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Child Care Task Force

MINUTES OF THE
CHILD CARE TASK FORCE

October 6, 1998 - 9:30 a.m. - Room 403 State Capitol


Members Present:
     Sen. Leonard Blackham, Chair    
    Rep. Sheryl Allen, Chair            
    Sen. Robert Muhlestein        
    Sen. Pete Suazo        
    Julie Baker
    Rod Betit
    Pat Kreher    
    Joan Nichol
    Dee Rowland
    Jill Rubadiri
    David Sonnenreich
    Debra Stone        
    Erin Trenbeath-Murray    

    

Members Absent:
     Rep. Margaret Dayton
     Rep. David Jones
     Melinda Clark
    Ric Higbee
    Elyce Mouskondis

Staff Present:
    Mr. Mark D. Andrews
     Research Analyst
    Mr. James L. Wilson,
     Associate General Counsel
    Ms. Wendy L. Bangerter,
     Legislative Secretary

    Note:    A list of others present and a copy of materials distributed in the meeting are on file in the         Office of Legislative Research and General Counsel.

1.    Call to Order - Sen. Blackham called the meeting to order at 9:44 a.m.

    MOTION:    Sen. Muhlestein moved to approve the minutes of September 8 and 25, 1998. The motion passed unanimously.

         2.    Tax Credit for Stay-at-home Parents - Sen. Muhlestein explained 3rd Substitute S.B. 210 (1998), which would create a tax credit for parents who stay at home and care for their own children. The bill would allow a credit for children under six years of age. The credit is prorated and would decrease as a person's state taxable income increased. The $17 million fiscal note would not require a budget cut or reduce current funding, but would reduce additional funding that would be available to the uniform school budget that is spent to prepare children for school. He commented that there is no better quality child care than the parent; and we, as a society, should support that parental involvement. He explained that S.B. 210 passed the Senate Revenue and Taxation Committee in 1998.

    The committee inquired whether this bill had been reviewed by the Tax Review Commission. It has not. It was indicated that this bill is on the agenda for the October Revenue and Taxation Interim Committee meeting.
    
    The task force discussed the eligibility requirements and the needs of parents and how this bill would or would not benefit them.

    Mr. Sonnenreich expressed his support for the concept of the bill, but voiced some concerns:
    .     This may not be the best mechanism to gain the desired result.
    .     The bill does not encourage parents to stay at home.
    .     More than the tax credit, the loss of the second income is what parents will be considering when determining whether a parent should stay at home with a child.
    .     The bill does not achieve the desired result for low-income parents.
    .     Parents need some tax relief even when their children are beyond age six. He would rather the Legislature look at a tax credit for large and low-to-middle income families.
    .     Families being encouraged to become one-income households should be a separate issue.

     Mr. Sonnenreich commented that the Child Care Task Force should have its life extended in order to accomplish its intent, now that it has been informed of the issues. He suggested several creative options that businesses might be willing to try to assist parents in leaving the workforce to stay at home with their children.

    Sen. Muhlestein emphasized that the intent of the bill is to assist those parents who have already made the decision to stay at home, and that single-parents are in a different segment of society and there is other legislation meant to benefit them. He commented it may not be fair to pit single and two-parent families against each together on this issue. There needs to be support for the two-parent families. He feels strongly the responsibility to support the cultural values of Utah.

    Rep. Allen informed the committee that the pre-school literacy program will be discussed on a future agenda and contains a component for working, as well as stay-at-home parents. She noted that it will probably be part of a larger literacy package that will be strongly supported by the governor's office and will also be considered from this one-time education surplus.

    The members of the task force reviewed the calculations used to determine state taxable income and how that compares to total income. They also discussed the possibility of funding the bill from other sources, including the repeal of sales tax exemptions.

    MOTION: Sen. Muhlestein moved to adopt 3rd Sub S.B. 210 as a task force bill. The motion failed with Senators Muhlestein and Blackham, Representative Allen, and Ms. Stone voting in favor of the bill.     

         3.    Business Consortium Initiative - Rep. Allen reviewed the draft language for a governor's executive order distributed by Ms. Kreher that would create the Utah Business Public/Private Commission on Child Care Financing. This document was the result of the work

of the working group appointed at the last meeting. Some amendments were made to the document. Ms. Kreher also distributed a chart regarding licensing, compensation, and training.

    Mr. Wilson explained that joint resolutions and/or committee bills are both alternative vehicles that could act as a committee recommendation in place of the draft executive order.

    Sen. Blackham recommended changing the emphasis of the document so that business is clearly the leader of the initiative and government a participant in its role as an employer. He expressed concern that, as written, the document was keyed too much toward creating an entity that would become an advocacy group before the Legislature. He spoke in favor of the governor appointing the commission, but indicated that the commission should be charged to develop initiatives that businesses can enact to help finance child care, and that government should be included in the effort as an employer. The task force members made several recommendations for amendments.

