July 2017
Child Care and Preschool
2017-18 Child Care and Preschool Changes
(In Millions)
| General Fund | Federal Funds | Total | ||
| Change | Prop. 98 | Non-Prop. 98 | ||
| Reimbursement Rates | ||||
| Increases Standard Reimbursement Rate (SRR) 6 percent starting July 1, 2017 | $61 | $32 | $0 | $93 |
| Increases SRR to cover cost of rate increase adopted in 2016-17 | 44 | 24 | 0 | 68 |
| Annualizes Regional Market Rate (RMR) increase initiated January 1, 2017 | 0 | 45 | 12 | 57 |
| Increases RMR to the 75th percentile of the 2016 regional market survey starting January 1, 2018a | 0 | 32 | 8 | 41 |
| Annualizes 5 percent license-exempt rate increase initiated January 1, 2017 | 0 | 9 | 2 | 11 |
| Subtotals | ($104) | ($143) | ($22) | ($269) |
| Slots | ||||
| Annualizes State Preschool slots initiated April 1, 2017 | $24 | $0 | $0 | $24 |
| Creates Emergency Child Care Bridge Program for Foster Children | 0 | 15 | 4 | 19 |
| Provides 2,959 full-day State Preschool slots at LEAs starting April 1, 2018 |
8 | 0 | 0 | 8 |
| Subtotals | ($31) | ($15) | ($4) | ($51) |
| Caseload and Cost of Care Changes | ||||
| Makes changes to eligibility and family reporting requirements | $0 | $25 | $0 | $25 |
| Adjusts Transitional Kindergarten for changes in attendance and LCFF | 17 | 0 | 0 | 17 |
| Provides 1.56 percent COLA to certain child care and preschool programs |
16 | 13 | 0 | 29 |
| Makes statutory adjustment to non-CalWORKs slotsb | -4 | -3 | 0 | -7 |
| Makes CalWORKs caseload and average cost of care adjustments | 0 | 24 | -100 | -76 |
| Subtotals | ($29) | ($59) | (-$100) | (-$12) |
| Other Adjustments | ||||
| Increases funding for quality improvement activities | $0 | $0 | $9 | $9 |
| Funds YMCA of West San Gabriel Valley facility | 0 | 2 | 0 | 2 |
| Replaces state funds with federal funds | 0 | -113 | 113 | 0 |
| Removes one-time funding from prior year | 0 | -1 | -6 | -7 |
| Subtotals | ($0) | (-$113) | ($116) | ($3) |
| Totals | $164 | $104 | $42 | $310 |
| a Includes a temporary hold harmless provision so that no provider receives less in 2017-18 than it received in 2016-17. | ||||
| b Reflects 0.4 percent decrease in the birth-through-four population. | ||||
| LEA = local education agency. LCFF = Local Control Funding Formula. COLA = cost-of-living-adjustment. | ||||