This Stage provides services for former CalWORKs families after they have been off aid for 24 months and for families that receive lump-sum diversion services. 2021. 1305 MacDonald Avenue 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. As noted above, most CalWORKs recipients are children, but many children living below the FPL are not currently enrolled in the program. %PDF-1.7 % Need childcare because they are employed, seeking employment, in vocational training, seeking permanent housing, and/or incapacitated. This committee is to provide its recommendations to the Department of Finance by November 15, 2022, to inform the Governors 2023-24 budget proposal. In 201920, the average monthly grant for CalWORKs families was $585. sufficiency, families are placed in Stage 1, Stage 2, or Stage 3 child care. That year, about 385,000 families (containing about 950,000 individuals) received CalWORKs assistance. 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. We assume no Pregnant Women-Only (PWO) CalWORKs cases. In 201920, California expects to serve an estimated 153,000 children across all three stages on an average monthly basis. 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. Stage Two serves CalWORKs recipients whose situation has stabilized or families that are transitioning off CalWORKs. The assumed Stage 1 caseload effect is based upon initial caseload changes experienced in San Francisco County, which launched a pilot in May 2017 that contained similar changes as enacted at the state level in 201920. The magnitude of the effect likely will depend upon implementation decisions and any program changes. 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. 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. 0000003818 00000 n Proof of earned and unearned income such as pay stubs and award letters for unemployment benefits, Social Security income, Veterans payments, and school grants or loans. If you would like more assistance call Once CalWORKs families become stable (as determined by the county welfare department), they move into Stage 2. As we discuss below, the total number of CalWORKs-eligible families remained elevated for years following each previous recession. For example, the effect of Chapter385 could vary notably were the state to retain its current child care reimbursement rate system or overhaul it. In a typical year (in which income eligibility thresholds are increased on July 1), the eligibility threshold is lower from January through June than from July through December. 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. 744 P Street M.S. <> ?.r} 1m5+v.w;X5iq?/M9^\n?xina{/a~~e-[59QFO pI~p!o?^OKyjU]V%sr+{v.WSrn{w.!xw?nnw?yr{t vtt>*>%KVyUeChW/Zss5*}R\+g0!D]AGwlW1#$%xg}RDj{q{Q0Y4 ! Because benefit levels did not increase at the same pace as the eligibility threshold, these newly eligible families may have seen little benefit to enroll in the program, potentially explaining the lower take-up rate to an extent. 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. L9 0000018842 00000 n You may keep vehicles that have an equity value of $25,483 or less. The ACS reports data for the calendar year, but income eligibility thresholds typically correspond to fiscal years (which start on July 1). Slots will be spread across the Alternative Payment Program, General Child Care, and Migrant Child Care. endstream endobj 1122 0 obj<>/W[1 1 1]/Type/XRef/Index[94 1006]>>stream Former CalWORKs recipients are eligible to receive childcare services in Stage 2 for up to 24 months after discontinuing cash-aid, or until they are otherwise ineligible within that 24-month period., Upon a recipient exhausting their 24-month eligibility in CalWORKs Stage 2, the family is seamlessly transferred into CalWORKs Stage 3 if they continue to meet the income and need requirement as defined by the funding source. 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 family chooses a child care provider. The state has recent experience in improving the take-up rate in similar programs, further helping those programs achieve their intended policy goals. The program is administered at the county level by the county welfare departments. The Child Care Resource and Referral also have a toll free telephone number. 1 0 obj Family Child Care Providers: Update your rate sheets On January 1, 2022, the new rate increases won in our contract with the state will take effect. Understanding CalWORKs Take-Up Rate May Inform Future Policy Choices. We estimate CalWORKs child care costs will continue to grow through 202324 (Figure4). 0000015934 00000 n Data from the ACS currently are available for every year between 2005 and 2019. These conditions include, but are not limited to: To speed the application process, please bring the following items when making application: Immediate need payments may be made for families with emergency situations while the CalWORKs application is being processed, if eligible. American Community Survey (ACS) Includes Most of the Information Needed to Estimate Eligibility. qbtU/yKACJ%eZ1~$@7FU^#zY `>s}&Km3d']9d~PS] P$$~3:Ph"@Z[io\|pmx~:51r FPE3U^+aMNIo ""wHsU9 :>H9:B'x+#f$6C7s,r 9bA;p. For more information and resourcesvisit the CalWORKs Child Care Program website. Compared to estimates included in the June budget plan, our November estimates assume a higher cost per case and caseload in Stage 1, a lower cost per case and caseload in Stage 2, and a lower cost per case but higher caseload in Stage 3. Not All Eligible Families Enroll in CalWORKs. In this section, we first describe the assumptions and methodology we use to produce our CalWORKs child care cost estimates. Costs could potentially decrease since counties would not be able to use unspent child care funds for other purposes. The budget package provides $604million in 2021-22 ($1.1billion ongoing) across several fund sources to increase rates for child care and preschool providers. Below we describe a few key factors not captured in our cost estimates. The 2021-22 budget included legislation to establish two workgroups to make recommendations for implementing a single child care reimbursement rate structure. For Stage 1, we adjust the 201819 cost per case to account for the recent policy change that allows all Stage 1 families to receive child care on a full-time basis. This action conforms with the state rate currently provided for CACFP meals served by public school entities. Waives family fees from July 1, 2021 to June 30, 2022. bDoes not include $9.6 million provided to community colleges for certain child care services. %%EOF Establishment of Child Care Rate Working Groups. Figure2 compares our estimate of the total eligible population (light and dark sections) to those enrolled in CalWORKs (dark section only). % If a recession were to occur during the next year or two, the effect on caseload and cost is even more uncertain given the state does not yet know the precise impact of its new Stage 1 policies. CalWORKs Currently Serves About 60Percent of Eligible Families. (We think the full-time provision will make accessing licensed care easier.). Current-Year CalWORKs Child Care Costs Are Down From Budgeted Levels. The 2021-22 California Spending Plan Child Care and Preschool Provides $8.7 Billion for Child Care and Preschool Programs. Compared to other states, California historically signed up a relatively small share of families eligible for the Supplemental Nutrition Assistance Program (a federal program that helps low-income individuals purchase groceries, known locally as CalFresh). This distinction is not important for those with regular hours throughout the year. gReflects preliminary LAO estimates in 202021 and 202122 as enrollment data are not yet publicly available. We make several assumptions in developing these estimates. For single parents, CalWORKs requires at least 32 hours/week of work activity. The second change was to annually update the data used to calculate the SMI. Rather than providing more flexibility to counties, the unspent funds could be used for other legislative priorities. 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. To qualify for CalWORKs, families must include one or more children who are either citizens or lawful permanent residents and generally must fall below certain income requirements specified in state law (roughly equal to about 80percent of the federal poverty level [FPL] for most families, although this varies somewhat by family size and region of the state). 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. See a list of this year's fiscal outlook material, including the core California's Fiscal Outlook report, on our fiscal outlook budget page. 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