This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1199.PKA
DATE: 1/26/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1199 Funding for School Readiness Program
SPONSOR(S): Grall
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) PreK-12 Appropriations Subcommittee Bailey Potvin
2) Early Learning & Elementary Education
Subcommittee
3) Appropriations Committee
SUMMARY ANALYSIS
Current law authorizes the Division of Early Learning (DEL) in the Department of Educations as the lead
administrator for federal and state child care funds. The DEL is responsible for developing, adopting, and
implementing quality standards and outcome measures that benefit and improve Florida’s comprehensive early
childhood care and education system. One of the three main early learning programs that the DEL oversees is
the School Readiness (SR) Program. The DEL administers the SR Program at the state level and early
learning coalitions and the Redlands Christian Migrant Association administer the program at the county and
regional levels. The SR Program provides subsidies for child care services and early childhood education for
children of low-income families; children in protective services who are at risk of abuse, neglect, abandonment,
or homelessness; foster children; and children with disabilities.
Funding for the SR Program comes from four sources:
Federal Child Care and Development Block Grant,
Federal Temporary Assistance for Needy Families Block Grant,
Federal Social Services Block Grant, and
State General Revenue Fund
The Legislature annually appropriates the SR Program funds to the early learning coalitions and the Redlands
Christian Migrant Association with participating providers receiving their funding primarily from reimbursements
from the coalitions and tuition payments by participating families.
The bill establishes the School Readiness Funding Formula Allocation Conference and requires the funding for
the SR Program to be allocated among the early learning coalitions in accordance with the General
Appropriations Act and the conference.
The bill does not have a fiscal impact. See Fiscal Comments.
The bill has an effective date of July 1, 2022.
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DATE: 1/26/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
School Readiness Program
Overview
The Division of Early Learning (DEL) within the Department of Education (DOE) is the lead
administrator for federal and state child care funds and is responsible for developing, adopting, and
implementing quality standards and outcome measures that benefit and improve Florida’s
comprehensive early childhood care and education system.
1
The DEL partners with 30 local early
learning coalitions
2
and the Redlands Christian Migrant Association to deliver comprehensive early
childhood care and education services statewide. One of the three main early learning programs that
the DEL oversees is the School Readiness (SR) Program.
Established in 1999,
3
the SR Program provides subsidies for child care services and early childhood
education for children of low-income families; children in protective services who are at risk of abuse,
neglect, abandonment, or homelessness; foster children; and children with disabilities.
4
The SR
Program offers financial assistance for child care to these families while supporting children in the
development of skills for success in school. Additionally, the program provides developmental
screenings and referrals to health and education specialists where needed. These services are
provided in conjunction with other programs for young children such as Head Start, Early Head Start,
Migrant Head Start, Child Care Resource and Referral and the Voluntary Prekindergarten Program.
5
The DEL administers the program at the state level and early learning coalitions administer SR at the
county and regional levels. The program’s two main goals are to help families become financially self-
sufficient and to help each child from a qualifying family develop school readiness skills. These skills
are measured by standards and outcomes adopted by the DEL as well as statewide screening of
kindergarten students.
6
Federal regulations governing the Child Care and Development Block Grant, the primary funding
source for the SR Program, authorizes states to use grant funds for child care services, if:
the child is under 13 years of age, or at the state’s option, under age 19 if the child is physically
or mentally incapable of caring for himself or herself or under court supervision;
the child’ family income does not exceed 185 percent of the state’s median income for a family
of the same size; and
the child:
o resides with a parent or parents who work or attend job training or educational
programs; or
o receives, or needs to receive, protective services.
7
Student enrollment in the SR Program for the 2020-2021 school year, the most recent year measured,
was 209,801 as follows:
8
Age Group Enrollments Percentage of
1
Division of Early Learning Annual Report for Fiscal Year 2020-2021, Improving Program Quality.
2
Section 1002.83, F. S.
3
Section 1, ch. 99-357, L.O.F.
4
Sections 1002.81 and 1002.87, F.S.
