Promoting public policy that enhances the lives of children and youth in Vermont.

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June 6, 2007

Published December 16, 2007

The 2007 Legislative Session ended Saturday, May 12th. It was a good year, in several respects, for Vermont children and youth. Not only did young children benefit; the situation for youth transitioning from the custody of the state improved immeasurably from legislation passed this year.

Despite dire warnings of a lean budget, policy-makers worked to keep existing services in the budget and even funded a few programs for the first time.

Youth aging out of state custody.

The legislature passed H.449, a bill that extends services to young people between the ages of 18 and 22 years, who turned 18 while in the custody of the state or were in custody for at least five years between the ages of 10 and 18 years and who elect to continue receiving services.

Services will also be provided for persons under age 22 who leave state custody after the age of 16 and at or before the age of 18 provided that they voluntarily request additional support services.

Administrative rules will establish what services will be provided. However, the legislature provided guidance in the statute for what the rules should contain.

The bill mandates that the rules provide age-appropriate services to ensure a successful transition to adulthood, including foster care, housing assistance, transportation, case management services, assistance with obtaining and retaining health insurance or employment and other services.

The statute states that the youth receiving services shall be required to be working or attending an educational or vocational program and, if working, the youth shall contribute to the cost of services. However, the department shall establish rules for exceptions to these requirements based on a disability or other good cause.

The bill also mandates that the state not impose a co-payment for prescription drugs for individuals under age 21 enrolled in Medicaid or Dr. Dynasaur.

State to Study Extending Services to Youth With Disabilities or Severe Emotional Disturbance Between the Ages of 18 and 22.

The legislature wants information from the administrative branch on two other groups of transitioning youth, those who have a functional developmental disability and have been receiving services through an individualized education program (IEP) and those youth who have received state-funded services for severe emotional disturbance on or before their 18th birthday.

In H.449 the legislature called for a study of the costs and benefits of extending services to the above groups to be reported not later than November 30,2007. The secretary of administration was assigned to lead the study, in consultation with the secretary of human services, the commissioner of labor, the commissioner of disabilities, aging, and independent living, the commissioner of corrections, the commissioner for children and families, and the commissioner of education.

The bill specifically mandates that the secretary of administration shall solicit and summarize input from consumers, providers, and representatives of disability organizations, including the Vermont federation of families for mental health, the Vermont coalition of disability rights, the Vermont council of developmental and mental health services, and the Vermont developmental disabilities council.

The report shall be made to the house committee on human services and the senate committee on health and welfare. For the text of H. 449 go to http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/passed/H-449.HTM

Policy Makers Recognize the Importance of Pre-kindergarten Education
After almost five years of debate among policy makers and the public, the legislature passed and the governor signed H. 534 – the legislation which clarifies in law that each local community has the option to use public education dollars for voluntary, high-quality Pre-K services to 3 and 4 year olds.

Vermont is only one of seven states that authorize the use of public education funds for preschool. Current policy had already allowed school districts to count three and four year olds in their student count. This policy, however, was not clearly stated in law and there were challenges to its use, uncertainty as to its future, and lack of standards in how school districts provided preschool services.

It was important to clear up any uncertainly and have a clear statement of legislative intent on the issue. H. 534 does this. But, in order to move forward, there had to be significant compromise.

The new law imposes a cap on the number of three and four year olds that can be counted in a districts student count. The cap limits the number of students a district can count to approximately half of the total number of three and four year olds, not counting special education students.

For those who feel preschool is both beneficial for our young children and cost effective for school districts, this was a serious disappointment. However, the legislation calls for reporting on the many details of the new policies, including the effectiveness of the programs. The hope is that the success of the programs will lead to the removal of the cap in the near future.

In summary, the legislation:

- Clarifies in law each local community’s option to use public education dollars to provide 10 hours per week of high-quality voluntary pre-k by counting preschoolers in their “average daily membership.”

- Allows for the provision of preschool services either directly by the school or through contracts with private providers in centers or in homes.

- Directs the commissioner of education and the commissioner for children and families to jointly develop and agree to rules and present them to the state board of education for adoption.

Detailed instructions for the rules include, among other directions, requiring community collaboration in the establishment of voluntary public preschool programs and setting standards for private providers who would contract with school districts. For text of the bill see http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/passed/H-534.HTM

H. 523. Adjusting Vermont’s Welfare Statute to Meet the Requirements of the Federal Deficit Reduction Act.

The Vermont Legislature was faced with a formidable challenge this session. The federal government, in the Deficit Reduction Act of 2005 (DRA), imposed a set of new rules for state welfare programs.

One of the most significant changes is an increased work participation requirement for recipients. States who fail to meet this requirement face harsh sanctions in the loss of federal money to fund their income programs for poor children and their families.

The Human Services Committee of the House and the Senate Health and Welfare Committee, in partnership with Office of Economic Services staff and outside advocates (including Voices staff), spent many hours working to meet the requirements of the DRA without terminating needy families from the programs. The result was H. 523.

The House took advantage of very creative thinking by national policy experts and a summer legislative study committee and split Vermont’s Reach-Up Program into several separate programs. Under this new system the programs that would do most to put Vermont over its mandated work participation rate - but are considered to be very important for the well-being of children and their families - are funded with separate state money in order to keep participants from being forced to participate in the work participation rate.

An example of this new approach is Vermont’s post-secondary education program. That program allows low- income parents to attend college or technical school thus genuinely helping low-income parents to achieve self-sufficiency. Under the federal DRA, post-secondary education cannot be counted as employment in the work participation rate. In order to save the program policymakers now use only separate state money to fund it.

