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THREAD: The Governor& #39;s May Revision includes more than $1 billion in trigger cuts and spending reductions for California& #39;s child care and development system.
#CABudget
#CABudget
This includes cancelled preschool spaces, cancelled child care spaces, cancelled facilities funding, cancelled workforce grants, and - perhaps most painful of all - a 10% cut to provider payment rates.
Read the details here: https://calbudgetcenter.org/resources/first-look-governors-revised-2020-21-budget-proposal-covid19/">https://calbudgetcenter.org/resources...
Read the details here: https://calbudgetcenter.org/resources/first-look-governors-revised-2020-21-budget-proposal-covid19/">https://calbudgetcenter.org/resources...
Even though the @CAgovernor asked subsidized providers to step up to the challenge as essential workers and provide subsidized care to other vital workers& #39; kids, the administration would cut payment rates absent federal $.
In contrast, IL increased subsidized rates by 30%.
In contrast, IL increased subsidized rates by 30%.
Subsidized providers were already woefully underpaid and were struggling to cover operating costs prior to the COVID-19 pandemic.
Read more about balancing the books as a child care provider here:
https://cscce.berkeley.edu/why-do-parents-pay-so-much-for-child-care-when-early-educators-earn-so-little/">https://cscce.berkeley.edu/why-do-pa...
Read more about balancing the books as a child care provider here:
https://cscce.berkeley.edu/why-do-parents-pay-so-much-for-child-care-when-early-educators-earn-so-little/">https://cscce.berkeley.edu/why-do-pa...
Providers that accept subsidized vouchers are reimbursed based on the 75th percentile of the 2016 Regional Market Rate Survey. This *should* allow families access to 75 out of 100 providers in their county -- if we weren& #39;t using an outdated survey.
A 10% decrease to these outdated rate ceilings would further restrict families’ access to care. In LA County the proposed rate ceiling would provide families access to just 54% of providers in their community based on the most recent survey from 2018.
Providers who contract directly with the state are reimbursed with the Standard Reimbursement Rate. Because policymakers haven& #39;t increased this rate annually, it has lost value. Gains were made after the Great Recession, but this trigger cut puts these gains in jeopardy.
. @CalBudgetCenter fact sheet out tomorrow detailing how these cuts to provider payment rates could force providers out of business and limit families& #39; access to care.
