Child Development Policy Institute Information Bulletin
02/24/2010 -
CDPI INFORMATION BULLETIN
February 24, 2010
Tim Fitzharris, PhD., Legistlative Advocate
Mid-Year Budget Action: Enough? Soon enough?
On Monday - the alleged final day of the 45-day special session - the Assembly acted upon several of the Senate-passed measures designed to respond to the Current Year fiscal crisis. Not much of the legislative action is what the Governor had proposed as "early action solutions."
Agreement and compromise are still difficult to find. Yet everyone agrees that early action ultimately saves downstream costs.
Here's a quick summary, courtesy of the California Budget Project, of what has occurred so far. Both houses approved changes that:
Shift $3.5 million in federal funding for HIV/AIDS prevention and testing from "state operations" to "local assistance" to support continued services.
Delay implementation of the Conservatorship and Guardianship Program for an additional year for savings of $17.4 million.
Increase the DNA penalty fee charged to all criminal offenders, generating $45.1 million that will be used to replace General Fund support for the state criminal laboratories.
Reflect reductions in the Department of Corrections and Rehabilitation, including $811 million from the budget of the receiver who oversees inmate medical services; $182 million in assumed savings from deporting certain immigrant inmates to their country of origin; and $48 million to reflect savings from a reduction in the population of juvenile offenders in state facilities. (ED. NOTE: The latter sounds like a policy decision to save money by having fewer juveniles under state custodial control. Actually, this action would lower the permissible age of wards in state juvenile facilities and transfer the older ones to less costly state prisons.) The Legislature deferred action, but adopted "intent" language, on policies that would be implemented to achieve the assumed savings.
Transfer $101 million in revenues from tribal gaming from transportation-related purposes to the General Fund.
Allow local governments to move ahead with transportation projects. These changes allow local governments to move forward and seek state reimbursement from bonds monies available under Proposition 116 of 2006 once state bond funds become available.
The CBP notes that the Assembly approved, but the Senate has not acted on, an alternative to the Governor's much-discussed "gas tax" swap. Neither house acted on a measure that would impose a 4.8 percent surcharge on property insurance to support emergency response activities. The Senate approved, but the Assembly did not act on, a measure that would boost collection of sales taxes owed on certain Internet sales and make other changes aimed at ensuring collection of taxes owed under existing law.
This afternoon, the Assembly Budget Committee will discuss SBX8 4 - which would effect regional center funding and foster care eligibility - and ABX8 5 - which focuses on transportation, the fuel tax issue, and cash management (ED. NOTE: We're talking here about deferral of payments to local government).
At this writing, it does not appear that additional reductions to health and human services or Education will be part of the mid-year solution. Democrats want to wait until the May Revision for a clearer picture of State revenues and expenditures.
Reported in the Sacramento Bee, Senate President Pro Tem Darrell Steinberg (D-Sacramento) told the Sacramento Press Club, "Let's see what kind of economic recovery we have; let's see how big the hole is; let's see what kind of revenue options we have. But we've done enough damage. And I'm not happy about it." On a different occasion according to the Bee, Senate Minority Leader Dennis Hollingsworth (R-Murrieta) said, "It's another issue of continuing to not deal with the tough, difficult decisions. There are not enough reductions in health and human services and education funding ... in order to ... solve the problem."
Controller Says State's Income Up in January
How about some good news: State Controller John Chiang has released his monthly report covering California's cash balance, receipts and disbursements in January. The month's receipts rose above the Governor's 2010-11 budget estimates by $1.28 billion, or 18.6%.
"The positive receipts are welcome news, but the State cannot be lulled into a false sense of security," said Chiang. "Our cash position falls below safe levels this spring, and goes into the red this summer. Our chronic budget shortfalls require credible and sustainable fixes in order to protect taxpayers, local governments, and state funded programs."
Year-to-date receipts are ahead of budget estimates by $459 million, or 1%, but state payments also went out faster than expected. Disbursements through January 31 were $586 million ahead of projections.
Source: State Controller
Legislative Analyst to Release Recommendations
Legislative Analyst Mac Taylor will be releasing his analysis of the Governor's FY 2010-11 Budget plan tomorrow. We understand the LAO will be putting forth "some substantial proposals related to child care"
Already in mid-year hearings, the LAO has made recommendations on two important child care issues:
Regional Market rate
"Recommend reimbursing licensed child care providers at the 75th percentile of RMR, consistent with federal guidance. Recommend using 2007 market survey (or 2009 survey if available) instead of the 2005."
