AB 1902 (Bonta) 2014, among other things, eliminates the  
          family fee for part-day preschool. 

          AB 273 (Rendon) 2013, would have established the California  
          Partnership for Infants and Toddlers Act to provide  
          supplemental funding to serve infants and toddlers from  
          birth to three years of age. This bill died in the Assembly  
          Appropriations committee.

                                    POSITIONS  

          Support:       Advancement Project
                         Californians Together Coalition
                         Child Care Law Center
                         Children Now
                         Common Sense Media
                         Early Edge California
                         Fight Crime: Invest in Kids
                         First 5 Fresno County
                         First 5 Santa Clara County
                         InnerCity Struggle
                         Jumpstart for Young Children, Inc.
                         Kids' Club Preschool
                         Los Angeles Urban League
                         Mission: Readiness
                         National Council of Jewish Women
                         Next Generation
                         Parent Institute for Quality Education
                         -----------------
          <1>  
          http://www.cfs.purdue.edu/ITSI/docs/briefs/PromotingCOCInfan 
          tToddlerSettings.pdf




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                         Ready Nation/America's Edge California
                         Stanford University Graduate School of  
                    Education
                         St. Elizabeth's Day Home, and Early  
                    Education Organization
                         ZERO TO THREE Western Office

          Oppose:   None received.




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