BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 1123 (Liu) - California Strong Start Program
Amended: April 3, 2014 Policy Vote: Education
Urgency: No Mandate: No
Hearing Date: May 23, 2014 Consultant: Jacqueline
Wong-Hernandez
SUSPENSE FILE.
Bill Summary: This bill modifies Title 5 general child care and
development programs serving children from birth to age 3 to
require, among other things, providers to have at least one
teacher in each classroom that holds a child development teacher
permit by July 1, 2019.
Fiscal Impact:
Standards, rules, and regulations: $250,000 - $400,000
(General Fund) for the California Department of Education
(CDE) to develop standards and promulgate regulations for
the new child care program requirements under the California
Strong Start Program, categorical eligibility, phase-in
implementation of staffing ratios, continuity of care
provisions, and caregiver guidance. Costs will partially
depend on how controversial and lengthy the regulations
process is. The CDE will likely also need to provide
increased technical assistance, at least during the initial
years of transition.
Child development program changes: Approximately $10
million in annual costs to increase the adjustment factor,
as required in this bill.
Staffing ratios: Increased annual costs in the millions of
dollars, depending on child care staff salaries/wages.
12-month eligibility: Changing from a system of frequent
reporting-based eligibility determinations to a12-month
eligibility will likely increase CalWORKs Stage 2 and Stage
3 costs by $11 million - $12 million, due to decreased
attrition. State and local administrative workload would
also be reduced.
Home visitation supplemental grants: Subject to a Budget
appropriation, annual grant costs would likely be in the
tens of millions of dollars, depending on the individual
SB 1123 (Liu)
Page 1
grant amount. $100,000 in one-time costs to the CDE to
establish the program.
Parent engagement supplemental grants: Subject to a Budget
appropriation, annual grant costs would likely be in the
millions of dollars, depending on the individual grant
amount. $100,000 in one-time costs to the CDE, and $50,000
in ongoing annual costs for program administration.
Fee elimination: Approximately $3 million in annual revenue
loss from the elimination of fees. Potentially substantial
additional child care costs to the extent that fee
elimination leads to increased enrollment.
Commission on Teacher Credentialing (CTC): Likely minor
costs to the CTC to review and amend the Child Development
Permit Matrix, as specified.
Background: Under existing law, the state is involved in various
child care and early childhood education (ECE) programs and
placement options. The state provides for, and regulates, family
child care homes (FCCHs), Early Childhood Education/Child
Development programs, Community Care Licensing facilities, CDE
programs, and Alternative Payment programs.
Existing requirements for a child development teacher permit
(for State Preschool, and general child care and development)
include 24 units in ECE or child development, 16 units in
general education, and 175 hours of experience in an
instructional capacity in a child care and development program.
The child development teacher permit is issued for 5 years and
is renewable for successive 5-year periods upon completion of
105 hours of professional growth.
Requirements for a child development associate teacher permit,
which authorizes the holder to provide instruction, include 12
units in ECE or child development, and 50 days of experience in
an instructional capacity in a child care and development
program. The child development associate teacher permit is
issued for 5 years and is renewable once, for a total of 2
issuances. To renew, the holder must complete at least 15
semester units toward the child development teacher permit. By
the end of the 10-year period, the holder must meet the
requirements for the child development teacher permit.
Existing law establishes the following staffing ratios for
center-based programs:
SB 1123 (Liu)
Page 2
1) Infant: birth to 2-years-old - 3:1 child-to-adult ratio, and
18:1 child-to-teacher ratio.
2) Infants and toddlers: birth to 2-years-old - 4:1 child-to-adult
ratio, and 16:1 child-to-teacher ratio.
3) Children: 3 to 6-years-old - 8:1 child-to-adult ratio, and 24:1
child-to-teacher ratio.
4) Children: 6 to 10-years-old - 14:1 child-to-adult ratio, and
28:1 child-to-teacher ratio.
