File No. 559

House of Representatives, April 19, 2006

The Committee on Appropriations reported through REP. MERRILL of the 54th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING STATE INVESTMENT IN PREVENTION AND CHILD POVERTY REDUCTION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4-67v of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

For the biennial budget for the fiscal years commencing July 1, [2003, and ending June 30, 2005] 2007, and July 1, 2008, and each biennium thereafter, the Governor's budget document shall include a prevention report [presenting] that corresponds with the prevention goals identified in section 4-67x, as amended by this act. The budget document shall:

(1) Present in detail for each fiscal year of [such] the biennium the Governor's recommendation for appropriations for prevention services classified by those budgeted agencies [involved in the State Prevention Council and showing,] that provide prevention services to children, youth and families;

(2) Indicate the Governor's progress toward meeting the goal that, by the year 2020, at least ten per cent of total recommended appropriations for each such budgeted agency be allocated for prevention services; and

(3) Include, for each applicable budgeted agency and its subdivisions, (A) a list of agency programs that provide prevention services, (B) the actual prevention services expenditures for the fiscal year [ending June 30, 2003] preceding of the biennium, by program, (C) the estimated prevention services expenditures for the first fiscal year [commencing July 1, 2003, and] of the biennium, (D) an identification of research-based prevention services programs, [. The Governor's budget shall also include] and (E) a summary of all prevention services by each applicable budgeted agency [,] identifying the total for prevention services included in the budget.

Sec. 2. Section 4-67s of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

As used in sections 4-67s to [4-67v] 4-67x, inclusive, as amended by this act:

(1) "Prevention" means policies and programs that promote healthy, safe and productive lives and reduce the likelihood of crime, violence, substance abuse, illness, academic failure and other socially destructive behaviors.

(2) "Research-based prevention" means those prevention programs as defined in this section that have been rigorously evaluated and are found to be effective or represent best practices.

Sec. 3. Section 4-67x of the 2006 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(a) (1) There shall be a Child Poverty and Prevention Council consisting of the following members or their designees: The Secretary of the Office of Policy and Management, the president pro tempore of the Senate, the speaker of the House of Representatives, the minority leader of the Senate and the minority leader of the House of Representatives, the Commissioners of Children and Families, Social Services, Correction, Mental Retardation, Mental Health and Addiction Services, Transportation, Public Health, Education, Economic and Community Development and Health Care Access, the Labor Commissioner, the Chief Court Administrator, the Chairman of the Board of Governors for Higher Education, the Child Advocate, [the chairperson of the State Prevention Council,] the chairperson of the Children's Trust Fund and the executive directors of the Commission on Children and the Commission on Human Rights and Opportunities. The Secretary of the Office of Policy and Management, or the secretary's designee, shall be the chairperson of the council.

(2) The council shall:

(A) [develop] Develop a ten-year plan, to begin June 8, 2004, to reduce the number of children living in poverty in the state by fifty per cent;

(B) Promote the health, education, safety and economic security of children from birth to twenty-one years of age, and provide related prenatal services, in order to implement the ten-year plan; and

(C) Advise the Governor and the General Assembly on realignment of the state budget and other resources in order to implement the ten-year plan.

(b) The ten-year plan shall contain: (1) An identification and analysis of the occurrence of child poverty in the state, (2) an analysis of the long-term effects of child poverty on children, their families and their communities, (3) an analysis of costs of child poverty to municipalities and the state, (4) an inventory of state-wide public and private programs that address child poverty, (5) the percentage of the target population served by such programs and the current state funding levels, if any, for such programs, (6) an identification and analysis of any deficiencies or inefficiencies of such programs, and (7) procedures and priorities for implementing strategies to achieve a fifty per cent reduction in child poverty in the state by June 30, 2014. Such procedures and priorities shall include, but not be limited to, (A) vocational training and placement to promote career progression for parents of children living in poverty, (B) educational opportunities, including higher education opportunities, and advancement for such parents and children, including, but not limited to, preliteracy, literacy and family literacy programs, (C) housing for such parents and children, (D) day care and after-school programs and mentoring programs for such children and for single parents, (E) health care access for such parents and children, including access to mental health services and family planning, (F) treatment programs and services, including substance abuse programs and services, for such parents and children, and (G) accessible childhood nutrition programs.

