January 2020

Child Care and Preschool

2020-21 Changes in Child Care and Preschool Spending

(In Millions)

  General Fund   Federal Funds Total
Change Prop. 98 Non-Prop. 98 Prop. 64
Slots          
Provides 10,000 full-day State Preschool slots at non-LEAs starting April 1, 2021 — $32 — — $32
Annualizes cost of State Preschool slots initiated April 1, 2020 — 96 — — 96
Provides 621 General Child Care slots starting July 1, 2020a — -50 $60 — 10
Reduces non-CalWORKs slots by 2.01 percentb -$18 -33 — — -51
Subtotals (-$18) ($45) ($60) ($0) ($87)
           
Other          
Funds inclusive early education initiativec $75 — — — $75
Makes CalWORKs caseload and average cost of care adjustments — $57 — $10 66
Provides 2.29 percent COLA to certain child care and preschool programs 20 37 — — 57
Adjusts Transitional Kindergarten for increases in attendance and LCFF funding rate 19 — — — 19
Technical adjustments — — — 2 2
Replaces federal funds with state funds (accounting adjustment) — 69 — -69 —
Removes prior year one-time funding -10 -442 — -73 -525
Subtotals ($104) (-$280) ($0) (-$130) (-$305)
Totals $86 -$235 $60 -$130 -$218
           
a Replaces $50 million one-time General Fund provided in 2019-20 with Prop. 64 funds. The additional $10 million provided is associated with the administration's estimate of higher cannabis revenues.
b Reflects statutory adjustment based on the projected decrease in the birth-through-four population.
c Reappropriates $75 million in unspent State Preschool funds.
 
COLA= cost-of-living-adjustment. LEA= local education agency. LCFF = Local Control Funding Formula.