Child Care. Under these estimates, the cost of the program in 202324 is 27percent higher compared to 201920. The local Child Care Resource and Referral agencies also assist potential child care providers in the licensing process including training for providers. The ACS reports only annual income, whereas California Work Opportunity and Responsibility to Kids (CalWORKs) eligibility is determined based on monthly income. 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). 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. 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. Waives family fees from July 1, 2021 to June 30, 2022. In this post, we introduce our methodology for estimating the number of families eligible for CalWORKs since 2005 and compare this to the number who actually enrolled. CalWORKs clients may be served in Stage One until the county determines that the family situation is stable, or if no funds are available in Stage Two. Legislative Action to Increase Reimbursement Rates Would Result in Higher Costs. This post is part of our November Outlook series intended to help the Legislature plan for the budget year ahead. Most CalWORKs Recipients Are Children. 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. Sacramento, CA 95814, Child Care and Development Division Contacts. Cash Assistance. Below, we explain our caseload and cost per case assumptions and methodology. For single parents, CalWORKs requires at least 32 hours/week of work activity. The first change was to allow Stage 1 families to receive child care on a full-time basis. Calculating Cost Per Case. Individual child care costs can vary significantly depending on the childs age, the number of hours of care a child receives, whether a child is receiving care in a center-based facility or home, and the geographic region. Previously, families were required to report any change in income or work hours within five days. One-time stipends of $600 per child enrolled in a subsidized child care program, based on March 2021 enrollment. 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. The fiscal effect of this budgetary change also will depend upon its implementation. Costs for Stages 2 and 3 Have Increased Over the Past Five Years. Copyright 1999-2022 MAOF. Should this pattern continue, tens of thousands of California families may remain impoverished for years due in large part to the COVID-19 recession. 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. eSome CalWORKs and nonCalWORKs child care providers use their funding to offer preschool. Nearly 60percent of children served in CalWORKs child care are under age six. The ACS is an annual survey of more than 2million households that is conducted by the federal Census Bureau. In this post, we provide background on the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program, discuss our projections of future CalWORKs child care costs, and identify various risks and uncertainties that could affect these future costs. 0000000774 00000 n The program is administered at the county level by the county welfare departments. The application for CalWORKs includes completion of eligibility forms and an interview with a case-manager. CalWORKs Child Care Costs Increase Over Outlook Period. 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. American Community Survey (ACS) Includes Most of the Information Needed to Estimate Eligibility. Figure1 shows Stages 2 and 3 caseload from 201011 to 201819. Verifying citizenship, or showing proof of legal immigration status. 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. Understanding CalWORKs Take-Up Rate May Improve Caseload Forecasting. 0000003330 00000 n A ^G.Ik $ e07(!&ak@Aj20m@,Jk t-#H20m b83YB Hv In 201920, California expects to serve an estimated 153,000 children across all three stages on an average monthly basis. hbbd``b`SA@ H0~ $P $3012d!3F 0 z CalWORKs child care programs serve children until they reach their 13th birthday, with priority given to children under age 10. The purpose of the CalWORKs program is to: Basic eligibility factors for a child(ren) and a needy parent(s) or caretaker relative include: Deprivation The aided child must be deprived of parental support or care because at least one parent is: Age Children may be eligible for CalWORKs until their 18th birthday or are 18 years old and in high school or trade school full time and are expected to complete either program before their 19th birthday. 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. We will continue to monitor the effect of these policies and incorporate them into our future cost estimates as better data becomes available. Families living in high-cost coastal counties such as Los Angeles and San Francisco receive grants that are about 5.5 percent larger than similar families living in inland counties such as Fresno and Shasta. Measuring the CalWORKs take-up rate is an important step towards potentially improving participation in the program. Prior to this change, families income had to be at or below 70percent of the SMI to be eligible for care. Both parents can meet this requirement if one is in a work activity at least 20 hours per week. Prior to this change, the state was using an SMI based on 2007 data. State Set to Remove Stage 1 From Single Allocation Block Grant in 202021. Contact | Locations Since the onset of the novel coronavirus disease 2019 (COVID-19), CalWORKs caseload has proven especially difficult to forecast. 