x}y|T~[2wfV|0&D\\VqdcHXZV*$}yLDP!:DU+%Ye5!)+H7`nXdln!i1uYRW~)rQ2! However, CalWORKs-eligible families are disproportionately likely to have irregular hours or seasonal employment, which could result in some months with income far below and far above the families annual average. CDSS Child Care and Development Division Below, we explain our caseload and cost per case assumptions and methodology. endobj Pregnancy. Property The property of a child and the parent(s) must be under the following limits: Residence There are no durational residency requirements for the CalWORKs program. endobj Correcting this assumption likely would cause our estimate of the take-up rate to decrease. CalWORKs Benefits Generally Decrease as Family Income Increases. 0000000016 00000 n Are you homeless and need to pick up mail? Fresno County has chosen to provide continuing aid for children after a parent has exhausted their 48-month limit. an increase in payments for child care providers and more. Currently, the state links the RMR to the 75th percentile of rates reported on the 2016 survey. 0000009923 00000 n To estimate UI benefits for individuals who appear eligible for such benefits (those marked as unemployed in the ACS but who report having worked in the past 12 months and receiving other income, which may include UI), we estimated that these benefits do not exceed the average UI benefits for a calendar year in California (which we define as the average weekly benefit in California times the average weeks receiving UI nationwide for each calendar year). Publicly available data give a clear count of the number of families enrolled in CalWORKs. 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. Calculating Caseload. For single parents, CalWORKs requires at least 32 hours/week of work activity. Our forecast assumes attrition in Stages 2 and 3 stays at the lower 201819 rates through 202324. 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. Monthly Income. The value of one automobile up to $25,483 is exempt. 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. In 201920, a little over 150,000 children received CalWORKs child care. More detail on the Proposition98 preschool and Transitional Kindergarten augmentations are described in the Proposition98 and K-12 Education spending plan post. Makes $1.7Billion in One-time Augmentations, Primarily Using Federal Relief Funding. This Stage provides services for former CalWORKs families after they have been off aid for 24 months and for families that receive lump-sum diversion services. In 201718, State Made Three Changes That Notably Affected Stages 2 and 3. CalWORKs Eligibility Thresholds Have Risen More Quickly Than Benefits. Costs for Stages 2 and 3 Have Increased Over the Past Five Years. Of total CalWORKs child care funding, 56percent is from the state General Fund and 44percent is from federal fund sources (Temporary Assistance for Needy Families and the Child Care and Development Fund). The Child Care Resource and Referral also have a toll free telephone number. 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. The nearby box lists these assumptions, as well as their likely impact on our estimates. endstream endobj 129 0 obj <>>> endobj 130 0 obj <. Starting July 1, 2021, direct contract providers will receive a 4.05percent cost-of-living adjustment. xref In 201819, nearly 25,000 more children were served in Stages 2 and 3 compared to 201617a 29percent increase. Improving CalWORKs Take-Up Rate Could Mitigate Ongoing Economic Consequences of COVID-19. hbbd``b`SA@ H0~ $P $3012d!3F 0 z Compared to estimates included in the June budget plan, our November estimates assume a higher cost per case and caseload in Stage 1, a lower cost per case and caseload in Stage 2, and a lower cost per case but higher caseload in Stage 3. For two parent families, at least 35 hours/week. If you would like more assistance call %PDF-1.7 % We make several assumptions in developing these estimates. Applying for potentially available income such as Unemployment Insurance Benefits. This caseload trend is intended to capture the effect of the recent policy changes that make accessing Stage 1 child care easier. These changes significantly increased Stages 2 and 3 caseload (as discussed in the next section). As discussed in our recent Outlook post, both the administration and our office overestimated the extent to which caseload would grow following the pandemic and subsequent economic recession. 0 Consistent with overall CalWORKs enrollment, CalWORKs child care caseload declined from 201011 through 201617, as the states economic recovery reduced the number of families seeking welfare-to-work support. Most of the remaining funding is intended to provide additional funding to child care and State Preschool providers to assist with pandemic-related issues. ;= ~B181dT`Y 1> Ay?COc 0@~+TG`J@8L: 5d %&(`yur+y&O|$pEI(>H@[xU :+i6 8Q=YT!Y5VB%)'MP}v[n&n! Provides a State Reimbursement for Meals Served Through the Child and Adult Care Food Program (CACFP). CalWORKs Child Care Costs Are Projected to Continue Growing. Correcting this assumption would likely cause our estimate of the take-up rate to increase. The budget package includes various increases in state operations for CDE and DSS to administer child care and preschool programs. 12/01/2021 . A family applies to CCRC for a subsidized child care payment program. 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. By phone: (866) 663-3225, West County 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. Families are eligible to stay in Stage 2 for two years after they stop receiving cash aid. Once CalWORKs families become stable (as determined by the county welfare department), they move into Stage 2. Families are eligible to be in Stage 1 when they first enter CalWORKs. The 2021-22 funding for Proposition 98, the formula that determines funding from kindergarten through two years of community college will be $93.7 billion - only $300 million more in revenues now estimated for 2020-21. . 