BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1123
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 1123 (Liu) - As Amended:  August 4, 2014 

          Policy Committee:                             Human  
          ServicesVote:5-2
                       Education                                 5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes new services under General Child Care and  
          Development Programs for infants and toddlers and makes changes  
          to eligibility, adult- and teacher-to-child ratios, and staffing  
          requirements in classrooms.  Specifically, this bill:  

          1)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.

          2)Provides that general child care services for infants and  
            toddlers shall be known as California Strong Start services.   
            Requires services provided children from birth to their third  
            birthday to include, but not be limited to: parent engagement  
            and support services that promote positive parent-child  
            relationships; full-day early learning and care services;  
            part-day early learning and care services; voluntary home  
            visitation services; nutrition services; and, referrals to  
            services such as health and dental care, child abuse  
            prevention, housing, and early childhood mental health.   
            Authorizes the coordination of services among various child  
            care providers. 

          3)Requires the SPI to develop standards, rules, and regulations  
            for the implementation of high-quality, evidenced-based  
            infant-toddler services, based on, but not limited to, the  
            federal Early Head Start model.  








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          4)Establishes a family engagement supplemental grant for  
            qualifying California Strong Start service providers, as  
            determined by the SPI, at a rate of $1,000 per eligible child.  
             Requires the SPI to distribute family engagement supplemental  
            grant funds for the purpose of providing evidence-based parent  
            training services as defined in the California Department of  
            Social Services' (DSS) California Evidenced-Based  
            Clearinghouse for Child Welfare. Makes these grant funds  
            contingent upon an appropriation by the Legislature.

          5)Establishes a voluntary home visitation supplemental grant for  
            qualifying California Strong Start service providers, as  
            determined by the SPI.  For children who receive full-day  
            early learning and care services, the supplemental grant  
            amount shall be $2,500 per child. For children who receive  
            part-day early learning and care services, the supplemental  
            grant shall be $6,000 per child.  Requires the SPI to  
            distribute supplemental grant funds for the purpose of  
            providing evidence-based voluntary home visitation services as  
            defined in the DSS' California Evidenced-Based Clearinghouse  
            for Child Welfare. Makes these grant funds contingent upon an  
            appropriation by the Legislature.

          6)Specifies that in order to promote continuity of early  
            learning and education services, subsequent to enrollment in a  
            state or federally funded child care and development program,  
            a child shall be deemed eligible for the remainder of the  
            program year.  

          7)Provides that a family is income eligible for child care and  
            development services if the family is eligible for CalFresh or  
            Medi-Cal.

          8)Updates adult-child ratios to conform with Title 5 Code of  
            Regulations and authorizes new ratios as of July 1, 2019 (see  
            comment #3)

          9)Specifies compliance with the revised ratios is not determined  
            based on actual attendance; the ratios do not apply to family  
            child care home education networks; and, the ratios do not  
            prevent child care and development services providers from  
            maintaining the ratios before July 1, 2019.  

          10)Requires, no later than July 1, 2019, child care and  








                                                                  SB 1123
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            development services providers to have at least one teacher in  
            each classroom that holds at a minimum a child development  
            teacher permit issued by the Commission on Teacher  
            Credentialing (CTC).  Specifies this provision is contingent  
            upon funding in the annual Budget Act or in any other statute  
            for this purpose.  

          11)Requires, no later than July 1, 2017, the CTC to review and  
            amend the Child Development Permit.  Requires the development  
            of an infant and toddler emphasis that includes a minimum of  
            six units in infant and toddler development. Further requires  
            each permit holder to have an individual professional  
            development plan that includes a minimum of 21 hours of annual  
            training, including in-classroom coaching. 

           FISCAL EFFECT
           
          1)General Fund cost pressure, potentially in the millions of  
            dollars, to provide home visitation and parent engagement  
            supplemental grants.  There are an estimated 10,000 children  
            between the ages of 0-3 currently served by child care  
            programs. Actual costs will depend on grant awards  
            appropriated in the budget act or another statute.  Neither  
            this bill nor the 2014-15 Budget Act appropriate funds for  
            this purpose. 

