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Child Care Newsletter

A Quarterly Report on Financing, Quality of Early Care and Education Issues


December 2000 Vol. 1, No. 3 -- Special Start-of-Session Issue

Annual Meeting 2000
Technical Assistance
News From the States
Federal Update
NCSL Child Care Project
Recent Research Items/Resources

LEGISLATION TRENDS 2000

Trends 2000
In the 2000 sessions, state legislatures covered several key aspects of early childhood policies, including funding, regulations, coordination, support for providers, infant and toddler services, parent education, and out-of-school-time programs. Activity this year emerged in financing and regulations. As in previous years, lawmakers addressed financing child care and early education through state, federal and private sector sources. This year, financing legislation focused on child care subsidy accountability, financial support from businesses and state assessments of preschool programs. Child care regulatory policy-specifically environmental protections, enforcement and inspection laws, transportation safety provisions and access to nutrition services also received attention this year. Because of our legislation collection process, states enacted some of these bills late in 1999. Limited space prevents us from describing all of the bills to which we refer.

Publicly Funded Child Care and Early Childhood Education

TANF Funding for Child Care
Many states increased state or federal funding this year for child care or early childhood education services, including use of federal Temporary Assistance for Needy Families (TANF) money. At least four state legislatures-Colorado, Illinois, Iowa and Mississippi-specified the use of TANF for a range of early childhood funds. The Colorado law authorizes counties to remodel child care facilities with funds transferred to the Social Services Block Grant from TANF. Illinois lawmakers allocated $7.5 million for a test program for non-TANF families who are income eligible and need child care assistance to participate in education or training activities. An Iowa law appropriates TANF funds for two years for community empowerment programs for children from birth to age 5. Mississippi legislators authorized TANF transfers for child care subsidies, rate increases and quality initiatives. The law also appropriates TANF funds for after-school services for at-risk children.

Preschool Programs
Enacted legislation regarding preschool services this year focused mainly on funding and evaluating programs. At least five states-Arizona, Colorado, Maryland, New York and Florida-enacted laws to fund preschool services. An Arizona law authorizes early childhood block grants to accredited preschool programs that received no funding the previous year. A new Colorado law funds consolidated projects so one child can use two half-day positions for a full day of preschool. In Maryland, prekindergarten programs now can be used in the state school funding formula. A New York law requires school districts that receive Individuals with Disabilities Education Act (IDEA) federal funds to allocate specific funds for special education for certain students ages 3 to 5. Florida now requires that prekindergarten allocations go to school readiness coalitions rather than to school districts.

At least five states-Alabama, Florida, Maryland, Minnesota and Wyoming-enacted legislation regarding development or assessment of school readiness programs at the preschool level, and evaluation of these programs. Alabama lawmakers created the Office of School Readiness to establish a unified approach to school readiness, assess service gaps and adopt a measurement system. Two other states recently established similar offices. New laws in Minnesota and Wyoming require that school districts assess school readiness programs and submit reports to the legislature.

Eligibility Expansions
Several states enacted legislation this session to expand eligibility for a variety of child care programs. Colorado legislators increased the income eligibility for child care assistance from 185 percent of the federal poverty level (FPL) to 225 percent of the FPL. The law also encourages counties to continue child care assistance to families that exceed the maximum eligibility for six months up to the federal limit. Similarly, legislators in Florida have allowed the state to extend subsidized child care eligibility to working families with incomes up to 200 percent of the FPL. Illinois lawmakers enacted legislation that requires funding to participate in training or education activities for non-TANF families that are income eligible for child care assistance. Similarly, Minnesota's new law extends child care eligibility to welfare recipients who are participating in an approved employment and training activity. A New York law allows eligible public assistance applicants or recipients the option of receiving child care subsidies instead of ongoing cash assistance. The Oregon legislature enacted a law last year to increase the income level for a family to qualify for a child care tax credit.

Tiered Reimbursement
Some legislatures continue to use differential reimbursement rates as a way to improve quality of care for children from low-income families. In 2000, at least two legislatures addressed this issue. Kentucky legislators enacted a measure that requires a monetary incentive for quality child care, including increasing the subsidy payment and providing a one-time award for programs, based on a quality rating system. The law requires the state to annually review the adequacy of child care subsidies. Maryland legislators required a state commission on early child care and education financing to examine tiered child care reimbursement rates.

Coordination of Services
Legislatures in at least three states-New Jersey, Alabama and Iowa-enacted provisions in 2000 to coordinate publicly funded early childhood services. New Jersey laws created collaborative programs aimed at increasing child care services to low-income families. One law authorizes the use of TANF funds for the Neighborhood-Based Child Care Incentive Demonstration Program, a collaborative partnership using community organizations and resources to deliver neighborhood-based child care services. A second bill establishes the Intergenerational Child Care Incentive Pilot Program Fund to create partnerships with continuing care retirement communities and assisted living facilities to develop child care center services for their employees and children eligible for subsidized care. Alabama legislators enacted a law that requires the state Office of School Readiness to coordinate with the child care licensing division for administration of the federal Child and Adult Care Food Program. The law also requires coordination between early childhood education, child care and family support programs. An Iowa law requires flexible use of TANF funds to meet community needs, enhance links between Head Start and Early Head Start, and promote other access strategies.

