2007 Legislative Session A Success!

ACCA had another incredibly successful legislative session. Following the 2006 DES subsidy rate increase of $7.8 million (4.6% increase), ACCA was able to obtain another DES rate increase. This year the subsidy was increased by $9 million for a 5% rate increase - it would not have happened with out ACCA's leadership and the combined efforts of the Arizona early childhood community - ACCA members and advocates. While initially the odds were not good, we were effective by focusing on the most apparent inequities of the Pima County rates, generating ongoing media attention, and targeting our grassroots advocacy.

ACCA is grateful to all our legislative supporters. Our legislative champions were key to our success, most notably Senators Allen, Bee, Garcia, Aboud, and Rios, and Representatives Lopez, Lopes. and Hershberger, and the support of the entire Senate and House Democratic Caucuses. We appreciate the Governor's support for the final budget compromise that included the increase.

The ACCA Board wants to give special thanks to all the ACCA members for all they did to help make this increase happen.

But, our work is not over. Rates are still far behind the current cost of care. The State payments are still only based on the 2000 cost of care plus 5%. The average payment has increased by only $16.54 per month per child - less than $200 per child per year. The median payment to a licensed child care center that serves DES children will increase in total by only $1,700. annually.

Outlook for the 2008 Session: Budget shortfalls to dominate discussion

STATE AGENCY BUDGET REQUESTS The State agencies have sent their requests to the Governor. DES is requesting $12 million as part of 3 year plan to get to 2006 cost of care by 2011. In addition, DES is seeking $5.5 million for projected caseload growth, and $1.5 million for staff, and $5.5 million in State funds to replace federal funds no longer available.

The DHS budget seeks approximately $1.2 million for 16 child care licensing staff for a ratio of approximately 1:50. The Governor's budget request will be out in mid January.

STATE REVENUE SHORTFALL It does not look good for any increases this coming year. This year the state revenues are falling short of projections for 2008 by $800 million, and maybe more. Cuts or new revenue sources will be necessary. Some are revising next years projections downward and suggesting deeper cuts may be necessary for 2009. The Governor has a plan that would not cut services to children.

LEGISLATURE LOOKS AT OPTIONS TO CUT The legislature has created a budget reduction "options" document, totaling far more than would be necessary - but a child care cut is listed as a specific option. Their "option" would cut 3,200 children (7%) and eliminate the top two eligibility income categories (fee level 5 and 6). The amount "saved" from the cut would be $9.9 million annually.

ACCA will strongly oppose any cuts to child care funding.

WATCH FOR ACCA'S 2008 LEGISLATIVE POSITION STATEMENT

First Things First: The Early Childhood Development and Health Board

In November 2006 Arizona voters passed Proposition 203 that created the Early Childhood Development and Health Board and will provide $150 million annually for planning and services to improve access to quality early childhood programs.

On February 27, 2007 the Board approved 22 planning regions statewide (8 in Maricopa and 3 in Pima). Each region will have a Council made up of 11 members, including a child care provider. The application process for Regional Council members is scheduled to begin on December 13th. The Board will finalize appointments and Councils will begin their work by April 1, 2008.