NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Swisstack

 

DATE TYPED:

2/19/03

 

HB

707

 

SHORT TITLE:

Increase Rates Paid to Child Care Programs

 

SB

 

 

 

ANALYST:

Chabot

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$400.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

 

Children, Youth and Families Department (CYFD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 707 appropriates $400.0 from the general fund to CYFD for the purpose of increasing the differential rates paid to childcare programs based on demonstrated levels of quality by participation in the Aim High program or through national accreditation.  The bill does not specify amounts the differential will increase to individual providers; CYFD will have to make that determination through the rule-making process.

 

     Significant Issues

 

The Aim High program is designed to improve the quality of childcare by offering providers program development consultation as they work toward quality levels and accreditation.

There are five levels of participation from lowest to highest:  program administration; environment and curriculum; professional development; ratios; and national accreditation.  Each level has specific indicators that must be met before moving to the next level.

 

Differential rates are added to the administrative base per month per child and are as follows:

 

            Level 3:  Professional development                                            $16.50

            Level 4:  Ratios                                                             $33.00

            Level 5:  National accreditation                                     $66.00

 

The increase in differential rates resulting from the appropriation in this bill has not been determined by CYFD; however, an increase in the differential should encourage childcare providers to participate in the Aim High program.

 

FISCAL IMPLICATIONS

 

The appropriation of $400.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

CYFD childcare assistance regulation will need to be revised to reflect the new rates.

 

OTHER SUBSTANTIVE ISSUES

 

CYFD states “when state government increase childcare rates, there is the potential for an increase in childcare rates for non-CYFD families impacting accessibility and affordability of childcare services to the general public.”

 

POSSIBLE QUESTIONS

  1. How were the existing Aim High differential rates determined?
  2. How many providers are participating in the program?
  3. What is the estimated increase per provider funded by this bill?
  4. Will other providers choose to participate in this program because of the differential increase?

 

GAC/sb