“Children Learning, Parents Earning, Communities Growing"

Budget Related Information

2016-17 Latest News 

  • October 3, 2016: 

    The 2016-17 Budget:  California Spending Plan (Click here to read full update).  Below is an excerpt:

    "...2016-17 ends with $8.5 billion in total estimated reserves-up by $1.1 billion from the amount now estimated at the end of 2015-16. This shows that estimated state General Fund revenues ($124.2 billion) exceed total General Fund expenditures ($122.5 billion). Spending includes both ongoing program costs and one-time items, such as $1 billion in state office building replacements. If revenues differ from the budget assumptions-for example, if 2016-17 revenues are higher or lower than the assumed level in Figure 2-reserves would differ from this total."

  • 26 July 2016 - Child Care Law Center Analysis of Child Care Provisions in the California State Budget for Fiscal Year 2016-2017
  • California Budget & Policy Center First Look: 2016-17 Budget Reflects Increases for Education and Reserves, Repeals “Family Cap” Rule, and Makes Modest Investments in Other Key Supports
  • DOF One Pager of Enacted Budget & DOF Program Paper

  • 6/27/2016 - 2016-17 Budget Signed
  • Click here to see excerpt language from SB 826 - the 2016-2017 Budget Bill.
  • NOTE:  The budget bill and some of the trailer bills are now on their way to Governor Brown for anticipated signature.
  • 6/15/2016 - The full Assembly and Senate will be taking up the 2016-2017 State Budget and trailer bills.  Both the Assembly and Senate are scheduled for floor sessions at 3:00 pm.  To watch, click here.
      • ASM passed SB 826 Budget Bill by a vote of 52-27.
      • ASM passed SB 828 child care trailer bill by a vote of 73-0.
      • SEN passes budget.
    • Click here to read the Assembly 5/15/2016 Floor report on the 2016-2017 Budget.  
      • Investing in our future—from early education to higher education:
        • Funds Child Care and Preschool Rate Increases. Provides rate increases that will grow to over $500 million primarily to increase rates for child care and preschool programs to reflect the rising costs of the state minimum wage laws. Also provides funding, growing to $100 million annually, to add nearly 9,000 full day preschool slots.
        • Local Control Funding Formula Increase. Provides $3 billion to further implement the LCFF
        • Incentivizes Full Day Kindergarten. Begins process of developing financial incentives for school districts to provide full day Kindergarten.
        • Anticipates creation of “Blue Ribbon Commission on Early Care and Education. Anticipates the Speaker will establish a “Blue Ribbon Commission” including state leaders and early care and education experts from throughout the state to develop options for improving services for children 0-3 and for implementing Universal Pre-K for all 4 Year-olds
  • 6/14/2016 Legislative Women’s Caucus press conference on child care funding in the budget and repeal of the Maximum Family Grant videos can be viewed on CAPPA's Facebook page.
  • 6/13/2016 - Budget & trailer bills are in print
  • 6/13/2016 - SEN Budget & Fiscal Review Committee to take up budget & trailer bills @ 9:30 am or upon call of the chair in room 4203
  • (6/10/2016) - The agreements passed on June 9th from the Conference Committee will now be drafted and submitted to become part of either the main budget bill or a trailer bill.  The Senate and the Assembly will take up the budget and trailer bills next week.  The Constitutional deadline to submit a budget to the governor is June 15th.
  • June 9, 2016 - the Budget conference committee approved  Items 1-9 excluding Item 8 by a unanimous vote from each house 5-0 Assembly & 5-0 Senate
1) Increases Regional Market Rates to the 75 percentile of the 2014 survey as of January 1, 2017—with a two year hold-harmless.
2) Increase Licensed Exempt Rates from 65 percent to 70 percent of the Family Child Care Home Rate as of January 1, 2017.
3) Increase Standard Reimbursement Rates by 10 percent across-the-board effective January 1, 2017.
4) Adopt placeholder trailer bill to implement the above provisions and express legislative intent on setting the 85th percentile of the Regional Market Rate as the long term goal for reimbursement rate.
5) May Revision language regarding the priority for federal quality funding.
6) No funding for the CDE to develop statewide plan for providing one year of pre-kindergarten for all four-year-olds.
7) $248,000 General Fund for existing positions within the Department of Education to support workload associated with increased preschool slots provided in the 2015-16 budget.
9) $100 million in Proposition 98 funding for 8,877 additional full-day State Preschool Slots to be phased in over 4 years. Specifically, $7.8 million in 2016-17, $39.6 million in 2017-18, $73.0 million in 2018- 19, and $100 million in 2019-20. 
 