Subsidy Accountability
Several state legislatures are tracking how public child care funds are spent. The Minnesota Legislature enacted a law that prohibits families that were disqualified from welfare due to fraud from receiving transitional child care assistance. The Tennessee legislature enacted a law that requires financial disclosures and random audits of child care centers that receive a minimum amount of state subsidies. Iowa legislators also examined the issue.

Business Financing for Child Care

Involving Businesses
At least six state legislatures established child care laws in 2000 that expand public and private partnerships. Many of these provisions build relationships with the corporate community to increase the private sector's involvement in child care financing. Newly enacted legislation in Maryland, Oregon and Tennessee requires these states to develop funding plans to include the corporate community. A Colorado law encourages counties to match private investments in child care with public funds. Kentucky legislators created an early childhood business council that includes the corporations. Maryland directs state grants to organizations that are seeking funding from private sources for programs to promote early literacy. A New Jersey law targets business involvement in establishing partnerships with retirement and assisted living communities to develop intergenerational child care programs.

Tax Credits
At least five states-California, Colorado, Oregon, Maryland and New York-expanded their child care tax credits this past year. California's tax credit now is refundable. Colorado legislators increased the credit amount for different income levels based on the federal credit. Oregon legislators increased the percent of child care expenses that can be applied to the tax credit. Maryland and New York also expanded their tax credits in 2000. Approximately half the states have an individual dependent care credit.

Paid Parental Leave through Unemployment Insurance
Since the U.S. Department of Labor proposed new rules last year to allow states to use unemployment compensation funds to pay employees on leave related to the birth or adoption of a child, lawmakers in some states considered this option. Birth and Adoption Unemployment Compensation, which was made official in June, is a new eligibility for unemployment insurance based on a revised interpretation of the Federal Unemployment Tax Act. It permits states to grant new parents up to 12 weeks of partial wage replacement benefits in the year following the birth or adoption of a child. In 2000, at least 15 states-Connecticut, Florida, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New York Pennsylvania, Vermont and Washington-proposed parental leave expansions, mostly through unemployment insurance. No state enacted such a proposal.

Regulations for Child Care Facilities

Safety Requirements
Lawmakers in at least four states-Massachusetts, Michigan, New Jersey and Rhode Island-have established new environmental protections for child care facilities. A Massachusetts law requires child care centers and school-age child care programs to follow pesticide application requirements. Michigan legislation requires the state to provide a list of children's products that the state defines as unsafe to child care facilities for licensing or regulation purposes and prohibits facilities from having such products. This law also requires facilities to post a list of all recalled products. A New Jersey law requires child care centers to post consumer confidence reports about the safety of their drinking water. In the past decade, several states have prohibited the use of tobacco in child care facilities while children are present. Last year, Rhode Island enacted legislation prohibiting tobacco use in licensed child care centers and family child care homes, with exceptions. Legislators in at least three states-Florida, South Carolina and Tennessee-enacted laws strengthening child care transportation safety standards. At least 12 state legislatures enacted laws to strengthen child care provider background checks.

Inspection Caseloads and Enforcement
During the past year, several states-Colorado, Kentucky, Tennessee, Oregon and South Carolina-enacted legislation to strengthen inspection and enforcement of child care facilities. Colorado and Kentucky lawmakers provided funding for child care inspectors. At least two states-Kentucky and Tennessee-enacted legislation describing enforcement mechanisms. A Tennessee law expands the enforcement options for license violations and expedites the reviews of child care licensing enforcement actions. Last year, Oregon legislators added certain facilities to those that are inspected by the state and require state inspection after a serious complaint of a regulated facility. Another new Oregon law allows the state to issue or renew registration to a family child care provider without inspection if certain training and other requirements are met.

Access to Records
At least six states-Arizona, California, Florida, Kansas, South Carolina and Tennessee-enacted legislation regulating access to child care facility records. An Arizona law requires child care licensees to post notice about the location of inspection reports and allows public review of state child care records. A California law requires child care resource and referral agencies and alternative child care payment programs to inform people who request child care referrals of their right to view child care licensing information and public files.

Graduated Licensing/ Rating System
At least two state legislatures-Kentucky and Tennessee-approved measures on child care licensing or rating systems. The Kentucky law requires a collaboration of agencies to develop a voluntary child care rating system based on quality components. Tennessee lawmakers require an annual report card or graduated licensing system that includes key performance indicators.

Ratio Requirements
At least three states-Tennessee, South Carolina and Virginia-enacted legislation establishing new requirements for child-to-staff ratios. Tennessee legislation authorizes rules for new child-to-staff ratios for infants and toddlers. A South Carolina law requires certain church and religious providers to meet applicable requirements, including child-to-staff ratios. A Virginia law requires that certain child care staff be counted in ratios only when staff are directly supervising children.

Nutrition
At least two states enacted laws designed to increase participation in the Child and Adult Care Food Program. A Minnesota law requires the state to request a waiver from the Department of Agriculture so group family child care facilities can participate in the program. The Alabama law requires the state Office of School Readiness to coordinate with the child care licensing division to administer the program.

