May 2019

Child Care and Preschool

Comparing Early Education Proposals Under Governor's Budget and May Revision

2019-20 (In Millions)

  Governor's Budget     May      Revision Change
Slots      
Provides 10,000 full-day State Preschool slots at non-LEAsa $125 $31 -$93
Provides General Child Care slots for school-age children 80 80
Creates new temporary assistance child care program  13 13
Reduces non-CalWORKs slots by statutory adjustmentb -20 -16 5
Annualizes cost of State Preschool slots initiated April 1, 2019 27 27
Annualizes 2,100 Alternative Payment slots initiated September 1, 2018 3 3
Uses 2018-19 federal funds for 11,307 Alternative Payment slotsc -205 -205
Subtotals (-$70) (-$66) ($5)
Reimbursement Rates      
Annualizes/adjusts certain adjustment factors initiated January 1, 2019 $40 $50 $11
Provides COLA to certain child care and preschool programsd 79 75 -4
Subtotals ($119) ($125) ($6)
Other      
Makes CalWORKs caseload and average cost of care adjustments $103 $134 $31
Makes changes to CalWORKs Stage 1 eligibility 41 41
Removes one-time increase to quailty services -16 -17 -1
Adjusts Transitional Kindergarten for attendance and LCFF funding rate 29 27 -2
Funds one-time workforce development initiative 245 245
Funds one-time infrastructure initiative 245 245
Funds one-time blueprint initiative 10 10
Makes other technical adjustments 4 3 -1
Subtotals ($620) ($689) ($68)
Totals $669 $748 $79
       
a Governor's budget started slots July 1, 2019, whereas May Revision starts slots April 1, 2020.
b Based on the projected decrease in the birth-through-four population. Governor's budget assumed an 0.89 percent year-over-year decline, whereas May Revision assumes a -0.68 percent decline.
c The 2018-19 budget includes $205 million for Alternative Payment slots, which will be spent over a two-year period.
d Under Governor's budget, COLA is 3.46 percent. Under May Revision, COLA is 3.26 percent.  
COLA= cost-of-living adjustment. LEA= local education agency. LCFF = Local Control Funding Formula.