(c) In developing the plan, the council shall consult with experts and providers of services to children living in poverty and parents of such children. The council shall hold at least one public hearing on the plan. After the public hearing, the council may make any modifications that the members deem necessary based on testimony given at the public hearing.

(d) Funds from private and public sources may be accepted and utilized by the council to develop and implement the plan and the provisions of this section.

(e) Not later than January 1, 2005, the council shall submit the plan, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and human services and to the select committee of the General Assembly having cognizance of matters relating to children, along with any recommendations for legislation and funding necessary to implement the plan.

(f) On or before January 1, 2006, and annually thereafter, until January 1, 2015, the council shall report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and human services and to the select committee of the General Assembly having cognizance of matters relating to children on the implementation of the plan, progress made toward meeting the child poverty reduction goal specified in subsection (a) of this section and the extent to which state actions are in conformity with the plan. The council shall meet at least two times annually to (1) review and coordinate state agency efforts to meet the child poverty reduction goal specified in subsection (a) of this section, and (2) report on prevention investment pursuant to subsection (i) of this section.

(g) Not later than July 1, 2006, the Office of Policy and Management shall, within available appropriations, develop a protocol requiring state contracts for programs aimed at reducing poverty for children and families to include performance-based standards and outcome measures related to the child poverty reduction goal specified in subsection (a) of this section. Not later than July 1, 2007, the Office of Policy and Management shall, within available appropriations, require such state contracts to include such performance-based standards and outcomes. The Secretary of the Office of Policy and Management may consult with the Commission on Children to identify academic, private and other available funding sources and may accept and utilize funds from private and public sources to implement the provisions of this section.

(h) For purposes of this section, the Secretary of the Office of Policy and Management, or the secretary's designee, shall be responsible for coordinating all necessary activities, including, but not limited to, scheduling and presiding over meetings and public hearings.

(i) (1) On or before January 1, 2007, and annually thereafter until January 1, 2015, the council shall report, in accordance with section 11-4a, to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to appropriations, education, human services and public health and to the select committee of the General Assembly having cognizance of matters relating to children, on the state's progress toward realigning state agency budgets to incorporate prevention services that contribute to prevention or reduction of child poverty as a budget and programmatic priority in budgeted state agencies with membership on the council. The report shall include (A) a summary of measurable gains made toward the child poverty and prevention goals specified in this section; (B) each such agency's report on prevention services submitted to the council pursuant to this subsection; (C) examples of successful interagency collaborations to meet the child poverty and prevention goals in this section; and (D) recommendations for prevention investment and budget realignment developed by the council pursuant to this subsection.

(2) On or before November 1, 2006, and annually thereafter until November 1, 2014, each such budgeted state agency that provides prevention services to children shall report to the council on such prevention services. For each prevention service, the report shall include (A) the number of children and families served, (B) a description of the preventive purposes of the service, (C) data showing success or failure of the program in preventing child poverty or related risk factors, as measured by performance-based standards and outcomes, (D) performance-based standards and outcomes included in relevant contracts pursuant to subsection (g) of this section, and (E) any performance-based vendor accountability protocols. Each agency report shall also include (i) long-term departmental goals, strategies and outcomes to promote the health and well-being of children and families, (ii) overall findings on the effectiveness of prevention within such agency using performance-based standards or outcomes, (iii) methods within such agency to reduce disparities in child performance and outcomes by race, income level and gender, and (iv) other information that the agency head deems relevant to demonstrate the preventive value of such services. Each agency shall report on at least two prevention services for the report due on or before November 1, 2006, and the number of services shall increase by one for each subsequent report up to and including the report due on or before November 1, 2010.

(3) For purposes of each agency's report on prevention services, long-term agency goals in prevention may include, but shall not be limited to, (A) with respect to health goals: Increasing (i) the number of healthy pregnant women and newborns, (ii) the number of youths who adopt healthy behaviors and successfully obtain and maintain employment as adults, and (iii) access to health care, (B) with respect to education goals: Increasing the number of children who (i) are ready for school at an appropriate age, (ii) learn to read by third grade, (iii) succeed in school, and (iv) graduate from high school, (C) with respect to safety goals: Decreasing (i) the rate of child neglect and abuse, (ii) the number of children who are unsupervised after school, (iii) the incidence of child and youth suicide, and (iv) the incidence of juvenile crime, and (D) with respect to housing goals: Increasing access to stable housing.

