July 1, 2022 marked the beginning of the 2022-23 fiscal year for California’s state government, and the day that the new annual state budget goes into effect.
The upcoming year’s state budget includes some benefits for California early childhood care and learning providers, including:
An Extension of the Family Fee Waiver. $136 million in one-time federal funds will be used to extend family fee waivers for state-subsidized child care from July 1, 2022 through June 30, 2023.
Extension of the Hold Harmless Provision. $114 million ($6 million from the state’s General Fund, and $108 million from federal funds) will support a one-year extension of ‘hold harmless’. This will allow child care providers to be reimbursed based on their program’s maximum authorized care rather than on attendance.
Additional Funding for the Child Care Facility Infrastructure Grant Program. $100.5 million in one-time federal funds will fund a second year of this grant program. In 2022-23 the funds will be used for minor renovations and repairs of child care facilities.
It is disappointing that the 2022-23 Budget did not directly address compensation for early childhood care and learning providers. There is rate reform work underway, however, through the state-mandated Rate & Quality Workgroup, which has been charged with recommending policies to align workforce competencies with rate reform. The workgroup is studying a rating system based on the cost of providing quality child care, and will present its recommendations on or before August 15, 2022.