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). Eligibility Threshold. gReflects preliminary LAO estimates in 202021 and 202122 as enrollment data are not yet publicly available. American Community Survey (ACS) Includes Most of the Information Needed to Estimate Eligibility. CalWORKs child care is funded with a combination of state and federal funding. Establishment of Child Care Rate Working Groups. Child Care. | Because families earning relatively higher incomes already receive relatively smaller benefits, they have less incentive to enroll than lower-income families. CalWORKs allows pregnant women to receive CalWORKs even if their only eligible child is unborn, but the ACS does not record whether female respondents are pregnant. fIncludes $1.2 million each year used for a family literacy program offered at certain State Preschool sites. Data from the ACS currently are available for every year between 2005 and 2019. Stage 1 begins when a participant enters the CalWORKs grant welfare-to-work plan developed by the CWD for each family. To date, the state has not funded at the higher reimbursement level or begun using the more recent 2018 survey results. In 201920, about 150,000 participating families (40percent of the total) received employment services such as career assessments, adult education, and help with their job search. 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. (Increasing the income threshold likely had a much smaller effect, as the income of most CalWORKs families is significantly below the threshold.). 0 California's Fiscal Outlook. Specifically, we assume more families will receive full-time care and be served in licensed settingsboth of which increase the Stage 1 cost per case. Because benefit levels did not increase at the same pace as the eligibility threshold, these newly eligible families may have seen little benefit to enroll in the program, potentially explaining the lower take-up rate to an extent. 1 0 obj This resource is designed to assistcounty eligibility workers and other partners who provide services to the public. The maximum immediate need payment is $200. Receipts or bills of sale for any recreational vehicles such as boats, trailers, motor homes, etc. Below are examples of how to manually calculate the State Subsidized Monthly Payment for This Child Care: Example 1: The contractor's daily rate for their CCTR contract is $38.29. The first change was to allow families to continue receiving child care if their income is at or below 85percent of the SMI. If you are not receiving CalWORKs cash assistance and need help paying for child care, contact the local Child Care Resource and Referral agency (R&R) and/or the Alternative Payment Program(APP) in your county to obtain more information. Family Child Care Home Educational Network, California Alternative Payment Program &CalWORKs. C Consequently, we randomly assign each noncitizen a 45percent probability of being deemed ineligible for CalWORKs. These payments generate over $1 million in revenue to communities throughout the San Fernando, Santa Clarita and Antelope Valleys. 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). In 201920, State Made Two Changes Affecting Stage 1. 0000001884 00000 n Even after adults have timed out, families can continue to receive cash assistance on behalf of any eligible children. We estimate it would cost $565million above our initial November estimates if the state funded at the 85th percentile of the 2018 survey. The rest of this post outlines how our office developed county-by-county estimates for CalWORKs take-up rates. The family home is exempt provided the family lives in the home. 1305 MacDonald Avenue Provides Significant Increase for Child Care and Preschool Slots. The funding methodology and other implementation details are to be determined by the Department of Social Services (DSS) and Child Care Providers UnitedCalifornia (the union representing family child care home and license-exempt providers). CalWORKs Provides Cash Assistance and Employment Services to Low-Income Families. Both parents can meet this requirement if one is in a work activity at least 20 hours per week. Those who qualify, however, are not automatically enrolled. This action conforms with the state rate currently provided for CACFP meals served by public school entities. Cost per case reflects the average annual cost to provide subsidized child care to one child. The contractor claims 15 percent administrative costs. <> As noted above, most CalWORKs recipients are children, but many children living below the FPL are not currently enrolled in the program. Families may earn non-CalWORKs income of up to $500 a month without affecting their grant, but for each additional dollar they earn above $500 their grant is reduced by 50 cents. 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. Aid cannot begin until all conditions of eligibility have been verified. the maximum family grant for a family of three was $785. Effective July1, 2020, the state will separate Stage 1 child care from the county single allocation block grant. We think the legislation likely will not affect program costs in the budget year, as some time will be needed for providers to organize and undertake required procedural steps. In this section, we first describe the assumptions and methodology we use to produce our CalWORKs child care cost estimates. Most CalWORKs Recipients Are Children. Counties will only be able to use budgeted Stage1 funds for child care services (similar to how the state budgets for Stages 2 and 3). The CWDs refer families to resource and referral agencies to assist them in finding childcare providers. At the same time, CalWORKs benefits have increased by less than 5percent (note that neither the benefit nor eligibility threshold figures have been inflation-adjusted). The local Child Care Resource and Referral agencies also assist potential child care providers in the licensing process including training for providers. Projections Are Based on Caseload and Cost Per Case in Each Stage. We will continue to monitor the effect of these policies and incorporate them into our future cost estimates as better data becomes available. Changing this assumption would have unknown effects on our estimate of the take-up rate. Establishes Two Rate Working Groups. 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