(4) Each report submitted pursuant to this subsection shall include information on the impact of the prevention services in preventing and reducing the incidence of short-term and long-term child poverty.

(5) In developing the recommendations pursuant to this subsection, the council shall consult with experts and providers of services to children and families. The council shall annually hold at least one public hearing on the recommendations. After each public hearing, the council may make modifications that the members deem necessary based on testimony given at the public hearing.

[(i)] (j) The council shall terminate on June 30, 2015.

Sec. 4. Section 17b-16 of the 2006 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

The Labor Department, in cooperation with the Department of Social Services, shall provide information and assistance in obtaining, within available appropriations, the federal earned income credit established pursuant to 26 USC 32, to each applicant for or recipient of assistance from the department. The Labor Department, in cooperation with the Department of Revenue Services, shall promote the earned income credit program to recipients of benefits pursuant to section 17b-112. The Department of Social Services, in consultation with the Child Poverty and Prevention Council established in section 4-67x, as amended by this act, shall, within available appropriations, promote greater utilization of the federal earned income credit to municipalities, public and private employers, community-based organizations and other entities that have frequent contact with low-income families and shall enhance financial literacy and self-sufficiency programs. School and business partnership funds, private funds and other available funds may be used for purposes of this section.

Sec. 5. Sections 4-67t, 4-67u and 4-67w of the general statutes are repealed. (Effective October 1, 2006)

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

Section 1 requires the Office of Policy and Management (OPM) to develop a prevention budget to be submitted when the governor recommends her budget. It is anticipated that OPM will need a Budget Analyst with a starting salary of $55,000¹. The budget bill (sHB 5007, as favorably reported by the Appropriations Committee) contains $335,000 for additional OPM staff; however it is uncertain whether funds would be used for such purpose. The agency will incur minor costs to the print this document.

Section 3 merges the Child Poverty Council with the Prevention Council and requires the council to develop a ten year plan and report on the state's progress towards meeting prevention goals. It is anticipated that OPM will require a Planning Analyst with a starting salary of $55,000¹. sHB 5007 contains $335,000 for additional OPM staff; however it is uncertain whether funds would be used for such purpose.

Section 3 also requires each budgeted state agency providing prevention services to children to report annually (commencing by 11/1/06) to the Child Poverty and Prevention Council. Certain descriptive and evaluative data must be presented for at least two prevention services in the 2006 report (rising to three prevention programs in 2007, four in 2008, five in 2009 and six in 2010 -2014). Each annual report must also include information on the impact of the prevention services in preventing and reducing the incidence of short-term and long-term child poverty.

Those agencies that have not historically focused resources on program evaluation efforts may incur administrative costs that cannot be handled within their normally budgeted resources to compile the required data elements. Additionally, a potential significant future cost would be incurred should the bill be interpreted to require the funding of additional types of services by any agency that now has fewer than six preventive programs.

It is anticipated that the Chief Court Administrator or his designee will be able to participate as a member of the Child Poverty and Prevention Council within the Judicial Department's anticipated budgetary resources.

Sections 2, 4 & 5 make conforming or other changes that have no associated fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.



OLR Bill Analysis

sHB 5254

AN ACT CONCERNING STATE INVESTMENT IN PREVENTION AND CHILD POVERTY REDUCTION.

SUMMARY:

This bill merges the state's Child Poverty and Prevention councils. It imposes new reporting requirements on the governor, executive branch agencies, and the new Child Poverty and Prevention Council. It ties prevention services to others included in the Child Poverty Council's plan to reduce child poverty by 50% by June 30, 2014.

The new council terminates on June 30, 2015, as does the Child Poverty Council under current law.

EFFECTIVE DATE: October 1, 2006

§ 3 — COUNCIL MEMBERS

All current members of the Prevention and Child Poverty councils are designated under the bill as members of the Child Poverty and Prevention Council. These are:

1. the Office of Policy and Management secretary, who serves as chairperson;

2. the Senate president, House speaker, and ranking members of both chambers;

3. the commissioners of the departments of Children and Families, Social Services, Correction, Mental Retardation, Mental Health and Addiction Services, Transportation, Economic and Community Development, and Labor;

4. the chief court administrator;

5. the chairmen of the Board of Governors for Higher Education and Children's Trust Fund;

6. the child advocate; and

7. the executive director of the Commission on Children.

