110207 child care facts

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1107 9th Street,

Suite 310

Sacramento,

California 95814

(916) 444-0500

www.cbp.org

[email protected]

1107 9th Street,

Suite 310

Sacramento,

California 95814

(916) 444-0500

www.cbp.org

[email protected]

Key Facts About Child Care

and Development Programs

in CaliforniaTHE CALIFORNIA BUDGET PROJECT

February 2011



2

Overview California’s child care programs provide safe and affordable child care

that helps low- and moderate-income parents find and retain jobs. Inaddition, child development programs provide access to preschool and

afterschool options for California’s families. The Governor proposes deep cuts to child care in 2011-12. Total

funding for child care and development programs would drop by 18.2percent between 2010-11 and 2011-12 and would be lower than in1999-00, after adjusting for inflation.

Non-CalWORKs child care funding would drop by 39.7 percentbetween 2010-11 and 2011-12 and would be lower than in 1996-97,after adjusting for inflation.

CalWORKs child care funding would drop to an all-time low in 2011-12, after adjusting for inflation.

Preschool and afterschool funding would remain essentially flat in2011-12, after adjusting for inflation.

Child care is more important than ever as parents struggle to find andretain jobs in the aftermath of the Great Recession.



3

California’s Child Care Programs Provide Safe and

Affordable Child Care That Helps Low- and

Moderate-Income Parents Find and Retain Jobs



4

California’s Child Care Programs California’s child care programs typically enroll more than

300,000 children per month.

Families may receive child care if a child is under age 13and parents have a need for care because they are working,seeking employment, or participating in a training program.Families in the CalWORKs welfare-to-work program as well

as low- and moderate-income families who are not enrolledin CalWORKs may receive child care.

Families must have incomes at or below 75 percent of thestate median income (SMI) – currently $45,225 per year for

a family of three. Many eligible families lack access to child care due to

funding constraints. Nearly 188,000 children were on childcare waiting lists across the state in June 2010.



5

126,575 129,075 131,440 133,232 133,572

188,765 182,129 176,082 183,064 173,883

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2004-05 2005-06 2006-07 2007-08 2008-09

A v e r a g e M o n t h l y E n r o l l m e n t

California's Child Care Programs Typically Enroll More Than 300,000 Children Per Month

Non-CalWORKs Child Care CalWORKs Child Care

Note: Non-CalWORKs child care includes General Child Care, the AlternativePayment Program, and a number of smaller child care programs.

Source: California Department of Education, Department of Finance,Department of Social Services, and Legislative Analyst's Office



6

Child Development Programs ProvideAccess to Preschool and Afterschool

Options for California’s Families



7

The California State Preschool Program The California State Preschool Program provides full- and

part-day preschool services for eligible three- and four-

year-olds. Eligibility is generally limited to families with incomes at

or below 75 percent of the SMI – currently $45,225 peryear for a family of three. However, state law allows up to

10 percent of families served to have incomes somewhatabove this income threshold.

A total of nearly 131,300 children were enrolled in 2008-09, the most recent year for which data are available.



8

State and Federal Afterschool Programs The state After School Education and Safety (ASES)

Program provides educational and academic enrichment

services for students in kindergarten through ninthgrade. Proposition 49 of 2002 requires the state toprovide approximately $550 million each year for ASES,a funding mandate that was triggered in 2006-07.

The federal 21st

Century Community Learning CentersProgram provides additional funding to supportafterschool services for disadvantaged K-12 students.

Nearly 433,000 children were enrolled in these

programs each school day during 2009-10, on average,the most recent year for which data are available.



9

The Governor Proposes Deep Cuts to

Child Care in 2011-12



10

The Governor Proposes $750 Million in Child Care Cuts The Governor proposes to:

− Cut funding for each child care slot by 35 percent for

savings of $577 million. This proposal assumes that eachfamily would pay more – potentially hundreds of dollarsper month – to make up for reduced state funding, andtherefore that no child care slots would be eliminated dueto this reduction. This cut would not apply to CalWORKs

Stage 1 child care or to the state preschool program.

− Eliminate child care for 11- and 12-year-olds for savings of$93 million.

−

Reduce the income limit from 75 percent to 60 percent ofthe SMI for savings of $79 million. The income limit for afamily of three would decline from $45,225 to $36,180 peryear – a 20.0 percent cut. This reduction would not applyto the state preschool program.



11

$45,225

$36,180

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2010-11 2011-12 Proposed

A n

n u a l C h i l d C a r e I n c o m e E l i g i b i l i t y L i m i t f o r a F a m

i l y o f T h r e e

The Income Limit for Child Care Would Drop by 20 Percent Under the Governor's Proposal

Source: California Department of Education and Department of Finance



12

Total Funding for Child Care and DevelopmentPrograms Would Drop by 18.2 Percent Between

2010-11 and 2011-12 and Would Be Lower Thanin 1999-00, After Adjusting for Inflation



13

Total Funding Would Drop by 18.2 Percent in 2011-12 Total funding for child care and development programs

would decline from $3.561 billion in 2010-11 to $2.914

billion in 2011-12, after adjusting for inflation, under theGovernor’s proposals – an 18.2 percent drop.

Proposed 2011-12 funding would be slightly lower than the1999-00 inflation-adjusted level of $2.971 billion.

