May 2017
2017-18 Child Care and Preschool Changes
(In Millions)
| Governor's Budget |
May Revision |
Change | |
| Reimbursement Rates | |||
| Increases Standard Reimbursement Rate (SRR) 6 percent starting July 1, 2017 | $0 | $93 | $93 |
| Increases SRR to cover full-year cost of rate increase adopted in 2016-17 | $0 | $68 | $68 |
| Annualizes Regional Market Rate (RMR) increase initiated January 1, 2017 | $57 | $57 | $0 |
| Increases RMR to the 75th percentile of the 2016 regional market survey starting January 1, 2018a |
$0 | $42 | $42 |
| Annualizes 5 percent license-exempt rate increase initiated January 1, 2017 | $11 | $11 | $0 |
| Subtotals | $68 | $270 | $202 |
| Preschool Slots | |||
| Annualizes State Preschool slots initiated April 1, 2017 | $24 | $24 | $0 |
| Provides 2,959 full-day State Preschool slots at LEAs starting April 1, 2018 | $0 | $8 | $8 |
| Subtotals | $24 | $31 | $8 |
| Caseload Changes | |||
| Adjusts Transitional Kindergarten for changes in attendance and LCFF rates | $8 | $31 | $23 |
| Makes statutory adjustment to non-CalWORKs slotsb | -$7 | -$7 | $0 |
| Makes CalWORKs caseload and average cost of care adjustments | -$11 | -$76 | -$64 |
| Subtotals | -$11 | -$52 | -$41 |
| Other Adjustments | |||
| Provides 1.56 percent COLA to certain child care and preschool programs | $0 | $29 | $29 |
| Removes one-time funding | -$7 | -$7 | $0 |
| Subtotals | -$7 | $21 | $29 |
| Totals | $73 | $271 | $198 |
| 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 | |||