This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1199d.APC
DATE: 2/18/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1199 Funding for School Readiness Program
SPONSOR(S): Early Learning & Elementary Education Subcommittee, PreK-12 Appropriations
Subcommittee, Grall
TIED BILLS: None IDEN./SIM. BILLS: None
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) PreK-12 Appropriations Subcommittee 13 Y, 0 N, As CS Bailey Potvin
2) Early Learning & Elementary Education
Subcommittee
16 Y, 0 N, As CS Wolff Brink
3) Appropriations Committee Potvin Pridgeon
SUMMARY ANALYSIS
Current law authorizes the Division of Early Learning (DEL) in the Department of Education 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 (ELC) 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.
State General Revenue Fund.
The Legislature annually appropriates the SR program funds to the early learning coalitions and the Redlands
Christian Migrant Association with eligible school readiness providers receiving their funding primarily from
reimbursements from the coalitions and tuition payments by participating families.
The bill requires the principals of the Early Learning Programs Estimating Conference to adopt the official cost
of care information and provide this information to the Legislature at least 90 days before the scheduled annual
legislative session. The bill also provides that the funding for the SR program be allocated among the early
learning coalitions in accordance with the General Appropriations Act and the adopted cost of care information.
The bill establishes a funding formula for the operational costs associated with the SR program and creates
four funding allocations to reimburse ELCs for expenses incurred related to:
the Gold Seal Quality Care Program;
program assessments;
child assessments; and
serving children with special needs.
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: 2/18/2022
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
(ELC) 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 the SR
program 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, authorize states to use grant funds for child care services, if:
7
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.
1
Florida Department of Education, Division of Early Learning Annual Report for Fiscal Year 2020-2021, Improving Program
Quality, p. 12, available at
http://www.floridaearlylearning.com/Content/Uploads/floridaearlylearning.com/files/DEL_Annual_Report_2020-
21_FINAL_ADA.pdf [hereinafter 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 (last visited Jan. 31,
2022).
6
Improving Program Quality at 22, supra, note 1.
7
See 45 C.F.R. s. 98.20(a). STORAGE NAME: h1199d.APC PAGE: 3
DATE: 2/18/2022
Student enrollment in the SR program for the 2020-2021 school year, the most recent year data , was
209,801 as follows:
8
Age Group Enrollments Percentage of
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;
alicensed large family day care home;
apublic school or nonpublic school;
alicense-exempt faith-based child care provider;
abefore-school or after-school program; or
aninformal 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.
State General Revenue Fund.
8
Improving Program Quality at 20, supra, note 1.
9
Section 1002.88(1)(a), F.S.
10
Improving Program Quality at 20, supra, note 1.
11
Id. at 18. STORAGE NAME: h1199d.APC PAGE: 4
DATE: 2/18/2022
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
The ELCs
reimburse eligible school readiness providers with appropriated funds for each eligible child, either
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 ELCs
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
12
Sections 1002.84(8) and 1002.89, F.S.; Specific Appropriation 83, section 2, ch. 2021-36, L.O.F.
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. STORAGE NAME: h1199d.APC PAGE: 5
DATE: 2/18/2022
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 Programs 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
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 Early Learning Programs Estimating Conference for the SR program was held on November 8,
2004.
26
Effects of Proposed Changes
The bill requires the principals of the Early Learning Programs Estimating Conference, established in s.
216.136, Florida Statutes, to annually develop official cost of care information based on actual school
readiness direct services program expenditures and information provided pursuant to s. 1002.92(4),
Florida Statutes. Conference principals must agree on the cost of child care by level and care type, the
eligible population data, and the methods of computation. The bill requires the DEL to provide all
required and necessary data to the conference principals. The bill requires the Early Learning
Programs Estimating Conference to provide the official cost of care information to the Legislature at
least 90 days before the scheduled annual legislative session.
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 official cost of care information provided
by the Early Learning Programs Estimating Conference.
The bill establishes a formula to determine operational funding for the SR program for the ELCs, if
funding is not explicitly set forth in the GAA. The formula distributes funding for the SR program
among the ELCs based on local population, local care level costs, and the local price level index. The
bill provides additional weights for care level costs for Pinellas County. The bill also provides that any
county that passes an ordinance lowering the teacher-to-child ratio to below the requirements set forth
in law after January 1, 2022, is responsible for the cost of the child care market impact of that
ordinance. Additionally, the bill creates four funding allocations to reimburse ELCs for costs related to:
the Gold Seal Quality Care Program;
program assessments;
child assessments; and
serving children with special needs.
The bill requires the DEL to use funds from these allocations to help meet federal targeted
requirements for improving quality as authorized in the state Child Care and Development Fund Plan.
B. SECTION DIRECTORY:
Section 1. Amends s. 1002.89, F.S., providing for the determination of school readiness program
funding for each early learning coalition; providing requirements for such funding calculations.
23
See Office of Economic & Demographic Research, Consensus Estimating Conferences,
http://edr.state.fl.us/Content/conferences/index.cfm (last visited Jan. 31, 2022).
24
Section 216.136(8), F.S.
25
Id.
26
Office of Economic & Demographic Research, Consensus Estimating Conferences,
http://edr.state.fl.us/Content/conferences/index.cfm (last visited Jan. 31, 2022). STORAGE NAME: h1199d.APC PAGE: 6
DATE: 2/18/2022
Section 2. Creates s. 1002.90, F.S., requiring the principals of the Early Learning Programs
Conference to develop the official cost of care information.
Section 3. Amends s. 1002.81, F.S., conforming cross-references to changes made by the act.
Section 4. Amends s. 1002.82, F.S., conforming cross-references to changes made by the act.
Section 5. 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:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill requires the principals of the Early Learning Programs Estimating Conference to adopt the
official cost of care information and provide the information to the Legislature at least 90 days before
the scheduled annual legislative session. The bill also provides a formula to determine allocations to
the ELCs if not otherwise provided for in the GAA or implementing legislation.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
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DATE: 2/18/2022
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 27, 2022, the PreK-12 Appropriations Subcommittee adopted one amendment and reported the
bill favorably as a committee substitute. The amendment:
Requires the conference principals of the Early Learning Programs Estimating Conference to
annually develop the official cost of care information based on actual school readiness direct
services programs expenditures and information provided pursuant to s. 1002.92(4), Florida
Statutes;
Requires the DEL to provide all required and necessary information to the conference principals;
and
Requires the Early Learning Programs Estimating Conference to provide the official cost of care
information to the Legislature at least 90 days before the scheduled annual legislative session.
On February 2, 2022, the Early Learning & Elementary Education Subcommittee adopted one amendment and
reported the bill favorably as a committee substitute. The amendment establishes a funding formula for
operational costs associated with the SR program and creates four funding allocations to reimburse ELCs for
expenses related to:
the Gold Seal Quality Care Program;
program assessments;
child assessments; and
serving children with special needs.
The analysis is drafted to the committee substitute as passed by the Early Learning & Elementary Education
Subcommittee.