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May 2020

Child Care and Preschool

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

2020-21 (In Millions)

Change Governor's Budget May Revision Change
Slots      
State Preschool slots $127 -$161 -$289
Temporary Alternative Payment slots 73 73
Ongoing Alternative Payment slots 47 47
Non-CalWORKs statutory slot adjustmenta -51 -65 -14
General Child Care slots 10 -10
Subtotals ($87) (-$106) (-$192)
Reimbursement Rates      
Regional Market Rate reductionb -$203 -$203
Standard Reimbursement Rate reductionb -202 -202
Transitional Kindergarten adjustment $19 -72 -91
Non-CalWORKS statutory COLA adjustment 57 -57
Full-day State Preschool Rate reductionb -8 -8
Subtotals ($76) (-$484) (-$561)
Other      
CalWORKs caseload and average cost of care $66 $217 $150
Federal CARES Act funds for 2019-20 COVID-19 expenses 152 152
Stipends for subsidized providers 125 125
Inclusive early education initiative 75 -75
Quality services 9 9
Other technical adjustments 2 -2
Subtotals ($144) ($503) ($360)
Totals $307 -$87 -$393
       
Note: Reflects administrative adjustments to the May Revision provided May 15. Does not reflect May Revision proposals to remove one-time current year initiatives. These include $263 million for grants to renovate and construct facilities, $195 million for workforce development, $10 million to improve CDE’s early education data system, and $4.4 million for the Early Childhood Policy Council.
       
a Based on the projected decrease in the birth-through-four population. Governor's budget assumes a 2.01 percent year-over-year decline, whereas May Revise assumes a 2.55 percent decline
b The May Revision includes a budget control section that would backfill these reductions were the state to receive sufficient additional federal relief funding.
COLA= cost-of-living-adjustment. LCFF = Local Control Funding Formula.