BILL NUMBER: SCR 44AMENDED BILL TEXT AMENDED IN SENATE JULY 8, 2009 INTRODUCED BY Senator Corbett MAY 6, 2009 Relative to child care. LEGISLATIVE COUNSEL'S DIGEST SCR 44, as amended, Corbett. Child Care. This measure would request the State Department of Education to review California's current regional market rate methodology and implementation guidelines for subsidized child care, and question whether adherence to the current regional market rate system has resulted in sufficient access for working poor families. The measure would also request that the department operate an open and transparent process where all vested stakeholders are fully versed in the methodology used for the regional market rate survey and are included in the planning and implementation process being undertaken by the department to establish new rates or a new rate structure. The measure would also request that the department, on or before April 1, 2010, submit a report to the Legislature relating to its review of California's current regional market rate methodology and implementation guidelines, and any recommended changes to the current methodology. Fiscal committee: yes. WHEREAS, In 1990, the federal government began a major investment in child care with the passage of the Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. Sec. 9858 et seq); and WHEREAS, In 1996 CCDBG was expanded as part of federal welfare reform legislation called the Personal Responsibility and Work Opportunity Reconciliation Act (PROWORA). At that time, the child care funding component became known as the Child Care and Development Fund (CCDF); and WHEREAS, A vital cornerstone of CCDF funding is parental choice. Allowing families the ability to choose a child care environment that best meets the needs of the child and the family is an integral part of keeping children learning while parents are earning; and WHEREAS, The intent of both the federal and state child care subsidy programs is to ensure that families have equal access to child care providers who provide child care to nonsubsidized families; and WHEREAS, The subsidized child care reimbursement system should be based on the current regional market rates of child care providers who provide care to private nonsubsidized families; and WHEREAS, California's child care provider reimbursement rate should be updated no less than every two years in accordance with requirements of the United States Department of Health and Human Services and be included as part of California's State Plan; and WHEREAS, The methodology for the California regional market rate survey was last approved in 2005. The methodology approved takes into account 12 different variables including median home values, median gross rent, median real estate taxes, and median household income; and WHEREAS, The California economy has changed dramatically since the methodology for the regional market rate was approved and these changes may have an adverse impact on the upcoming regional market rate survey; and WHEREAS, By the time California conducts and implements the market rate survey, often it is already out-of-date; and WHEREAS, Families are disadvantaged with outdated rates that limit the access to providers who are willing and able to provide quality child care to subsidized children; and WHEREAS, The regulations that govern the implementation of the California regional market rate ceilings can be administratively burdensome and are in need of a more simplified process; and WHEREAS, The regional market rate development process has become inadequate in providing a reasonable rate that affords families access to high quality child care programs and does not always represent the true cost of care; now, therefore, be it Resolved by the Senate of the State of California, the Assembly thereof concurring, That the Legislature requests the State Department of Education to review California's current regional market rate methodology and implementation guidelines, and question whether adherence to the current regional market rate system has resulted in sufficient access for working poor families; and be it further Resolved, That the Legislature requests that the State Department of Education operate an open and transparent process where all vested stakeholders are fully versed in the methodology used for the regional market rate survey and are included in the planning and implementation process being undertaken by the State Department of Education to establish new rates or a new rate structure; and be it further Resolved, That the Legislature requests that the State Department of Education, on or before April 1, 2010, submit a report to the Legislature relating to its review of California's current regional market rate methodology and implementation guidelines, and any recommended changes to the current methodology; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.