Crisis Mode: Three States’ Perspectives

1. Crisis Mode: Three States’ Perspectives National Association of Regulatory Administration September 14, 2011 Facilitator:Christine Ross-Baze LMSW National Association of Child Care Resource and Referral Agencies (NACCRRA)

2. Panel Members Gloria Merk, Community Care Licensing Manager California Department of Social Services Mary A. Murphy, Director Compliance and Regulation Development Unit Child Care Licensing Program Kansas Department of Health and Environment Deborah Russo, Child Care Services Director Florida Department of Children and Families

3. National Picture • National Unemployment Rate 9.1 • In July, unemployment rates increased in 28 states, decreased in 9 states and remain unchanged in 13 states. • Since 2008 local governments have cut 550,000 public sector jobs. Trend data indicates public sector jobs continue to decrease. • Cuts in state services affect vulnerable children and adults. • Many states will have budget shortfalls in 2012 and 2013. • Three states show significant job creation. • 20 states are reporting 2011 tax collections will exceed original revenue projections.

4. California Panel Presenter Gloria Merk, Community Care Licensing Manager California Department of Social Services

5. State of the State • State Budget $127 B • $26 B Deficit (February 2011) • State Population 36 Million (12% of nation) • Nearly 4 M in Los Angeles • Demographics 52 % of working age have jobs • 60% White, 32% Hispanic/Latino, 10% Asian, 6.7% Black • Unemployment Rate California 12% • 9.1% national rate • 1.4 M jobs lost in recession • Minimum wage $8.00 hour ($6.55 national)

6. Current Situation • Deep Budget Reductions • 5,500 state positions eliminated • Early Learning Advisory Committee and 20 other boards and commissions eliminated • Departments of Mental Health and Alcohol and Drug Programs eliminated • Adult Day Health Care program eliminated • Child Care funding reduced • Adoptions, Child Welfare and Adult Protective Services transferred to counties

7. Current Situation • Community Care Licensing $107 M budget • 50% Federal, 22% fees, 20% State, 8% reimbursements • 71,000 licensed programs • 12,000 certified family homes, 1.4 capacity, • 1 M caregivers, • 1,000 state staff, • 2 M fingerprint cleared workers • Frequency of inspections • once every 5 years, 30% annual random sample • Major legislation to reform licensing frequency died

8. Challenges • External • Focus is on the budget, realigning and reducing government • High expectations for licensing and fingerprint clearance process • Registered Sex Offender data bases and tracking • Internal • Maintaining the strength of licensing • Hiring Freeze, prohibition on in-state, out-of-state travel and contracting for services • Staff reductions • 15% fewer staff than needed to meet mandates • 10-25% vacancy rate • 20-45% loss productivity

9. Solutions • Build on the value of a strong licensing system • Develop meaningful decision making data systems, reports, analysis, outputs and outcomes • Innovative Training and Technical Assistance • Continue to build on and nurture partnerships • Access NARA’s expertise • Communicate and market value of state licensing • Invest savings from efficiencies into H&S protections • Increase the frequency of inspections • Increase protective factors associated by increasing time in field • Mobile workforce, wireless technology • Decrease office footprint/expense and administrative inefficacies

10. Next Steps • Prioritize and focus limited resources • Analyze key business processes • centralization, automation, customer self serve, elimination of redundancies and increased efficiencies • Key Indicator System • Stakeholder meetings on Key Indicator Systems • NARA Technical Assistance and Institute for Behavioral Sciences • Build statistical model and document process, results, methods • Retool approach to training and technical assistance • Invest in middle management training • Test wireless technology & remote supervision

11. Kansas Panel Presenter Mary A. Murphy, Director Compliance and Regulation Development Unit Child Care Licensing Program Kansas Department of Health and Environment

12. State of the State • State Budget $13.8 billion for FY2012 • State Population 2,853,118 • 105 counties covering almost 82,000 square miles • mostly frontier and rural • Demographics 39.6% working age (25-54) • 13% 65 and over • Minority population 16.2% • Unemployment rate 6.5% • 7.0% July 2010

