May 2018

Child Care and Preschool

Comparing Child Care and Preschool Proposals Under the Governor's Budget and May Revision

2018-19 (In Millions)

Change

Governor’s Budget

May Revision

Change

Reimbursement Rates

     

Provides COLA to certain child care and preschool programsa

$50

$54

$4

Increases Standard Reimbursement Rate (SRR) 2.8 percent starting July 1, 2018

48

48

0

Annualizes Regional Market Rate (RMR) increase initiated January 1, 2018

24

24

0

Permanently extends RMR hold harmless provisionb

14

14

0

Subtotals

($136)

($140)

($4)

Caseload and Cost of Care

     

Annualizes cost of State Preschool slots initiated April 1, 2018

$19

$19

$0

Provides 2,959 full‑day State Preschool slots at LEAs starting April 1, 2019

8

8

0

Makes CalWORKs caseload and average cost of care adjustments

c

105

104

Reduces non‑CalWORKs slots by 0.48 percentd

‑9

‑9

0

Subtotals

($19)

($123)

($104)

Other

     

Funds one‑time early education expansion grantse

$167

$0

‑$167

Adjusts Transitional Kindergarten for increases in attendance and LCFF funding rate

41

42

1

Provides one‑time increase to quailty services

9

26

17

Annualizes funding for bridge program for foster children initiated January 1, 2018

20

21

1

Makes other technical adjustments

7

7

0

Subtotals

($244)

($96)

(‑$148)

Totals

$399

$359

‑$40

aUnder Governor’s January budget, COLA is 2.51 percent. Under May Revision, COLA is 2.71 percent.

bUnder current law, the RMR hold harmless provision expires December 31, 2018.

cLess than $500,000.

dReflects statutory adjustment based on the projected decrease in the birth‑through‑four population.

eGovernor’s January budget funds proposal using 2018‑19 Proposition 98 General Fund and Temporary Assistance for Needy Families. May Revision funds proposal entirely using 2017‑18 Proposition 98 General Fund.

COLA = cost‑of‑living‑adjustment; LEA = local education agency; and LCFF = Local Control Funding Formula.