First Five (Proposition 10)
"Rather than rely on a total of $105.6 million in voluntary contributions from the local commissions for Early Start and HFP, the Legislature may wish to sweep this amount on a one-time basis from the local commissions' reserves. This option would eliminate the risk of budget deficits in Early Start and HFP, should the local commissions not provide the voluntary contributions for these programs in 2010-11. On the other hand, this would leave the local commissions with lower reserves to prioritize their temporarily reduced revenues to meet local needs. In considering this option to sweep some local reserves, the Legislature should weigh the trade-offs of securing Proposition 10 funding for Early Start and HFP in 2010-11 versus providing a level of flexibility for local Proposition 10 commissions to prioritize their commitments while temporarily receiving decreased revenues."
As always, CDPI will keep you informed through this CDPI Bulletin, and through its new Capitol Plus publication (See subscription information below).
Education Secretary Changes
Education Secretary Dr. Glen Thomasis stepped down from the post. He made the decision in order to care for his failing mother.
Governor Schwarzenegger said, "Glen has been a wonderful public servant during his tenure as Secretary of Education. From helping California win landmark reforms to improve our schools and make us highly competitive for President Obama's Race to the Top funding competition to his work on my first-in-the-nation Digital Textbooks Initiative, Glen has given this position his all and I thank him for his dedication. I wish Glen all the best as he leaves his post to spend more time with his family."
Yesterday, the Governor named longtime friend and former adviser Bonnie Reiss to the post. Reiss, currently an adviser to private equity firm Pegasus Capital Advisors and member of the University of California Board of Regents, served as a senior adviser to Schwarzenegger from 2003 to 2007. She was also the founding president of what is now After School All-Stars, a physical fitness program established and championed by Schwarzenegger.
In a statement, the Governor Schwarzenegger called Reiss, who served as his senior adviser from 2003 to 2007, a "dynamic and driven advocate for public education in California" and a "proven ally in upholding the academic standards that make our public university system the best in the world."
New Child Care and Development bills
Last Friday was the deadline for the introduction of new legislation for the year. Here are the new bills:
AB 1683 (Torres) - Preschool priorities - The bill would require priority for participation in state preschool programs also to be given to children who have a biological custodial parent who is, or who has been within the previous 6 months, a dependent or ward of the juvenile court pursuant to specified provisions of law. The bill would prohibit priority enrollment from being used to displace children who are currently receiving care.
AB 1831 (Solorio) - After school programs - This bill would require, under the After School Education and Safety Program, the department to make available 24%, or $132,000,000 each year, whichever is greater, for after school programs for English learners that meet specified criteria, including that the program provide instruction and practice in academic lessons that increase knowledge and usage of the English language, establish programs and learning strategies that support English learners, and provide the staff with professional development designed to improve instruction to English learners. The bill would require the Superintendent to adopt emergency regulations to implement this provision within 90 days of its effective date.
AB 1876 (Torlakson) - Education: After school Education and Safety Program: volunteers - This bill would provide, under the After School Education andSafety Program, that volunteers may be used to conduct non-supervisorial duties in these after school programs.
AB 1967 (Mendoza) - Pupil admission: kindergarten and first grade - (1) This bill would change the required birthday for kindergarten and first grade admission to November 2 for the 2012-13 school year, October 2 for the 2013-14 school year, and September 2 for the 2014-15 school year and each school year thereafter. (2) This bill, in order to compensate school districts for the loss in average daily attendance resulting from changing the age at which children are required to be admitted to kindergarten, would increase the number of units of average daily attendance (ADA) computed for a school district for the purpose of computing the revenue limit of the school district for each of the 2012-13 to 2026-27 fiscal years, inclusive, according to a specified formula.
AB 1979 (Adams) - Child day care centers: Inspections - This bill would require the department to make annual unannounced visits of all licensed child day care centers.
AB 2084 (Brownley) - Child day care facilities: Nutrition - This bill would require a licensed child day care facility to follow specified guidelines relating to the provision of beverages. Statutory provisions establish procedures for making that reimbursement.
AB 2178 (Torlakson) - After School Education and Safety Program - (1) This bill, to the extent consistent with federal and state privacy laws, would authorize local educational agency grantees funded pursuant to the After School Education and Safety Program to submit specified data to each operator of an after school program.(2) This bill would require that these tools and procedures be developed consistent with specified provisions of law.