Training and Education for Providers

Funding for Training and Education
During the past year, at least six states-Colorado, Oregon, Iowa, Tennessee, Maine and Maryland-enacted legislation that appropriated funds for professional development for child care providers. Colorado and Oregon appropriated funds for the collaborative development of child care provider training. The Colorado law appropriates $1.03 million from the federal Child Care and Development Fund (CCDF) to develop a community-based early child hood training plan. The state authorizes additional funding from previously appropriated state funds and encourages counties to match private investments with public funds. Oregon legislation requires the state to seek public and private funding to implement statewide child care provider training that focuses on healthy brain development for infants and toddlers and potential risk and behavior factors in young children. Iowa legislators earmarked $300,000 of TANF funds for child care assistance for educational opportunities for registered child care home providers. Enacted Tennessee legislation earmarks licensing fees to child care training and quality activities. Maine legislators appropriated $150,000 for a state education scholarship fund. A Maryland law appropriates $1 million for a grant program for early child care and education providers who voluntarily become or are working toward becoming accredited.

Training Requirements
At least two states-Minnesota and Tennessee-enacted legislation to increase child care provider training requirements. The Minnesota law requires three levels of in-service training annually for child care teachers, assistant teachers and aides. The law differentiates training requirements among the levels based on education, licensing and certification. Enacted Tennessee legislation authorizes training requirements for caregivers and directors.

Incentives for Professional Development and Compensation
At least five states- Maine, Florida, Kentucky, Illinois and Colorado-enacted legislation in 2000 that establishes incentives for child care provider development. A Maine law expands the eligibility for the state child care education scholarship fund to include residents enrolled in courses at institutions with articulated agreements with accredited higher education institutions. This law appropriates funds for the scholarship. Enacted Florida legislation authorizes the state to contract for TEACH, which gives salary increases to child care providers and teachers who complete a specified education or training activity. A new Kentucky law establishes a council to help develop a credential and professional development system, including scholarships and monetary incentives to encourage provider education and training. In addition, the law sets eligibility for scholarships and requires the state to facilitate scholarship participation. Illinois lawmakers established the Great Start program to provide bonuses to child care employees relative to their educational achievements, tenure and qualifications. Colorado lawmakers required pilot programs to establish voluntary credentialing of providers.

Resource and Referrals
At least four states-Florida, Kentucky, California and Kansas-enacted legislation specifying the role of resource and referral (R&R) agencies. Legislators in Florida and Kentucky added responses to R&Rs regarding the promotion of quality child care. A California law requires R&R agencies to inform those requesting child care referrals of the right to view child care licensing information and public files. Legislators in Kansas enacted a bill that requires that an R&R agency be licensed in order to receive state notice of a child care program's regulatory status.

Infant and Toddler Care and Development
During the past few years, some states have enacted laws aimed at improving early care services specifically for infants (from birth to age 1) and toddlers (ages 1 to 2). In 2000, at least eight states focused on four infant and toddler policy areas: assisting parents with information about the importance of the first three years; regulatory improvements, such as child-to-staff ratios or training requirements; services for young children with disabilities; and using federal welfare funds for Early Head Start. Iowa legislators earmarked federal TANF funds for community programs for children from birth to age 5, including Early Head Start.

Parent Involvement
At least two states-New Hampshire and Utah-enacted laws that educate parents or others about the importance of a child's first three years. A New Hampshire law established two school district-based Parents as Teachers programs to serve parents of children from birth to age 3. Enacted Utah legislation prohibits the state and schools from requiring infant literacy or parenting programs without parental permission.

Regulations
At least three states-Tennessee, Oregon and Colorado-made regulatory improvements by establishing new requirements for infant and toddler child-staff provider ratios or increased child care provider training requirements. Enacted Tennessee legislation authorized rules for new child-to-staff ratios for infant and toddler providers. An Oregon law required the state to implement a statewide child care provider training program on the importance of healthy brain development. A Colorado law added infant-toddler child care homes to the definition of a family child care home.

Inclusive Child Care and Special Needs
At least two states-Illinois and Florida-established legislation regarding inclusive child care and early developmental assessment. An Illinois law redefines informed clinical judgement for developmental delays and authorizes the determinant for early intervention services. This law specifies that infants and toddlers with disabilities have a right to early intervention services in environments where children without disabilities would participate. The Florida law requires developmental assessments to be made within 45 days after a referral for children starting from birth.

Parent Education
At least three states-Kentucky, New Hampshire and Minnesota-enacted laws that provide or emphasize parent education. A Kentucky law requires child care providers to give nutritional awareness information to the parents of children in their care. Enacted New Hampshire legislation established two school district-based Parents as Teachers programs to serve parents of children from birth to age 3. A Minnesota law requires the state to place a priority on parents' applications for parenting programs.

After-School Programs
At least 10 state legislatures addressed out-of-school time issues by expanding or funding access to facilities in schools and in the community. At least six states-Mississippi, North Carolina, Iowa, West Virginia, Colorado, and Illinois-enacted laws relating to funds and after-school programs. Mississippi and North Carolina lawmakers addressed the funding issue by appropriating TANF funds for after-school services for at-risk children. Iowa legislators appropriated $200,000 of TANF funds for child care assistance in the areas of facilities, increased school-age slots, or transportation for school-age child care. Related West Virginia legislation requires after-school care to be included in a welfare recipient's contract. Colorado enacted legislation that allows home child care operators to claim tax credits for qualifying children in full-time, before- or after-school care. Illinois law provides wage supplements to school-age care employees from the establishment of the Great Start program.