8) $1.4 million in one-time funding for LA Trade Tech. This item was  approved by a vote of house 3-2 Assembly & 3-2 Senate

Coalition Opportunities

2016-17 Budget Bills

Links:

Past budget hearing agendas and attachments

  • June 9, 2016 - Conference Committee.  Agenda.  
  •  The Budget conference committee approved  Items 1-9 excluding Item 8 by a unanimous vote from each house 5-0 Assembly & 5-0 Senate
1) Increases Regional Market Rates to the 75 percentile of the 2014 survey as of January 1, 2017—with a two year hold-harmless.
2) Increase Licensed Exempt Rates from 65 percent to 70 percent of the Family Child Care Home Rate as of January 1, 2017.
3) Increase Standard Reimbursement Rates by 10 percent across-the-board effective January 1, 2017.
4) Adopt placeholder trailer bill to implement the above provisions and express legislative intent on setting the 85th percentile of the Regional Market Rate as the long term goal for reimbursement rate.
5) May Revision language regarding the priority for federal quality funding.
6) No funding for the CDE to develop statewide plan for providing one year of pre-kindergarten for all four-year-olds.
7) $248,000 General Fund for existing positions within the Department of Education to support workload associated with increased preschool slots provided in the 2015-16 budget.
9) $100 million in Proposition 98 funding for 8,877 additional full-day State Preschool Slots to be phased in over 4 years. Specifically, $7.8 million in 2016-17, $39.6 million in 2017-18, $73.0 million in 2018- 19, and $100 million in 2019-20. 
 
8) $1.4 million in one-time funding for LA Trade Tech. This item was  approved by a vote of house 3-2 Assembly & 3-2 Senate

General Information

January 2016-17 Budget Proposal

Informational

Legislative Hearings

Click here to see the most up to date schedule of hearings for the Assembly.

Click here to see the most up to date schedule of hearings for the Senate.

 

SB 828 – Education trailer bill

(5) Existing law requires the State Department of Education to implement the regional market rate schedules based upon the 85th percentile of county aggregates, as determined by the regional market rate survey conducted in 2009, and, commencing January 1, 2015, requires the regional market rate schedule developed pursuant to that provision to be reduced by 10.11 percent. Existing law requires the department, if a market rate ceiling for a county is less than the ceiling provided for that county before January 1, 2015, to use the ceiling from the regional market rate survey conducted in 2005, and requires, commencing October 1, 2015, the regional market rate ceilings for all counties to be increased by 4.5%.

This bill would delete those provisions and would instead require the department to implement the regional market rate schedules based upon county aggregates, as specified in a certain provision and the annual Budget Act.

 

SECTION 1. Section 8263 of the Education Code is amended to read:

New Language- (a) (2) If only one parent has signed an application for enrollment in child care services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.

 

SEC. 3. Section 8265 of the Education Code is amended to read:

(b)  The Until December 31, 2016, the standard reimbursement rate shall be nine thousand five hundred seventy-two dollars and fifty cents ($9,572.50) per unit of average daily enrollment for a 250-day year year. Commencing January 1, 2017, the standard reimbursement rate shall be ten thousand five hundred twenty-nine dollars and seventy-five cents ($10,529.75) and, commencing with the 2016–17 2017–18 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. The Until December 31, 2016, the full-day state preschool reimbursement rate shall be nine thousand six hundred thirty-two dollars and fifty cents ($9,632.50) per unit of average daily enrollment for a 250-day year year. Commencing January 1, 2017, the full-day state preschool reimbursement rate shall be ten thousand five hundred ninety-five dollars and seventy-five cents ($10,595.75) and, commencing with the2016–17 2017–18 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. It is the intent of the Legislature to further increase the standard reimbursement rate through the 2018–19 fiscal year to reflect increased costs to providers resulting from increases in the state minimum wage.

