The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Education Pre-K -12
BILL: SB 916
INTRODUCER: Senators Calatayud and Perry
SUBJECT: School Readiness Program
DATE: January 16, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Sabitsch Bouck ED Favorable
2. AED
3. FP
I. Summary:
SB 916 revises the School Readiness (SR) program concerning eligibility, funding and program
plans. Specifically, the bill:
Modifies the definition of “economically disadvantaged” to use state median income, rather
than the federal poverty level when determining program eligibility and for reporting
requirements.
Provides a schedule for copayments for parents whose children attend the SR program based
on the state median income.
Modifies the methodology to determine the distribution of funds to early learning coalitions
using the provider cost of care or reimbursement rates established by the Early Learning
Programs Estimating Conference.
Requires the principals of the Early Learning Programs Estimating Conference to provide
reimbursement rates based on specified information, but removes the deadline by which
official cost-of-care information must be provided to the legislature.
Removes certain expenditure provisions related to the Gold Seal Quality Care Program, the
Differential Payment Program, and the special needs differential.
The bill takes effect on July 1, 2024.
II. Present Situation:
School Readiness Program
Overview
Florida’s School Readiness (SR) program offers low-income families financial assistance to
facilitate access to high-quality child care and early education for their children while parents
work or participate in job training. The Division of Early Learning (DEL), under the Department
of Education (DOE), administers the program at the state level while early learning coalitions
REVISED: BILL: SB 916 Page 2
(ELCs) administer the SR program at the county and regional levels. Funding comes from four
sources including, the Child Care and Development Block Grant, the Temporary Assistance for
Needy Families Block Grant, the Social Services Block Grant, and the State of Florida.
1
The program's two main goals are to help families become financially self-sufficient and help
each child from a qualifying family develop school readiness skills. The program gives children
access to a quality early learning environment and supports parents with information about child
development and family engagement. The quality environment of each SR provider is measured
by the administration of a widely recognized tool that assesses the interactions between adults
and children in the classroom.
2
In FY 2022-23, there were 209,986 children participating in the SR program at 6,790 early
learning providers. Total expenditures were $954 million, which included $33 million in
administrative expenses, $55 million in non-direct services expenditures, and $162 million in
quality expenditures.
3
School Readiness Definitions
Florida statute defines “economically disadvantaged” as having a family income that does not
exceed 150 percent of the federal poverty level and includes being a child of a working
migratory family as defined by 34 C.F.R. s. 200.81(d) or (f) or an agricultural worker who is
employed by more than one agricultural employer during the course of a year, and whose income
varies according to weather conditions and market stability.
4
The definition is used to determine
eligibility for and priority status in the SR program.
School Readiness Funding
Each ELC is required to establish a parent sliding fee scale that provides for a parent copayment
that is not a barrier to families receiving SR program services. Coalitions may waive copayments
for at-risk children or temporarily waive the copayment children whose family income is at or
below the federal poverty level. Coalitions may also waive copayments for a child whose family
experiences a natural disaster or an event that limits the parent’s ability to pay including:
5
Incarceration;
Placement in residential treatment;
Becoming homeless;
An emergency situation such as a household fire or burglary; or
While the parent is participating in parenting classes or participating in an Early Head Start
program or Head Start Program.
1
Florida Department of Education, Division of Early Learning 2022-2023 Annual Report (2023), available at
https://www.fldoe.org/core/fileparse.php/20628/urlt/2223-DEL-AnnualReport.pdf.
2
Id.
3
Id.
4
Section 1002.81(6), F.S.
5
Section 1002.84.(9), F.S. BILL: SB 916 Page 3
A parent may not transfer SR program services to another school readiness program provider
until the parent has submitted documentation from the current provider to the ELC stating that
the parent has satisfactorily fulfilled the copayment obligation.
6
Each ELC is required to distribute the SR program funds as allocated in the General
Appropriations Act (GAA) to the eligible providers using the following methodology:
7
For each county in the ELC, multiply the cost of care by care level as provided in s. 1002.90
by the county’s comparable wage factor provided in the Florida Education Finance Program
under s. 1011.62(2).
If a county enacted a local ordinance before January 1, 2022, that establishes the county’s
staff-to-children ratio for licensed child care facilities below the ratio established in s.
402.305(4), multiply the provider reimbursement rates for that county by the adjustment
factor specified in the GAA.