At least five states-California, Rhode Island, Minnesota, Florida and Iowa-enacted laws addressing facility concerns. California legislators authorized after-school programs to be conducted at a community park or a recreational area adjacent to a program school site. A Rhode Island law creates a pilot after-school program to reduce gang activity and drug related crimes, and prohibits activities from being based at schools. Two other states-California and Minnesota-enacted laws that authorize extended day programs in local communities. A Florida law requires state child care agencies to help families identify summer recreation and day camp programs.

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ANNUAL MEETING 2000

The NCSL child care project sponsored the following three sessions at NCSL's July 2000 Annual Meeting in Chicago:

• Child care financing
• Early learning initiatives
• After-school programs

Speakers at these sessions shared a wealth of knowledge about state and federal policies, research findings and specific programs. Participation at all three sessions was high and they received favorable evaluations from legislators and legislative staff.

Child Care Financing: Making the Most of Funding Opportunities
At a joint session between NCSL's Assembly on State Issues Children (ASI), Families and Health Committee and Assembly on Federal Issues (AFI) Human Services Committee, panelists examined different ways that state legislators are financing child care and early education services to support both the current and future workforce. The session examined strategies that use a range of federal, state and local funding sources. Speakers included:

• Charlotte Brantley, commissioner of the U.S. Child Care Bureau, who pointed out that state decision makers are spending more federal funds on quality services than is required and in some cases, doubling it. She also said that states are combining child care funds with Head Start funds, flexibly spending their TANF funds on child care and using federal funds for various quality improvements.

• Bill Gormley, professor at the Georgetown Public Policy Institute, who discussed the effects of state policies that provide higher reimbursement rates for quality components, such as national accreditation. Among his findings is that states with a larger difference in rates are more likely to have an effect on accreditation applications.

• Senator Susan Longley of Maine, who discussed partnering with businesses to help expand child care resources. She described the development of legislation that provides for employer involvement in child care, including tax credits, a revolving loan program and a business commission.

• Representative Beth Coulson of Illinois, who talked about the state's recent child care affordability policy that assures subsidies for low-income families that earn less than a specified amount. She also focused on the state's 2000 law that promotes quality care by funding wage supplements to child care workers based on educational achievement and tenure.

Early Learning and Literacy: Collaborating for Success
A session sponsored by several NCSL state and federal committees on children, families, health, human services and education focused on state quality early childhood education programs, including research on positive child outcomes, Head Start partnerships and recent state preschool and early literacy initiatives. Presenters included:

• Helen Blank, Children's Defense Fund (CDF), who discussed prekindergarten funding levels, policy goals, eligibility and full-day services. She also talked about states that complement their programs with comprehensive services to help support parents and states that fund Head Start with state money.

• Tom Schultz, U.S. Head Start state collaboration director, who spoke about the importance of collaborations between state prekindergarten programs, Head Start and child care subsidies. He highlighted examples of effective state funding initiatives, innovative organizational structures and processes, effects on quality services, Head Start's effect on infants and toddlers through the Early Head Start program, and state use of federal welfare money for Head Start.

• Representative Evelyn Lynn of Florida, who addressed that state's wide-ranging school readiness law, which expanded preschool eligibility so it matches with child care eligibility and helps coordinate these two programs. She also discussed the program's quality standards and its multiple funding sources.

When School Lets Out: State Support of After-School Programs
At a concurrent session, presenters addressed state legislative actions on before- and after-school programs. They talked about the programs' different policy objectives, such as improving academic performance, reducing delinquency, assisting working parents and supporting workforce development. Speakers included:

• Beth Miller, of the National Institute on Out-of-School Time, who said that state involvement in developing out-of-school time policies has increased during the past few years. She also discussed key research findings that show the benefits of good after-school programs and posed policy questions for legislators to consider, including building infrastructure and accountability.

• Senator Deborah Ortiz of California, who gave an overview of the state's recently enacted legislation that expands after-school services to school-age children. She discussed funding, including local matches and California's priority on schools with students from low-income families. She also spoke about the law's less strict staffing ratios and increased literacy component, as well as findings that show better student grades and less school-based crime.

• Tim Decker, of the Local Investment Coalition (LINC) in Kansas City, Missouri, who talked about his program's high-quality services to about 6,500 school-age children to achieve stronger social, emotional and intellectual development. He discussed the program's various funding resources, strong standards and improved relationships between children in the program and their parents.

• Terry Peterson, counselor to the secretary of the U.S. Department of Education, who pointed out that the federal government encourages the availability of quality after-school programs by working with state and local agencies and policymakers. He also highlighted the importance of the issue by citing key facts, research findings and polls about the effects of out-of-school time on juvenile crime, working parents, unsupervised children and academic skills. He discussed the increased federal funding of the 21st Century Community Learning Centers program, used to start or expand after-school services.

More complete descriptions of these sessions can be found at http://www.ncsl.org/programs/asi/ccfin.htm and http://www.ncsl.org/programs/asi/early.htm

A recent article in NCSL's State Health Notes discusses out-of-school time policies, research and state programs. It can be accessed at http://www.ncsl.org/programs/cyf/article.htm.

