Child Care Analysis – California State Budget FY16-17

Overview of Child Care Provisions in the FY16-17 California State Budget

Read the Full Budget Analysis

  1. Total funding for child care increased $145 million this year, with the intention to continue to increase child care investment in future years.
  • Increases in the reimbursement rates paid to child care providers will take effect on January 1, 2017.
  • The annualized increase is approximately $276 million.
  • The enacted Budget brings the total child care spending to $1.8 billion in FY 2016-17, a 2% increase from last year, in non-preschool funding.


  1. Ninety-five percent of additional funding went to increasing provider reimbursement rates in all child care settings.
  • Regional Market Rate updated to the 75th Percentile of the 2014 Survey, effective January 1, 2017.
  • License-Exempt Rate Increased to 70% of the Family Child Care Home Rate, effective January 1, 2017.
  • Standard Reimbursement Rate increased by 10% effective January 1, 2017.


  1. Only full-day State Preschool received any funding for expansion; the need to expand programs for 0-3 year-olds is greater than ever.
  • Increase of $7.8 million to fund nearly 3,000 new full-day CSPP slots, to be administered by Local Education Agencies.


  1. Miscellaneous Budget Items Will Ease Administrative Burdens and Add A Child Care Apprenticeship Pilot Program.
  • A single parent may now verify the continued absence of the second parent by making a sworn statement attesting to that fact.
  • $1.4 million to fund professional training opportunities for child care workers in Los Angeles County.


  1. CalWORKs and non-CalWORKS Program Funding Increased Slightly to Pay for Rate Increases, but no expansion in children served.
  • $1.1 billion for all CalWORKs child care programs.
  • $624 million for all non-CalWORKs child care programs, including General Child Care, Alternative Payment Programs, Migrant Child Care and Care for Severely Handicapped.
  1. Child Care Quality Improvement Funding Increases to $83.8 million.
  • The Budget provides for $18.8 million to the resource and referral agencies, $3.35 million for Local Planning Councils, $.225 million for the California Child Care Initiative Project and $61 million for various quality improvement activities.

Proposals Not Incorporated in the Final Budget

  1. Child Care Development Block Grant (CCDBG) Requirements
  • The Budget did not include 12-month Guaranteed Child Care Assistance or Updated Income Eligibility Thresholds. California state rules do not currently comply with CCDBG requirements for family-friendly, stable child care arrangements.
  • California remains severely out of compliance with CCDBG requirements regarding health and safety training and monitoring, and its request for waiver of these requirements has been denied.
  • The Budget did not include funding for a statewide database and consumer education website that meets federal requirements.


  1. Additional Voucher Slots, especially for 0-3 year olds.
  • The Budget did not specifically address the estimated 300,000 eligible children on waiting lists for subsidized care. Child care for infants and toddlers represents the most requested, most expensive, and most unavailable form of child care.


Read the Full Budget Analysis