January 2019

Child Care and Preschool

2019-20 Changes in Child Care and Preschool Spending

(In Millions)

  General Fund Federal Funds Total
Change Prop. 98 Non-Prop. 98
Slots        
Provides 10,000 full-day Preschool slots at non-LEAs starting July 1, 2019 — $125 — $125
Annualizes cost of State Preschool slots initiated April 1, 2019 $27 — — $27
Annualizes 2,100 Alternative Payment slots initiated September 1, 2018 — $3 — $3
Reduces non-CalWORKs slots by 0.89 percenta -$11 -$10 — -$20
Uses 2018-19 funds for 11,307 Alternative Payment slotsb $0 $0 -$205 -$205
Subtotals ($16) ($118) (-$205) (-$70)
Reimbursement Rates        
Provides 3.46 percent COLA to certain child care and preschool programs $41 $39 — $79
Annualizes increase to certain adjustment factors initiated January 1, 2019 $0 $40 — $40
Subtotals ($41) ($78) ($0) ($119)
Other        
Funds one-time workforce development initiative — $245 — $245
Funds one-time infrastructure initiative — $245 — $245
Funds one-time blueprint initiative — $10 — $10
Makes CalWORKs caseload and average cost of care adjustments — $116 -$13 $103
Adjusts Transitional Kindergarten for attendance and LCFF funding rate $29 — — $24
Shifts all part-day State Preschool slots at non-LEAs out of Proposition 98 -$297 $297 — $0
Replaces state funds with federal funds (accounting adjustment) — -$2 $2 $0
Removes one-time increase to quailty services — — -$16 -$16
Makes other technical adjustment — — $4 $0
Subtotals -($268) ($911) -($22) ($616)
Totals -$211 $1,107 -$227 $669
         
a Reflects statutory adjustment based on the projected decrease in the birth-through-four population.
b The 2018-19 budget includes $205 million for additional slots in 2018-19 and 2019-20.
LEA = local education agency. COLA = cost-of-living adjustment. LCFF = Local Control Funding Formula.