2023-24 CA State Budget includes Gains for the Early Childhood Care & Learning Sector

The 2023-24 budget signed by Governor Newsom earlier this month includes provisions to help sustain the availability of affordable child care in California.

• $22 million of the state’s General Fund was allocated to extend current reimbursement flexibilities until 9/30/23. This will allow contract-based program providers to be reimbursed at the maximum contract rate and be reimbursed based on enrollment rather than attendance. 
• $29.4 million in federal funds will be used to waive family fees for child care programs through 9/30/23. Beginning on 10/1/23, $56 million in California General Funds will be used to limit the family fee schedule to 1% of a family’s monthly income, and fees will not be assessed for families with adjusted monthly incomes below 75% of BMI.
• California Child Care Providers United is in the process of voting on a contract that, if accepted, would include: a pathway to determining provider payment based on the actual cost of providing care, increased per/child subsidy rates, and a new retirement fund.

These child care budget increases took place during a year in which California faces significant budget deficits, and wouldn’t have been possible without the persistent and committed voices of advocates and supportive legislators.