January 2024

Child Care and Preschool

2024-25 Changes in Child Care Spending

(In Millions)

  General Fund      
Change Prop. 98 Non-Prop. 98 Prop. 64 Federal Total
12,000 General Child Care slots projected to be awardeda —  $309 —  —  $309
Higher CalWORKs Stage Two costs —  219 —  —  219
Additional 16,000 Alternative Payment slots —  184 —  —  184
One-time MOU and Parity Agreement costs —  68 —  —  68
Higher CalWORKs Stage One costs —  16 —  $45 61
Annualized costs of family fee reduction —  35 —  —  35
Annualized costs of change in part-time definition —  20 —  —  20
Higher Child and Adult Care Food Program costs -1 — —  14 12
COLA (0.76 percent) for Resource and Referral,  Local Planning Councils, and Child and Adult Care Food Program —  —b —  —  —b
Backfill of expiring federal funds —  909 —  -909 —
Technical adjustments —b  —b —  -1 —b
Lower Proposition 64 fund levels for General Child Care —  —  -$23 —  -23
Lower CalWORKs Stage Three Costs —  -40 —  —  -40
Prior year one-time fundingc —  -249  — -87 -336
Totals -$1 $1,473 -$23 -$938 $510
a Request for Application will be released in April 2024 and awarded slots are expected to be filled starting July 1, 2024.
b Less than $500,000.
c Includes prior year one-time costs associated with quality carryover, child care infrastructure program, court cases, temporary family fee waiver, CalWORKs Stage One continuous eligibility, and initial CCPU retirement fund deposit.
MOU = Memorandum of Understanding; COLA = cost-of-living adjustment; CCPU = Child Care Providers United.