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TECHNICAL ASSISTANCE

Wyoming
The Wyoming Joint Subcommittee on Early Intervention asked for NCSL's help in August 2000 to identify effective early childhood programs that prevent delinquency, crime and violence. The NCSL child care project and the NCSL child welfare and juvenile justice project provided cross-jurisdictional information about successful state early intervention policies and programs. Social Services, Health, Labor, Education and Judiciary Committee members were represented on the subcommittee. At the hearing, the subcommittee voted for five proposals, some of which would supply resources to early education and family support programs.

Among items discussed by NCSL staff and an expert from The Center for the Study and Prevention of Violence were:

• Recent state legislative initiatives designed to prevent youth violence and crime through long-term reduction of risk factors, such as lack of parental bonding, school failure and behavioral problems, including funding quality preschool, family support services (such as parent education) quality child care and after-school programs.

• Research findings that point to positive child outcomes resulting from good early childhood programs.
• Research on crime and delinquency, noting specific programs that have resulted in less violence.
• Community child protection and home visitation programs that enhance crime prevention efforts.

In addition, legislators and other state leaders at the hearing addressed state obligation of federal Child Care and Development Block Grant (CCDBG) funds that had been transferred from the state's welfare (TANF) allocation. Subcommittee members heard from the director of the state Department of Family Services, a staff person from the governor's office, and child care and nutrition advocates. Advocates expressed concern that the state could lose the CCDBG funds if the executive branch does not obligate the funds within two years, as required by federal law. Further NCSL assistance was requested to help clarify the issue. Presentations also were made on public health, substance abuse prevention, crime prevention and developmental disability experts.

Nine legislators from both houses and both parties participated in the hearing and five subcommittee members participated in the subsequent discussion of proposed legislation. Members discussed various funding mechanism options for preschool and family support programs, including the possibility of using TANF funds. The subcommittee members voted for five proposals, which included:

• Establishing a statewide preschool program,
• Establishing neighborhood resource centers,
• Requiring reading assessments for first graders,
• Setting community needs assessment standards, and
• Parenting classes for prison inmates.

Idaho
An Idaho legislator requested that project staff present to, facilitate a discussion at and arrange for other speakers at a September 2000 meeting of the joint bipartisan interim Idaho Early Childhood Education Task Force. The task force is studying how Idaho policymakers can ensure that every child begins school ready to learn and has appropriate pre-literacy skills.

During the past year, Idaho legislators have examined the early childhood development issue. Recent media articles have highlighted the brain development research and examined the Legislature's involvement in promoting early childhood policy. The task force meeting in Boise, Idaho, addressed the issues of the cost of quality child care, preschool and family support strategies. Six task force members participated, along with community members, state officials and advocates. Presenters and their topics were:

• The NCSL child care project policy associate, who spoke about other states' child care, early education and family support initiatives, specifically home visitation and parent education for parents with newborns. She also discussed how some states have incorporated brain research and other studies into developing these policies.

• A child care expert from the University of North Carolina, who discussed the cost of quality child care and its effects on child outcomes.

• A pre-literacy expert from the Education Development Center, who spoke about promoting early literacy skills and preventing reading difficulties in young children from birth to age 5.

• An early childhood education expert with the Children's Defense Fund, who presented a national perspective of prekindergarten policy strategies, funding and programs.

After the presentation, NCSL child care project staff facilitated a child care policy legislative work session, during which the task force members examined and addressed various child care and early childhood policy ideas. The members placed a priority on promoting quality child care and early childhood education. The task force will meet again in November and will make recommendations to the Idaho Legislature in December. The task force chairs have given members the option to propose legislation. Based on the task force discussions, possible areas of legislation include educating parents about brain development; training, accreditation and wage incentives for child care providers; and a limited preschool pilot program.

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NEWS FROM THE STATES

Child Care Accountability
After the deaths of three children left in vans used by child care centers and various reports of misuse of public child care subsidies, the Tennessee legislature established new laws in 2000 designed to improve child care safety and accountability. Lawmakers enacted measures that strengthen regulations, including increasing van safety, background checks and random audits to prevent the misuse of public child care funds. Among other findings, a recent state audit reported that one center misused public funds by charging for meals and snacks that children never received. Another case involved a state agency clerk receiving kickbacks to allow ineligible children into a state-financed child care program for abused and neglected children. Time magazine covered these issues and recognized the legislative actions in its July issue.

Iowa legislators also are addressing the accountability issue since a state investigation uncovered incidents of child care centers submitting false billing statements that inflated the number of children being served. This summer, the Iowa Oversight Committee, a subcommittee of the Oversight and Technology Budget Committee, held a hearing to examine child care accountability issues. The state's Department of Human Services now is developing policies to recover fraudulently obtained funding and is establishing safeguards to verify the accuracy of subsidy billing statements. Legislative proposals next year may address this issue.

State Task Force Studies
The Oklahoma governor appointed an 11-member task force on early childhood education-comprised of state agency officials, business leaders, parents and educators-to examine the link between early child education and future school performance. The task force is considering the effects of poverty on child development and the educational needs of children from low-income families. To build the educational potential of young children, the task force is examining ways to create and improve existing programs to help break the cycle of poverty. The task force will deliver its proposal to the governor in late November.

