2009 Legislative Session Wrap-Up

The 2009 Session of the Maryland General Assembly presented a number of challenging issues for MCC’s Public Policy Committee, but in the end, with the hard work of many advocates, we were able to celebrate successes on most of them. This Wrap-Up includes information on:

Budget;

Pre-K Legislation (HB 184 / SB 234);

Repeal of Sunset of Joint Committee on Children, Youth, and Families (HB 244 / SB 413)

Emergency Preparedness Plans for Child Care Facilities (HB 712 / SB 356)

Earned Income Credit Information Act (HB 1061)

Day in Annapolis; and

Interim Tasks.

 Budget

Against a grim backdrop of severe turmoil in the nation’s economy, political uncertainty and transition in the federal government, and a burgeoning State budget deficit, the Session commenced in mid-January amid widespread apprehension. Deep, across-the-board budget cuts were considered almost a foregone conclusion. The fears of diverse advocates and service providers across the State were quickly realized when the Administration unveiled its budget for FY 2010 a week later. Although budget advocacy always constitutes a top priority for MCC, an unexpectedly massive proposed reduction of more than 50 percent for the Maryland Child Care Resource Network (along with smaller cuts to Family Support Centers and other critical programs) posed a daunting set of challenges. In the wake of cuts already absorbed following action by the Board of Public Works the previous October, the survival of the Network in anything resembling its existing form and capacity was very much in jeopardy.

Budget observers soon developed a case of whiplash. After the devastating proposals of January, an enormous federal stimulus package (including a major boost in child care block grant funding) fueled high hopes that jobs and programs would be spared. Many of these hopes were dashed in March, when the State’s latest revenue data indicated an even deeper deficit than had been previously forecast. Forced to seek additional cuts, budget leaders were also caught in a fiscal tug-of-war to find the proper balance between spending stimulus dollars now and banking them for the future. Lengthy delays in the issuance of federal guidelines for stimulus spending—governing such issues as maintenance of effort, spending timelines, and allowable fund transfers—further complicated the process.

MCC received some encouraging preliminary assurances that funding for the Network and Family Support Centers would be restored through a supplemental appropriation, but as the Session wore on, anxiety sharpened. It became an excruciating wait. An initial supplemental was released, but it contained mostly technical maneuvers. The House of Delegates and the State Senate concluded their individual actions on the spending plan, and a Conference Committee began deliberations to resolve lingering differences and bring the budget process to a close. Finally, with less than a week left in the Session, a second supplemental was issued—this time with funds to restore the Network and Family Support Centers. MCC immediately lobbied to protect the new funds, and the budget was ultimately approved with the funding in place. Funds for the Network were restored by $1.8 million to the revised FY 2009 appropriation level of approximately $4.2 million. Family Support Centers were restored by $325,000 to the revised FY 2009 level of approximately $5.1 million. Although this outcome was extremely difficult to achieve, advocates hope it has laid a solid foundation for preserving funds in the future.

A startling threat to State Head Start funding emerged very late in budget deliberations. With no warning through the normal course of program analysis and budget hearing recommendations, the complete elimination of $3 million that the State appropriates to augment federal Head Start funds was proposed in budget decision meetings. With the understanding that the State funds could be readily swapped for federal stimulus funds, the proposal met no resistance from legislators. But MCC and Head Start champions (including Catholic Charities and the Maryland Alliance for the Poor) realized that federal guidelines might prohibit spending the stimulus funds on enhancements like summer programs for Head Start enrollees and swung into action. With a final Senate decision meeting underway, a last-minute fax from a federal Head Start official persuaded the committee chair to create a difference with the House and make the matter a subject for Conference Committee deliberation. In the end, the Conference Committee reduced the cut to $1.2 million, restoring $1.8 million contingent on the verification of the federal guidelines. A cut of this size will have painful consequences, but the restoration was a remarkable turnaround that keeps a place for Head Start in the State budget and can serve as a basis for future advocacy.

Conference Committee action also reversed a cut to the Child Care Subsidy Program, ensuring that it will remain virtually level-funded in FY 2010. Advocates had hoped for additional funding to increase provider reimbursement rates and reduce parent co-payments, but an influx of stimulus funds was largely offset by the transfer of TANF funds allocated to child care back to other social service programs that have seen enrollments spike since the onset of recession. As always, MCC will need to keep a watchful eye on all these funding patterns. With the timing of economic recovery still in question, the prospect of mid-year cuts by the Board of Public Works may re-emerge in the coming months.

