Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS

Capital Budget Committee

HB 3318


This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Regarding capital grants for child care facilities.

Sponsors: Representatives Fromhold, Kenney and Santos.

Brief Summary of Bill
  • Establishes a competitive process for nonprofit organizations to obtain grants for construction or renovation of space for the delivery of child care services.

Hearing Date:

Staff: Steve Masse (786-7115).

Background:

The Department of Early Learning's (Department) primary duties are to implement state early learning policy and to coordinate, consolidate, and integrate child care and early learning programs in order to administer programs and funding as efficiently as possible. The Department's duties include, but are not limited to, administering child care and early learning programs and supporting both public and private sectors toward a comprehensive and collaborative system of early learning that serves parents, children, and providers and to encourage best practices in child care and early learning programs.
   
The Washington State Child Care Facility Fund was created by the Legislature in 1989 to expand quality and supply of private sector employer sponsored child care in Washington. The program has a revolving loan fund and also makes grants available. Only monies from federal or private sources may be deposited into the fund. The program is managed by the Department of Community, Trade, and Economic Development (CTED), with assistance from the Department of Early Learning. In the 2005-07 biennium, an estimated $384,000 in grants and loans were issued. Grants require a dollar for dollar match, and may include in-kind matching resources. Funds can be used for the start up of a new facility or for capital improvements in an existing licensed child care facility. The maximum amount of a grant is $25,000 and the maximum for a loan is $100,000 to be paid back with 5 percent interest.

In 2002 the Legislature appropriated $4,000,000 for renovating child care facilities at state facilities and higher education institutions. The Department of Social and Health Services (DSHS) coordinated the creation of the Interagency Child Care Facility Grant Committee. The committee developed criteria and ranked proposals for health and safety improvements, capacity retention and expansion, and other improvements necessary to meet or retain child care licenses. Twenty-two projects received grants, most of which were at higher education institutions.

Summary of Bill:

The Department of Early Learning, in consultation with the CTED will establish a competitive grant program for the construction or renovation of space for the delivery of child care services. Priority will be given to nonprofit organizations committed to serving sick children, children whose care is being subsidized by DSHS, and children assisted by Head Start or Early Childhood Education and Assistance programs and children served by programs under RCW 72.40.

Grants will not exceed $500,000 and not exceed more than fifty percent of the total cost of the project. The non-state portion of the project cost may include cash, property for the use of the facility, or other in kind contributions.

Appropriation: None.

Fiscal Note: Requested on 1/25/08.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.