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. Below, we describe our simplifying assumptions. Stage 1 begins when a participant enters the CalWORKs grant welfare-to-work plan developed by the CWD for each family. Future Posts Will Explore Additional Reasons for the Decline in Take-Up Rates, Among Other Topics. CalWORKs Child Care Costs Are Projected to Continue Growing. The availability of quality child care is essential to the success of the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program. #(mvggxHH[&P 5}|gFxbM3 LJ@$y0F0 dl$Y\AZ,w7 iN 00g See a list of this year's fiscal outlook material, including the core California's Fiscal Outlook report, on our fiscal outlook budget page. Overview 0 (The state is currently developing the Master Plan for Early Learning and Care that is to include recommendations for changes to the states child care system.) xref The California Alternative Payment Program (CAPP) funded by the California Department of Social Services (CDSS), Child Care and Development Division (CCDD) provides childcare subsidy assistance to income-eligible families who have a qualifying need as defined by the funding source. Since 2011, adults generally have been limited to no more than 48 cumulative months of receiving cash assistance, although this limit is set to return to its original 60 months in May 2022. Adults in the family can receive assistance if they (1)are lawful U.S. residents, (2)do not receive Supplemental Security Income, and (3)have not exceeded state and federal lifetime aid limits. $10million one-time General Fund to support access to the MyChildCarePlan.org website for counties and resource and referral agencies through 2022-23, with a subsequent transition of the services to DSS. 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. For Stages 2 and 3, we assume no change in cost per case over the period, as current state law sets reimbursement rates at the 75th percentile of the 2016 survey. 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). Stage Three is also administered by CDSS. The Child Care Resource and Referral also have a toll free telephone number. The funding provided for all three stages of CalWORKs child care is determined annually in the state budget process. (These estimates include the cost to increase rates for CalWORKs child care and the Alternative Payment program.). This committee is to provide its recommendations to the Department of Finance by November 15, 2022, to inform the Governors 2023-24 budget proposal. 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. Even after adults have timed out, families can continue to receive cash assistance on behalf of any eligible children. Providers may negotiate on a number of work-related issues, including their reimbursement rates. Because families earning relatively higher incomes already receive relatively smaller benefits, they have less incentive to enroll than lower-income families. As Figure1 shows, the 2021-22 Budget Act increases these programs by a total of $3.1billion (55percent) from the revised 2020-21 level. Understanding CalWORKs Take-Up Rate May Inform Future Policy Choices. 9-8-360 Changing this assumption would have unknown effects on our estimate of the take-up rate. The rest of this post outlines how our office developed county-by-county estimates for CalWORKs take-up rates. The magnitude of the effect likely will depend upon implementation decisions and any program changes. Figure3 compares the change in the eligibility threshold to the change in grant levels over the last 15 years. Most of the remaining funding is intended to provide additional funding to child care and State Preschool providers to assist with pandemic-related issues. Care for Children With Severe Disabilities. We do not disqualify families for CalWORKs eligibility due to their assets (like savings accounts). 1100 0 obj <> endobj Receipts or bills of sale for any recreational vehicles such as boats, trailers, motor homes, etc. For two parent families, at least 35 hours/week. CalWORKs Benefits Generally Decrease as Family Income Increases. o*F'Wyl[(K, $X:4h6 This compares with 201617 attrition rates of 4.5percent in Stage 2 and 3.1percent in Stage 3. Of the three stages, we estimate Stage 3 will grow at the highest rate through 202324growing 14percent in the budget year and continuing to grow at an average annual rate of 10percent thereafter. wxwipRo&=em,~iGvGv=Hv=C'dO&{"dJjdN0yU 8 !NFn#G810H:#Smsrz%;Qcb:BIUdo5WC@-9ZWW?X=*eL" LfErEG elC_ iK Dj No other agencies may apply. The budget also includes two major one-time augmentations for state operations: $15million one-time General Fund$9million for DSS and $6million for CDEto contract for the implementation of a direct deposit system for payments to child care and preschool contractors. Publicly available data give a clear count of the number of families enrolled in CalWORKs. As discussed in our recent Outlook post, both the administration and our office overestimated the extent to which caseload would grow following the pandemic and subsequent economic recession. In 201920, State Made Two Changes Affecting Stage 1. That year, about 385,000 families (containing about 950,000 individuals) received CalWORKs assistance. Most of this caseload increase likely is attributed to the policy changes noted above, with the change in the family reporting requirement likely having the greatest effect. These changes are expected to increase Stage 1 caseload significantly (as discussed in the Fiscal Outlook section). If you would like more assistance call 1-800-KIDS-793. x}y|T~[2wfV|0&D\\VqdcHXZV*$}yLDP!:DU+%Ye5!)