Pre-K Legislation

Again this year, MCC spearheaded a campaign for legislation to advance the cause of public pre-kindergarten. This year’s bills (HB 184 / SB 234) built on the 2007 “Preschool for All” report of the Task Force on Universal Preschool Education (co-chaired by Rolf Grafwallner of MSDE and MCC’s late Executive Director Sandy Skolnik) and on the subsequent 2008 draft of a “Business Plan” to implement the report’s recommendations. Knowing that any legislation incurring a substantial fiscal note would be destined for failure this Session, MCC crafted the bills specifically to avoid cost. Instead, the bills require MSDE to: finalize the draft Business Plan; solicit input from local school systems and governing bodies; evaluate factors related to pre-K participation and demand; provide a concrete cost estimate; and report back to the Governor and General Assembly by December 2009. An important subtext to the legislation is the encouraging prospect of new early education initiatives from the Obama Administration. This year’s legislation, MCC contended, would put Maryland in prime position to pull down any new federal dollars for pre-K that might become available.

The Session’s focus on fiscal matters might have eclipsed efforts to make progress in policy areas, but extensive grassroots outreach and a highly effective media campaign brought the legislation considerable attention. Hearings in mid-February offered compelling testimony from advocates, administration officials, business community leaders, child care providers, and parents. The bills’ progress was slowed by multiple committee assignments and amendments to address the concerns of local school boards. Some legislators philosophically opposed to the precepts the “Preschool for All” report attacked the bills from the floor in both chambers, but were rebuffed by well-prepared bill sponsors and committee leaders. An unexpected amendment on the Senate floor reflecting fiscal worries (but not substantively altering the legislation) received a favorable vote, posing a procedural complication that was ultimately overcome. Both bills passed by comfortable margins with time to spare. The Governor is expected to sign them into law next month.

Additional Legislation

Other legislation supported by MCC met with success, including:

HB 244 / SB 413—“Joint Committee on Children, Youth, and Families—Repeal of Sunset,” which makes the Joint Committee a permanent body of the General Assembly. Since its establishment in 1999, the Joint Committee has become an important forum for the multi-agency evaluation of State efforts to improve the health, education, safety and economic well-being of children in Maryland. It has recommended policies and budget priorities to improve the quality of life of children and families. MCC has worked closely with the Joint Committee as it has addressed the vital issue of preparing children to enter school ready to learn, and will continue to do so.

HB 712 / SB 356—“Family Day Care Homes and Child Care Centers—Emergency Preparedness Plans,” which requires all regulated providers to have a comprehensive, written emergency plan, including notification of parents and communication with local emergency management officials, with training for staff to implement the plan. The bills require MSDE to consult with emergency management professionals and the disabilities community in the implementation of this law. MCC’s testimony in support of the legislation stressed the importance of expanding training and technical assistance opportunities for providers to help them understand how to prepare for a wide range of natural and man-made disasters, both at the time of the initial impact and in what can sometimes be a prolonged recovery period. Legislators later commented that this testimony struck favorable chords.

Unfortunately, a bill reflecting MCC’s longstanding interest in public awareness about the Earned Income Credit (EIC) met a different fate. HB 1061—“Earned Income Information Act,” would have required employers in the State to notify employees about potential eligibility for the EIC. Employers would be given wide latitude in the implementation of the requirement, with the prospect of connecting with particularly hard-to-reach eligible EIC non-filers. From MCC’s previous work in this area, many employers could be counted on to embrace the idea, given the opportunity to increase income for their lowest paid workers at no cost to their business. Despite the bill’s late introduction and opposition from the Maryland Chamber of Commerce, an intense lobbying effort in the Session’s final days took the bill to the brink of success. Electronically displayed on the board in the Senate as the last seconds of the Session wound down, a motion for a vote was superseded when midnight struck on Sine Die.

Day in Annapolis

For the first time, MCC conducted its annual Child Care Day in Annapolis in concert with Friends of the Family (FOF), our longtime staunch allies and now our formal partners. Public Policy Committee members, child care providers, and other MCC supporters joined a boisterous throng of parents, children, and Family Support Center staff for entertaining and enlightening program that included a meeting of the Public Policy Committee and culminated in an address by the Lieutenant Governor. More than 350 attendees—many visiting Annapolis for the first time—delivered important messages about MCC and FOF priorities to their elected officials. The level of enthusiasm (and fun) was memorable; the potential power of future advocacy efforts linking parents, providers, and other stakeholders was abundantly clear.

Interim Tasks

With new insights from the Session’s budget analyses, with additional mid-year actions perhaps pending before the Board of Public Works, and with the impetus for pre-K expansion more firmly established, much of MCC’s public policy agenda for the Interim has come into focus. Merging with FOF will bring an exciting array of new opportunities to advocate for policies improving the lives of Maryland’s children and those who care for them. Strategizing for next Session (only nine months away) has already begun.

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