Apply the weight established pursuant to s. 1002.90 for each provider type to calculate the
minimum provider reimbursement rates by care level.
Multiply the weighted provider reimbursement rates by 22 percent to determine the amount
of the school readiness allocation an ELC is eligible to retain pursuant to s. 1002.89(4).
8
Each ELC must distribute to each eligible provider the minimum provider reimbursement rate,
by provider type and care level, regardless of the provider’s private pay rate. All minimum
provider reimbursement rates are considered as direct services.
9
Each ELC with approved
minimum provider reimbursement rates for the infant to age 5 care levels that are higher than the
minimum provider reimbursement rates established in statute are allowed to continue to
implement the previously approved minimum provider reimbursement rates until the rates
established by the state exceed the ELC’s approved rates.
10
However, since the official cost of
care rates have not been established under s. 1002.90, F.S., ELCs have continued to reimburse
SR providers at the rates that were approved prior to the 2022 legislation.
11
The funding for the SR program is required in accordance with s. 1002.89, F.S. and the GAA.
However, if the annual allocation for the SR program is not determined in the GAA or
implementing bill, the allocation is required as follows:
12
For each county in the ELC, the total SR eligible population, as adopted by the Early
Learning Programs Estimating Conference pursuant to s. 216.136(8), is to be multiplied by
the county’s comparable wage factor provided in s. 1011.62(2).
If a county passed a local ordinance before January 1, 2022, that establishes the county’s
staff-to-children ratio for licensed child care facilities below the ratio established in s.
402.305(4), multiply the calculated total school readiness eligible population by the
adjustment factor specified in the GAA.
Each county’s school readiness allocation will be based on the county’s proportionate share
of the total adjusted eligible school readiness population.
6
Section 1002.84.(9), F.S.
7
Section 1002.84(17), F.S.
8
Section 1002.84(17), F.S.
9
Section 1002.89, F.S.
10
Id.
11
Chapter 2022-154, s. 26, Laws of Fla.
12
Section 1002.89(1)(a), F.S. BILL: SB 916 Page 4
Gold Seal Quality Care Program Allocation.
The Gold Seal Quality Care Program allocation provides eligible SR program providers the
established rate differential
13
. Subject to legislative appropriation, all expenditures from the
Gold Seal Quality Care Program allocation are required to be used by the DOE to help meet
federal targeted requirements for improving quality to the extent allowable in the state’s
approved Child Care and Development Fund Plan.
14
Differential Payment Program Allocation.
The differential payment program allocation provides eligible SR program providers the
differential pay
15
established by the DOE. Subject to legislative appropriation, all expenditures
from the differential payment program allocation will be used by the DOE to help meet federal
targeted requirements for improving quality to the extent allowable in the state’s approved Child
Care and Development Fund Plan.
16
Special Needs Differential Allocation.
The special needs differential allocation provides assistance to eligible SR program providers to
implement the special needs rate provisions defined in the state’s approved Child Care and
Development Fund Plan. Subject to legislative appropriation, each early learning coalition will
be reimbursed based on actual expenditures. All expenditures from the special needs differential
allocation shall be used by the department to help meet federal targeted requirements for
improving quality to the extent allowable in the state’s approved plan.
17
All state, federal, and local matching funds provided to an ELC are to be used for
implementation of its approved SR program plan, including the hiring of staff to effectively
operate the SR program.
18
Costs for the SR program must be kept to the minimum necessary for the efficient and effective
administration of the SR program with the highest priority of expenditure being direct services
for eligible children. No more than 5 percent of the funds allocated in the general appropriations
act may be used for administrative costs and no more than 22 percent of the funds allocated may
be used in any fiscal year for any combination of administrative costs, quality activities, and
nondirect services.
19
13
A child care facility licensed under s. 402.305 or a child care facility exempt from licensing pursuant to s. 402.316 which
achieves Gold Seal Quality status under this section and which participates in the school readiness program shall receive a
minimum of a 20 percent rate differential for each enrolled school readiness child by care level and unit of child care. Section
1002.945(6), F.S.
14
Section 1002.89(1)(b), F.S.
15
No later than July 1, 2019, the DOE was required to develop a differential payment program based on a program
assessment for school readiness program providers that measures the quality of teacher-child interactions, including
emotional and behavioral support, engaged support for learning, classroom organization, and instructional support for
children ages birth to 5 years.). The differential payment may not exceed a total of 15 percent for each care level and unit of
child care for a child care provider. Section 1002.82(2)(o), F.S.
