Page 6 - 2018 Winter Perspectives Newsletter SB

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Budget update from Sacramento!

Summary of the 2018-19 budget proposals for child care and early learning

On Wednesday, January 10, Governor Brown released his proposed budget for 2018-2019. The governor

reiterated the importance of fully funding the ”Rainy Day Fund" to establish fiscal security for future administrations in

the event of another recession. Other significant proposals include full funding of the Local Control Funding Formula

(LCFF) for K-12 education and the creation of a fully online California community college. The governor proposed to
increase child care and preschool programs by $399 million, bringing total state funding to $4.4 billion in this area.

Of these funds, almost half ($2.168 billion) are dedicated to preschool programs and Transitional Kindergarten.

Here is a breakdown of the main proposals for child care and early learning:
- Full Implementation of the Regional Market Rate (RMR) Increase
' Standard Reimbursement Rate (SRR) increase for Title 5 Contracted Centers
' Cast of Living Adiustment (COLA) and Statutory Growth Adiustment
- One-Time Funds

VVhat’s next?

The two houses of the legislature, the California State Assembly and the California State Senate, will begin to review

the proposed budget through budget subcommittee hearings in the spring. This will be followed by the release of the
governor's revised budget proposal in mid-May, which will reflect actual tax revenues after California residents

have paid their 2017 taxes. Final budget hearings will be scheduled in May and early June. The legislature is

expected to complete an on-time proposal bylune 15th, and then Governor Brown has until June 30th to sign the

budget bill into low.

As always, we will keep you informed as we learn more. If you have any questions, contact our Director of

Government Relations, Donna Sneeringer, at [email protected].