SB306 (2006) Detail

Establishing a quality early learning opportunity initiative and making an appropriation therefor.


SB 306-FN-A – AS AMENDED BY THE HOUSE

03/22/06 1400s

04May2006… 1871h

2006 SESSION

06-2794

04/03

SENATE BILL 306-FN-A

AN ACT establishing a quality early learning opportunity initiative and making an appropriation therefor.

SPONSORS: Sen. Estabrook, Dist 21; Sen. Green, Dist 6; Sen. Odell, Dist 8; Sen. Foster, Dist 13; Sen. Gallus, Dist 1; Sen. Hassan, Dist 23; Sen. Martel, Dist 18; Sen. Fuller Clark, Dist 24; Rep. Pilliod, Belk 5; Rep. Gargasz, Hills 5; Rep. Gile, Merr 10; Rep. Wallner, Merr 12

COMMITTEE: Education

AMENDED ANALYSIS

This bill establishes a one-year quality early learning opportunity initiative in the department of health and human services and makes an appropriation from the general fund for such initiative.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/22/06 1400s

04May2006… 1871h

06-2794

04/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT establishing a quality early learning opportunity initiative and making an appropriation therefor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Statement of Purpose. The general court finds that high quality early learning experiences are important to the well-being of children and the state. Children who attend child care programs that provide high quality learning environments are more likely to succeed in school and to become productive, independent adults. The general court recognizes that many low-income working parents are unable to afford the cost of quality, licensed child care. This act is intended to provide enhanced opportunities for these families to access high quality early care and education programs.

2 New Paragraph; Commissioner of Health and Human Services; Quality Early Learning Opportunity Initiative. Amend RSA 126-A:5 by inserting after paragraph XIII the following new paragraph:

XIV. The commissioner shall establish a quality early learning opportunity initiative which shall be available on a first-come, first-served basis to families whose income is between 190 percent and 250 percent of the federal poverty guidelines, and whose children are enrolled in a child care program licensed under RSA 170-E, and who otherwise meet all other eligibility requirements for child care assistance. The amount of support provided to eligible families shall be calculated annually by the department and shall reflect the estimated average difference between the cost of licensed child care and unlicensed child care.

3 Appropriation. The sum of $1 for the fiscal year ending June 30, 2007 is hereby appropriated to the department of health and human services for the purposes of section 2 of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

4 Repeal. RSA 126-A:5, XIV, relative to the high quality early learning opportunity initiative, is repealed.

5 Effective Date.

I. Section 4 of this act shall take effect July 1, 2007.

II. The remainder of this act shall take effect July 1, 2006.

LBAO

06-2794

Amended 5/24/06

SB 306 FISCAL NOTE

AN ACT establishing a quality early learning opportunity initiative and making an appropriation therefor.

FISCAL IMPACT:

The Department of Health and Human Services states this bill, as amended by the House, (Amendment #2006-1871h), will increase state expenditures by an indeterminable amount in FY 2007. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

This bill appropriates $1 in FY 2007 from the state general fund to the Department of Health and Human Services for the purposes of this act.

METHODOLOGY:

The Department of Health and Human Services (DHHS) states the amount of support to be provided to eligible families would be determined by estimated the average difference between the cost of licensed childcare and the cost of unlicensed childcare. While the cost of licensed childcare and the cost of unlicensed child care receiving state funds or subsidies are known, the department does not capture the cost of unlicensed childcare where the provider does not receive state funds or subsidies. Without knowing the cost of unlicensed childcare where the provider does not receive state funds or subsidies, the department cannot calculate the support to be provided to eligible families in the manner required by the bill. The number of families that would qualify for support under the bill is also uncertain. The bill provides for an income eligibility requirement based on family income of between 190% and 250% of the federal poverty guidelines (FPG). While it is impossible to anticipate the exact number of interested and eligible families that would apply for and qualify for the support, a potential indicator of that number is the number of children (3,189) receiving assistance through the Health Kids Silver program with family incomes between 190% and 250% of FPG. It is unclear if the appropriation is earmarked for the initiative’s support payments only, or if it could be used to offset departmental expenses necessary to implement the program. The department anticipates those expenses would include the costs necessary to modify the department’s eligibility determination (New Heights) and claims payment (Bridges) software, the costs necessary to undue those modification once the bill has sunset (July 1, 2007), as well as the costs associated with any additional human resources needed to process the increased number of eligibility determinations. Given the uncertainty of the amount of support to be provided, the number of families that would qualify and apply for that support, and the costs and funding source for the systems modification and personnel necessary to implement the program, the department cannot determine the exact fiscal impact at this time.