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<h1 id="printTitle" align="center">Child Development Policy Institute</h1>


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<h1>NEWS AND BULLETINS</h1>
<h2>Information Bulletin - May 27, 2008</h2>
<p>

<p><h3>CDPI INFORMATION BULLETIN</h3>
<p>May 27, 2008</p>

<p><b>Assembly to Consider Child Development Budget Cuts</b></p>

<p>Assembly Budget subcommittees will be making some crucial fiscal decisions affecting Child Care and Development programs in hearings being held today and tomorrow.  Budget Subcommittee #1 on Health and Human Services meets today at 1:30 PM and Budget Subcommittee #2 on Education Finance meets tomorrow at 9AM.  Both CalWORKs child care funding and the Governor�s General Child Care reductions proposed in January and May are on the agenda.</p>

<p>Below are the Governor�s proposals on the Vote-Only agenda, with staff recommendations.  For your reference, CDPI has produced a chart (<a href="https://www.cdpi.net/cs/cdpi/download/rs/75/may2008chart.pdf?x-r=pcfile_d">HERE</a>) which displays Current Year, Governor�s Proposal (January), Current Year � Adjusted, and Governor�s Proposal (May Revise).</p>

<p><u>Across-the-Board Reduction for Child Development</u> - The Governor proposes an average 6.4% program reduction in General Child Care programs.  <u>Staff recommendation:</u>  REJECT</p>

<p><u>COLA and Growth</u> - The Governor proposes no COLA or Growth for the Budget Year.  <u>Staff recommendation:</u>  ADOPT</p>

<p><u>State Medial Income (Income eligibility limit)</u> - The Governor proposes to freeze the SMI for the Budget Year.  <u>Staff recommendation:</u> ADOPT</p>

<p><u>Standard Reimbursement Rate</u> - The Governor proposes to freeze the SRR at current rate.  <u>Staff recommendation:</u> ADOPT</p>

<p><u>Alternative Payment Program Admin/Support</u> - The Governor proposes to limit APP Admin/Support at 23.4567% of direct payments (current statute) rather than 20% of contract for the Budget Year.  <u>Staff recommendation:</u> ADOPT</p>

<p><u>21st Century Program</u> - The Governor found an additional $169.7 million in federal funds for this program and proposes its authorization (on a one-time basis).  <u>Staff recommendation:</u> ADOPT</p>

<p><u>Funding for Stages 2 and 3</u> - The Governor proposes to re-appropriate unexpended balances from multiple sources to fully-fund Stage 2 and Stage 3.  <u>Staff recommendation: </u>ADOPT</p>

<p><u>Provider Accounting and Reporting Information System</u> -  The Governor proposes $285,000 from federal funds for a RFP to seek a solution for replacement of the Provider Accounting and Reporting Information System (PARI$).  <u>Staff recommendation:</u> ADOPT</p>

<p><u>Fully-fund CalWORKs Stage 3</u> - Advocates proposed language for Budget Year to fully-fund CalWORKs Stage 3.  <u>Staff recommendation:</u> ADOPT</p>

<p><u>Certifying Eligibility Under Penalty of Perjury</u> - The Governor proposes requiring applicants for subsidized child care (before they are placed on the CEL) to self-certify that they meet eligibility and need requirements under penalty of perjury.  <u>Staff recommendation:</u> REJECT</p>

<p><u>Federal CCDF State Expenditure Plan</u> - Advocates proposed trailer bill language to require a timeline for state plan approval which provides adequate allowance for public input and State Budget consideration.  <u>Staff recommendation:</u> ADOPT</p>

<p>Here are the May Revision items to be discussed at the two hearings:</p>

<p><u>Proposals to Improve Contracting Processes</u> - The CDE has submitted proposals that will �ease administrative challenges and allow for the more efficient disbursement and transfer of available contract funds.�  In other words, reduce the amount of unspent funds year-to-year.  <u>Staff recommendation:</u> (1) Address voluntary movement of funds between agreeing contractors during the fiscal year as well as distribution of funds that had been allocated in contracts, but returned to the department through contract relinquishment or reduction.  This would allow for temporary mid-year adjustments to allow the CDE to be responsive to short-term changes in service needs. (2) Address program expansion dollars to remove the requirement for request for application for these dollars and allow the department to distribute these funds to existing contractors and subcontractors in good standing and LEAs based on criteria, with an RFA as last resort for fund distribution.  (3) Consider an October 1 beginning date for new contracts as a way to build contracts with the maximum amount of complete data available from the prior fiscal year.  ADOPT</p>