          2)General Fund cost pressures in the range of $3 million to $11  
            million to provide 12-month eligibility for children enrolled  
            in state and federal child care programs. Changing from a  
            system of frequent reporting-based eligibility determinations  
            to 12-month eligibility will likely result less children  
            losing services due to ineligibility. 

          3)General Fund administrative costs to the California Department  
            of Education (CDE) in the range of $230,000 to $400,000  
            annually through 2016-17 to develop standards and promulgate  
            regulations for the new child care program requirements under  
            the California Strong Start Program, establish categorical  
            eligibility, phase-in implementation of staffing ratios,  
            maintain continuity of care and provide caregiver guidance and  
            technical assistance. 

          4)General Fund cost pressure in the millions of dollars,  
            beginning in 2019, to support changes in staffing associated  
            with lower child-adult classroom ratios. 








                                                                  SB 1123
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          5)Costs of approximately $100,000 (special fund) for the  
            Commission on Teacher Credentialing to review and amend the  
            Child Development Permit.  This assumes costs to convene a  
            panel of both pre-kindergarten and early childhood experts and  
            the likely need to develop standards for the new infant and  
            toddler emphasis.  

           COMMENTS 

           1)Purpose  . This bill changes staffing ratios and increases staff  
            qualifications and changes polices to increase eligibility and  
            reduce attrition. The purpose of the bill is to remove  
            participation barriers and increase the provision and quality  
            of services. These program changes will likely lead to more  
            families accessing services thereby increasing state costs.

           2)Background  . The CDE administers a child care and development  
            system, maintaining 1,317 service contracts with approximately  
            750 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. 

            The Budget Act of 2014 provides over $1.7 billion (GF) for  
            child care and $530 million (GF/P98) for preschool.  This  
            represents an increase $57 million (GF) and $30 million  
            (GF/P98) to fund 500 slots for the Alternative Payment  
            Program, 1,000 slots for General Child Care programs, 7,500  
            for the State Preschool Program, and 7,500 for part-day wrap  
            around child care slots.  

            Some of the services prescribed under the California Strong  
            Start services are currently provided through existing  
            programs, for example,  child care and development programs  
            are required to include, among other things, parenting  
            education and parent involvement; social services that  
            include, but are not limited to, identification of child and  
            family needs and referral to appropriate agencies; health  
            services, and nutrition. Components of this bill are similar  
            to the federal Early Head Start program.  Early Head Start  
            programs support the physical, social, emotional, cognitive,  
            and language development of each child.  Services provided  
            directly or through referral under Early Head Start include:  








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            home-visits, especially for families with newborns; parent  
            education and parent-child activities; comprehensive health  
            and mental health services and high quality child care  
            services, provided directly or in collaboration with community  
            child care providers. 

           3)Classroom ratios  .  This bill changes the age categories as  
            well as the adult- and teacher-to-child ratios for  
            center-based programs regulated under Title 5 of the  
            California Code of Regulations.  Family child care home  
            education networks, which are licensed family child care home  
            providers, are exempted.  The prior version of this bill and  
            SB 192 (Liu) had conflicting ratios. This bill incorporates  
            ratios proposed by SB 192 (Liu), effective through 2019 and  
            authorizes alternative ratios starting in 2019.   







