Early Learning and Child Care BRIANNA BRUNS CA DEPARTMENT OF - - PowerPoint PPT Presentation

Governor’s Budget 2017-18

Early Learning and Child Care

BRIANNA BRUNS

CA DEPARTMENT OF FINANCE

Economic Outlook

 Changing Times: General Fund revenues are not rising as

quickly as projected - compared to 2016 Budget Act projections, SAL General Fund revenue estimates have decreased by $5.4 billion over a three year period (2015-16 to 2017-18)

 Lower personal income tax revenue – lack of growth in high

wage earners

 Federal Uncertainty  Prop. 98 continues its upward trend from Great Recession,

however growth is declining

 Significant recent growth in Early Learning and Child Care

programs is not sustainable in the long-term

Changes in Revenue Estimates

State Fiscal Pressures

 Rising pension and retiree healthcare costs

• Prop. 98 General Fund

 LCFF target growth

Non-Prop. 98 General Fund and Other Funds

 Scheduled state cost increases for expanded Medi-

Cal access

 Minimum wage increases  Cost pressures related to housing costs,

homelessness, infrastructure, immigration, etc.

Recent Early Learning and Child Care Policy Augmentations

 Since 2013-14, the state has invested the following in Early

Learning and Child Care programs:

 $388.1 million Proposition 98 General Fund  $447.5 million Non-98 General Fund  Approximately 39,000 new slots

 These increases are attributable to:

 New preschool and child care slots  Updates to the Regional Market Rate and Standard

Reimbursement Rate

 Various quality programs including the QRIS Block Grant and

• ther one-time quality investments

2017-18 Governor’s Budget Proposals for Early Learning and Child Care

 Augmentations

Full-year costs associated with the 2016 Budget Act, including:

 $42 million for RMR increases  $24 million for 2,959 full-day State Preschool slots

$37 million in total CalWORKs Stages 2-3 caseload adjustments

 Pause in the Multi-Year Deal

 2016 Budget Act: The Administration and the Legislature agreed to

rate augmentations of $317 million non-Prop. 98 General Fund and $110 million Prop. 98 General Fund by 2018-19

 As of 2017-18 Governor’s Budget, the state has made rate

investments totaling $163.7 million non-Prop. 98 General Fund and $43.7 million Prop. 98 General Fund

 2017-18 Governor's Budget: Pauses further rate augmentations in

2017-18 and extends the multi-year deal through 2019-20

2017-18 Proposed Early Learning and Child Care Budget

2017-18 Trailer Bill Proposals

 Increase Provider Flexibility

 Option to use electronic applications  Allow children with exceptional needs whose families exceed

income eligibility access to part-day State Preschool

 Allow state preschool programs flexibility in meeting minimum adult-

to-student ratios and teacher education requirements, especially those with a Tier 4 or higher QRIS rating

 Increase Alignment Between Programs

 Align the state’s definition of homelessness with the federal

McKinney Vento Act

 Eliminate licensing requirements for state preschool programs using

facilities that meet transitional kindergarten facility standards

 Simplify process by which school districts can align program minutes

for state preschool and transitional kindergarten students

Looking Forward to May

 Potential for changes to federal programs

and funding

 Administration and Legislature engagement

• n the 2017-18 CCDF State Plan for quality

expenditures

 CalWORKs child care caseload and cost-of-

care updates

 Budget hearings, new legislation, stakeholder

and legislator priorities

Contact Info

Brianna Bruns Finance Budget Analyst, Early Learning and Child Care Department of Finance brianna.bruns@dof.ca.gov (916) 445-0328