January 2018
Child Care and Preschool
2018-19 Changes in Child Care and Preschool Spending
(In Millions)
| Change | General Fund | Federal Funds | Total | |
| Prop. 98 | Non-Prop. 98 | |||
| Reimbursement Rates | ||||
| Provide 2.51 percent COLA to certain child care and preschool programs | $28 | $22 | – | $50 |
| Increase Standard Reiumbursment Rate (SRR) 2.8 percent starting July 1, 2018 | 32 | 16 | – | 48 |
| Annualize Regional Market Rate (RMR) increase initiated January 1, 2018 | – | 20 | 4 | 24 |
| Permanently extend RMR hold harmless provisiona | – | 13 | 1 | 14 |
| Subtotals | ($59) | ($71) | ($5) | ($136) |
| Caseload and Cost of Care | ||||
| Annualize cost of State Preschool slots initiated April 1, 2018 | $19 | – | – | $19 |
| Provide 2,959 full-day State Preschool slots at LEAs starting April 1, 2019 | 8 | – | – | 8 |
| Make CalWORKs caseload and average cost of care adjustments | – | $6 | -$6 | –b |
| Reduce non-CalWORKs slots by 0.48 percentc | -5 | -4 | – | -9 |
| Subtotals | ($22) | ($2) | (-$6) | ($19) |
| Other | ||||
| Fund one-time early education expansion grants | $125 | – | $42 | $167 |
| Adjust Transitional Kindergarten for increases in attendance and LCFF funding rate | 41 | – | – | 41 |
| Provide one-time increase to quailty services | – | – | 9 | 9 |
| Annualize funding for bridge program for foster children initiated January 1, 2018 | – | $15 | 5 | 20 |
| Replace federal funds with state funds (accounting adjustment) | – | 59 | -59 | – |
| Make other technical adjustments | 9 | -2 | – | 7 |
| Subtotals | ($175) | ($73) | (-$4) | ($244) |
| Totals | $257 | $146 | -$4 | $399 |
| a Under current law, the RMR hold harmless provision expires December 31, 2018. | ||||
| b Less than $500,000. | ||||
| c Reflects statutory adjustment based on the projected decrease in the birth-through-four population. | ||||
| COLA= cost-of-living-adjustment. LEA= local education agency. LCFF = Local Control Funding Formula. | ||||