    MOTION:    Ms. Rowland moved to have this concept drafted as a resolution to be presented to the task force at the next meeting. The motion passed unanimously with Senator Muhlestein absent for the vote.

         4.    Fully Funding State Match to Receive Available Federal Monies - Ms. Cathie Pappas and Mr. Peter Dietz, Department of Workforce Services, reviewed the child care budget under the Department of Workforce Services, including changes that have been made and what the proposed budget reflects for FY 1999 through 2002. They reviewed estimated expenditures, with and without rate increases in provider payments in federal FY 1999 and 2001. They stated that additional state funding will be needed to maximize the federal funding and reviewed how that funding would be spent.

    Ms. Stone noted that the $1.5 million in state monies requested to secure full federal funding would not have an immediate effect on providers serving only private-pay children but would affect providers serving state subsidized children.

    Ms. Nichols stated that the state should pull down all the federal dollars possible, but they should also commit to supporting child care by appropriating more funding. She noted that the level of compensation to child-care staff does not guarantee the best quality people to nurture children in their parents' stead. If the state would increase the amount paid for state-funded children, it could make a difference.

    Ms. Kreher explained that the subsidy is not meant to cover the full cost of child care and that parents or businesses could, hopefully, make up the difference between the full cost and what is being paid by the private-pay client. She noted that the state should recognize the influx of population into Utah.

    Full federal funding would allow child care consumers to be subsidized at the 75th percentile level. Ms. Pappas explained how the 75th percentile is calculated. Senator Blackham expressed his support for setting the subsidy at this level.

    MOTION:    Rep. Allen moved to make a recommendation from the task force to the Legislature that states monies be appropriated to maximize the federal funding available. This would include appropriating $1.5 million for federal FY 2000 and fully funding the federal available match through the end of federal FY 2002. The motion passed unanimously with Senator Muhlestein absent for the vote.

    Ms. Shauna Lower, a trainer of child-care providers, emphasized that a well-trained, well- paid workforce is critical to quality child care.
    
         5.    TANF (Temporary Assistance for Needy Families) Life-time Limits - Ms. Helen Thatcher, Department of Workforce Services, addressed the TANF (Temporary Assistance for Needy Families) program and the life-time limit for families who receive TANF funding, which is 36 months. She noted that 20 percent of those receiving the TANF subsidy can be considered for an extension of the time limit but noted that these individuals must be working out of the home at least 20 hours per week. She emphasized that Utah has chosen to not target any certain type of family for an automatic extension of the time limit and that each family's barriers to employment are considered individually. Sometimes families with disabled children have a more difficult time finding child care, but that issue is addressed during the employment plan interview. She explained that the University of Utah is conducting a study that will indicate who is most at risk of exceeding the 36 month time limit. That study will be reported to the Workforce Services Interim Committee October 21. By July, the Department of Workforce Services will have identified those who will get an extension for their TANF subsidy. Ms. Thatcher said that there is no evidence that families with disabled children are at risk of losing their TANF subsidy. She also indicated that of the 7,951 families who receive a TANF subsidy and are required to participate in a work activity, 1,396 (18%) have children one year old or younger. The state has the authority to exempt families with children up to one year old from the work participation requirements but has chosen not to do so.

    Rep. Allen recommended that the task force postpone making a recommendation on the extension of TANF life-time limits until the University of Utah report has been released. She requested that staff ensure that a copy of the executive summary of the report is provided to the task force.

         6.    Use of School Buildings - Mr. Wilson distributed the statute on the use of public school facilities by child-care providers. Mr. Steve Peterson, Utah School Superintendents Association, reported on a survey he was asked to conduct to determine how much time, if any, school

buildings were being used for child care. The survey noted if a school provides child care programs after school hours, if child care is being provided during school hours, if private (for- profit) entities are being used, and what is being charged by the school district for the use of the school building. He indicated that each board of education charges differently to recoup the costs as allowed by law. He reviewed the results of the survey. He noted that charges differ between schools because of differences in facilities. He suggested that the task force may want to conduct a survey of the cost of commercial building space, compare the results to his survey, and forward the information to the districts. He agreed to coordinate with Ms. Baker, who also performed a similar survey and the local superintendents to try to establish more uniform rates.

    MOTION:    Rep. Allen made a motion to ask Superintendent Peterson to review his survey with the local districts and to work with them to make the rates for child care in schools more uniform and more affordable and schools more accessible for after-school care. The motion passed unanimously with Senator Muhlestein and Ms. Trenbeath-Murray absent for the vote.
    
         7.    Other Business - Because of the number of issues the task force needs to address, Rep. Allen proposed an additional meeting be held on Nov 3rd at 9:30 a.m. The committee agreed.

    Ms. Rubadiri asked that tax credits for businesses that give in-kind donations or services to child care be addressed on one of the future agendas.
    
         8.    Adjourn

     MOTION:     Sen. Suazo moved to adjourn the meeting. The motion passed unanimously at 12:18 p.m. with Senator Muhlestein and Ms. Trenbeath-Murray absent for the vote.

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