HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/CS/HB 929 School Readiness Program
SPONSOR(S): Education & Employment Committee, Education Quality Subcommittee and PreK-12
Appropriations Subcommittee, Trabulsy and others
TIED BILLS: None. IDEN./SIM. BILLS: SB 916
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) PreK-12 Appropriations Subcommittee 13 Y, 0 N, As CS Bailey Potvin
2) Education Quality Subcommittee 14 Y, 0 N, As CS Blalock Sanchez
3) Education & Employment Committee 20 Y, 0 N, As CS Blalock Hassell
SUMMARY ANALYSIS
Established in 1999, the School Readiness program provides subsidies for child care services and early childhood
education for children from low-income families as defined in statute; children in protective services who are at risk of
abuse, neglect, abandonment, or homelessness; foster children; and children with disabilities.
The bill revises the definition of the term “economically disadvantaged” as used for the School Readiness program from
having a family income that does not exceed 150 percent of the federal poverty level (FPL) to having a family income that
does not exceed 55 percent of the state median income (SMI). This change will increase the number of children eligible
for the School Readiness program.
The bill requires the Department of Education (DOE) to annually collect cost data including, but not limited to, personnel
and operational costs and to annually submit certain data to the Legislature.
The bill requires each Early Learning Coalition (ELC) to implement a sliding fee scale as established in rule by the State
Board of Education (SBE) for families receiving School Readiness program services that provides for the calculation of a
parent copayment at the time of the eligibility determination and for an annual eligibility redetermination thereafter.
The bill revises a data element that the DOE is required to collect and report related to ELC delivery of early learning
programs to align with the bill’s revised definition of “economically disadvantaged”. The bill also revises the repor t’s
implementation date to July 1, 2025.
The bill modifies the methodology for determining each county’s School Readiness program allocation and the
methodology for distributing funds to eligible providers based upon the reimbursement rate by county, provider type, and
care level as established by the Legislature.
The bill repeals duplicative or unnecessary components of the market rate schedule.
The bill repeals requirements that the principals of the Early Learning Programs Estimating Conference annual ly develop
official cost-of-care information based on actual School Readiness direct services program expenditures and information
provided pursuant to s. 1002.895, F.S. and provide this information to the Legislature at least 90 days before the annual
legislative session.
For Fiscal Year 2024-2025, the bill provides the following two appropriations and places both in reserve:
 $75,384,882 in nonrecurring funds from the Child Care and Development Block Grant Trust Fund to the DOE for
the costs associated with the change of the income eligibility requirement to 55 percent of the SMI; and
 $100 million in nonrecurring funds from the Child Care and Development Block Grant Trust Fund for the costs
associated with the implementation of provider reimbursement rat es based on the cost-of-care information.
The bill takes effect July 1, 2024.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Established in 1999,1 the School Readiness program provides subsidies for child care services and
early childhood education for children from low-income families; children in protective services who are
at risk of abuse, neglect, abandonment, or homelessness; foster children; and children with
disabilities.2 Additionally, the program provides developmental screening and referrals to health and
education specialists where needed. These services are provided in conjunction with other programs
for young children such as Head Start, Early Head Start, Migrant Head Start, Child Care Resource and
Referral, and the Voluntary Prekindergarten Education (VPK) Program.3
The School Readiness program is a state-federal partnership between the DOE and the Office of Child
Care of the United States Department of Health and Human Services.4 It is administered by the ELCs
at the county or regional level.5 The DOE’s Division of Early Learning (DEL) is the lead administrator of
the program at the state level, including statewide coordination of the ELCs. 6
Present Situation
School Readiness Program Eligibility
Federal regulations governing the Child Care and Development Block Grant Fund (CCDF),7 the primary
funding source for the School Readiness program, authorize states to use grant funds for child care
services if:
 the child is under 13 years of age or, at the state’s option, under age 19 if the child is physically
or mentally incapable of caring for himself or herself or under court supervision;
 the child’s family income does not exceed 85 percent of the SMI for a family of the same size;
and
 the child:
o resides with a parent or parents who work or attend job training or educational programs; or
o receives, or needs to receive, protective services.8
Within these broad federal eligibility categories, Florida law specifies that ELCs must admit children into
the School Readiness program according to the following priorities:
 First priority is a child under 13 years of age from a family that includes a parent who is
receiving temporary cash assistance and subject to federal work requirements 9 or the parent
1 Section 1, Ch. 99-357, Laws of Fla.
2 Sections 1002.81 and 1002.87, F.S.
3 Florida Department of Education (DOE), Division of Early Learning (DEL), What is School Readiness (SR)?,
https://www.fldoe.org/schools/early-learning/parents/school-readiness.stml (last visited Jan. 11, 2024).