5
Division of Early Learning, School Readiness Program, http://www.floridaearlylearning.com/school-readiness.
6
Division of Early Learning Annual Report for Fiscal Year 2020-2021, Improving Program Quality.
7
See 45 C.F.R. s. 98.20(a).
8
Division of Early Learning Annual Report for Fiscal Year 2020-2021, Improving Program Quality. STORAGE NAME: h1199.PKA PAGE: 3
DATE: 1/26/2022
Total
Enrollments
Infants 7,588 4%
Toddlers 19,561 9%
2-Year Olds 26,515 13%
3-Year Olds 31,029 15%
4-Year Olds 31,317 15%
5-Year Olds 19,893 9%
School Age 73,637 35%
Special Needs 261 0%
TOTAL 209,801 100%
School Readiness Providers
In order to be eligible to provide the SR Program, a provider must be:
9
A licensed child care facility;
A licensed or registered family day care home;
A licensed large family day care home;
A public school or nonpublic school;
A license-exempt faith-based child care provider;
A before-school or after-school program; or
An informal child care provider authorized in the state’s Child Care and Development Fund
plan.
For Fiscal Year 2020-2021, there was a total of 6,760 providers offering the SR Program with the
following breakdown:
10
Provider Type* Enrollments Percentage
of Total
Enrollments
Licensed Private 4,623 68%
Licensed/Registered Family Child Care
Home
991 15%
Licensed Large Family Day Care Home 304 5%
Public/Nonpublic School 632 9%
License-exempt 210 3%
TOTAL 6,760 100%
*No informal providers served SR children during Fiscal Year 2020-2021.
School Readiness Funding
Funding for the SR Program comes from four sources:
11
Federal Child Care and Development Block Grant,
Federal Temporary Assistance for Needy Families Block Grant,
Federal Social Services Block Grant, and
State General Revenue Fund.
The Legislature appropriates the SR Program funds to the early learning coalitions and the Redlands
Christian Migrant Association, with participating providers receiving their funding primarily from
reimbursements from the coalitions and tuition payments by participating families.
12
Early learning
coalitions reimburse participating providers with appropriated funds for each eligible child, either
9
Section 1002.88(1)(a), Florida Statutes.
10
Division of Early Learning Annual Report for Fiscal Year 2020-2021, Improving Program Quality.
11
Id.
12
Sections 1002.84(8) and 1002.89, F.S., Specific Appropriation 83, section 2, ch. 2021-36, L.O.F. STORAGE NAME: h1199.PKA PAGE: 4
DATE: 1/26/2022
through child care certificates provided by parents or through contracted slots.
13
The reimbursement
and co-payment amounts are determined locally by the early learning coalition, subject to approval by
the DEL. Any additional amount a parent must pay is based on the difference between the provider’s
tuition rate and the sum of the reimbursement rate and required parent co-payment. Reimbursement
amounts vary based on provider type and level of care, and co-payments are determined by the early
learning coalitions using a sliding fee scale.
14
School Readiness Market Rate
The Code of Regulations (C.F.R.) 45 Part 98 requires states receiving the Child Care and Development
Block Grant to ensure equal access to child care by setting a fair market rate every two years.
15
Current law defines the “market rate” to mean the price that a child care or early childhood education
provider charges for full-time or part-time daily, weekly, or monthly child care or early childhood
education services.
16
The DOE is statutorily required to approve a market rate schedule until an
alternative model has been approved by the federal Administration of Children and Families.
17
Based in part on recommendations by the Office of Child Care within the federal Department of Health
and Human Services, the DOE calculates the average market rate and the 75
th
percentile market rate,
referred to as the prevailing market rate,
18
for each county to help the early learning coalitions
determine provider reimbursement rates.
19
Market rates are established for the different provider types
and different levels of care for each county.
20
To calculate the market rates, the DEL sorts provider private pay rates for a given level of care within
the county from highest to lowest, calculates the average market rate, and identifies the 75
th
percentile
pay rate. Although there is no minimum threshold for provider reimbursement rates in law, the early
learning coalitions must consider the market rate schedule in determining its own minimum
reimbursement rates, which must be approved by the DEL.