Afterschool funding accounts for a substantially largershare of total child care and development funding in 2011-12 compared to 1999-00. Afterschool funding comprised2.2 percent of total funding in 1999-00, but is projected to

make up nearly one-quarter (23.6 percent) of total childcare and development funding in 2011-12.



14

$2,971

$3,951

$3,561

$2,914

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

S t a t e a n d F e d e r a

l F u n d i n g ( 2 0 1 0 - 1 1 D o l l a

r s i n M i l l i o n s )

Total Funding for Child Care and Development Programs Would Drop Significantly in 2011-12Afterschool Funding Has Increased From $67 Million in 1999-00 to a Projected $687 Million in 2011-12, After Adjusting for Inflation

* 2010-11 estimated and 2011-12 proposed.Source: California Department of Education, Department of Finance, Department of Housing and

Community Development, Department of Social Services, and Legislative Analyst's Office



16

$825

$1,279$1,316

$1,222

$738

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

S t a t e a n d F e d e r a

l F u n d i n g ( 2 0 1 0 - 1 1 D o l l a r s i n M i l l i o n s )

Funding for Non-CalWORKs Child Care Programs Would Drop Steeply in 2011-12

* 2010-11 estimated and 2011-12 proposed.Note: Non-CalWORKs child care programs include General Child Care, the Alternative Payment

Program, a number of smaller child care programs, and child care support services.




17

86,169 86,16977,216

37,186 38,777

32,404

10,180 7,561

7,357

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2009-10 2010-11* 2011-12*

N

u m b e r o f F u n d e d S l o t s i n N o n - C a l W O R K s C h i l d C

a r e P r o g r a m s

Non-CalWORKs Child Care Slots Would Drop by More Than 15,000 Under the Governor's ProposalsThe Governor's Proposal To Cut Child Care Subsidies by 35 Percent Could Cause Additional Slots To Be Lost

General Child Care Alternative Payment Program Other Child Care

* 2010-11 estimated and 2011-12 proposed.Source: Department of Finance

133,535 132,507

116,977



18

CalWORKs Child Care FundingWould Drop to an All-Time Low in 2011-12,

After Adjusting for Inflation



19

$1,049

$1,869

$1,506

$1,171

$1,041

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

S t a t e a n d F e d e r a l F u n d i n g ( 2 0 1 0 - 1 1 D o l l a r s i n M i l l i o n s )

Funding for CalWORKs Child Care Would Drop to an All-Time Low in 2011-12

* 2010-11 estimated and 2011-12 proposed.Note: Includes funding for CalWORKs Stages 1, 2, and 3 child care. 2010-11 reflects the Governor's proposal torestore Stage 3 funding effective April 1, 2011. The previous Governor vetoed Stage 3 funding in October 2010.

Source: California Department of Education, Department of Finance, and Department of Social Services



20

Preschool and Afterschool FundingWould Remain Essentially Flat in 2011-12,

After Adjusting for Inflation



21

$169

$383

$456

$431

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

S t a t e F u n d i n

g ( 2 0 1 0 - 1 1 D o l l a r s i n M

i l l i o n s )

Preschool Program Funding Would Remain Essentially Flat in 2011-12 Compared to Recent Years

* 2010-11 estimated and 2011-12 proposed.




22

116,832 116,847 116,599

0

25,000

50,000

75,000

100,000

125,000

2009-10 2010-11* 2011-12*

N u m b

e r o f F u n d e d S l o t s

Preschool Program Slots Would Remain Essentially Flat in 2011-12

* 2010-11 estimated and 2011-12 proposed.

Source: Department of Finance



24

530,570 534,121516,984

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

2009-10 2010-11* 2011-12*

N u m b e r o f F u n d e d S l o t s

State and Federal Afterschool Program Slots Would Remain Essentially Flat in 2011-12

* 2010-11 estimated and 2011-12 projected.

Source: Department of Finance



25

Child Care Is More Important Than Ever asParents Struggle To Find and Retain Jobs

in the Aftermath of the Great Recession



27

15.0

3.2

0

2

4

6

8

10

12

14

16

Unemployed Job Openings

S e a s o n a l l y A d j u s t e d

N u m b e r o f U n e m p l o y e d

a n d

J o b O p e n i n g s N a t i o n w i d e ,

N o v e m b e r 2 0 1 0 ( i n M

i l l i o n s )

The Number of People Looking for Work Exceeds Available Jobs by Five to One

Source: US Bureau of Labor Statistics



28

$55,132

$58,312$58,850

$56,134

$48,279

$52,301$51,278

$49,777

$42,000

$44,000

$46,000

$48,000

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

M e d i a n H o u s

e h o l d I n c o m e ( 2 0 0 9 D o l l a r s )

California's Median Household Income Has Lost Purchasing Power Since 2006

California US

Source: US Census Bureau



29

12.9%

12.7%

12.2%

15.3%

12.8%

11.3%

12.3%14.3%

10%

11%

12%

13%

14%

15%

16%

17%

18%

19%

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

P e r c e n t a g e o f P e o p l e W i t h

I n c o m e s B e l o w t h e F e d e r a l P o v e r t y L i n e

California's Poverty Rate Increased Significantly Between 2006 and 2009

California US

Source: US Census Bureau

110207 child care facts

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