Members can designate others to serve in their place.

§ 3 — NEW COUNCIL FUNCTIONS

In addition to the duties of the predecessor councils, the bill directs the Child Poverty and Prevention Council, as part of its plan to reduce child poverty, to:

1. promote the health, education, safety, and economic security of children from birth to age 21 and provide related prenatal services; and

2. advise the governor and legislature on realignment of the state budget and other resources.

§ 2 — PREVENTION SERVICES

Prevention services under the bill are the same as those currently recognized by the Prevention Council. These are policies and programs that promote healthy, safe, and productive lives and reduce the likelihood of crime, violence, substance abuse, illness, academic failure, and other socially destructive behaviors. Research-based programs are those vigorously evaluated and found to be effective or represent best practices.

REPORTS

§ 1 — Governor's Budget

The bill requires each biennial budget, beginning with FYs 2007-2008, to include a report that:

1. presents in detail, for each fiscal year, the governor's recommendations for appropriations for prevention services for children, broken down by agency;

2. indicates the governor's progress toward meeting the goal that at least 10% of total recommended appropriations for those agencies be allocated for prevention services;

3. lists agency programs and summarizes agency prevention programs, prevention expenditures for the preceding biennium, and estimated expenditures for the first fiscal year of the upcoming biennium; and

4. identifies the total for prevention services included in the budget.

With the exception of progress reports on prevention service allocations, the governor was required by law to include this information in her budget document for the 2003-05 biennium.

Agency Reports

By November first of each year, the bill requires each budgeted state agency that provides prevention services to children (those the bill makes council members) to submit a report to the council. They must report on at least two prevention services in their 2006 report and add at least one more service in each succeeding annual report until 2010.

For each service, the report must include:

1. the number of children and families served;

2. a description of the preventive purposes of the service;

3. data showing its success or failure, measured by performance-based standards and outcomes;

4. performance-based standards and outcomes included in its contracts;

5. performance-based vendor accountability protocols;

6. other information the agency head deems relevant to demonstrate the preventive value of its services; and

7. information on the impact of the service in presenting and reducing the incidence of short-term and long-term poverty.

It must also include the agency's:

1. long-term goals, strategies, and outcomes to promote the health and wellbeing of children and families;

2. overall findings on the effectiveness of the agency's prevention programs, using performance-based standards or outcomes; and

3. methods the agency uses to reduce disparities in child performance and outcomes by race, income level, and gender;

Long-term Agency Goals. The bill specifies that health goals for prevention services may include increasing the number of (1) healthy pregnant women and newborns, (2) youth who adopt healthy behaviors and successfully obtain and maintain employment as adults, (3) and access to health care.

Goals for education include increasing the number of children who (1) are ready for school at an appropriate age, (2) learn to read by grade three, (3) succeed in school, or (4) graduate from high school.

Safety goals include decreasing (1) the rate of child neglect and abuse, (2) the number of children unsupervised after school; (3) the incidence of child and youth suicide, or (4) the incidence of juvenile crime.

Housing goals may include increasing access to stable housing.

Council Reports

The bill requires the council, by January 1 of each year, to report to the governor and Appropriations, Education, Human Services, Public Health, and Children's committees. The report must include:

1. a description of the state's progress toward realigning agency budgets to incorporate prevention services as budget and programmatic priorities in each member agency,

2. a summary of measurable gains made toward the child poverty and prevention goals,

3. each agency's annual report or prevention services, and

4. recommendations for prevention investments and budget realignments.

Public Hearings. The bill requires the council to hold public hearings at least once a year. It may modify its recommendations based on public hearing testimony.

COMMITTEE ACTION

Select Committee on Children

Joint Favorable Substitute Change of Reference

Human Services Committee

Joint Favorable Substitute Change of Reference

Appropriations Committee

Joint Favorable Substitute

¹ The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller. The estimated first year fringe benefit rate as a percentage of payroll is 23.6%, effective July 1, 2005. The first year fringe benefit costs for new positions do not include pension costs. The state's pension contribution is based upon the prior year's certification by the actuary for the State Employees Retirement System (SERS). The SERS 2005-06 fringe benefit rate is 34.7%, which when combined with the non pension fringe benefit rate would total 58.3%.