The bill (H. 523) was signed into law by the Governor on May 17, 2007. It turns the current program, Reach Up, into three separate programs:
1. Reach First is a program of services and temporary financial assistance to families who may need short-term assistance. If the family moves out of the program within four months they are not included in the work participation rates. The family can transition to another program if it is necessary.
2. Reach Up is Vermont’s current income support program for low-income families with children. It received a welcome increase in the earnings disregard. The amount a family can earn and still receive benefits was increased from $150 per month plus 25% of the remaining income to $200 per month plus 25%.
3. Reach Ahead is for low-income employed families or families receiving Food Stamps. It provides food assistance to the family for one year. Both Reach Up and Reach Ahead families are counted against the work participation rate. Reach Ahead families are guaranteed to help the work participation rate, as they are in the program because they are working. For a copy of H.523, go to: http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/passed/H-523.HTM

Childcare Subsidy Program

Over the past several years, Voices for Vermont’s Children, the Kids Are Priority One Coalition and the State Child Care Advisory Board have worked to raise awareness among legislators about the important role that the state’s Childcare Subsidy Program plays in Vermont’s economy and in healthy child development. We have highlighted the ways in which outdated income eligibility guidelines and reimbursement rates limit parents’ child care options and prevent low-income families from accessing the financial assistance they need to enter and remain in the workforce. Hopefully, this work is beginning to make a difference.

The legislature approved a 3% rate increase. The governor’s proposed budget contained a 2% increase. The legislature raised that increase to 3%. This increase includes all categories except legally exempt providers. While 3% is not enough to make a big difference for children or families, it is still a victory, given a very tight state budget. Thank you to everyone who contacted legislators about this important program.

Policy makers will research the issue of the subsidy program over the summer and fall and look for possible solutions to the need for additional resources to help low income working parents pay for childcare. This type of discussion is very difficult during the legislative session where the standing committees have a very full schedule.

In legislation to change Vermont welfare laws (see H. 523 above), lawmakers acknowledged the serious underfunding and directed Legislative Council and the Joint Fiscal Office to “…provide a summary of innovative ideas from other states for funding investments in quality child care and of any available cost?benefit analyses of such investments.” They also asked for data and analysis on the program from the Department for Children and Families.

The work of the Vermont Child Poverty Council, created in S.177 this year and highlighted at Voices Campaign To Make Child Poverty History In Vermont will also provide an opportunity to study the childcare subsidy program. Discussions in House and Senate committees during the session this year showed that policy makers are thinking more about the need to cure the underfunding of the subsidy program. Work over the coming summer and fall should help us move closer to our goal of increasing public support for families struggling with the high cost of child care.

Fiscal Year 2008 Budget There were tense times for some programs that work to improve the lives of children and youth during this year’s budget process. Though some important programs will face cuts and some received one-time appropriations instead of general fund dollars, the final document looked much better than we thought possible at the beginning of the legislative session.

Juvenile Restorative Boards Saved By Legislative Action: In the proposed budget for FY 08 the governor cut Vermont’s balanced and restorative justice programs by $426,000 or 45%. This important program distributes money to 12 organizations throughout the state and is designed to keep youth out of the corrections system by including the victim and the community in a response to crime. Its focus is accountability and competency development. The offender appears before a panel of community volunteers who may require restitution, community service, apologies to victims and inclusion of victims in decision-making.

The House restored all but $13,733 of the governor’s cut. In an early vote the Senate Appropriation Committee decided to approve the entire cut recommended by the governor. The senators changed their minds and cut $76,000 instead. The House agreed.

Childcare Subsidy The governor increased the state childcare subsidy rate by 2%. The House increased it to 3% and the Senate reduced the increase to 2.75%. The House held out and the Senate agreed with the House’s 3% increase. (see article above)

Mentoring The Governor added $250,000 to the base for mentoring services that had been in one-time appropriations last year. The House took the entire amount out. The Senate put $180,000 in to one-time and the conference committee increased this one-time appropriation to $250,000.

Post-adoption Services: The Governor had no appropriation for the Post-Adoption Consortium this year. The House added $100,000 to the base and $75,000 to one-time for this group. The Senate increased the one-time amount to $100,000. The House agreed in conference committee.

Foster Care Reimbursement Rate: The Governor increased the rate by 1.2%. The House increased it further by .4% or 1.6%. The Senate agreed with the Governor’s 1.2% and in conference committee the House conceded the extra .4%.

Youth Aging Out of State Custody: The Governor appropriated $741,000 general fund to support services for youth 18 to 21 who have aged out of custody. The House cut the appropriation by $66,000. The Senate proposed splitting the difference in conference committee and the House agreed. That means that the Legislature cut $33,000 from the Governor’s initiative.

Vermont Coalition of Teen Centers: The Legislature added $75,000 to the one-time list for this organization.

Prevent Child Abuse Vermont: The Governor cut $70,000 from this organization’s appropriation and the Legislature restored it, but in the one-time list.

Parent Child Centers: Two programs of the Parent Child Center Network received one-time money. The Learning Together Program received $39,000 and the Teen Parent Education Program received $100,000.

The Bright Futures Facilities Fund received $75,000 in one-time funds.

Kids on the Block received $6,000 and the Vermont Coalition of Runaway and Homeless Youth received $15,000 in one-time funds.

Voices sends this periodic update of happenings in and around the statehouse and would welcome your input, suggestions and requests for topics.

Sheila Reed 802-229-6377 - sreed@vermontvoices.org

Barbara Postman 802-229-6377 - bpostman@vermontvoices.org

Voices is the legislative liaison for Kids-Are-Priority-One - a statewide early childhood coalition of individuals, businesses and organizations committed to ensuring that every child in Vermont gets the best possible start. Website at: http://kidsarepriorityone.org/kap1/