In a typical year (in which income eligibility thresholds are increased on July 1), the eligibility threshold is lower from January through June than from July through December. 4BshBeO~BA(cFP*Bv=>C(|/^ g M* zy{e^583T>GZ86 For Stage 1, we adjust the 201819 cost per case to account for the recent policy change that allows all Stage 1 families to receive child care on a full-time basis. The first change was to allow Stage 1 families to receive child care on a full-time basis. Data from the ACS currently are available for every year between 2005 and 2019. This committee is to provide its recommendations to the Department of Finance by November 15, 2022, to inform the Governors 2023-24 budget proposal. These changes are expected to increase Stage 1 caseload significantly (as discussed in the Fiscal Outlook section). 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. Correcting this assumption would have unknown effects on our estimate of the take-up rate. CalWORKs regulations provide for a gross income limit which is determined by subtracting $450 from the earned income of each employed person, then adding all remaining earned and unearned income to determine the gross income for family. If a recession were to occur during the next year or two, the effect on caseload and cost is even more uncertain given the state does not yet know the precise impact of its new Stage 1 policies. If you would like more assistance call In the years since, CalWORKs caseload has declined at a somewhat faster pace than the number of CalWORKs-eligible families, causing the take-up rate to fall to around 60percent. 0000024793 00000 n 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. Establishment of Child Care Rate Working Groups. Consequently, increasing the CalWORKs take-up rateand ultimately gaining a better understanding of why eligible individuals do not applycould be used to inform policy choices that result in increased participation in the program and reduced poverty for families with children. Families without elderly members may have $10,888 combined personal and real property per family. Proof of citizenship or immigrant status such as a birth certificate or document from the United States Citizenship and Immigration Services (USCIS) showing legal resident status. The budget package includes $783million in 2021-22 ($1.6billion ongoing) across state and federal fund sources to provide additional slots for child care. 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). Most CalWORKs Recipients Are Children. Provides Several State Operations Increases. The state has recent experience in improving the take-up rate in similar programs, further helping those programs achieve their intended policy goals. <> We then provide our estimates of costs in the current year and throughout the subsequent four years. Families are eligible to be in Stage 1 when they first enter CalWORKs. Stage 1 begins when a participant enters the CalWORKs grant welfare-to-work plan developed by the CWD for each family. Families remain in Stage Three until the familys income exceeds85 percent of the state median income or until the children are over the eligibility age. The three stages of CalWORKs child care and the Alternative Payment . <> in CHILD CARE BULLETIN (CCB) NO. Below, we explain our caseload and cost per case assumptions and methodology. Monthly Income. The magnitude of the effect likely will depend upon implementation decisions and any program changes. 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. Most notably, the budget provides an additional 74 positions and $9.8million General Fund for DSS as part of the transition of most child care programs from CDE. To date, the state has not funded at the higher reimbursement level or begun using the more recent 2018 survey results. The budget package includes various increases in state operations for CDE and DSS to administer child care and preschool programs. (Although we are aware of related efforts by the Urban Institute and Center on Budget and Policy Priorities, neither of these efforts are directly comparable to the annually reported CalFresh take-up rate.) contact your county social services agency. The second change was to annually update the data used to calculate the SMI. 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. Reimbursement rates for CalWORKs child care providers vary by county. 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. Previously, families were required to report any change in income or work hours within five days. 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). This action conforms with the state rate currently provided for CACFP meals served by public school entities. CalWORKs child care programs serve children until they reach their 13th birthday, with priority given to children under age 10. 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. 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. As a CalWORKs applicant or customer, you will have a property limit of $10,888 (cash on hand, savings, stocks, etc.) startxref The 2021-22 budget included legislation to establish two workgroups to make recommendations for implementing a single child care reimbursement rate structure. Family Child Care Home Educational Network, California Alternative Payment Program &CalWORKs. 