Governor proposes to achieve $77 million in Proposition 98 savings by reducing reimbursement rates for child care voucher-based programs. Specifically, lowers reimbursement for licensed child care providers from 85th percentile of regional market rate to 75th percentile. Also lowers reimbursement for license-exempt providers from 90 percent of licensed rate to 70 percent of rate. Uses 2005 survey.

Last Updated:	1/24/2010
Budget Issue:	Governor proposes to achieve $77 million in Proposition 98 savings by reducing reimbursement rates for child care voucher-based programs. Specifically, lowers reimbursement for licensed child care providers from 85th percentile of regional market rate to 75th percentile. Also lowers reimbursement for license-exempt providers from 90 percent of licensed rate to 70 percent of rate. Uses 2005 survey.
Program:	California Department of Education
Finding or Recommendation:	Recommend using most recent survey data (2009) to reflect actual conditions in child care market, then setting rates at a level the state can afford.