May 15, 2012: The California State Assembly's report on the highlights of Governor Brown's May budget deals a series of blows to children, child-care providers and centers for early education -- and that fact is about all that is clear to the average (or even above average) reader.
We called Nina Buthee, at left, executive director of the California Child Development Administrator's Ass'n (CCDAA), for an explanation.
We'll begin with this detail, from the "highlights":
[The proposed budget revisions will] reduce reimbursement rate ceilings for licensed voucher-based providers from the 85th percentile to the 40th percentile of the private pay market, based on the 2005 Regional market Rate (RMR) survey data. License-exempt providers will be reimbursed based upon 71 percent of the lowered licensed ceilings. This proposal generates $184.2 million in savings.
"This is the really, really bad, dramatic reduction," Buthee says. "First, the reimbursement rate for the voucher programs went from 85% of the RMR to 40% for the licensed programs, and then, for the license-exempt programs" -- this would be payments to, for example, a grandmother, who cares for the child while the mother works or goes to school --are eviscerated. At first you read the number --71%, and you think, okay that's not so bad. And then, you look at the wording closely, 'lowered licensed ceilings,' and you realize, holy mackerel! they mean 71% of the 40%! I don't think that's even minimum wage."
We asked about this change:
[The revision] redirects $95.1 million in savings from the proposed elimination of Transitional Kindergarten to the State Preschool Program. Specifically, the May Revise proposes to:
Restore the 10 percent reduction to the Standard Reimbursement Rate (SRR) only for the part-day preschool program ($34 million Proposition 98 General Fund).
Expand access to part-day preschool for 15,500 children from low-income families ($57.5 million Proposition 98 General Fund). However, this proposal continues to disassociate that the State Preschool Program is linked with the General Child Care Program, which allows families to fully maximize the utility of this service by providing full-day/full-year services.
"What the Assembly [in the "Highlights" document, link above] is saying," Buthee explains, "is that the Governor is doing an artificial separate between part-day state4 prescchool and full-day state pre-school." [NB: "state preschool" are programs that receive state money; i.e., independent centers under direct state contracts, such as, for example, many of the Kidango centers in the SF Bay Area.] "There was initially a division between part-day and full-day. In 2008, the California State Preschool Program Act, known as the Jones Bill, was passed to combine the two programs into one contract and let the centers decide what combination of half- and full-day programs best served their communities.
"What the Governor did yesterday was to separate them again, artificially -- legally, there is no separation -- and keep the half-day on one budget line, under Prop 98, and full-day on another budget line. The May revise as put more money into part-day and has not cut any provider reimbursements -- and has cut reimbursements for the full-day. The separation is complicated further by another, unrelated division between the two programs -- which, not incidentally, serve exactly the same population of low-income families -- and that is a division between half-day program, that fall under Title 5 requirements of the education code (which is how it came to be classified as eligible for Proposition 98 funding), and the Title 22 vouches for full-day. This is a very complicated, entangled situation.
"Brown's manuevering here gives the appearance that he is keeping preschool slots and not cutting preschool education, when actually, he is. But he is trying to save face with the education community, showing that he is protecting early education."
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