<p><u>Sufficiency of Stage 2 Funds</u> - There are concerns that the proposed level of funding for CalWORKs Stage 2 is lower than it should be for Budget Year, considering the elimination of a reserve amount and the challenges with the increased cost of care and reserve depletion experienced in the Current Year.  <u>Staff recommendation:</u>  APPROVE an additional $16.4 million for Stage 2 to bring the appropriation to the current year final estimate level.</p>

<p><u>Changes to Regional Market Rate (RMR)</u> - The Governor requests that trailer bill language be added to: (1) Re-bench reimbursement rate limits from the 85th to the 75th percentile of private pay rates for voucher-based programs based on the new 2007 Regional Market Rate survey, (2) To implement the re-benched RMR beginning January 1, 2009, and (3) To conduct the survey every two years instead of annually.  <u>Staff recommendation:</u>  (1) Maintain the rate limits at the 85th percentile, (2) a March 1 implementation for the new schedule, and (3) acceptance of the biennial survey as proposed by the Administration.</p>

<p><u>Changes to Family Fee Schedule</u> - The Governor requests the Budget Bill be amended to direct the SDE to revise the family fee schedule based on the income eligibility limits provided by the Department of Finance for the 2007-08 fiscal year, and to adjust the family fee schedule for families that are newly eligible to receive or will continue to receive services under the new income eligibility limits.  <u>Staff recommendation:</u>  REJECT</p>

<p><b>Evans, de Le�n Picked to Chair Key Assembly Committees</b></p>

<p>Newly-elected Assembly Speaker Karen Bass has named Assemblywoman Noreen Evans as the next chair of the Budget Committee and Assemblyman Kevin de Le�n as the next chair of the Appropriations Committee.</p>

<p>Neither will immediately assume their chairmanships. The current Budget Chair Assemblyman John Laird (D-Santa Cruz) and the current Appropriations Chair Assemblyman Mark Leno (D-San Francisco) will continue until they are termed out in December. </p>

<p>Bass also named Assemblywoman Lori Salda�a as assistant Speaker pro Tem.</p>

<p><b>Senator Scott Resigns from Education Budget Subcommittee</b></p>

<p>Senator Jack Scott (D-Altadena) has voluntarily stepped down as Chair of the Senate Budget Subcommittee #1 on Education.   Earlier, he had been tapped as the next chancellor of California's community college system.  Scott is being termed out in December and begins his new post on January 1st.  His staff said that he did not want to appear in a conflict of interest situation as the Subcommittee hears the future budget of the community college system.</p>

<p>A new subcommittee chair has not yet been named.  Scott will remain chair of the Senate Education Committee (policy committee)</p>

<p><b>Senator Cox Wants First 5 Scrapped and a New Focus on Health Care</b></p>

<p>Senator Dave Cox (R-Fair Oaks) has introduced legislation that would eliminate the First 5 California program, and instead use the funds to provide health care for more children and give one-time funding to local schools.</p>

<p>Cox, who has been challenging the First 5 program for several years, proposes dividing more than $2.4 billion in First 5 (State) accounts among cities, counties, school districts and the state.  Cox also proposes that future money from the tobacco tax could be dedicated to health care programs such as the children's health care program, Healthy Families, and health insurance for low-income families.</p>

<p>Two earlier bills by the Sacramento Senator targeting First 5 have met early demises.</p>

<p><b>CDPI May Revise Institute a Huge Success</b></p>

<p>On May 21-22, CDPI held its annual institute on the Governor�s May Revision.  Judged by quality of speakers and attendance, it was a huge success.</p>

<p>Superintendent of Public Instruction Jack O�Connell addressed the attendees at the evening reception, calling attention to the Achievement Gap which can be identified at pre-kindergarten ages.  He thanked and encouraged the room full of ECE professionals.  O�Connell called attention to SB 1629 (Steinberg) and AB 2759 (ones) as important initiatives in our field.</p>

<p>On Thursday, attendees heard top leaders and fiscal experts speak to the State�s fiscal condition and go over options to Budget reductions to funds supporting low income families.  Speaking were: Superintendent of Public Instruction Jack O�Connell, Michael Genest, Director, California Department of Finance, Senator Denise Moreno Ducheny, Chair, Senate Budget Committee, Assemblymember John Laird, Chair, Assembly Budget Committee, Assemblymember Dave Jones, Chair, Assembly Judiciary Committee, Legislative Analyst Elizabeth Hill, and Jean Ross, Executive Director of the California Budget Project.</p>

<p>The Institute was also an opportunity to introduce Camille Mayben, the new Director of the CDE�s Child Development Division.  CDPI presented seven Budget advocacy strategies which will be repeated in future <i>CDPI Information Bulletins</i>.</p>

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