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). T4Xg/*{3X7B&IO)i^LXl!+$d 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). aReflects Department of Social Services revised Stage 1 estimates, Department of Finances revised estimates for Stage 2 and Stage 3, and budget appropriations for all other programs. 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. A ^G.Ik $ e07(!&ak@Aj20m@,Jk
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These payments generate over $1 million in revenue to communities throughout the San Fernando, Santa Clarita and Antelope Valleys. Consequently, such estimates are not readily available. Once CalWORKs families become stable (as determined by the county welfare department), they move into Stage 2. 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. See a list of this year's fiscal outlook material, including the core California's Fiscal Outlook report, on our fiscal outlook budget page. They served a six-year-old child for 22 days of a report period. To date, the state has not funded at the higher reimbursement level or begun using the more recent 2018 survey results. More detail on the Proposition98 preschool and Transitional Kindergarten augmentations are described in the Proposition98 and K-12 Education spending plan post. Child only cases, i.e., cases where no adults are receiving aid, also receive the higher MAP level. 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. endobj Caseload refers to the average number of children served in each stage on a monthly basis during the fiscal year. If the family qualifies, they complete the enrollment process. 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. Monthly Income. The APPs are agencies that contract with CDSS to make payments tosubsidized child care providers and toprovide other related child care and development services. <> x1 04q\wC&`'MF[! Child Care. Costs for Stages 2 and 3 declined in the first four years of the period, then began rising in 201415 due to a combination of rate and caseload increases. 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. The effect at the state level, however, is uncertain and could differ notably from the San Francisco pilot and therefore from our estimate. These changes significantly increased Stages 2 and 3 caseload (as discussed in the next section). Reimbursement rates for CalWORKs child care providers vary by county. Figure3 compares the change in the eligibility threshold to the change in grant levels over the last 15 years. CalWORKs child care is funded with a combination of state and federal funding. The magnitude of the effect likely will depend upon implementation decisions and any program changes. The rates are based on a regional market survey of a sample of licensed child care providers. The 2020-21 Budget:
Copyright 1999-2022 MAOF. The monthly Maximum Aid Payment (MAP) level is established by the California State Legislature based on family size. xref
if that familys adjusted monthly income is at or below 85 percent of the SMI, adjusted for family size. CCRC reimburses the provider on behalf of the family. The Child Care Resource and Referral also have a toll free telephone number. We make these assumptions to compensate for information not included in the American Community Survey (ACS). If you would like more assistance call 1-800-KIDS-793. 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. 0000030450 00000 n
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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. 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. The workgroup is to include a range of child care stakeholders and must provide recommendations by August 15, 2022. Stage 1 Caseload Up From Prior Years. RMR ceilings were last updated 1/1/2018 as per CalWORKs Child Care Special Notice 17-05. 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. We assume income eligibility thresholds are equal to those in effect on July 1 of each calendar year. Moreover, as part of the budget solutions adopted during the Great Recession, CalWORKs grant levels were reduced by first 4percent and then 8percent in 2011 and remained below their pre-recession peak until 2019. Rather than providing more flexibility to counties, the unspent funds could be used for other legislative priorities. 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). As we discuss below, the total number of CalWORKs-eligible families remained elevated for years following each previous recession. This block grant is intended to cover counties costs for determining families CalWORKs eligibility, providing employment services, covering Stage1 child care costs, and undertaking various other related administrative functions. 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. Below, we explain our caseload and cost per case assumptions and methodology. When a cash aid recipient is employed or receives disability based income, CalWORKs regulations allow the following deductions from the monthly gross income: Any income remaining after the deductions are subtracted from the monthly gross income is then subtracted from the MAP amount to determine the amount of the CalWORKs grant. 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. The nearby box lists these assumptions, as well as their likely impact on our estimates. For Stage 1 child care, the state provides the Department of Social Services an appropriation for the county single allocation block grant. (Increasing the income threshold likely had a much smaller effect, as the income of most CalWORKs families is significantly below the threshold.). We estimate that, in 2019, about 605,000 families were eligible for CalWORKs while about 365,000 were enrolled, for an estimated CalWORKs take-up rate of 60percent. 12/01/2021 . xb```b``d`e` ,@Q {y7LyU"W.iYo(Tc]pLgY9{ &ps|TtK2n8ySGN=,d\Z%[ CalWORKs grants vary based on region, family size, and family income. =(@&^e*Dp)