In 1999, the Louisiana Legislature established a child care task force-composed of legislators, child care providers, state officials and community advocates-to study current laws and regulations governing child care providers and facilities. The task force report provides an overview of findings and recommendations, which include developing a statewide training curriculum for child care providers, increasing business and community involvement in child care, providing health insurance and benefits for child care providers and adding funding for the state's child care licensing agency. State lawmakers will consider continuing the task force during the next legislative session.

In 1999, the Mississippi Task Force to Study the Development and Implementation of Comprehensive Early Childhood Services submitted to the governor and Legislature its Report of the Task Force to Study the Development and Implementation of Comprehensive Early Childhood Services in Mississippi. The report recommended that an interagency council be established to collect and distribute data on preschool-age programs and services, that the state support parent and teacher education programs, and that access be made available to training opportunities for child care providers. Mississippi's enacted legislation in 2000 reflected some of these recommendations. New laws establish an interagency coordinating council for early childhood services; use TANF funds for child care subsidies, quality initiatives and after-school programs; specify licensing fees; and strengthen background check requirements for child care center employees.

Minnesota Report Details State Early Childhood Funding
The Minnesota House of Representatives' Fiscal Analysis Department released its report, Financing Family & Early Childhood Education 2000-2001, in September 2000. This report includes state definitions of early education finance terms, a five-year funding history of programs, and descriptions of funding formulas for various early education programs. For more information, contact Cynthia Coronado Templin at the Fiscal Analysis Department, (651) 296-7176, or e-mail her at cynthia.templin@house.leg.state.mn.us.

Denver Voters Reject Sales Tax Increase for Early Childhood
This November, Denver voters denied a sales tax increase to fund early childhood programs. The city sales tax increase of 0.2 cents would have raised between $25 million to $30 million annually. The money was earmarked to three main areas: early childhood education, including directing funds to child care subsidies; before- after-school programs for children ages 5 to 14; and comprehensive health services for children of all ages, focusing on health care centers and school-linked centers in or near schools.

Please e-mail information about additional state legislative activities to Bina Patel in the Denver office.

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FEDERAL UPDATE

Child Care Measure Added to TANF High-performance Bonus Program
On Aug. 30, 2000, the U.S. Department of Health and Human Services (HHS) published a final rule for awarding bonuses to states for high performance under the TANF program, including additional measures for FY 2002 and FY 2003. The TANF statute authorizes HHS to award high-performance bonuses to those states that are most successful in achieving TANF goals. One of these bonuses is based on a state's child care system.

States can elect to compete on the following measures for the FY 2002 and FY 2003 awards:

Work measures: job entry, success in the workforce, biggest improvement in job entry, and biggest improvements in success in the workforce ($140 million awarded).

A measure of family formation and stability, based on the increase in the percentage of children in each state who reside in married couple families ($10 million awarded).

Measures of critical support provided to working families.

•Participation by low-income working families in the Food Stamp Program ($20 million awarded).

•Participation of former TANF recipients in Medicaid and in the State Children's Health Insurance Program ($20 million awarded).

•Receipt of child care subsidies by eligible families ($10 million awarded).

HHS included a child care measure because it considers access to affordable, high-quality care to be a necessary part of a welfare reform program. The child care measure encompasses three elements of a state's system: accessibility (the percent of CCDF-eligible children receiving services); affordability (indicated by child care family copayments); and quality (based on state child care reimbursement rates). The top 10 performing states on a combined measure of child care accessibility and affordability will receive awards in 2002. HHS will use data that states report under the CCDF program and Census Bureau information to determine state performance in these two areas. States receiving the award must have 1) fully obligated their CCDF matching funds for the award year and 2) fully expended CCDF matching funds for the year previous to the award year.

If a state receives a high-performance bonus award, the award becomes TANF money for the fiscal year in which it was received. If the bonus is awarded on the child care measure, the funds do not become CCDF funds. If a state expends its award within the fiscal year in which it received the award, it can use the funds with the maximum flexibility provided under the TANF program. If the funds are not spent during that year, they become carryover TANF funds and can be spent only as assistance (payments to meet ongoing basic needs such as cash, food and housing).

The quality element of the child care award (as measured by reimbursement rates) will be part of the FY 2003 award cycle. HHS will use existing data on actual rates paid for children receiving CCDF as well as data on actual market rates that will be reported by states that choose to compete.

Call Lee Posey in the DC office for more information.

NWLC Reports on Military Child Care
The National Women's Law Center released the report, Be All That We Can Be: Lessons from the Military for Improving Our Nation's Child Care System, covering the significant improvements in the acclaimed U.S. military child care system. Details on the military's strategy for improving quality, affordability and accessibility are included. The authors provide specific ways that the military child care system can be a model for civilian child care.

NCSL CHILD CARE PROJECT

NCSL Receives New Grants to Support Legislative Child Care and Early Education Efforts

Coordination of Child Care and Preschool
Under a new grant from the Foundation for Child Development (FCD), NCSL staff will focus on state laws and policies that coordinate early childhood education and child care systems. Project staff will produce a summary of related state laws, interview legislators and other state officials about their assessments of their states' coordination efforts, and share findings with other states through technical assistance and meetings.