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 talking with program experts, our best guess is that the errors introduced by these assumptions roughly cancel each other out, such that a more detailed estimate (one which corrected for all of these simplifying assumptions) would be roughly equal our estimates. Establishes Two Rate Working Groups. Improving CalWORKs Take-Up Rate Could Mitigate Ongoing Economic Consequences of COVID-19. We estimate CalWORKs child care costs will continue to grow through 202324 (Figure4). 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. Unlike MBSAC levels, grant amounts do not automatically increase in proportion to the cost of living but rather generally must be adjusted by new legislation. These factors may impact the overall costs of CalWORKs child care, but we are uncertain of the magnitude at this time. endobj 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. Providers Are Reimbursed Based on Regional Market Rates (RMR). Antioch, CA 94509, 2023 Contra Costa County Employment & Human Services, CSEC (Commercially Sexually Exploited Children), Become A Foster Parent In Contra Costa County. QRIS = Quality Rating and Improvement System. 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). Cash Assistance. More recently, the state allocated $2million in 201617 and 201718 to improve awareness and take-up of the California Earned Income Tax Credit (EITC), which provides money to low-income workers. The eligibility changes enacted in 201718 resulted in families exiting Stages 2 and 3 at much lower rates compared to previous years. In 201920, California expects to serve an estimated 153,000 children across all three stages on an average monthly basis. 0000000016 00000 n endstream endobj 129 0 obj <>>> endobj 130 0 obj <. The state does not track how many families are eligible for CalWORKs but not enrolled. The program serves children under the age of 13 whose parent (s . Subsequently, these PWO cases are entirely absent from our estimates. % We estimate Stage 1 caseload will increase by 9percent in 201920, an additional 9percent in 202021, and level off through the rest of the period. 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. 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. The value of one automobile up to $25,483 is exempt. In 2018, there were about 1.5million California children living below the FPL, and about half of these children were enrolled in CalWORKs. State and Federal Funding Support the Program. The budget includes $20million for DSS to hire a contractor that would assist the Joint Labor Management Committee. 0000021831 00000 n The cost estimates reflected above do not include the effect of this legislation. Take-Up Rate is Equal to the Number of Families Enrolled Divided by Our Estimate of Families Eligible. These changes significantly increased Stages 2 and 3 caseload (as discussed in the next section). 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. 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. Cost per case reflects the average annual cost to provide subsidized child care to one child. Cooperating with the District Attorney and securing child support from the absent parent. 400 Ellinwood Way The most significant increases during the period were the last two years. Parents may progress through three stages of CalWORKs child care. 0000003571 00000 n California's Fiscal Outlook. This compares with 201617 attrition rates of 4.5percent in Stage 2 and 3.1percent in Stage 3. 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. How Subsidized Child Care Works. CalWORKs grants vary based on region, family size, and family income. $600.00 from the combined earnings, disability based income or a combination of both. Correcting this assumption would likely cause our estimate of the take-up rate to decrease. Need childcare because they are employed, seeking employment, in vocational training, seeking permanent housing, and/or incapacitated. This post is part of our November Outlook series intended to help the Legislature plan for the budget year ahead. We make several assumptions in developing these estimates. Increases Rates for Child Care and Preschool Programs. Copyright 1999-2022 MAOF. 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. Figure1 illustrates how the CalWORKs take-up rate changed between 2005 and 2019. Grant sizes increase as family size increases, and grant sizes decrease as family income increases. The ACS contains most, but not all, of the information necessary to estimate CalWORKs eligibility. Family Child Care Providers: Update your rate sheets On January 1, 2022, the new rate increases won in our contract with the state will take effect. They served a six-year-old child for 22 days of a report period. 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. contact your local county welfare department, Contact Your County Social Services Agency, visit the CalWORKs Child Care Program website. Costs could potentially decrease since counties would not be able to use unspent child care funds for other purposes. <<2284d991d89dc44c91b37b84655f3dd2>]>> Most of the remaining funding is intended to provide additional funding to child care and State Preschool providers to assist with pandemic-related issues. 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