Early childhood education and childcare.

The California Senate Budget Committee proposes substantial changes to early childhood education funding and administration through legislation that would modify reimbursement systems, eligibility requirements, and program oversight. The bill establishes an alternative methodology for setting childcare provider rates, replacing the current regional market rate survey approach starting July 2025.

Under the proposal, families receiving subsidized childcare would maintain eligibility for at least 24 months, with extensions available when additional children join the household. The legislation allocates $88.5 million from the General Fund to base provider reimbursements on families' certified childcare needs rather than attendance through June 2026. It also continues monthly supplemental payments to providers, with rates varying by region from $98 to $211 per child served.

The measure requires the Department of Social Services and Department of Education to implement a unified rate structure for all state-subsidized childcare programs by July 2025. This new system would standardize base rates as per-child amounts while accounting for geographic differences, provider types, and program requirements. The departments must provide quarterly updates to legislative budget committees through July 2027 on the transition to the new rate methodology.

The bill suspends automatic cost-of-living adjustments for childcare programs in fiscal year 2025-26 but establishes that starting July 2026, all programs will receive minimum annual rate increases tied to the statutory cost-of-living adjustment. It also streamlines reporting requirements by eliminating mandated tracking of part-day preschool enrollment while maintaining oversight of infant and toddler program funding.