5) Children: 10 to 13-years-old - 18:1 child-to-adult ratio, and
36:1 child-to-teacher ratio. (Education Code � 8264.8)
Existing law provides that 3 and 4-year olds are eligible for
wraparound child care services to supplement part-day State
Preschool if the family is eligible for State Preschool and the
parents need care for one or more of the following reasons: 1)
the child is a recipient of protective services, or at risk;
and/or, b) the parents are engaged in vocational training, as
specified, employed or seeking employment, seeking permanent
housing, or are incapacitated. (EC � 8239)
Proposed Law: This bill modifies Title 5 general child care and
development programs serving children from birth to age 3 to
require, among other things, providers to have at least one
teacher in each classroom that holds a child development teacher
permit by July 1, 2019. Specifically, this bill:
1)Provides that general child care services for infants and
toddlers is to be known as California Strong Start services,
and requires services for children from birth to age three to
include but not be limited to: a) parent engagement and
support services that promote positive parent-child
relationships; b) full-day early learning and care services;
c) part-day early learning and care services; d) voluntary
home visitation services; e) nutrition services; and, f)
SB 1123 (Liu)
Page 3
referrals to services such as health and dental care, child
abuse prevention, housing, and early childhood mental health.
2)Requires the Superintendent of Public Instruction (SPI) to
develop standards, rules, and regulations for the
implementation of high-quality, evidence-based infant-toddler
services, based on but not limited to the federal Early Head
Start model, as specified.
3)Requires, by July 1, 2019, child care and development providers
to have at least one teacher in each classroom that holds at
a minimum a child development teacher permit issued by the
CTC.
4)Requires the CTC, by July 1, 2017, to review and amend the Child
Development Permit Matrix to include specified requirements.
5)Adds an eligibility threshold for State Preschool, and general
child care and development, in addition to the existing
threshold of having an income at or below 70% of the state
median income (adjusted for family size), to provide
eligibility for 4-year olds enrolled in transitional
kindergarten (TK) who are eligible for free and reduced-price
lunch, CalFresh benefits, or Medi-Cal.
6)Requires a family engagement supplemental grant to be available
to qualifying service providers, as determined by the SPI, at
a rate of $1,000 per eligible child.
7)Requires a voluntary home visitation supplemental grant to be
available to qualifying service providers, as determined by
the SPI. This bill establishes a rate of $2,500 per child for
those who receive full-day early learning and care services,
and a rate of $6,000 per child for those who receive part-day
early learning and care services.
8)Authorizes a countywide or regional consortium of providers,
with a lead grantee agency that is a First 5 commission,
county office of education, or other local public agency, to
apply to the SPI for a countywide or regional grant for the
total amount of eligible children, as specified.
9)Requires the SPI to distribute family engagement and voluntary
home visitation supplemental grants to provide evidence-based
SB 1123 (Liu)
Page 4
parent training services, and evidence-based voluntary home
visitation services, as specified.
10)Increases adjustment factors as follows: a) infants, from 1.7
to 2.3; b) toddlers, from 1.4 to 1.8; and, c) infants and
toddlers in an FCCH, from 1.4 to 1.8.
11)Eliminates the family fee for part-day preschool programs.
12)Modifies priority for State Preschool relative to 4-year olds
to specify that priority is for 4-year olds who are not
enrolled in TK, and deletes the requirement that State
Preschool programs operating with carryover funds have at
least half of their enrollment be children who are 4-years
old, as specified.
13)Sunsets existing staff ratios on July 1, 2019, and as of that
date establishes new minimum ratios and group sizes, as
specified. This bill exempts FCCH education networks from
these ratios.
14)Deems a child who is enrolled in a state or federally funded
child care and development program as being eligible for the
remainder of the program year.
Staff Comments: This bill seeks to strengthen and expand
services for low-income children in state-funded child care
programs. It changes staffing ratios and increases staff
qualifications; it changes polices to increase eligibility and
reduce attrition; it awards incentive funding for family
participation. The purpose of the bill is to remove
participation barriers, and increase the extent and quality of
services. The success of the bill will drive the increased costs
related to enrollment, continued participation, and the
accessing of more services. Costs are likely to be in the tens
of millions of dollars annually.
In addition to program costs based on enrollment and
eligibility, the state will incur cost of up to $1 million in
the first year, and hundreds of thousands of dollars annually,
for the CDE to transition the programs to align with the changes
required by this bill, and to continue to provide training and
technical assistance to providers.
SB 1123 (Liu)
Page 5