The 2025-26 Budget: Child Care and State Preschool

Mar 28, 2025 - The specific rates providers receive in 2025 ‑ 26 —as well as the overall amount of funding needed to support these rates —will depend on the collective bargaining process, decisions regarding the alternative reimbursement rate structure, and actions by the Legislature.
https://lao.ca.gov/Publications/Report/5024

The 2018-19 Budget: Child Care Programs—Analysis of Governor’s Hold Harmless Rate Proposal

Mar 19, 2018 - Amidst Rate Changes, Providers Held Harmless. Over this period, rate changes were accompanied by temporary hold harmless provisions giving providers the higher of the new or former rates. This means no provider would receive less than it received in the year prior to the rate change.
https://lao.ca.gov/Publications/Report/3787

The 2025-26 California Spending Plan: Child Care and State Preschool

Nov 14, 2025 - Expands Rate Reform Reporting Requirements. Trailer legislation included in the 2024-25 budget package requires DSS to provide quarterly updates on progress toward implementing child care rate reform through January 2026.
https://lao.ca.gov/Publications/Report/5088

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The underlying budget dynamics today are particularly challenging for three reasons. First, revenues have not caught up with expenditures. Second, under our estimates, expenditure growth exceeds estimated revenue growth.
https://lao.ca.gov/Publications/Report/4951

The 2017-18 Budget: Analysis of Child Care and Preschool Proposals

Mar 16, 2017 - As a condition of receiving the funds, the state is required to spend an additional $200  million each year in state funds to meet a matching requirement. Of this combined $800  million, the federal government requires the state to spend a certain percentage on quality improvement.
https://lao.ca.gov/Publications/Report/3618

The 2024-25 Budget: State Preschool

Apr 16, 2024 - Concerns With CDE ’s New Rate Augmentation Authority. Typically, the Legislature sets rates and provides funding to implement these rates through the annual budget process. However, this fall, CDE used the recently granted authority to redirect excess funds that were set aside for a different purpose, without explicit legislative input or oversight.
https://lao.ca.gov/Publications/Report/4894

The 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - (That is, in our view, these costs would not have occurred absent legislative action and as a result do not contribute to the budget problem the Legislature faces today.) Comparison to LAO November Outlook.
https://lao.ca.gov/Publications/Report/4662

The 2023-24 California Spending Plan: Child Care and State Preschool

Nov 17, 2023 - Requires Development of Alternative Methodology for Single Child Care and Preschool Rate Structure. Trailer legislation requires the Department of Social Services (DSS), in collaboration with the California Department of Education (CDE), to develop and conduct an alternative methodology for a single rate structure.
https://lao.ca.gov/Publications/Report/4817

The 2022-23 California Spending Plan: Child Care and Preschool

Oct 27, 2022 - These increased rates are provided through adjustment factors applied to the rate the provider would typically receive. For example, an adjustment factor of 1.8 reimburses providers at 1.8 times the rate for four-year olds.
https://lao.ca.gov/Publications/Report/4643

A Review of Child Care and Preschool Program Flexibilities in Certain Counties

May 13, 2021 - Seven Counties Receive a Higher Reimbursement Rate From Unused Contract Funds. Pilot counties have the flexibility to give their providers a higher reimbursement rate, commonly referred to as a Pilot Reimbursement Rate (PRR).
https://lao.ca.gov/Publications/Report/4431