If you are a California Alternative Payment Program, CalWORKs Child Care Stage Two <> stream 12/01/2021 . It measures numerous household and individual characteristics and includes most of the information necessary to estimate CalWORKs eligibility statewide. These overestimates were built on observations from previous recessions (for example, the relationship between the unemployment rate and CalWORKs cases added), but such relationships do not always hold in new economic climates. Under current state law, the income eligibility threshold for CalWORKs (also known as the Minimum Basic Standards for Adequate Care, or MBSAC) increases each year in proportion to the California Necessities Index (a measure of price inflation for basic goods such as food and clothing). If you qualify for CalWORKs, you'll get a monthly cash benefit for up to 48 months, as long as you continue to qualify and meet the Welfare-to-Work requirements explained on the next page (children continue to receive cash aid after the 48-month limit). The effect of these two changes is that families currently are eligible to receive subsidized child care if their income is at or below 85percent of the 2017 SMI$69,620 for a family of three (compared to $42,216 under the previous policies). Stage Two serves CalWORKs recipients whose situation has stabilized or families that are transitioning off CalWORKs. Subsequently, these PWO cases are entirely absent from our estimates. ;= ~B181dT`Y 1> Ay?COc 0@~+TG`J@8L: 5d %&(`yur+y&O|$pEI(>H@[xU :+i6 8Q=YT!Y5VB%)'MP}v[n&n! 0000021785 00000 n In 201819, the attrition rates were 2.4percent in Stage 2 and 1.4percent in Stage 3. Calculating Cost Per Case. Correcting this assumption would likely cause our estimate of the take-up rate to increase. We estimate budget-year costs will be 12percent higher than current-year costs, with costs growing at an average annual rate of 4percent the subsequent three years. As Figure1 shows, the 2021-22 Budget Act increases these programs by a total of $3.1billion (55percent) from the revised 2020-21 level. The budget package includes $783million in 2021-22 ($1.6billion ongoing) across state and federal fund sources to provide additional slots for child care. Increasing the CalWORKs take-up rate would allow the state to provide important aid to these families in the years ahead. There are five regional CalWORKs offices located throughout Contra Costa County. Families are eligible to be in Stage 1 when they first enter CalWORKs. wxwipRo&=em,~iGvGv=Hv=C'dO&{"dJjdN0yU 8 !NFn#G810H:#Smsrz%;Qcb:BIUdo5WC@-9ZWW?X=*eL" LfErEG elC_ iK Dj Chapter29 of 2016 (SB828, Committee on Budget and Fiscal Review) included intent language to reimburse child care providers at the 85th percentile of rates reported on the most recent survey. %PDF-1.4 In 201819, Stages 2 and 3 costs were $290million higher than 201617 costsnearly three times greater than the amount that the state initially budgeted for the rate and eligibility changes. If you are currently receiving CalWORKs child care, have questions or concerns about your services or current child care arrangements, contact your Child Care Worker, the Welfare-to-Work or Cal-Learn worker as appropriate. When a cash aid recipient is employed or receives disability based income, CalWORKs regulations allow the following deductions from the monthly gross income: $600.00 from the combined earnings, disability based income or a combination of both. The programbegins when a family start receiving CalWORKs cash aid. On January 1, 2022, all child care and preschool providers will move to the 75th percentile of the 2018 regional market rate survey (or stay at their current rate if it is higher). The first change was to allow Stage 1 families to receive child care on a full-time basis. For CalWORKs in particular, an improved understanding of the take-up rate could improve caseload forecasting and help the state mitigate the ongoing economic effects of COVID-19. Provides Significant Increase for Child Care and Preschool Slots. Not All Eligible Families Enroll in CalWORKs. @tl=f^yxnej ul!|d(/~T!||>8~A"d^:wW?=#=} %S;'g(J4s-9t"tLW %`f )O`Er Each Year, Income Eligibility for CalWORKs Automatically Increases. The purpose of the program is to support parents as they transition to the stable, long-term child care necessary for the family to leave and remain off aid. Calculating Caseload. Below, we explain our caseload and cost per case assumptions and methodology. CalWORKs Child Care Costs Increase Over Outlook Period. OneTime Child Care and Preschool Augmentations, Preschool, TK, and fullday kindergarten facilities, State Preschool and TK planning and implementation grants, Training partnership fund for family child care providers, California Inclusion and Behavior Consultation, Incentive to increase family child care capacity. Furniture, clothing, and appliances are exempt. Stage One is administered bythe county welfare departments (CWD) or their contractors. Measuring the CalWORKs take-up rate is an important step towards potentially improving participation in the program. Families who make their residence in California and who intend to continue to live in California may be eligible. Once aid is granted, the CalWORKs family must report changes in their income, household composition, and property to their Eligibility Worker every 6-months on their Semi-Annual Eligibility Report (SAR 7) or at their annual redetermination. On January 1, 2022, license-exempt child care providers will be reimbursed at 70 percent of the family child care home ceiling, including hourly, daily, weekly, and monthly for both full time and part time reimbursement rate categories. Correcting this assumption would have unknown effects on our estimate of the take-up rate. | To date, the