Summary of LAO Findings and Recommendations on the 2010-11 Budget

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Recommendation

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 Go Back  California Department of Education Governor proposes to achieve $77 million in Proposition 98 savings by reducing reimbursement rates for child care voucher-based programs. Specifically, lowers reimbursement for licensed child care providers from 85th percentile of regional market rate to 75th percentile. Also lowers reimbursement for license-exempt providers from 90 percent of licensed rate to 70 percent of rate. Uses 2005 survey. Recommend using most recent survey data (2009) to reflect actual conditions in child care market, then setting rates at a level the state can afford. 1-24-10

Detailed Narrative

For more detail, please see "Overview of Special Session Proposals: Proposition 98 Budget."