 

SEC. 4. Section 8357 of the Education Code is amended to read:

 

8357.   (a) The cost of child care services provided under this article shall be governed by regional market rates. Recipients of child care services provided pursuant to this article shall be allowed to choose the child care services of licensed child care providers or child care providers who are, by law, not required to be licensed, and the cost of that child care shall be reimbursed by counties or agencies that contract with the department if the cost is within the regional market rate. For purposes of this section, “regional market rate” means care costing no more than 1.5 market standard deviations above the mean cost of care for that region.Until October 1, 2015, It is the regional market rate ceilings shall be established intent of the Legislature to reimburse child care providers at the greater of either the 85th percentile of the 2009 most recent regional market rate survey for that region, reduced by 10.11 percent, or survey. It is also the 85th percentile intentof the 2005 Legislature to update the regional market rate survey for that region. Commencing October 1, 2015, ceilings with each new regional market rate survey, based on available funding, and to further increasethe regional market rate ceilings shall be established at 104.5 percent of the greater of either of through the 2018–19 fiscal year to reflect increased costs to providers resulting from increases in the following: state minimum wage.

(b) Until December 31, 2016, the regional market rate ceilings shall be established at 104.5 percent of the greater of either of the following:

(1) The 85th percentile of the 2009 regional market rate survey for that region, reduced by 10.11 percent.

(2) The 85th percentile of the 2005 regional market rate survey for that region.

(c) Commencing January 1, 2017, and until June 30, 2018, the regional market rate ceilings shall be established at the greater of either of the following:

(1) The 75th percentile of the 2014 regional market rate survey for that region.

(2) The regional market rate ceiling for that region as it existed on December 31, 2016.

(d) Commencing July 1, 2018, the regional market rate ceilings shall be established at the 75th percentile of the 2014 regional market rate survey for that region.

(b)

(e) Until October 1, 2015, the December 31, 2016, reimbursement to license-exempt child care providers shall not exceed 60 65 percent of the family child care home rate established pursuant to subdivision (a), effective July 1, 2011. subdivisions (a) and (b). Commencing October January 1, 2015, 2017, reimbursement to license-exempt child care providers shall not exceed 65 70 percent of the family child care home rate established pursuant to subdivision (a). subdivisions (c) and (d).

 

(2) Notwithstanding paragraph (1), until January 1, 2015, the State Department of Education department shall implement the regional market rate schedules based upon the county aggregates, as determined by the Regional Market survey conducted specified in 2005. Commencing January 1, 2015, Section 8357 and thedepartment shall implement the regional market rate schedules based upon the 85th percentile of county aggregates, as determined by the Regional Market survey conducted in 2009. Commencing January 1, 2015, the regional market rate schedule developed pursuant to this paragraph shall be reduced by 10.11 percent. If a ceiling for a county is less than the ceiling provided for that county before January 1, 2015, the department shall use the ceiling from the Regional Market survey conducted in 2005. Commencing October 1, 2015, the regional market rate ceilings for all counties shall be increased by 4.5 percent. annual Budget Act.

 

In the shaded area below, is the language from the Budget Act (SB 826):

   

(2)

Notwithstanding any other provision of law, effective January 1, 2017, the funds appropriated in this item for the cost of licensed child care services provided through alternative payment or voucher programs, including those provided under Article 3 (commencing with Section 8220) and Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, shall be the greater of either:

 

 

       

(A)

The 75th percentile of rates based on the 2014 Regional Market Rate Survey.

 
       

(B)

The regional market rate ceiling for that region as it existed on December 31, 2016.

 
   

(c)

Until December 31, 2016, the funds appropriated in this item for the cost of license-exempt child care services provided through alternative payment or voucher programs, including those provided under Article 3 (commencing with Section 8220) and Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, shall be used only to reimburse license-exempt child care costs up to 65 percent of the regional reimbursement rate limits established for family child care homes. Commencing January 1, 2017, the funds appropriated in this item for the cost of license-exempt child care services provided through alternative payment or voucher programs, including those provided under Article 3 (commencing with Section 8220) and Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, shall be used only to reimburse license-exempt child care costs up to 70 percent of the regional reimbursement rate limits established for family child care homes.