AB 2323 (Torlakson) - Child development contracts - This bill would authorize a contractor to carry forward certain reimbursable expenses and unearned funds to a subsequent contract issued by the department to continue the same program or services, subject to specified requirements. (Sponsored by CCDAA)
AB 2445 (Furutani) - Education: achievement gap - This bill would state the intent of the Legislature to enact legislation to improve education to close the achievement gap. (Spot bill)
AB 2463 (Brownley) - Child care resource and referral programs - (1) This bill would require a child care resource andreferral program to provide specified additional services, including providing training and workshops relating to child care services, community resource assistance, and collaborating with and assisting other community agencies in planning, coordinating, and improvingchild care. The bill would delete provisions authorizing a resource and referral program to provide short-term respite care, as defined. The bill would require a resource and referral program to provide basic child care referrals, as defined, at no cost.
(2) The bill would establish the Growing, Learning, Caring Project to foster and improve the quality of child care in all settings, including child care settings that are exempt from licensing requirements. (3) The bill would impose additional requirements on resource and referral programs relating to the trustline, including providing specified additional data, and reviewing and processing trustline applications for in-home or license-exempt home-based child care providers who are being paid through state-funded child care subsidies.
AB 2553 (Brownley) - Child development services: school readiness - This bill would require CDE to collect data that will assess the school readiness of children entering kindergarten and that reflect all of the major domains of child development, as specified.
AB 2592 (Buchanan) - Early Learning Quality Improvement System - This bill would state the intent of the Legislature to enact legislation relating to the Early Learning Quality Improvement System.
SB 892 (Alquist) - Community care facilities - This bill would make technical, non-substantive changes to a provision of the Community Care Licensing act (a spot bill).
SB 898 (Ashburn) - After School Education and Safety Program - This bill, notwithstanding current limits, would establish a minimumtotal direct grant amount for small schools, as specified. This bill would set forth a finding and declaration that the proposed amendments further the purposes of the act.
SB 1109 (Cox) - California Children and Families Program: funding -This bill, subject to voter approval, would eliminate the percentages for allocations to various state and local accounts and would, instead, provide that those funds, with specified exceptions, shall be transferred to the General Fund for appropriation by the Legislature for purposes of the Healthy Families Program and the Medi-Cal program. The bill would provide for the distribution, as prescribed, of funds held by county children and families commissions and by the California Children and Families Commission that remain unencumbered on the date that the bill's provisions are approved by the voters. This bill would abolish the California Children and Families Commission and the county children and families commissions, effective 90 days after the bill is approved by the voters, and would repeal related obsolete provisions. This bill would require that its provisions be submitted to the voters for approval at the next statewide election. (urgency statute)
SB 1126 (Liu) - Early childhood education course requirements - This bill would require the Trustees of the California State University, and request the Regents of the University of California, in conjunction with the Board of Governors of the California Community Colleges, to develop articulation and transfer program agreements for early childhood education and related majors. The bill would require those agreements to include a waiver of course requirements for those majors for completion of similar courses at a community college and to count those courses toward the completion of minimum upper division requirements for those majors.
SB 1159 (Maldonado) - Community care facilities - This bill would make non-substantive, technical changes to Community Care Licensing. (spot bill)
SB 1225 (Yee) - San Francisco individualized county child care subsidy plan - This bill would authorize the City and County of San Francisco to implement an individualized county child care subsidy plan until June 30, 2016, and would require the city and county to phase out the plan by January 1, 2018. The bill would require the city and county to demonstrate an increase in earned child days of enrollment by the end of the first fiscal year of operation under the child care subsidy plan submitted to and approved by the Child Development Division of the department after January 1, 2010. The bill would require the city and county, on or before December 31, 2016, to submit a final report to the Legislature and other specified entities that summarizes the impact of the plan. The bill would repeal those provisions on January 1, 2018.
SB 1381 (Simitian) - Kindergarten Readiness Pilot Program - This bill would extend the operative date of the Kindergarten Readiness Pilot Program to the January 1, 2016.
CDPI's Capitol Plus
As most of our readers know, the Child Development Policy Institute (CDPI) has been producing CDPI Information Bulletins for FREE for the past 13 years. CDPI's informational bulletin is distributed both federally and on the state level providing breaking news on fiscal and policy issues with timely and accurate reporting. An invaluable resource, the CDPI bulletins have kept the field informed of every breaking issue in the area of child care and development.
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