May 2017

Child Care and Preschool

2017-18 Child Care and Preschool Changes

(In Millions)

  Governor's
Budget
May
Revision
Change
Reimbursement Rates      
Increases Standard Reimbursement Rate (SRR) 6 percent starting July 1, 2017 $0 $93 $93
Increases SRR to cover full-year cost of rate increase adopted in 2016-17  $0 $68 $68
Annualizes Regional Market Rate (RMR) increase initiated January 1, 2017 $57 $57 $0
Increases RMR to the 75th percentile of the 2016 regional market survey
     starting January 1, 2018a
$0 $42 $42
Annualizes 5 percent license-exempt rate increase initiated January 1, 2017 $11 $11 $0
Subtotals $68 $270 $202
       
Preschool Slots      
Annualizes State Preschool slots initiated April 1, 2017 $24 $24 $0
Provides 2,959 full-day State Preschool slots at LEAs starting April 1, 2018 $0 $8 $8
Subtotals $24 $31 $8
       
Caseload Changes      
Adjusts Transitional Kindergarten for changes in attendance and LCFF rates $8 $31 $23
Makes statutory adjustment to non-CalWORKs slotsb -$7 -$7 $0
Makes CalWORKs caseload and average cost of care adjustments -$11 -$76 -$64
Subtotals -$11 -$52 -$41
       
Other Adjustments      
Provides 1.56 percent COLA to certain child care and preschool programs $0 $29 $29
Removes one-time funding -$7 -$7 $0
Subtotals -$7 $21 $29
Totals $73 $271 $198
       
a Includes a temporary hold harmless provision so that no provider receives less in 2017-18 than it received in 2016-17. 
b Reflects 0.4 percent decrease in the birth-through-four population.    
LEA = local education agency; LCFF = Local Control Funding Formula; COLA = cost-of-living-adjustment