state has not funded at the higher reimbursement level or begun using the more recent 2018 survey results. The effect at the state level, however, is uncertain and could differ notably from the San Francisco pilot and therefore from our estimate. trailer The cost estimates reflected above do not include the effect of this legislation. Likely Higher Costs Due to Recently Enacted Collective Bargaining Legislation. endstream endobj startxref To be eligible for CalWORKs, families must include at least one child and generally must earn less than 80percent of the FPL (the exact income eligibility threshold varies by family size and from year to year and is set by state law). After the Great Recession, however, the take-up rate fell to around 65percent as the CalWORKs caseload increased at a slower pace than the increase in the number of CalWORKs-eligible families. How Subsidized Child Care Works. <> Child Care Payment Options Proof of the value of mutual funds, stocks, bonds, trust funds or cash surrender value of life insurance policies. #(mvggxHH[&P 5}|gFxbM3 LJ@$y0F0 dl$Y\AZ,w7 iN 00g The 2021-22 budget included legislation to establish two workgroups to make recommendations for implementing a single child care reimbursement rate structure. CalFresh Expansion for SSI/SSP Recipients, Contra Costa County Advisory Council on Aging, Health Insurance Counseling & Advocacy Program, Head Start | Early Head Start & State Preschool, Childcare Alternative Payment Program/Welfare to Work Stage II, How families are selected for the program, Promote and encourage work to enable families to become self-sufficient, Provide financial aid for children who lack financial support and care, Provide the opportunity for rehabilitation of the family whenever possible, Make available to children who cannot live in their own homes the kind of care and treatment best suited to their needs, either physically or mentally incapacitated; or, the applicant parent is not working or working less than 100 hours per month; or. Families might have a more difficult time, however, meeting required work activities, such that the number of families qualifying for CalWORKs child care services might not increase notably. In upcoming posts, we plan to examine whether and how the CalWORKs take-up rate varies among different regions in the state and explore reasons for those differences. Policy: Assembly Bill 131 (Chapter 116 of the Statues of 2021), which was signed into law on July 23, 2021, More detail on the Proposition98 preschool and Transitional Kindergarten augmentations are described in the Proposition98 and K-12 Education spending plan post. The Legislature and Governor further agreed to add 80,000 child care slots from 2022-23 through 2025-26, which is anticipated to cost an additional $1billion General Fund by 2026-27. We then provide our estimates of costs in the current year and throughout the subsequent four years. If you would like more assistance call The value of one automobile up to $25,483 is exempt. CalWORKs grants vary based on region, family size, and family income. bDoes not include $9.6 million provided to community colleges for certain child care services. Compared to estimates included in the June budget plan, our November estimates assume a higher cost per case and caseload in Stage 1, a lower cost per case and caseload in Stage 2, and a lower cost per case but higher caseload in Stage 3. 0000003571 00000 n Contact | Locations The assumed Stage 1 caseload effect is based upon initial caseload changes experienced in San Francisco County, which launched a pilot in May 2017 that contained similar changes as enacted at the state level in 201920. Alternatively, costs could increase if more families receive child care or stay on Stage 1 for longer than they do today. The ACS contains most, but not all, of the information necessary to estimate CalWORKs eligibility. Foradditional information on your eligibility to CalWORKs, contact the office nearest you. To Date, No Formal Effort to Estimate CalWORKs Take-Up Rate. The application for CalWORKs includes completion of eligibility forms and an interview with a case-manager. The program serves children under the age of 13 whose parent (s . Unlike CalFresh, the federal government does not require the state to formally estimate the CalWORKs take-up rate. if that familys adjusted monthly income is at or below 85 percent of the SMI, adjusted for family size. endobj Figure2 compares our estimate of the total eligible population (light and dark sections) to those enrolled in CalWORKs (dark section only). We do not know, but can estimate, the number of families who are eligible but do not enroll. (Increasing the income threshold likely had a much smaller effect, as the income of most CalWORKs families is significantly below the threshold.). 1-800-KIDS-793. The budget includes $20million for DSS to hire a contractor that would assist the Joint Labor Management Committee. That year, about 385,000 families (containing about 950,000 individuals) received CalWORKs assistance. Immigration Status. This post is part of our November Outlook series intended to help the Legislature plan for the budget year ahead. 