After-School Programs
The C. S. Mott Foundation awarded a grant to NCSL to engage state legislators on out-of-school time issues, such as before- and after-school programs and summer programs. The multidisciplinary project will address the extended day issue from a variety of policy perspectives, including the child care needs of working parents, academic performance, crime prevention and workforce development. NCSL staff will form an advisory group; provide state technical assistance, including collaborating with other national organizations; convene meetings; produce articles and a video; and respond to information requests.

Connecting Child Care Research to State Policies
Through new funding from the John D. and Catherine T. MacArthur Foundation, NCSL will organize a project that aims to make child care research more policy-relevant and timely. Project staff will work closely with key researchers and policymakers to illuminate specific research needs of legislators and other decision makers, while informing policymakers about key research efforts and findings. NCSL will collaborate with other national groups that work with policymakers to communicate these linkages through national and state meetings, a web site and written materials.

Early Learning
In a partnership with the Education Commission of the States (ECS), NCSL will provide information to state policymakers about early learning issues. Under the direction of New Hampshire Governor Jeanne Shaheen, ECS initiated an emphasis on state early childhood education policies. Grant funding from the Ewing Marion Kauffman Foundation will support these efforts. As one of the first activities under this grant, project staff are planning a December 1 meeting in New Haven, Conn. to analyze early education policies in the northeastern states.

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RECENT RESEARCH ITEMS/RESOURCES

New NCSL report-Financing Child Care
State legislators are examining funding opportunities that support working families with good, accessible child care, while also promoting healthy early childhood development through quality child care services that nurture children's learning and behavior. A new NCSL publication, Financing Child Care, discusses different funding options states can use to finance child care, including federal and state funds, tax strategies, business partnerships and other innovative resources. A copy of the full report is available on the web at http://www.ncsl.org/programs/cyf/finrpt.htm

State Legislatures Article Examines Using Unemployment Insurance for Parental Leave
An article in NCSL's October/November 2000 State Legislatures magazine, "Parental Leave as Unemployment," discusses current issues surrounding enactment of state paid birth and adoption leave legislation using unemployment insurance. The author identifies arguments for and against the use of unemployment insurance to fund paid parental leave, including unemployment insurance program design and legality of use. The article notes that a strong economy and low unemployment rates affect many state unemployment trust funds. It discusses other key factors that influence the use of the funds, including uneven state levels and caution due to the last recession. The author highlights several states that introduced bills granting some form of paid family leave, noting that the topic has emerged as a key issue of state legislative politics. The article mentions factors that may affect the future of federal and state policies, such as the presidential election. To order a copy of the magazine, call NCSL at (303) 364-7700. For more information, contact Cheye Calvo in the Denver office.

National Report Analyzes State Child Care Policies for Families on Welfare
A summary by the State Policy Documentation Project (SPDP), Findings in Brief: Child Care Assistance, analyzes state policies that exempt families on TANF from work requirements and time limit sanctions when suitable child care is unavailable. Examples include the availability of appropriate and affordable child care and the location of care in relation to the location of the parent's home or work. The report includes state definitions of some of these terms. The SPDP is a collaboration between the Center for Law and Social Policy and the Center on Budget and Policy Priorities.

HHS Reports on Need for Public Intervention in Child Care Services
The May 2000 HHS report, Child Care Quality: Does it Matter and Does it Need to Be Improved?, discusses the need to improve nonparental child care via public intervention from an economic perspective. This study, prepared by the University of Wisconsin-Madison for the U.S. Office of the Assistant Secretary for Planning and Evaluation, covers the effects of quality child care on children's development. It presents a case study on the quality of child care in the United States and strategies to improve child care, and examines a case for public investment in child care. The study found that high-quality child care with well-trained providers can improve children's school readiness by 50 percent. The study also revealed that child care centers save more money investing in staff and improving quality of care because, over time, provider turnover costs more than paying for training and better salaries. The report provides statistical data.

U.S. Assistant Secretary Highlights Findings on the Importance of Child Care to Welfare Reform
Two new studies analyzing the effectiveness of welfare-to-work programs supported previous findings that quality child care is crucial for the self-sufficiency for families that have been on welfare. In a recent statement, Olivia A. Golden, assistant secretary for the U.S. Administration on Children and Families, discussed the findings of two studies on programs in Los Angeles, Calif.; Florida; Georgia; Michigan; Minnesota; Ohio; Oklahoma; and Oregon. The Los Angeles study revealed the importance of reliable care for these families' employment. Golden also urged Congress to include the president's request of $817 million for more child care subsidies for working families and $3 billion for the Early Learning Fund to help states improve the quality of child care. Golden stressed the importance of investing in all families and making special efforts to reach out to those families that have the most barriers to overcome. The other report, What Works Best for Whom: Impacts of 20 Welfare-to-Work Programs by Subgroup, is available from the U.S. Administration for Children and Families, Office for the Assistant Secretary for Planning and Evaluation; call (202) 401-9215.