4 Section 1002.82(1), F.S. See also U.S. Department of Health and Human Services, Office of Child Care (OCC), OCC Fact Sheet,
https://www.acf.hhs.gov/occ/comms -fact-sheet/occ-fact-sheet (last visited Jan. 11, 2024).
5 Section 1002.83(1), F.S.
6 Section 1002.82, F.S., See also DOE, DEL, What is School Readiness (SR)?, https://www.fldoe.org/schools/early-
learning/parents/school-readiness.stml (last visited Jan. 11, 2024).
7 45 C.F.R. parts 98 and 99.
8 45 C.F.R. s. 98.20(a). Florida does not provide School Readiness funding for children 13-18 years of age who are physically or
mentally incapable of self-care or under court supervision. See DOE, DEL, Child Care and Development Fund (CCDF) Plan for
Florida FFY 2022‐2024, at 83, available at https://www.fldoe.org/core/fileparse.php/20628/urlt/2022-2024-CCDF-State-Plan.pdf
[hereinafter CCDF State Plan].
9 Section 445.024(2), F.S. Recipients of assistance under a state’s Temporary Assistance for Needy Families Block Grant must meet
federal work requirements. These work requirements require a state to meet or exceed minimum rates of recipients participating in
“work activities,” e.g., employment, education, job search, community service, and vocational training. 42 U.S.C. s. 607(a)-(d). Under
Florida law, the maximu m number of hours a recipient of subsidized child care, who is not otherwise exempt from work activity , may
be required to work is 40 hours per week.
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 has an Intensive Service Account or an Individual Training Account under Florida’s workforce
one-stop delivery system.10
 Second priority is a child under the age of 9 who is at-risk.11
 Subsequent priority is based on a local ELC’s assessment based on the needs of
families and provider capacity for the following:
o A child, from birth to the beginning of the school year for which the child is eligible for
kindergarten, from a working family that is economically disadvantaged 12 and may
include such a child’s eligible siblings who are eligible to enter kindergarten through the
summer before sixth grade, provided that the ELC uses local revenues first.
o A child of a parent who transitions from the work program into employment from birth
through the summer before kindergarten.
o An at-risk child, ages 9 – younger than 13. Such a child is given priority over other
children if his or her sibling is enrolled in the School Readiness program under eligibility
priorities 1 or 2 or the first bullet point of this section.
o A child younger than 13 years of age from a working family that is economically
disadvantaged.
o A child younger than 13 years of age whose parent transitions from the work program
into employment.
o A child who is not younger than 3 years of age who has been determined eligible as a
student with a disability and has a current individual education plan with a Florida school
district. Such a child is eligible until he or she is old enough for kindergarten admission.
o An eligible child who is also concurrently enrolled in the Head Start program and the
VPK Program.13
“Economically disadvantaged” means having a family income that does not exceed 150 percent of the
FPL and includes being a child of a working migratory family as defined by 34 C.F.R. s. 200.81(d) or (f)
or an agricultural worker who is employed by more than one agricultural employer during the course of
a year, and whose income varies according to weather conditions and market stability.14
Eligibility for the program must be reevaluated annually. Upon reevaluation, a child may not continue to
receive School Readiness program services if he or she has ceased to be eligible. A child who is
ineligible due to a parent’s job loss or cessation of education or job training will continue to receive
School Readiness program services for at least three months to enable the parent to obtain
employment or resume education or job training.15
School Readiness Program Funding
Overview
Florida’s School Readiness program funding is derived from four sources:
 The CCDF16
 The Temporary Assistance for Needy Families (TANF) Block Grant 17
 The Social Services Block Grant (SSBG)18
10 See s. 445.009, F.S.
11 Section 1002.81(1), F.S. The definition of an “at-risk child” includes, among other things, a child who is considered homeless or
who may be experiencing abuse, neglect, abandonment, or exploitation.
12 Section 1002.81(6), F.S.
13 Section 1002.87(1), F.S.
14 Section 1002.81(6), F.S. This definition is consistent with the requirements of 45 C.F.R. parts 98 and 99.
15 Section 1002.87(6), F.S.
16 A major purpose of the CCDF is to allow states to develop child care programs and policies that best suit the needs of children and
parents. 45 C.F.R. s. 98.1.
