CAPPA E-Update on Governor's May Revise
05/17/2010 -
California Alternative Payment Programs Association (CAPPA) Government Affairs e-Update
Time sensitive information regarding State Funded preschool and child care programs!
From CAPPA's Executive Director, Denyne Kowalewski
Governor Proposes Total Elimination of Key Child Care and Development Programs
Governor Arnold Schwarzenneger released his final May Revision today and its contents as proposed would devastate the entire child care subsidized field including APPs, child care centers, R&R's, food programs, and so much more. See below for an itemized list of proposed cuts and eliminations. While the governor and administration spokespeople had been hinting through the news media the past few days that the cuts included in this proposal would be "terrible", there was thought that some child care infrastructure would be left in place from which we could rebound. Unfortunately, the proposal proposed total elimination.
Senator Denise Ducheny said it best in a press conference (see excerpts below) following up on the May release when she said, "You cannot build a economy with the total elimination of child care. We want to create jobs and we want (people) to go back to work. You cannot do that without child care. Child care works. (Furthermore) 100,000 businesses are child care businesses." And finally, "This governor has never understood CalWORKs."
I believe that state funded child care program representatives recognize that cuts will happen in our programs. HOWEVER, do not think for one moment that what this governor has proposed will ever be realized. Do not think that when posed with such untenable proposals that CAPPA in partnership with our sister organizations, with our providers, with county welfare departments, with public and private business interests and especially with parents will sit down and do nothing. We will all unite and become a force to be reckoned with.
CAPPA strongly supports the statement from Senate President pro Tem Darrell Steinberg when he said, "We will not pass a budget that eliminates CalWORKs. NO WAY!"
We will continue to update member agencies and add more information as we get it. CAPPA staff will be working over the weekend to try and find out more details. As of now this is what we have. Stay tuned for more!
Total Elimination of the Following Child Care and Development Programs -
Stage 2 Child Care
Stage 3 Child Care
Resource and Referral
Extended Day Centers
Allowances for Handicapped
CA Child Care Initiative
Centralized Eligibility List
California Community College Child Care
Programs that will go until October -
Stage 1 - The Governor proposes to eliminate CalWORKs starting October 1, 2010.
Programs that were significantly reduced -
General Child Care
$797,196,000 (Jan Proposal)
$130,919,000 (May Revision)
Migrant Centers
$36,246,000 (Jan Proposal),
$5,411,000 (May Revision)
Local Planning Councils
$6,637,000 (Jan Proposal),
$1,750,000 (May Revision)
Trustline
$7,990,000 (Jan Proposal)
1,927,000 (May Revision)
Quality Services
$68,030,000 (Jan Proposal)
$64,462,000 (May Revision)
Programs That Were Retained and/or had Augmentations-
Alternative Payment - Increased
265,658,000 (Jan Proposal)
457,768,000 (May Revision)
Preschool - Stayed the Same
$438,913,000 (Jan Proposal)
$438,913,000 (May Revision)
CalSafe - Stayed the Same
$19,725,000 (Jan Proposal)
$19,725,000 (May Revision)
ASES (Afterschool)- Stayed the Same
$547,029,000 (Jan Proposal)
$547,029,000 (May Revision)
Policy Changes/Reforms:
County Office of Education- Restores a portion of the reduction to county offices of education (COE), reducing COE revenue limits by $28.2 million rather than $45 million. This reduction is proportional to the reduction proposed for school districts. The Administration also withdraws the proposal to consolidate COE services and functions which was proposed in January.
Negative COLA - The Governor proposes to implement a negative COLA of -0.38 percent which would result in an additional $5.9 million cut.
State Median Income Policy Change - The Governor proposes to reduce the statutory income eligibility limit from 75 percent of the median family income down to 60 percent for all subsidized child care programs except for the State Preschool program.
Regional Market Rate Proposals - Continues to propose $200 million in reductions from changes to the Regional Market Rate. This proposal is the same as the January proposal which proposed to reduce the RMR down to the 75th percentile of the 2005 survey for licensed providers and to reduce reimbursement for licensed-exempt providers down from 90 percent of the licensed provider rate down to 70 percent of the rate.
ELAC/CAELQIS - Proposes to increase by $118,000 in reimbursements to CDE from the First 5 Commission for the new State Advisory Council on Early Childhood Education and Care (ELAC) pursuant to a Governor's Executive Order. It is anticipated that these resources will enable the state to develop a successful proposal for $10.6 million in federal funds authorized for the Council in the recent ARRA.
Child Care Overpayments Proposal - Proposes trailer bill language to implement actions to handle presumed issues of overpayment in child care programs. All programs administered by CDE and Department of Social Services, including state direct-funded centers and family care homes, are included in this proposal.
Community College Child Care- Community Colleges will be given the flexibility to use funds previously budgeted for CalWORKs child care for general purposes.
cappa@cappaonline.com.
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