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Riverside County Family Child Care Association>
State Budget Update
June 5, 2008
The Senate and Assembly Budget Committees have now acted on
the Governor’s January and May Budget proposals. These
actions include both decisions about the funding levels for
programs and the policies that will direct the
expenditures. The policies are included in both one year
Budget Bills (BBL) and Trailer Bills (TBL) that change
statute. CCLC contributed by reviewing and developing
language on behalf of the low income children and families
that face barriers to access high quality early care and
education. Now that the Budget Committees have acted, the
Legislature will form a Conference Committee to formulate
the joint Legislative proposal. The Conference Committee
and then the Leadership must craft a budget that can pass
by a 2/3 margin in the Legislature and that has the support
of the Governor. We predict a long summer before the budget
is finalized.
Governor Schwarzenegger’s January and May Budget Revision
proposed to address the huge budget gap by relying
primarily on deep cuts that will be devastating to
California’s families and our state’s future. We continue
to strongly oppose the Governor’s deep cuts to health care,
senior and disabled services, schools, and supports for low
income families and children.
We are working together with all Californians to reject the
Governor’s approach and build the future our children
deserve. The next step depends on us. CCLC is a member of
the broad based budget coalition, Together for California’s
Future. If we are successful in building support in local
areas for a balanced budget approach, we will see new
revenue and balanced actions by members of the Legislature.
Contact us for more information on the Coalition.
We are pleased to report that the Senate and Assembly
Budget committees have taken action rejecting most of the
cuts and taking several affirmative actions supported by
CCLC.
• Families below 40% of SMI will not pay family fees: Both
budget committees accepted Trailer Bill Language to
permanently confirm the floor at 40% of State Median
Income. In addition, both accepted language proposed by
CCLC to exempt all families on cash aid from payment of
fees.
• The Legislature budgeted adequate funds for families in
Stage 2 and 3. Both Committees eliminated the CalWORKs
Stage 2 reserve and used the most accurate estimates
available to ensure that Stage 2 is fully funded in the
Budget. Both Committees accepted Budget Bill language
proposed by CCLC to express the intent of the Legislature
to fully fund Stage 3 child care protecting former cash aid
recipients who are still eligible for subsidies.
• The Legislature rejected the Governors proposed cuts that
would have added more than 17,000 children to the subsidy
Waiting Lists for preschool, center based, family child
care homes and other programs. The Committees also restored
the reductions to the crucial services provided to all
families and providers by the resource and referral
programs in California.
• The Legislature rejected the Governors proposed cuts to
Community Care Licensing. The Assembly and Senate both
rejected reductions in random visits and approved funding
for licensing staff to visit any provider who had not been
visited in 5 years. They also accepted the delay in
adoption of any new trigger language for increased funding.
The Governor’s proposed budget would have reduced
unannounced random visits from the current rate of 30% of
all centers and family child care homes per year to 14%.
• The Legislature rejected permanent reductions in rate
ceilings for child care providers: The Governor’s proposal
to lower the ceiling on rates paid to child care providers
serving families receiving subsidies by reducing the
Regional Market Rate (RMR) cap from the 85th percentile to
the 75th percentile was rejected. The implementation of the
current RMR survey is delayed until March 2009. In
addition, the language was retained guaranteeing the RMR is
based on the more equitable county rollup consistent with
CCLC and child development advocates previous and current
position.
• Inclusive State Plan process made permanent: CCLC was
able to work with the community, CDE and budget staff to
permanently change the CCDF State Plan process. The Budget
Act of 2007 (SB 77 Ducheny) contained new language that
should improve the entire State Plan process. This language
has now passed both committees as Trailer Bill language,
meaning it will not need to be reviewed with the budget
language each year and instead will become law when the
budget is passed. The language requires CDE to release its
draft plan by February 1, the year the plan is due to the
federal government. This new date allows the public to view
the draft almost 3 months earlier than it has in past years
which means CDE has more time to incorporate changes. It
also removes the requirement that the Department of Finance
approve the draft prior to public comment and adds
Legislative review. It is our hope that these changes will
encourage CDE, the Legislature and the public to make
better use of the CCDF State Plan as a planning tool for
child care in the state.
• Legislature adopts priorities for budget year Quality
Expenditures: The Governor’s budget proposed to cut certain
expenditures such as stipends for child care staff based on
the fact the programs were funded with state funds. At the
request of the Legislature and in consultation with CDE,
CCLC developed Budget Bill language to set substantive
priorities for the expenditure of quality dollars. The
proposed language was passed by both committees. A more
thorough discussion of future expenditues will occur in the
state plan discussion.
• Legislature retains support for California’s lowest
income families: The Governor proposed unconscionable cuts
to our lowest income families receiving CalWORKs assistance
by proposing reductions to the already low monthly grant
level by 5%. He also proposed full family sanctions and
other changes that would have cut over 200,000 children off
cash assistance. The most egregious cuts were rejected by
both committees. The CalWORKs package will go to conference
committee for further discussion.
• COLA for Child Care Programs: The Senate accepted a 1.6%
COLA for Proposition 98 programs, including certain child
care programs. However, this is preliminary and the entire
Proposition 98 package will go to Conference Committee for
further consideration.
Click here for California Child Care Resource & Referral
Network's January Proposal and May Revision comparison
chart.
Sincerely,
Nancy
www.childcarelaw.org
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