Report Analyzes Child Care Supply Changes in Two States
A new National Center for Children in Poverty publication, Scant Increases After Welfare Reform: Regulated Child Care Supply in Illinois and Maryland, 1996-1998, reports that the availability of regulated child care grew slowly in low-income communities in two states, even as more low-income parents have entered the workforce. According to the study, communities with the highest populations of low-income families generally experience the smallest increases in both regulated centers and family child care homes. Between 1996 and 1998, the research found that both Maryland and Illinois experienced a 6 percent growth in regulated child care supply. The percentages of centers and homes that offered care during nontraditional hours scarcely changed in either state, and the number of child care homes closing exceeded the number of homes opening in both states. The authors also provide information about changes in the two states' Head Start and prekindergarten supply. The report recommends that policymakers recognize factors that lead to supply shortages and propose strategies to address them, such as providing financial incentives for new centers in under-served, low-income communities and encouraging centers in low-income communities to offer extended hours.

Welfare Supports Generated Positive Effects for Boys
A recent University of North Carolina working paper found that New Hope, a welfare program that supplied a child care subsidy along with a wage supplement and health benefits, produced positive social behaviors in and educational progress of children, especially boys. The document, Lessons from New Hope: The Impact on Children's Well-Being of a Work-Based Antipoverty Program for Parents, found that the areas in which boys demonstrated the most improvement included better classroom performance and behavior, higher education and career aspirations, and more confidence about finishing college. The paper concluded that programs similar to New Hope can positively affect children's academic and social functioning. For more information, contact Rashmita Mistry at the Center for Developmental Science at the University of North Carolina at Chapel Hill (919) 962-0333.

Coordination Recommended for Early Childhood Education Programs
The U.S. Department of Education has published a report based on a meeting convened by the National Institute of Early Childhood Development and Education and the U.S. Department of Education's Office of Educational Research and Improvement (OERI). The report, School Involvement in Early Childhood (July 2000) focuses on the necessity of a coordinated early childhood education program. The report covers a range of areas, including why schools should be involved in early childhood, the role schools should play, and challenges public schools face. The group recommended that public schools become involved with preschool education and families in order to promote early school success. Also discussed are the needs for professional development programs, compensation for teachers and quality assurance issues. The report is available at www.ed.gov/pubs/schoolinvolvement/.

Survey Uncovers Various Attitudes Toward Child Care
A recent survey by Public Agenda examines effects of the increase in the number of working mothers on children and child care. The survey, Necessary Compromises: How Parents, Employers, and Children's Advocates View Child Care Today, found that most parents believe that public policies should focus on making it easier and more affordable for one parent to stay home. Half wanted to make professional child care more affordable. Employers reported being sympathetic to the child care needs of working parents but are concerned about the costs and difficulties in providing child care benefits to employees. Child care advocates agree that having a parent stay at home is the best child care arrangement, but they also generally agree that high-quality child care can be as nurturing and educational as parental care. As a result, advocates note that it is important to help parents obtain quality child care. The survey also covered the increased reliance on non-parental care and the effect of family decisions such as longer work days, divorce and family planning. To obtain a copy of the publication, call (212) 686-6610.

Forthcoming Publication from NRC on Preschool Education
Eager to Learn: Educating Our Preschoolers is a forthcoming publication from the National Research Council's Committee on Early Childhood Pedagogy. Approaches to early childhood learning are discussed in terms of policymaking, preparation of teachers, and the learning needs of specific groups of children. The report studies early childhood learning factors, asking what methods are called for in order to better educate and care for children between ages 2 and 5. The findings include environmental issues, variations of learning, social and economic issues, health, safety, and the time when early learning actually begins. Information regarding the report is available at www.nap.edu/catalog/9745.html.

NCCIC Searchable Database on Child Care and Welfare Available
The Information Management System Database hosted by the National Child Care Information Center (NCCIC) provides a searchable database on topics that include TANF, state demographics, child care licensing, and professional development for the United States and Puerto Rico. Information about funding, child care provider training, eligibility, and other statistics are available on the web site at http://www.nautilus.outreach.uiuc.edu/eric/search.asp.

NGA Launches Website, Publishes Report on Early Childhood
The National Governors' Association's (NGA) Center for Best Practices has launched an early childhood web site. This site hosts the report, The First Three Years: A Governor's Guide to Early Childhood. The site includes information about policy initiatives, resources, research, finance, and public engagement strategies regarding early childhood care and education.

Research Briefing Focuses on Early Childhood Intervention
Earlier this year, a Congressional research briefing, entitled Early Childhood Intervention Programs: What Are The Costs and Benefits, featured three national scholars who focused on the implications of the most recent academic research on early childhood intervention programs. The Northwestern University/University of Chicago Joint Center for Poverty Research organized the briefing, which was sponsored by chairman Nancy Johnson (R-Conn.) and ranking minority member Benjamin Cardin (D-Md.) of the Subcommittee on Human Resources, U.S. House Committee on Ways and Means. Speakers at the briefing were:

• Jeanne Brooks-Gunn, a developmental psychologist from Columbia University, discussed the structure and short-term effects of early childhood intervention.

• Janet Currie, an economist from the University of California, Los Angeles, noted that the attainment of short-term early childhood intervention goals-such as providing disadvantaged children a secure, stimulating environment or nutritious food-pays back much of the program cost, citing the Head Start program.

• Douglas J. Besharov, a professor at the University of Maryland School of Public Affairs and Resident Scholar at the American Enterprise Institute, examined the amount spent on publicly funded early childhood intervention programs and the research surrounding the program's effectiveness.

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