+H7`nXdln!i1uYRW~)rQ2! Upon Stage 2 eligibility expiring, families move into Stage 3. 22-14. Children must also be either citizens or lawful permanent residents. %PDF-1.7 % 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. Monthly Income. The 2020-21 Budget: The purpose of the program is to support parents as they transition to the stable, long-term child care necessary for the family to leave and remain off aid. Grant sizes increase as family size increases, and grant sizes decrease as family income increases. Child care is provided for children through the age of 12, and for exceptional needs and severely disabled children up to age 21. 0000006991 00000 n 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. (As larger cohorts of Stage 1 families move through the subsequent stages of care, we expect Stages 2 and 3 caseload to increase too.) Establishes Two Rate Working Groups. 0000030450 00000 n Families might have a more difficult time, however, meeting required work activities, such that the number of families qualifying for CalWORKs child care services might not increase notably. Increases Rates for Child Care and Preschool Programs. 0000021785 00000 n 0000002736 00000 n This is called the, When the adults in the household are not able to work because of a temporary or permanent incapacity, or because the adult is a teen parent who attends high school, the family receives a higher MAP. 4BshBeO~BA(cFP*Bv=>C(|/^ g M* zy{e^583T>GZ86 Since 2005, the CalWORKs income eligibility threshold has increased by more than 50percent, making more families with relatively higher incomes eligible to enroll in the program. The effect at the state level, however, is uncertain and could differ notably from the San Francisco pilot and therefore from our estimate. This resource is designed to assistcounty eligibility workers and other partners who provide services to the public. The family is responsible for any amount that exceeds the daily allowance. Families also generally are deemed ineligible if they own more than $10,000 in property (other than their primary residence), have $10,000 in their bank accounts, or if they own more than $25,000 in automobiles (in practice, few families are denied aid because of these asset limits). <> stream *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 Attrition Rate in Stages 2 and 3 Down From Prior Years. 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). 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. Families who make their residence in California and who intend to continue to live in California may be eligible. As noted above, most CalWORKs recipients are children, but many children living below the FPL are not currently enrolled in the program. The program helps a family access immediate child care as the parent works or performs their welfare-to-work activity. Child only cases, i.e., cases where no adults are receiving aid, also receive the higher MAP level. Caseload refers to the average number of children served in each stage on a monthly basis during the fiscal year. Makes $1.7Billion in One-time Augmentations, Primarily Using Federal Relief Funding. The cost estimates reflected above do not include the effect of this legislation. By phone: (866) 663-3225, West County 16 non-operational days for providers accepting vouchers that have to close due to COVID-related reasons. Policy: Assembly Bill 131 (Chapter 116 of the Statues of 2021), which was signed into law on July 23, 2021, 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. Homeless Assistance is available only once in a 12-month period unless the family is homeless due to domestic violence, natural disaster, inhabitability, or a physical or mental disability. CalWORKs grants vary based on region, family size, and family income. The most significant increases during the period were the last two years. CalWORKs grants vary based on region, family size, and family income. x1 04q\wC&`'MF[! | Families without elderly members may have $10,888 combined personal and real property per family. Child Care Payment Options 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). Families are eligible to stay in Stage 2 for two years after they stop receiving cash aid. 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. 0000024793 00000 n 1-800-KIDS-793. 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. 1305 MacDonald Avenue To date, the state has not funded at the higher reimbursement level or begun using the more recent 2018 survey results. Families that participate in CalWORKs are eligible for subsidized child care until their children turn 12. 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