May 2018

Child Care and Preschool

Summary of Child Care and Preschool Recommendations


May Revision Proposal

LAO Recommendation

CalWORKs child care

Increases spending by $104 million due to changes in Stage 2 and Stage 3 caseload.

Modify. Provide at least $154 million ($50 million more than May Revision) for CalWORKs Stage 2 and Stage 3 caseload to mitigate the risk of having a midyear shortfall.

Inclusive Early Education Expansion Initiative

Replaces $42 million in TANF funding with Proposition 98 General Fund. Scores all $167 million Proposition 98 General Fund to 2017‑18 rather than 2018‑19.

Reject. One‑time funding is unlikely to improve program quality on a lasting basis and facility needs could be funded through the state’s existing revolving loan program.

Subsidized county child care pilot programs

Increases CDE state operations by $624,000 to administer 13 child care pilot programs previously authorized by the Legislature.

Reject and Revisit Next Year. Require CDE to provide better documentation to justify need for additional staff.

TANF = Temporary Assistance for Needy Families and CDE = California Department of Education.