d,6?&fO=c5J The family chooses a child care provider. endstream
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The maximum immediate need payment is $200. This compares with 201617 attrition rates of 4.5percent in Stage 2 and 3.1percent in Stage 3. In 201718, however, CalWORKs Stages 2 and 3 caseload began increasing. If the familys total gross income after the $450 deduction exceeds the MBSAC level for the family size, the family is not eligible. We also will attempt to identify which types of families are most likely to enroll in CalWORKs when eligible. For single parents, CalWORKs requires at least 32 hours/week of work activity. Effectively, the increase in the income eligibility threshold over the years means the CalWORKs eligible population has also grown over time. The CWDs refer families to resource and referral agencies to assist them in finding childcare providers. CalWORKs Child Care Costs Increase Over Outlook Period. 0000006991 00000 n
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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). Consequently, we must make several simplifying assumptions to estimate the number of CalWORKs-eligible families. 139 0 obj
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Figure2 compares our estimate of the total eligible population (light and dark sections) to those enrolled in CalWORKs (dark section only). 0000002736 00000 n
Prior to this change, the state was using an SMI based on 2007 data. 0000027779 00000 n
Subsequently, these PWO cases are entirely absent from our estimates. State Set to Remove Stage 1 From Single Allocation Block Grant in 202021. Child care is provided for children through the age of 12, and for exceptional needs and severely disabled children up to age 21. Effective July1, 2020, the state will separate Stage 1 child care from the county single allocation block grant. Of this amount, $2.8 billion is for preschool and Transitional Kindergarten programs, $3.7 billion is for other child development programs, and $2.2 billion is for support programs. 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). This is the first in a series of several posts estimating the percentage of California Work Opportunity and Responsibility to Kids (CalWORKs)-eligible individuals who actually enroll in the programotherwise known as the CalWORKs take-up rate. (This assignment roughly is based on U.S. Department of Homeland Security estimates of the proportion of noncitizen Californians who have a legal versus nonlegal residency status, the crucial distinction for CalWORKs eligibility.) Attrition Rate in Stages 2 and 3 Down From Prior Years. These changes are expected to increase Stage 1 caseload significantly (as discussed in the Fiscal Outlook section). 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. Moving forward, the state will estimate Stage 1 costs separately from other CalWORKs employment services and administrative costs. *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 As a CalWORKs applicant or customer, you will have a property limit of $10,888 (cash on hand, savings, stocks, etc.) We think the legislation could begin affecting program costs in 202122. The ACS is an annual survey of more than 2million households that is conducted by the federal Census Bureau. 0000001431 00000 n
The programbegins when a family start receiving CalWORKs cash aid. %PDF-1.4
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<> 0000000774 00000 n
Grant sizes increase as family size increases, and grant sizes decrease as family income increases. sufficiency, families are placed in Stage 1, Stage 2, or Stage 3 child care. CalWORKs child care caseload and costs could differ from our estimates were a recession to occur during the outlook period. Proof of the value of mutual funds, stocks, bonds, trust funds or cash surrender value of life insurance policies. Providers may negotiate on a number of work-related issues, including their reimbursement rates. 0000021785 00000 n
Establishes Two Rate Working Groups. Click the QR code, or scan with your device to join! . Our forecast assumes attrition in Stages 2 and 3 stays at the lower 201819 rates through 202324. 1100 0 obj <>
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A member of the household becomes a fleeing felon, is convicted of a drug felony, and/or violates a condition of parole/probation. 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 fiscal effect of this budgetary change also will depend upon its implementation. 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). Need childcare because they are employed, seeking employment, in vocational training, seeking permanent housing, and/or incapacitated. Families without elderly members may have $10,888 combined personal and real property per family. Children must also be either citizens or lawful permanent residents. State Provides Subsidized Child Care for CalWORKs Participants. 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. Vocational training, seeking permanent housing, and/or incapacitated parents, CalWORKs Stages 2 and Down... 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