16
Section 1002.89(1)(c), F.S.
17
Section 1002.89(1)(d), F.S.
18
Section 1002.89(3), F.S.
19
Section 1002.89(4), F.S. BILL: SB 916 Page 5
Non-direct services include:
20
Administrative costs as described in 45 C.F.R. s. 98.54.
Activities to improve the quality of child care as described in 45 C.F.R. s. 98.53, limited to
the following:
Developing, establishing, expanding, operating, and coordinating resource and referral
programs.
Awarding grants and providing financial support to school readiness program providers and
their staff to assist them in meeting applicable state requirements for the program assessment,
child care performance standards, implementing developmentally appropriate curricula and
related classroom resources that support curricula, providing literacy supports, and providing
continued professional development and training.
Providing training, technical assistance, and financial support to school readiness program
providers, staff, and parents on standards, child screenings, child assessments, child
development research and best practices, developmentally appropriate curricula, character
development, teacher-child interactions, age-appropriate discipline practices, health and
safety, nutrition, first aid, cardiopulmonary resuscitation, the recognition of communicable
diseases, and child abuse detection, prevention, and reporting.
Providing adequate funding for infants and toddlers as necessary to meet federal
requirements related to expenditures for quality activities for infant and toddler care.
Improving the monitoring of compliance with, and enforcement of, applicable state and local
requirements as described in and limited by 45 C.F.R. s. 98.40.
Responding to Warm-Line requests by providers and parents, including providing
developmental and health screenings to school readiness program children.
21
Florida statutes limit the use of funds appropriated for the SR program by prohibiting
expenditures for the following:
22
Purchase or improvement of land.
Purchase, construction, or permanent improvement of any building or facility.
Purchase of buses.
However, funds may be used for minor remodeling and upgrading of child care facilities which
is necessary for the administration of the program and to ensure that providers meet state and
local child care standards, including applicable health and safety requirements.
23
Annually, the principals of the Early Learning Programs Estimating Conference, established in
statute,
24
must develop official cost-of-care information based on actual school readiness direct
services program expenditures and information provided in the market rates schedule that is
required in statute.
25
Conference principals are requires to agree on the cost of child care by care
level and provider type, the provider type weights, and the methods of computation. The DOE is
required to provide the conference principals with all requested and necessary data to develop the
20
Section 1002.89(4), F.S.
21
Id.
22
Sction 1002.89(5), F.S.
23
Id.
24
Section 216.136(8), F.S.
25
Section 1002.895, F.S. BILL: SB 916 Page 6
cost-of-care information. The Early Learning Programs Estimating Conference is required to
provide the official cost-of-care information to the Legislature at least 90 days before the
scheduled annual legislative session.
26
However the most recent information from the Early
Learning Programs Estimating Conference is from 2004
27
and the cost-of-care calculation has
yet to be implemented, so ELCs have continued to reimburse SR providers at established rates.
Early Learning Coalition Plans
The DOE is required to adopt rules regarding the content and format for the ELC SR program
plans that are required to be submitted to the DOE biennially for approval prior to expenditure of
funds. Each ELC plan is required to include, but is not limited to, the following:
28
The ELC’s operations.
The ELC’s procedures for implementing program requirements.
A detailed description of the ELC’s quality activities and services.
A detailed budget.
A detailed accounting of all revenues and expenditures during the previous state fiscal year.
Updated policies and procedures.
A description of the procedures for monitoring school readiness program providers.
Documentation that the ELC has solicited and considered comments regarding the proposed
school readiness program plan from the local community.
An assessment of local priorities within the county or multicounty region based on the needs
of families and provider capacity using available community data.
The DOE is required to collect and report data on ELC delivery of early learning programs.
Elements are required to include, but are not limited to, the following:
Measures related to progress towards reducing the number of children on the waiting list.
The percentage of children served by the program as compared to the number of
administrative staff and overhead.
The percentage of children served compared to total number of children under the age of 5
years below 150 percent of the federal poverty level.
Provider payment processes.
Fraud intervention.
Child attendance and stability.
Use of child care resource and referral (CCR&R).
Kindergarten readiness outcomes for children in the Voluntary Prekindergarten Education
Program (VPK) or the SR program upon entry into kindergarten.
The DOE is required to solicit input from the ELCs and SR program providers before finalizing
the format and data to be used. Implementation of the report began in 2014 and is required to be
included in the DOE’s annual report.