21
In addition, a provider may receive
additional funding above the minimum reimbursement rate if it qualifies for any of the following quality-
based differentials:
22
Up to an additional 20 percent for Gold Seal status.
Up to an additional 10 percent for achieving certain CLASS scores identified in rule (also known
as the quality performance incentive).
An additional 5 percent for participating in a DEL-approved child assessment tool.
School Readiness Estimating Conference
Current law establishes several consensus estimating conferences to assist in a variety of
governmental planning and budgeting functions. Data from consensus estimating conferences are
used primarily in the development of the constitutionally-required Long-Range Financial Outlook, the
Governor’s budget recommendations, and the General Appropriations Act.
23
Current law establishes the early learning estimating conference to develop estimates and forecasts of
the unduplicated count of children eligible for the school readiness program in accordance with the
standards of eligibility established in s. 1002.87, F.S., and of children eligible for the Voluntary
13
See rule 6M-4.500(1), F.A.C.
14
Section 1002.895(4), F.S.; rules 6M-4.400(2) and 6M-4.500(1), F.A.C.
15
See 45 C.F.R. § 98.45(a) and (c). Alternatively, states may set payment rates using an alternative methodology approved by the
federal Administration for Children and Families.
16
Section 1002.81(10), F.S.
17
Section 1002.895(1), F.S.
18
Section 1002.81(12), F.S.
19
Section 1002.895(4), F.S.
20
Section 1002.895(2)(a) and (b), F.S.
21
See s. 1002.82(2)(o), F.S.; rule 6M-4.500(9), (10), and (11), F.A.C.
22
See s. 1002.82(2)(o), F.S.; rule 6M-4.500(9), (10), and (11), F.A.C.
23
See http://edr.state.fl.us/Content/conferences/index.cfm STORAGE NAME: h1199.PKA PAGE: 5
DATE: 1/26/2022
Prekindergarten Education Program in accordance with s. 1002.53(2), F.S., as the conference
determines are needed to support the state planning, budgeting, and appropriations processes.
24
The DEL is required to provide information on needs and waiting lists for the SR Program to the
conference principals.
25
The last School Readiness Estimating Conference was held on November 8, 2004.
Effects of Proposed Changes
The bill requires the funding for the SR Program to be allocated to the early learning coalitions in
accordance with the General Appropriations Act (GAA) and the School Readiness Funding Formula
Allocation Conference.
The bill establishes the School Readiness Funding Formula Allocation Conference and requires the
DEL to conduct a conference prior to the distribution of any funds appropriated for the SR Program in
the GAA. The bill identifies the conference principals to include representatives of the DEL, the
Executive Office of the Governor, and the appropriations committees of the Senate and the House of
Representatives. The bill identifies the items the conference must discuss and approve to include the
actual cost of child care by level and care type, eligible population data, and methods of computation,
to be used to calculate the school readiness formula for the early learning coalitions for the fiscal year
in which the appropriations are made. The bill requires the DEL to provide conference participants with
all data necessary to replicate the allocations and must include, by early learning coalition, a matrix of
full-time equivalent changes made by the DEL as part of its administration of the SR Program.
B. SECTION DIRECTORY:
Section 1. Amends s. 1002.89, F.S., providing that the funding for the school readiness program must
be allocated among the early learning coalitions in accordance with the General Appropriations Act and
s. 1002.90, F.S.
Section 2. Creates s. 1002.90, F.S., establishing the School Readiness Funding Formula Allocation
Conference and providing for its membership and duties.
Section 3. Provides the bill takes effect on July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
24
Section 216.136(8), F.S.
25
Id. STORAGE NAME: h1199.PKA PAGE: 6
DATE: 1/26/2022
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill establishes the School Readiness Funding Formula Allocation Conference which would
complete its work after the school readiness funds have been appropriated in the General
Appropriations Act.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not Applicable.