The 2025-26 Budget: Child Care and State Preschool

Mar 28, 2025 - Given the COLA is not targeted to AP agency operational costs (the component of these programs that faces inflationary costs), the Legislature may want to consider modifying the statutory COLA to better align funding with costs.
https://lao.ca.gov/Publications/Report/5024

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

Nov 14, 2025 - Funds One-Time Administrative Costs. The budget provides $115  million one-time non-Proposition  98 General Fund to support administrative costs for Alternative Payment agencies. Of this total, $70  million is to cover the costs of implementing aspects of the agreement between the state and CCPU, such as collecting provider dues.
https://lao.ca.gov/Publications/Report/5088

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

Jan 13, 2025 - For example, the administration’s estimate of baseline costs in Medi‑Cal, the state’s Medicaid program, is higher than our November 2024 estimate by $3.1 billion in 2025‑26. This is largely due to increased pharmacy costs, higher caseload, and a lower General Fund offset from the MCO tax package.
https://lao.ca.gov/Publications/Report/4951

The 2024-25 Budget: State Preschool

Apr 16, 2024 - The 2024-25 Budget: State Preschool 11 — CDE Estimates Set-Aside for Collective Bargaining Exceeds Anticipated Costs. CDE estimates the two-year collectively bargained early education and parity agreement will cost $282  million Proposition  98 General Fund and $138  million non-Proposition  98 General Fund.
https://lao.ca.gov/Publications/Report/4894

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

Nov 17, 2023 - Increases in CalWORKs Caseload and Cost Per Case. The spending plan provides an additional $140  million total funds for expected net cost increases in CalWORKs child care programs. The net cost increase is due to increases in caseload and cost per case.
https://lao.ca.gov/Publications/Report/4817

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

Jan 13, 2023 - Cost Shifts In addition to spending solutions, we estimate the Governor ’s budget includes $4.3  billion in cost shifts. Cost shifts occur when the state moves costs between entities or fund sources.
https://lao.ca.gov/Publications/Report/4662

The 2023-24 Budget: Child Care Proposals

Feb 9, 2023 - Governor ’s Budget Overestimates 2023 ‑24 COLA Costs for GCC. The Governor ’s budget calculates COLA costs by applying the 8.13  percent to the total costs of each child care program. In theory, this amount of funding reflects the costs associated with providing an across ‑the ‑board funding increase to all child care providers by 8.13  percent.
https://lao.ca.gov/Publications/Report/4672

The 2023-24 Budget: Transitional Kindergarten and State Preschool Proposals

Feb 14, 2023 - The budget also includes an increase of $165  million to reflect higher costs of maintaining an average of 1 adult for every 12 students in TK classrooms. These costs are associated with maintaining these ratios for a growing number of TK students and providing a COLA.
https://lao.ca.gov/Publications/Report/4682

The 2021-22 Budget: Child Care Proposals

Feb 11, 2021 - Since there is no new workload across both departments, a cost neutral shift would be reasonable. Cost of Shift Higher Than Anticipated, Full Cost Unclear. In his proposed 2020 ‑ 21 b udget last January, the Governor proposed providing $10. 4  m illion to create a new Department of Early Childhood Development and having child care programs administered under this department.
https://lao.ca.gov/Publications/Report/4363

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

May 13, 2021 - County-Specific Rates Not Tied to Cost of Care. One rationale for allowing pilots to provide higher reimbursement rates is because of regional variation in costs. Based on our review of the SRR and RMR in these counties, we think there is some merit to higher reimbursement rates based on geographic variation in costs.
https://lao.ca.gov/Publications/Report/4431