29
26
Section 1002.895, F.S.
27
EDR, Early Learning Programs Estimating Conference, School Readiness, Nov. 8, 2004, available at
http://edr.state.fl.us/Content/conferences/schoolreadiness/index.cfm
28
Section 1002.85(1) and (2), F.S.
29
Section 1002.82(7), F.S. BILL: SB 916 Page 7
III. Effect of Proposed Changes:
School Readiness Definitions
The bill modifies s. 1002.81, F.S., to change the definition of “economically disadvantaged” by
deleting the threshold for family income that “does not exceed 150 percent the federal poverty
level” and replacing the threshold with “does not exceed 55 percent of the state median income.”
School Readiness Funding
The bill modifies SR program parent copayments, allocation and distribution of funds, and
provider reimbursements.
Parent Copayments
The bill modifies s. 1002.84(9), F.S., to, instead of an authorization in law for the early learning
coalition (ELC) to establish a sliding fee scale, require the ELC to implement a specified sliding
fee schedule for parent copayments for children served in the SR program (fulltime) at the time
of eligibility determination and at the annual redetermination. The schedule increases, regardless
of the number of children, based on the state median income (SMI) as follows:
Income at or below 60 percent of SMI, the copayment is 7 percent of income.
Income above 60 percent but not more than 65 percent of SMI, the copayment is 9 percent of
income.
Income above 65 percent but not more than 75 percent of SMI, the copayment is 11 percent
of income.
Income above 75 percent but not more than 80 percent of SMI, the copayment is 13 percent
of income.
Income above 80 percent but not more than 85 percent of SMI, the copayment is 15 percent
of income.
The copayment for a parent whose child is receiving part-time care in the SR program is 50
percent of the amount calculated in the schedule for fulltime care.
The effect of these changes is not clear. Income under the federal poverty level is calculated
based on family size, while in the bill the SMI is calculated for an individual income regardless
of family size. Also, it is not clear what affect this would have on individual families since there
are many circumstances authorized in law that allow an ELC to waive the parent copayments.
Calculation and Distribution of School Readiness Funding
The bill modifies s. 1002.84(17), F.S., to require that SR funds be distributed to eligible SR
providers using the cost of care or reimbursement rates developed in accordance with s. 1002.90,
F.S. The bill removes language which provided the methodology for distribution that included
the following:
Multiplying the costs of care by care level with the county’s comparable wage factor
provided in s. 1011.62(2), F.S.
Multiplying the provider reimbursement rates by the adjustment factor in the general
appropriations act in certain circumstances for lower child to staff ratios. BILL: SB 916 Page 8
Applying the weight established in s. 1002.90 for each provider by care level.
Multiplying the weighted provider reimbursement rates by 22 percent to determine amount
retained by ELCs.
The bill allows ELCs with higher reimbursement rates than those established in s. 1002.90, F.S.,
to continue to reimburse providers at those rates.
The bill modifies s. 1002.89, F.S. to change the criteria for the annual allocation for the SR
programs if it is not determined in the General Appropriations Act. The bill requires, that the
allocation is required to be determined using the following:
The full-time equivalent program enrollment estimates for each care level.
The approved cost of care or provider rates developed in accordance with s. 1002.90, F.S.
The total SR population adopted by the Early Learning Programs Estimating Conference.
The allowable coalition administrative and indirect costs.
The bill also removes a requirement that all allocations be used by the DOE to help meet federal
targeted requirements for improving quality to the extent allowable in the state’s approved Child
Care and Development Fund plan for the allocations for the Gold Seal Quality Care Program, the
Differential Payment Program, and the Special Needs Differential.
The bill modifies s. 1002.90, F.S., to allow the principals of the Early Learning Programs
Estimating Conference to develop provider reimbursement rates in addition to or instead of
official cost-of-care information. The bill also removes language that required the same
conference to provide official cost-of-care information to the legislature at least 90 prior to the
annual legislative session.
Early Learning Coalition Plans
The bill modifies s. 1002.85, F.S., regarding ELC plans and the data the DOE will collect in
reference to children of families whose income is below 55 percent of the state median income
rather than below 150 percent of the federal poverty level, and updates the reporting year to July
1, 2025.
The bill takes effect on July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None. BILL: SB 916 Page 9
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 1002.81, 1002.84,
1002.85, 1002.89, and 1002.90.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.