July 2018
Child Care and Preschool
2018-19 Early Education Changes
(In Millions)
| General Fund | Federal Funds | Total | ||
| Change | Proposition 98a | Non-Proposition 98 |
||
| Slots | ||||
| Provides 11,307 Alternative Payment slots available until June 30, 2020b |
— |
— |
$205 | $205 |
| Annualizes cost of State Preschool slots initiated April 1, 2018 | $19 |
— |
— |
19 |
| Provides 2,100 Alternative Payment slots starting September 1, 2018 |
— |
$16 |
— |
16 |
| Provides 2,959 full-day State Preschool slots at LEAs starting April 1, 2019 | 8 |
— |
— |
8 |
| Subtotals | $28 | $16 | $205 | $248 |
| Reimbursement Rates | ||||
| Provides 2.71 percent COLA to certain child care and preschool programs | $30 | $24 |
— |
$54 |
| Increases Standard Reimbursement Rates 2.8 percent starting July 1, 2018 | 32 | 16 |
— |
48 |
| Provides increase to certain adjustment factors starting January 1, 2019 |
— |
40 |
— |
40 |
| Annualizes Regional Market Rate (RMR) increase initiated January 1, 2018 |
— |
20 | $4 | 24 |
| Permanently extends RMR hold harmless provisionc |
— |
13 | 1 | 14 |
| Subtotals | $62 | $113 | $5 | $180 |
| Other | ||||
| Makes CalWORKs caseload and average cost of care adjustments |
— |
$108 | -$7 | $101 |
| Adjusts Transitional Kindergarten for increases in attendance and LCFF funding rate | $55 |
— |
— |
55 |
| Provides one-time increase to quailty support programs |
— |
— |
26 | 26 |
| Provides funds to annually inspect licensed child care providers |
— |
— |
26 | 26 |
| Annualizes funding for bridge program for foster children initiated January 1, 2018 |
— |
16 | 5 | 21 |
| Reduces non-CalWORKs slots by 0.48 percentd | -5 | -4 |
— |
-9 |
| Makes other technical adjustments | 9 | -2 |
— |
7 |
| Replaces federal funds with state funds (accounting adjustment) |
— |
77 | -77 |
— |
| Subtotals | $59 | $195 | -$27 | $227 |
| Totals | $148 | $324 | $183 | $655 |
| a Enacted budget also funds Inclusive Early Education Expansion Program ($167 milllion one time) using 2017-18 Proposition 98 General Fund. | ||||
| b Funds for slots will be spent over a two-year period. | ||||
| c Before this change, the RMR hold harmless provision expired December 31, 2018. | ||||
| d 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. | ||||