0000000774 00000 n As a result, the purchasing power of the grantsthat is, how much families can buydecreases over time absent legislative action. L9 American Community Survey (ACS) Includes Most of the Information Needed to Estimate Eligibility. The Child Care Resource and Referral also have a toll free telephone number. Our outlook assumes higher program costs would be covered from the state General Fund, with the program assumed to receive the same level of annual federal funding in 201920 through 202223. Homeless Assistance is available only once in a 12-month period unless the family is homeless due to domestic violence, natural disaster, inhabitability, or a physical or mental disability. All exceptions must be verified by a third party agency. Compared to other states, California historically signed up a relatively small share of families eligible for the Supplemental Nutrition Assistance Program (a federal program that helps low-income individuals purchase groceries, known locally as CalFresh). The family home is exempt provided the family lives in the home. If the familys total gross income after the $450 deduction exceeds the MBSAC level for the family size, the family is not eligible. This action conforms with the state rate currently provided for CACFP meals served by public school entities. The workgroups recommendations are to include a definition of child care workforce competencies and suggestions for how to align these competencies to a new rate structure. Understanding CalWORKs Take-Up Rate May Improve Caseload Forecasting. Since 2005, the CalWORKs income eligibility threshold has increased by more than 50percent, making more families with relatively higher incomes eligible to enroll in the program. Each Stage has its own separate funding to pay for child care for the families within that stage. The state does not track how many families are eligible for CalWORKs but not enrolled. Consistent with overall CalWORKs enrollment, CalWORKs child care caseload declined from 201011 through 201617, as the states economic recovery reduced the number of families seeking welfare-to-work support. %%EOF HWIo\GWS0s KHrN>F2|0~*nn\d_Bv? Starting in 2009, the state enacted a series of policy changes (rebranding the program, eliminating asset requirements, promoting online and telephone applications, and reducing the amount of paperwork necessary to remain enrolled in the program) which increased the measured participation rate from 51percent to 71percent between 2010 and 2018. The MAP level for households with adult caretakers who are able to work is lower than the MAP level for households with adult caretakers who are not able to work. CalWORKs child care programs serve children until they reach their 13th birthday, with priority given to children under age 10. CalWORKs child care caseload and costs could differ from our estimates were a recession to occur during the outlook period. Using the average cost per case captures these factors. Those who qualify, however, are not automatically enrolled. *Amount is provided by CDSS (55% of the FPL for a family of three, regardless of actual AU size) Tier 2: 130% of the Federal Poverty Level (FPL) AU IRT 0 $1,473 1 $1,473 2 $1,984 3 $2,495 4 $3,007 5 $3,518 Increases Rates for Child Care and Preschool Programs. Waives family fees from July 1, 2021 to June 30, 2022. As a CalWORKs applicant or customer, you will have a property limit of $10,888 (cash on hand, savings, stocks, etc.) 0000012977 00000 n As discussed in our recent Outlook post, both the administration and our office overestimated the extent to which caseload would grow following the pandemic and subsequent economic recession. 0000006991 00000 n x1 04q\wC&`'MF[! Tuesday, February 16, 2021 9:00 a.m. State Capitol - Room 4203 Consultant: Elisa Wynne AGENDA PART A . California's Fiscal Outlook. 3 0 obj Take-Up Rate is Equal to the Number of Families Enrolled Divided by Our Estimate of Families Eligible. The 201920 Budget Act included a total of $1.4billion for the three stages of CalWORKs child care. Cooperating with the District Attorney and securing child support from the absent parent. This distinction is not important for those with regular hours throughout the year. Costs would be higher than we estimate if the Legislature were to use the more recent RMR survey or fund at a higher reimbursement percentile. 1100 23 For Families With Children, CalWORKs Eligibility Primarily Determined by Income and Immigration Status. CDSS Child Care and Development Division 50% of the earnings remaining after the $600 is deducted 1305 MacDonald Avenue State Set to Remove Stage 1 From Single Allocation Block Grant in 202021. As we discuss below, the total number of CalWORKs-eligible families remained elevated for years following each previous recession. In 201920, a little over 150,000 children received CalWORKs child care. d4o:7HGSW4FLE=u8)q]Y80{ewbm . Once enrolled, adult recipients generally are required either to work or engage in approved work-related activities such as searching for a job, although some adult recipients are exempt from these requirements (for example, some pregnant women). The nearby box lists these assumptions, as well as their likely impact on our estimates. The fiscal effect of this budgetary change also will depend upon its implementation. Prior to this change, families would receive child care only for the hours they attended allowable CalWORKs activities, such as mandatory welfare-to-work activities, job interviews, employment activities, or education classes. A member of the household becomes a fleeing felon, is convicted of a drug felony, and/or violates a condition of parole/probation. We assume monthly income is equal to annual income divided by 12. Since the onset of the novel coronavirus disease 2019 (COVID-19), CalWORKs caseload has proven especially difficult to forecast. Parents are eligible for the program if they: Eligibility in CalWORKs Stage 2, for current CalWORKs recipients, begins when the County Department of Social Services determines the recipients work or approved activity is stable or when a recipient is transitioning off cash-aid. CalWORKs provides cash aid and employment services to low-income families with children. This amount is the net effect of changes across the three stages of CalWORKs child care, with Stage 1 costs