Revision: March 26, 2024, 8:34 a.m.
SB 404-FN - AS AMENDED BY THE SENATE
02/15/2024 0566s
2024 SESSION
24-2970
05/08
SENATE BILL 404-FN
AN ACT relative to expanding child care professionals' eligibility for the child care scholarship program.
SPONSORS: Sen. Whitley, Dist 15; Sen. Rosenwald, Dist 13; Sen. Perkins Kwoka, Dist 21; Sen. Soucy, Dist 18; Sen. Altschiller, Dist 24; Sen. Watters, Dist 4; Sen. Fenton, Dist 10; Sen. Chandley, Dist 11; Sen. Prentiss, Dist 5; Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Rep. McMahon, Rock. 17; Rep. D. Paige, Carr. 1; Rep. Simpson, Rock. 33; Rep. Wallner, Merr. 19
COMMITTEE: Health and Human Services
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AMENDED ANALYSIS
This bill directs the department of health and human services to establish a child care workforce child care assistance pilot program for one year and makes an appropriation to the department for this purpose.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/15/2024 0566s 24-2970
05/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to expanding child care professionals' eligibility for the child care scholarship program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Statement of Findings. The general court hereby finds that:
I. The availability of quality, affordable, safe, and reliable child care is critical to allow parents to remain in the workforce, build a strong and future-focused economy, and provide a supportive environment for healthy child development that prepares children for success in school and in life.
II. Recently, the inherent fragility of New Hampshire's child care system has become undeniable and there is an urgent need to solidify the child care sector through system-based policy change and investment.
III. Broad investment in the child care system has been identified as emergent and necessary priorities from diverse stakeholders including, businesses, state leaders, providers, early care and education professional, higher education, faith leaders, and families across New Hampshire.
IV. Parents need and deserve equitable access and true choice in care for their children. Reliable, quality care not only supports parents to enter and stay in the workforce but provides critical health and development support for children.
V. The child care scholarship or subsidy plays a significant role in ensuring all New Hampshire families have choice and access to quality, safe, and reliable child care, regardless of income, geographic location, or field of work.
VI. New Hampshire has an opportunity to address the child care staffing shortage that is the result of compensation being too low to attract and retain the early childhood educators who provide care and education in support of children and families.
VII. New Hampshire recognizes that our child care professionals make far too little in wages and one way that the state can offer a fuller benefits package is by providing child care scholarships to child care professionals.
VIII. The child care staffing crisis has become so significant that many programs have at least one classroom closed due to a lack of staff members. Covering the cost of child care will not only entice child care providers back into classrooms but enable more classroom capacity – increasing overall opportunities for caregivers who want to return to work but cannot find care.
IX. Broadening categorical eligibility for child care scholarships to New Hampshire child care professionals will go far to alleviate staffing pressures by maximizing benefits and allowing centers to redirect funds to additional recruitment efforts.
2 Department of Health and Human Services; Child Care Workforce Child Care Assistance Pilot Program.
I. The department of health and human services, division of economic stability, shall develop and implement a child care workforce child care assistance pilot program for a period beginning January 1, 2025 and ending June 30, 2027 in order to determine the financial impact of categorical eligibility, and collect relevant data regarding the success of intended outcomes. The department may adopt rules under RSA 541-A relative to implementation and administration of the pilot program.
II. For purposes of the pilot program, child care programs who have participating, eligible staff shall, with the consent of the individual staff person, provide information to the department as requested regarding recruitment and retention impacts of the program.
III. The department shall use the information provided in accordance with paragraph II to make the determination as to whether the child care assistance program delivers the intended value as a recruitment and retention strategy for child care providers. This requirement shall not be construed as authorization to report personally identifiable information of the program participants.
IV. Households with at least one verified New Hampshire child care professional employed at a qualified child care center, may automatically be eligible for a child care workforce child care assistance pilot, provided the following provisions are met:
(a) Each child in the household meets the same eligibility requirements of the current federal Child Care Scholarship program, specifically that each child shall be:
(1) A resident of New Hampshire;
(2) A U.S. citizen or qualified immigrant; and
(3) Thirteen years of age or under at the time of application or recertification; or through 17 years of age for children with disabilities who are enrolled before the age of 13.
