The Governor’s January Budget Proposal: Bad for Children, Families, Schools & The Workforce CCCECE Position: Oppose Realignment Oppose Cuts

Realignment Moves early learning and care funds out of the Department of Education and to local county welfare offices – Excludes one small program still in Prop 98: Historically-defined part-day, part-year preschool (left in Prop 98 in FY budget negotiation) – All else sent to Department of Social Services and distributed to counties to give out as vouchers.

Dangerous Shift in Policy From early learning & care to custodial care Eligibility shift: To increase number of CALWorks participants in jobs. No priority: That child care support children’s learning Administrative shift: – From contracts with programs to provide Title 5 early learning and care – To vouchers to families to pay provider of child care.

How This Dismantles Services To Providers Vouchers to families vs. contracts to centers May force closure of contracted child care, including those on college campuses. To Families Priority: – CPS & at-risk children – Families on cash aid – Families not on cash aid No work, no child care Child care limited – 12 months – for families enrolled in college education.

How this Slashes Funds Lower income cap = Many families dropped from subsidized child care Reduced reimbursement rate for providers of child care = Many centers and homes will close. Those remaining open will raise costs, which will risk losing non-subsidized families, which could force closure.

Fine Print $517 Million in Cuts Reduces eligibility from 75% of SMI to 200% of the federal poverty rate (about 61.5% of SMI) Reduces RMR from 85 th percentile of 2005 market survey to 50 th percentile of 2009 survey. Restricts recipients to 12 months of college training and only in career and technical programs. Reduces reimbursement rate (SRR) by 10%

Fine Print of Realignment – In FY 13.14, eligibility and payment functions (BOTH APP and center based) will shift to Department of Social Services. – In FY 13.14, only working families receiving cash aid will qualify for child care services. – In FY 13.14, all funding except Prop 98 State Preschool will shift to a voucher system thus eliminating all full day and some part day Title 5 centers and quality components.

Bad for Children Funds for Early Learning & Care severely cut – 42% reduction since – 100,000 children have lost care since – 62,000 more will lose care in FY12-13 with $517 Million more cuts. – Those most vulnerable are the hardest hit.

Bad for Schools Closing early learning and care programs widens the achievement gap. California will take a loss on investment in a preschool through 12 th grade system guided by clear standards. Child-care providers paid through the new voucher system will not be required to meet early learning standards. (From Title 5 to Title 22)

Bad for Families & Workforce Harms two generations of Californians. – Puts children’s readiness to succeed in school, and eventually, in the workforce, at risk – Disrupts their parents’ chance to be productive members of the workforce. Women will take the hardest hit – Those in the workforce – Those preparing to enter the workforce – Those preparing to be teachers. The closure of child care centers on college campuses means: No access to child care Restricted access to core practicum course required for career certification.

To whose benefit? Bad for children. Bad for families. Bad for schools Bad for the workforce. Bad for the Budget. This proposal makes no fiscal sense: 20% of the total budget cuts come from early learning and care even though they represent only 3% of the total budget. Designed to do one thing -- To increase CA’s “WPR” (work participation rate) required for TANF, it will have the opposite effect. It will move vulnerable working families and families in training out of the workforce, out of college, pushing them off the path to self-sufficiency. For every $1 saved, California will be billed at least $7 in future social and remedial services. This proposal puts ALL families at risk and puts California’s budget at risk.