estimated to be $20 million higher, Stage 2 costs $58 million lower, and Stage 3 costs $14 million higher. The budget also includes two major one-time augmentations for state operations: $15million one-time General Fund$9million for DSS and $6million for CDEto contract for the implementation of a direct deposit system for payments to child care and preschool contractors. Stage 1 Caseload Up From Prior Years. Most CalWORKs Recipients Are Children. This resource is designed to assistcounty eligibility workers and other partners who provide services to the public. The California Alternative Payment Program (CAPP) funded by the California Department of Social Services (CDSS), Child Care and Development Division (CCDD) provides childcare subsidy assistance to income-eligible families who have a qualifying need as defined by the funding source.The program serves children under the age of 13 whose parent(s) are employed, seeking employment, seeking permanent housing, incapacitated, engaged in a vocational training or education program, or whose children are receiving protective services or have been identified as at risk of abused neglected or exploited. Care for Children With Severe Disabilities. 0000015934 00000 n The monthly Maximum Aid Payment (MAP) level is established by the California State Legislature based on family size. The most significant increases during the period were the last two years. Consequently, we randomly assign each noncitizen a 45percent probability of being deemed ineligible for CalWORKs. The second change was to annually update the data used to calculate the SMI. 0000001227 00000 n hb```b cbcfnuL-,?`Nby JSe\9-#m|CYVk Stage Three is also administered by CDSS. The three stages of CalWORKs child care and the Alternative Payment . 0000027779 00000 n If we could correct for any of the following assumptions, we expect our estimated take-up rate would increase or decrease by less than 1percentage point. Helping parents find child care, training child care providers on how to nurture and educate young children, helping parents and providers bridge the affordability gap with child care subsidies, and teaching children how to use a computer are just part of what we do. Attrition Rate in Stages 2 and 3 Down From Prior Years. endstream endobj 1122 0 obj<>/W[1 1 1]/Type/XRef/Index[94 1006]>>stream These payments generate over $1 million in revenue to communities throughout the San Fernando, Santa Clarita and Antelope Valleys. The budget package includes $15million General Fund to provide a state reimbursement rate for CACFP meals administered by nonpublic school entities (in additional to federal reimbursement). Below, we describe our simplifying assumptions. Under the program, parents who work or are participating in other county-approved activities (such as taking college classes) qualify for subsidized child care benefits. Of the three stages, we estimate Stage 3 will grow at the highest rate through 202324growing 14percent in the budget year and continuing to grow at an average annual rate of 10percent thereafter. 0000001431 00000 n Estimating Eligibility Requires Making a Few Simplifying Assumptions. By comparison, for Stages 2 and 3 child care, the state provides the California Department of Education an appropriation that can only be used for child care services and associated administration of those services. Families who do not have any income other than CalWORKs receive MAP. The 2020-21 Budget: CalWORKs IRT is the lesser of Tier 1 or Tier 2: Tier 1: $1,056* plus the gross income last used in the CalWORKs benefit determination. 0000009923 00000 n certification or at recertification, contractors will determine a familys initial income eligibility, as directed To project caseload, we use the most recent caseload data and estimate how many children will enter and exit each stage of CalWORKs child care during each year of the outlook period. Effective July 1, 2022, at initial certification or at recertification, a family will be considered income eligible The APPs are agencies that contract with CDSS to make payments tosubsidized child care providers and toprovide other related child care and development services. In this post, we provide background on the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program, discuss our projections of future CalWORKs child care costs, and identify various risks and uncertainties that could affect these future costs. The budget also provides an increase of 83 positions and $12.6million to backfill positions at CDE to ensure the department has sufficient staff to administer State Preschool and various school nutrition programs. Families are eligible to stay in Stage 2 for two years after they stop receiving cash aid. The purpose of the CalWORKs program is to: Basic eligibility factors for a child(ren) and a needy parent(s) or caretaker relative include: Deprivation The aided child must be deprived of parental support or care because at least one parent is: Age Children may be eligible for CalWORKs until their 18th birthday or are 18 years old and in high school or trade school full time and are expected to complete either program before their 19th birthday. 1100 0 obj <> endobj Families leave Stage Two when they have been off cash aid for 24 months. For Stage 1 child care, the state provides the Department of Social Services an appropriation for the county single allocation block grant. Child only cases, i.e., cases where no adults are receiving aid, also receive the higher MAP level. Grant Amounts Do Not Automatically Increase. CalWORKs grants vary based on region, family size, and family income. 1100 0 obj take-up rate to increase a toll free telephone number Nby JSe\9- # m|CYVk Stage is! 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