13. Current Situation • 2010 -Landmark Child Care Legislation passed (Lexie’s Law) • No significant child care legislation in 2011 • Approximately 6,946 licensed facilities ( early care & youth) with total capacity of 142,281 • On an average 20,319 children receive child care subsidy benefits • At least one inspection per year (all facilities) • Approximately 5,692 inspections (initial, annual, compliance & complaint) in SFY 11

14. Current Situation • Child Care Licensing Program – 49 • Early Care and Youth Program Staff – 17 statewide • Under Aid to Local contract with county health departments Approximately 102 local licensing staff • $6, 203,378 - annual budget • (FY11 $5,349,642, FY10 $4,926,522) • For child care centers and homes the annual licensing fee is $75 + $1 times the number of children authorized on the license.

15. Challenges • External • Economy • Uncertain regulatory climate • Changes in Leadership • Internal • Budget • Unprecedented (at least in recent times) changes • Leadership • Business practices • Competing priorities • Reduction in workforce • Morale

16. Solutions • Create Efficiencies • Customer and Provider Portal (CAPP) including on-line applications and compliance history • Enhancements to the Child Care Licensing System (CLARIS) • Automated survey instrument • Strengthen existing partnerships and create new ones • Parents • Providers • Advocates

17. Next Steps • Continue systems improvements • Celebrate Successes

18. Florida Panel Presenter Deborah Russo, Child Care Services Director Florida Department of Children and Families

19. State of the State • State Budget $70,518,160,341 • Projected Deficit $828 million • State Population 18,801,310 • Break 20 million by 2015 becoming 3rd largest state • Demographics 41.5% working age (25- 54) • 17.3% 65 and over • Minority population 42.1% (higher than NY) • Unemployment rate FL 10.6% (982,000) • Fourth highest in Country • US 9.1%;

20. Current Situation • No major legislation passed during the 2011 session • 12,462 child care arrangements (300 fewer than previous year) • Serving 750,000 children (approx. 85,000 on wait list) • 3 inspections/year facilities; 2 inspections/year homes • 41,000 inspections (1000 fewer than previous year) • 124 staff statewide (14.5 fewer than previous year) • $16,633,847 budget ( $17,602,729 2010-11; $17,561,451 2009-10) • Minimal fees statutorily prescribed ($25 – 100 facilities; $25 – 60 homes) • Governors’ Executive Order 11-01 – suspended all rulemaking

21. Challenges • External • Economy • Lead Agency • Competing priorities • Business groups vs. Child Advocates • Internal • Budget • Competing priorities

22. Solutions • Create Efficiencies • Child Care Information System – licensing application; training application; policy system; web portals • Centralize functions • Paperless communication – email, Facebook, Twitter • Online applications • Temporary staffing agencies • Partnerships • Communities • Agencies • Parents • Providers

23. Next Steps • Possibly reduce onsite inspections • Race to the Top Challenge grant • Continue creating system efficiencies • Eliminate non-mandatory functions • Transfer functions or authority to other agencies • Seek additional funding for 2012-13 • Seek legislation to improve quality • Stay Afloat

24. Discussion – Sharing State Perspectives State Perspectives Challenges Initiatives Solutions Next Steps Successes Recommendations for NARA’s role in supporting states

25. Contact Information • Name: Gloria Merck • P: 916-651-6040 • F: 916-651-0515 • Email: gloria.merk@dss.ca.gov • Web: www.cdss.ca.gov

26. Contact Information • Name: Mary A. Murphy • P: 785-296-1270 • F: 785-296-0803 • Email: mmurphy@kdheks.gov • Web: www.kdheks.gov/kidsnet

27. Contact Information • Name: Deborah Russo • P: 850-488-4900 • F: 850-488-9584 • Email: debby_russo@dcf.state.fl.us • Web: www.myflorida.com/childcare

28. Contact Information • Name: Christine Ross-Baze • P: (571) 303 -2355 • Email: christine.ross-baze@naccrra.org • Web: www.naccrra.org

29. THANK YOU