(4) Any other federal eligibility criteria.
(b) Each eligible child resides with a verified New Hampshire child care professional. A verified New Hampshire child care professional means an individual who:
(1) Is a resident of New Hampshire;
(2) Is employed by a certified child care center and works a minimum of 25 hours per week; and
(3) Whose employment and eligibility is verified by the certified child care center at which the child care professional is employed.
(c) A certified child care center is a New Hampshire based, licensed child care center, licensed home child care center, or licensed-exempt center, that is registered and enrolled to accept child care scholarships with the state of New Hampshire.
(1) A family shall not be eligible if care is provided by a provider not licensed according to child-care center licensure rules; or registered and enrolled according to requirements for registered child care providers in the child care assistance program.
(2) A family shall not be eligible if care is provided in a home child care by: a parent or stepparent; a legal guardian; or a person living in the same residence as the child in need of care.
(d) A household that meets the requirements outlined in paragraph IV shall have eligibility determined for the federally-funded child care scholarship program under existing eligibility rules and be denied for being over income as a pre-requisite to consideration for the pilot program. If the household does not meet the eligibility income level requirements, it shall be deemed eligible for the pilot program and shall have all earned and unearned income excluded from the eligibility determination.
(e) Households eligible for the pilot program qualify for the child care scholarship benefit available according to the most current market rate survey for family size, child age, type of program and service level subject to the same cost share as families eligible for the child care scholarship program.
(f) Upon implementation, the department of health and human services shall develop and engage child care providers and/or staff on verification process for pilot program eligibility and develop a public awareness campaign to support broad access.
V. On or before March 1, 2025, the department shall provide a detailed report of the pilot program plan to the house health and human services oversight committee and senate health and human services committee of the general court. The report shall include data on utilization, including the number of individuals seeking services of paragraph I, the number of individuals provided services as part of the pilot program, the total cost of the services provided, and other relevant information necessary to assess the pilot program for statewide expansion as part of the state budget for the biennium ending June 30, 2027.
3 Appropriation. The sum of $250,000 for the biennium ending June 30, 2025, is hereby appropriated to the department of health and human services for the purpose of information system enhancements to implement this pilot program. The sum of $2,300,000 for the fiscal year ending June 30, 2025 is hereby appropriated to the department of health and human services for the administration, management, and benefit issuance of the child care worker child care assistance program for the one year pilot of this program. Funds appropriated shall be nonlapsing and the department shall have the authority to transfer any remainder amounts in the child care workforce fund.
4 Effective Date. This act shall take effect July 1, 2024.
24-2970
Revised 3/25/24
Amended 3/5/24
SB 404-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2024-0566s)
AN ACT relative to expanding child care professionals' eligibility for the child care scholarship program.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures | $0 | $1.48 million - $1.73 million | $2.3 million - $2.8 million | $2.3 million - $2.8 million | ||
Funding Source(s) | General Fund | |||||
Appropriations | $0 | $2.55 million | $0 | $0 | ||
Funding Source(s) | General Fund | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill directs the Department of Health and Human Services to create a child care workforce child care assistance pilot program for the period from January 1, 2025 to June 30, 2027 in order to determine the financial impact of categorical eligibility and collect relevant data regarding the success of intended outcomes. Based on census data and certain assumptions, the Department projects that between 361 and 434 children will be eligible for the pilot program. Assuming all eligible children will enroll in licensed child care facilities, the Department expects the average cost per eligible family (after family cost sharing requirements) to be $122.08 per week. Yearly costs are therefore expected to range from $2.3 million to $2.8 million. As the pilot program will not begin until January 1, 2025, the cost will be half of this range in FY25. In addition, the Department assumes changes will need to be made to the New HEIGHTS eligibility system, at a one-time cost of $330,000.
The bill contains nonlapsing appropriations of $250,000 and $2.3 million in FY25. As written, the bill does not contain language authorizing the governor to draw a warrant for the funds appropriated. Absent this language, the source of funds (though assumed to be general funds) is unclear, and there is no mechanism for the appropriation to be implemented.
AGENCIES CONTACTED:
Department of Health and Human Services