Updates from June 27 – July 1, 2022
Governor Newsom signs California State Budget for FY 2022-2023
On June 27, the Governor signed The Budget Act (SB 154). On June 30, the Governor signed the Budget Bill Junior (AB 178), which modifies the Budget Act to finalize the total California State Budget.
Funding for child care in the State Budget:
- Waives family fees for child care and preschool programs
- Funds child care spaces for Alternative Payment Program, General Child Care, and Migrant Child Care (approximately $952 million for child care spaces and fees)
- Infrastructure for child care facilities ($100.5 million)
- Allows the Child Care Providers United Union (CCPU) to create and administer a health care benefits trust ($100 million)
- Contributes state funding to CCPU’s health care benefits trust ($100 million)
- Gives CCPU the means to establish a retirements benefits trust, after an agreement with the State ($100 million)
- Provides CCPU with the funding to survey retirement needs ($40 thousand)
- Supports CalWORKs clients experiencing homelessness or housing instability ($285 million)
- Increases help to counties providing assistance for CalWORKs eligibility ($55 million)
- Supports grant programs to strengthen child care:
- Universal Preschool Planning Grant (18.3 million)
- Expand Alternative Payment Programs’ capacities ($20 million)
- Early Head Start and Child Care Partnership Grant ($5 million)
The Governor also signed the Early Childhood Education trailer bill (AB 210) on June 30. This bill makes necessary changes to the current law to implement the State Budget, including:
- Reimbursing child care providers based on enrollment, rather than attendance
- Waiving child care family fees for child care programs
Despite an unprecedented $97.5 billion surplus and $300 billion total state budget, Governor Newsom failed to adopt a child care budget that could have been life-changing for California families. By leaving in place our deeply inequitable child care system, he will continue to underpay child care providers for their valuable work. He will leave out the Black and Brown women who nurture and educate our children. Parents with the least resources will continue to struggle to find affordable, enriching child care.
Though the Governor signed the state budget, the chance for good policy decisions has not passed. Governor Newsom can still bring direct, long-lasting relief to thousands of families by signing the Affordable Child Care Family Fees Act, AB 92 (Gómez Reyes) when it comes before him. This bill will make publicly-funded child care significantly more affordable for families and save money for child care providers. It is one step towards healing the harm caused by anti-Black policies that have prevented families from economic success.
The Senate Appropriations Committee will hear the Affordable Child Care Family Fees Act in early August. If it passes, the Governor can sign the bill and fulfill his commitment to a fairer and more just California for every family.
Updates from June 13 – 17, 2022
Budget Act 2022 Passed the Legislature, to Governor Newsom
On Monday, June 14, the Assembly voted to pass SB 154, The Budget Act. The Legislature presented the Budget to Governor Newsom on Wednesday, June 15. The Governor must sign it by June 30 to become effective for the next fiscal year starting July 1.
Funding for child care includes:
- $668.8M to fund Alternative Payment Program (APP), General Child Care, and Migrant Child Care spaces, including waiving family fees and prioritizing General Child Care spaces for children ages 0-3.
- $18.3M for the California Universal Preschool Planning Grant Program
- $285M to support CalWORKs clients experiencing homelessness or housing instability
- $20M for APP capacity grants
- $149.7M for child care facilities
- $5M for the Early Head Start and Child Care Partnership Grant
The Budget includes Child Care programming changes to:
- Increase meal reimbursement rates for child care centers and family child care homes
- Allow the Department of Social Services to pay direct child care contractors with direct deposit and offer advance payment
Further funding proposals are summarized in the Assembly Floor Report for the 2022-23 Budget.
How you can take action:
Governor Newsom has the chance to give child care providers the fair wages they are owed by increasing child care subsidy rates. Stand up for child care providers by calling the Governor!
Updates from June 6 – 10, 2022
Budget Bill AB 154
On Wednesday, June 8, the legislature updated AB 154, the Budget Act of 2022.
Funding for child care includes:
- $668.8M to fund Alternative Payment Program (APP), General Child Care, and Migrant Child Care spaces, including waiving family fees and prioritizing General Child Care spaces for children ages 0-3.
- $18.3M for the California Universal Preschool Planning Grant Program
- $285M to support CalWORKs clients experiencing homelessness or housing instability
- $20M for APP capacity grants
- $149.7M for child care facilities
- $5M for the Early Head Start and Child Care Partnership Grant
The Budget includes Child Care programming changes to:
- Increase meal reimbursement rates for child care centers and family child care homes
- Allow the Department of Social Services to pay direct child care contractors with direct deposit and offer advance payment
Senate Budget and Fiscal Review Committee
On Thursday, June 9, the Senate Budget and Fiscal Review Committee voted to move the Budget Act forward through the legislative process. The legislature must pass its budget by midnight on June 15. The Governor must sign it by June 30 to become effective for the next fiscal year starting July 1.
How you can take action:
Governor Newsom has the chance to give child care providers the fair wages they are owed by increasing child care subsidy rates. Stand up for child care providers by calling the Governor!
Updates from May 16 – May 20, 2022
After Governor Newsom released the May Revise on May 13, the Senate and the Assembly met this week to discuss how they would agree on a state budget before the June 15 deadline.
Child care advocates also showed up in full force to voice support for their Budget requests. Advocates are united: The Legislature needs to raise reimbursement rates and offer health insurance to child care providers; give retirement benefits to child care providers; Waive child care fees for families, and fund infrastructure proposals.
Child Care Providers United rallied to uplift their needs for health and retirement plans. The California Alternative Payment Program Association (CAPPA) held a press conference to support AB 1649, its legislative proposal to pay child care programs more equitably.
Updates on Waiving Family Fees:
The Department of Finance released the trailer bill language to waive family fees for one more year, from July 1, 2022, to June 30, 2023. The state will continue to pay child care providers the total subsidy, so they do not have to shoulder costs.*
The Latest from Senate and Assembly Budget Subcommittees:
The Senate and Assembly budget subcommittees each held hearings in response to the Governor’s May Revise.
- Assemblymembers in the Education Finance Subcommittee addressed areas lacking in the May Revise and issues to prioritize, such as:
- Increasing child care subsidy reimbursement rates
- Extending the waiver of family fees through 2024
- Increasing Head Start teachers’ pay
The Senate had already released its budget priorities, which includes $1 B for child care for better pay and improved benefits for providers, stabilize state preschool and continue to waive family fees)
The Assembly is expected to release its budget proposals by the end of May.
The Senate and Assembly budget subcommittees will continue meeting until they agree on a final budget. The Assembly and the Senate must pass the state budget by June 15, 2022.
* When families are exempt from paying the “family fee,” child care providers would be shortchanged in those instances where they (rather than a local agency) are responsible for collecting the fee from the families in their child care program. Therefore, it’s important that the Department of Finance specify that a child care provider be fully paid.