           ------------------------------------------------------------------------ 
          |      Current law      | SB 1123 (Liu) (effective |    SB 192 (Liu)     |
          |                       |          2019)           |                     |
           ------------------------------------------------------------------------ 
          |----------+------------+-------------+------------+----------+----------|
          |Infants   |1:3         |Infants      |1:4         |Infants   |1:3       |
          |(0-2)     |adult-child |(birth-18    |adult-child |(birth-18 |adult-chil|
          |          |1:18        |months)      |1:8         |months)   |d         |
          |          |teacher-chil|             |teacher-chil|          |1:18      |
          |          |d           |             |d/group     |          |teacher-ch|
          |          |            |             |size 8 or   |          |ild       |
          |          |            |             |1:3         |          |          |
          |          |            |             |adult-child,|          |          |
          |          |            |             | 1:18       |          |          |
          |          |            |             |teacher-chil|          |          |
          |          |            |             |d           |          |          |
          |          |            |             |            |          |          |
          |----------+------------+-------------+------------+----------+----------|
          |Infants   |1:4         |             |            |          |          |
          |and       |adult-child |             |            |          |          |
          |toddlers  |1:16        |             |            |          |          |
          |(0-2)     |teacher-chil|             |            |          |          |
          |          |d           |             |            |          |          |








                                                                  SB 1123
                                                                  Page  6

          |----------+------------+-------------+------------+----------+----------|
          |          |            |Toddlers (18 |1:4         |Toddlers  |1:4       |
          |          |            |months-3rd   |adult-child |(18       |adult-chil|
          |          |            |birthday)    |1:16        |months-3rd|d         |
          |          |            |             |teacher-chil|          |1:16      |
          |          |            |             |d           |birthday) |teacher-ch|
          |          |            |             |            |          |ild       |
          |----------+------------+-------------+------------+----------+----------|
          |3-6 years |1:8         |Preschool    |1:8         |Preschool |1:8       |
          |old       |adult-child |(30 months-  |adult-child |(30       |adult-chil|
          |          |1:24        |kindergarten)|1:24        |months-kin|d         |
          |          |teacher-chil|             |teacher-chil|dergarten)|1:24      |
          |          |d           |             |d           |          |teacher-ch|
          |          |            |             |or  1:10    |          |ild       |
          |          |            |             |adult-child,|          |          |
          |          |            |             | 20:1       |          |          |
          |          |            |             |teacher-chil|          |          |
          |          |            |             |d/group     |          |          |
          |          |            |             |size 20     |          |          |
          |----------+------------+-------------+------------+----------+----------|
          |6-10      |1:14        |Schoolage    |1:14        |Schoolage |1:14      |
          |years old |adult-child |(kindergarten|adult-child |(kindergar|adult-chil|
          |          |1:28        |-13 years    |1:28        |ten-13    |d         |
          |          |teacher-chil|old)         |teacher-chil|years     |1:28      |
          |          |d           |             |d           |old)      |teacher-ch|
          |          |            |             |            |          |ild       |
          |----------+------------+-------------+------------+----------+----------|
          |10-13     |1:18        |             |            |          |          |
          |years old |adult-child |             |            |          |          |
          |          |1:36        |             |            |          |          |
          |          |teacher-chil|             |            |          |          |
          |          |d           |             |            |          |          |
           ------------------------------------------------------------------------ 

           4)Concerns  .  Concerns have been raised that lowering ratios  
            without increasing rates will create hardships, especially for  
            infant and toddler programs.  Over the last several years, a  
            number of infant and toddler programs have closed due to  
            insufficient funding.  According to the author, the number of  
            children served in infant and toddler programs have decreased  
            from 18,000 to 10,000 since 2009.  

            SEIU California and AFSCME have also raised concerns that the  
            bill is silent on efforts to increase quality and support to  
            home-based licensed and family, friend and neighbor care.   








                                                                  SB 1123
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            According to their letter, "Development of ratios, quality  
            standards, and access to services that support child  
            development must include all settings to achieve the shared  
            goal of giving every child an opportunity to succeed in school  
            and beyond." 

           5)Related legislation  . SB 192 (Liu), pending in this committee,  
            renames the Child Care and Development Services Act as the  
            Early Learning and Educational Support Act and reorganizes and  
            recasts provisions of law to conform to these name changes.  

           6)Prior legislation  . AB 1673 (Mitchell) contained similar  
            provisions providing 12 months of eligibility for child care  
            services.  This bill was held on this committee's Suspense  
            File in 2012.
           


          Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081