CCDBG Moving Forward: Overview of the Child Care and Development Block Grant, Reauthorization, and History October 28, 2014 Nick Vucic Senior Government Affairs Michelle McCready Director of Policy

© 2014 Child Care Aware ® of America Please Note The CCDBG Moving Forward Webinar Series is designed to provide an introduction into the amended version of S.1086 and what, if passed, those in the states will need to be made aware of. In addition to awaiting final passage of the bill by the Senate and the President’s signature to become law, the Department of Health and Human Services will then be responsible for providing guidelines for implementation that could alter some of what’s discussed during this series.

© 2014 Child Care Aware ® of America Who We Are Child Care Aware® of America The nation’s leading voice for child care whose mission is the development of an effective child care system to support the healthy development of all children.

© 2014 Child Care Aware ® of America The Child Care Landscape Child Care Home Visiting Head StartEarly Head StartState PreK

© 2014 Child Care Aware ® of America The State of Child Care in the United States Nearly 15 million children of working parents are in some type of child care On average, they spend 36 hours a week in care At least 1 in 4 families “piece together” their children’s care as they are placed in multiple arrangements Almost 60 percent of the cost of care is assumed by parents; spending more than 30% of their monthly budget on child care – more than rent, utilities, transportation and food.

© 2014 Child Care Aware ® of America The Child Care “System” The Child Care and Development Block Grant (CCDBG) Program- a federal grant program that provides child care assistance for families and funds child care quality initiatives. Signed into law in 1990, last reauthorized in 1996 as part of welfare reform. States have great latitude in implementation of policies Current Law, CCDBG: Does not require a background check for child care providers Does not contain a minimum training requirement Does not require regular inspections Does not require minimum protections for children

The Child Care “System” © 2014 Child Care Aware ® of America Funding: CCDF = CCDBG + CCES + TANF Transfers to CCDBG Combined CCDF funding streams are consolidated at state level and administered under CCDBG Act rules. $2.360 billion in discretionary CCDBG funding for FY2014 $2.917 billion in mandatory child care funding in FY2014 Source: Karen Lynch, Congressional Research Service,

© 2014 Child Care Aware ® of America The Child Care “System” How did we get here? The Lanham Act (1940) Between 1943 and 1946, the US had a child care system in place designed to increase the participation of mothers in the workforce. Served over 500,000 children, federal government provided 2/3 of the funding, communities were expected to provide rest, and the program was ended following WWII. The Nixon Veto (1971) In 1971, President Nixon vetoed the Comprehensive Child Development Act, sponsored by Senator Walter Mondale and Rep. John Brademas, which was passed earlier in the year and would have established “nationally funded, locally administered, comprehensive child care centers, which were to provide quality education, nutrition, and medical services.” Welfare Reform (1996) With the signing of Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), the three programs that had provided funds to families for child care assistance, including AFDC, were now merged into one, under the Child Care and Development Block Grant Program Source: Conor P. Williams, New America: Nancy L Cohen, the New Republic:

CCDBG Reauthorization © 2014 Child Care Aware ® of America S.1086 – The Child Care and Development Block Grant Act of 2014 Introduced 6/3/2013 Sponsored by Senator Barbara Mikulski (D-MD), Senator Richard Burr (R-NC), Senator Tom Harkin (D-IA), and Senator Lamar Alexander (R-TN) Under Amended Version of S. 1086, states would be required to: Conduct comprehensive background checks Inspect programs prior to licensing Conduct an annual announced inspection of licensed programs Conduct an annual announced Fire, Health, and Safety inspection of license-exempts providers receiving funds. Implement professional development standards as part of licensing Raise the amount of funds set-aside for quality improvement activities Raise the eligibility period to 12-months Designate a national toll-free hotline and website for referrals, quality information, and consumer complaints

CCDBG Reauthorization © 2014 Child Care Aware ® of America 2014 June 3, 2013: Senator Mikulski (D- MD), Senator Burr (R-NC), Senator Harkin (D-IA), and Senator Alexander (R-TN) Introduce S.1086, a bill to reauthorize the Child Care and Development Block Grant. September 18, 2013: Committee passes S.1086 out of committee by unanimous consent, voice vote. March 12, 2014: The Senate begins debate on S March 13, 2014: After adopting multiple amendments (18 total), Senate passes S.1086 by March 25, 2014: The House Education and the Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education held a hearing called “The Foundation for Success: Strengthening the Child Care and Development Block Grant Program.” September 12, 2014: House and Senate Leaders Announce Bi-Partisan, Bi-Cameral agreement on CCDBG September 15, 2014: House passes amended version of S.1086 by voice vote. November 13, 2014: Cloture vote scheduled in Senate to move forward on CCDBG Reauthorization.

CCDBG Reauthorization © 2014 Child Care Aware ® of America Health and Safety Requirements and what’s included in S.1086: Comprehensive Background Checks Pre-licensure and annual inspections Monitoring for License-Exempt Programs Training Standards Quality Set-Aside

Under Current Law: 4% Quality Set-Aside © 2014 Child Care Aware ® of America Current law requires each state to dedicate at least 4 percent of CCDBG funds to be used to improve the quality of care. Under Amended Version of S.1086 (if passed) 1 st full FY after enactment: 7% 2 nd full FY after enactment: 3 rd full FY after enactment: 8% 4 th full FY after enactment: 5 th full FY after enactment: 9% +3% For infant and toddler quality improvement activities +3% For infant and toddler quality improvement activities +3% For infant and toddler quality improvement activities +3% - For infant and toddler quality improvement activities

CCDBG Reauthorization © 2014 Child Care Aware ® of America Consumer Education Requirements and what’s included in S.1086: Allow states to develop, implement, or enhance tiered rating systems for providers Posting of inspection reports electronically Would require operation of National toll-free hotline and web site to help parents access information about child care including: A localized list of eligible providers Provider specific information from QRIS Licensing compliance information Referrals to local CCR&Rs State information about subsidy and related programs

CCDBG Reauthorization © 2014 Child Care Aware ® of America Other important pieces included in S.1086: States would need to set redetermination period for eligibility at 12 months Would require explanation of how states account for work and income fluctuations of families States would be allowed to designate or establish a valid market rate survey or alternative methodology, such as a cost estimation model to set reimbursement rates De-link provider reimbursement rates from unforeseen absences

CCDBG Reauthorization © 2014 Child Care Aware ® of America Budget Appropriations: S.1086 would set authorization levels for Fiscal Years 2015 through 2020, providing a baseline for Appropriations for program funding. FY $2.36b (Current) FY $2.36b FY $2.478b FY $2.54b FY $2.603b FY $2.668b FY $2.749b CBO March 2014: Estimate of $13.1b for implementation (Prior to changes from House-passed version)

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Contact © 2014 Child Care Aware ® of America Nicholas Vucic Sr. Government Affairs Michelle McCready Director of Policy