17 Part A of Title IV of the Social Security Act, as codified in 42 U.S.C. ss. 601, et seq. The Temporary Assistance for Needy Families
program provides states and territories with flexibility in operating programs designed to help low-income families with children to
achieve economic self-sufficiency. USHHS, Temporary Assistance for Needy Families (TANF).
18 Through the SSBG states provide essential social services that help achieve a myriad of goals to reduce dependency and promote
self-sufficiency; protect children and adults from neglect, abuse and exploitation; and help individuals who are unable to take ca re of
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  State General Revenue.19
The following chart shows the Fiscal Year 2023-2024 funding for Florida’s School Readiness program:
Funding Source Amount
CCDF $874.2 million
TANF $94.1 million
SSBG $500,000
General Revenue $144.6 million
The School Readiness program funds are distributed to the ELCs based upon an allocation
methodology established in statute.20
School Readiness program funding for eligible providers comes primarily from reimbursements from the
ELC and tuition payments by participating families.21 Each ELC reimburses participating providers with
appropriated funds for each eligible child, either through child care certificates provided by parents or
through contracted slots.22 The reimbursement and co-payment amounts are determined locally by
ELCs, subject to approval by the DOE. Any additional amount a parent must pay is based on the
difference between the provider’s tuition rate and the sum of the reimbursement rate and required
parent co-payment. Reimbursement amounts vary based on provider type and level of care, and co-
payments are determined using a sliding fee scale. 23
Parent Sliding Fee - Co-payment
Each ELC must assess a co-payment for each child that participates in the School Readiness program.
The co-payment is determined using a sliding scale so that participating families have equitable access
to child care.24 Each sliding fee scale must be approved by the DOE, which reviews the scale to
determine whether it reflects annually released income limits, has an effective date no later than July 1
of that year, and that co-payments do not exceed 10 percent of a family’s income, regardless of the
number of children in care. If the co-payment does exceed 10 percent, the ELC must justify that the co-
payment is affordable in order for the scale to be approved by the DOE.25 The co-payment may not be
equal to or greater than the provider’s private pay rate.26 Co-payments may also be waived on a case-
by-case basis for an at-risk child or temporarily waived for a child whose family’s income is at or below
the federal poverty level or whose family experiences a natural disaster or other event specified in
law.27
There is currently a proposed rule change by the federal HHS to establish a new federal benchmark for
affordable family co-payments of seven percent of family income and to allow lead agencies more
flexibility to waive co-payments for vulnerable families.28
Allocation Methodology to Early Learning Coalitions
themselves to stay in their homes or to find the best institutional arrangements. USHHS, Social Services Block Grant Program,
https://www.acf.hhs.gov/ocs/programs/ssbg (last visited January 12, 2024).
19 The Florida Department of Education, School Readiness Funding Allocation Methodology: Report and Re commendations (Oct. 1,
2019).
20 Section 1002.89(1), F.S.
21 See ss. 1002.84(9) and 1002.89, F.S.; Specific Appropriation 77, s. 2, Ch. 2023-239, Laws of Fla.
22 See Rule 6M-4.500(1), F.A.C.
23 See Rule 6M-4.400(1), F.A.C. The federal government has a proposed rule change that family co -payments cannot be more than
seven percent of a family’s income; however, it does allow lead agencies to waive co -payments for certain families. See 45 C.F.R. 98.
24 Rule 6M-4.400(1), F.A.C.
25 Id.
26 Rule 6M-4.400(2)(d), F.A.C.
27 Section 1002.84(9), F.S.; Rule 6M-4.400(6), F.A.C.
28 See Improving Child Care Access, Affordability, and Stability of the Child Care Development Fund, 88 Fed. Reg. 45,022 (July 13,
2023) (To be codified in 45 CFR Part 98).
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 For purposes of allocating the School Readiness program funds to the ELCs, if the annual allocation is
not determined in the General Appropriations Act (GAA) or substantive bill implementing the GAA,
current statute describes how the funds should be allocated to include:
 For each county in the ELC, the total School Readiness eligible population is multiplied by the
county’s comparable wage factor.
 If a county passed a local ordinance before January 1, 2022, that establishes the county’s staff
to children ratio for licensed child care facilities below the ratio established in law, multiply the
product calculated by the adjustment factor specified in the GAA.
 Each county’s School Readiness allocation shall be based on the county’s proportionate share
of the total adjusted eligible School Readiness population. 29
Distribution Methodology to Eligible School Readiness Providers
For purposes of distributing the School Readiness program funds to the eligible providers, each ELC is
required to adopt a payment schedule that encompasses all eligible