Senior Policy Analyst Kristin Schumacher presented on child care and development programs in 2018-19 for the ECE Advocacy Coalition Annual Meeting.
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Understanding California’s 1.8 Million Gap in Publicly Funded Child Care
key takeaway California’s failure to expand publicly funded child care leaves 1.8 million eligible children without access, worsening affordability, racial inequities, and affordability challenges for families statewide. California’s state leaders acknowledge that child care is a key driver of unaffordability and is critical for children’s healthy development and a strong state economy. Among these state … ContinuedChild Care & Preschool
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Download the PDF version of this Fact Sheet.
For the fifth year in a row, funding for California’s subsidized child care and development system has increased. This system provides critical child care and early learning opportunities for a limited number of children from low- and moderate-income families, but state funding was cut dramatically during and after the Great Recession, while federal funding for subsidized child care remained relatively flat.[1] This meant that fewer children and families received subsidized care than prior to the onset of the Great Recession. However, state policymakers have incrementally reinvested in these programs and services beginning with the 2014-15 state fiscal year, and bipartisan support for subsidized child care at the federal level has resulted in newly available federal funds, as well. Due to these investments, after adjusting for inflation, overall funding for California’s subsidized child care and development system in the 2018-19 fiscal year is $3.887 billion, 15% greater than in 2017-18 ($3.375 billion), and nearly even with funding levels in 2007-08, prior to the onset of the Great Recession (see chart).
The 2018-19 budget includes state funds to add 2,100 Alternative Payment Program (AP) child care slots, as well as 2,959 full-day state preschool slots, as agreed upon in the 2016-17 budget agreement. This year’s budget also adds 11,307 time-limited AP child care slots with newly available federal funds.[2] The 2018-19 budget also increases payment rates for providers that contract directly with the state, including an additional increase specifically for the care of infants, toddlers, and children with special needs. Still, despite the increase in state and federal resources, overall funding for subsidized child care and preschool slots in 2018-19 ($3.522 billion) is still nearly $250 million lower than in 2007-08 ($3.771 billion), prior to the onset of the Great Recession, after adjusting for inflation.
In contrast, total funding for programs and activities designed to boost the quality or support the administration of subsidized child care and preschool programs has increased dramatically.[3] These “quality and support programs” include a range of items such as the Quality Rating and Improvement System (QRIS) and funding for the Resource and Referral Network. Total funding for quality and support programs in 2018-19 is $365 million — an increase of 143% compared to 2017-18, after adjusting for inflation. This dramatic increase is primarily due to the new Inclusive Early Care and Education Expansion Program, which was funded with $167 million in one-time Proposition 98 funds that are to be administered through the 2022-23 fiscal year.
While funding for certain quality-boosting activities has increased, funding for other activities that fall within the quality and support category has decreased or been eliminated. For example, the state funded Centralized Eligibility Lists (CELs) with about $8 million for the maintenance of county-level waiting lists for subsidized slots, but funding for CELs was redirected to child care programs in 2011-12 to mitigate the effects of deep budget cuts. Policymakers have not restored funding for this service. In addition, even though funding for the Resource and Referral Network has remained relatively stable at roughly $19 million annually since 2007-08, funding has actually decreased by nearly one-fifth (19%) after adjusting for inflation.
California’s subsidized child care and development system keeps families working while providing kids with an environment that helps them learn and thrive. Yet, we know that the number of children eligible for subsidized care far outstrips the number of available slots.[4] As the new Governor crafts a policy agenda for the next four years, it is critical that early care and education is at the top of the list. Investing in our state’s subsidized child care and development system sets children and families up for success.
[1] The federal American Recovery and Reinvestment Act (ARRA) of 2009 included a $2 billion boost in funding for the Child Care and Development Block Grant (CCDBG), a major source of federal funding for subsidized child care. Due to this, California received $221 million in additional federal funds, which the state used in 2009-10 and 2010-11 to offset a portion of the state budget cuts to the child care and development system, which in turn maintained child care assistance for some families who otherwise would have lost it.
[2] Absent ongoing funding from the federal government, these slots will only be available through June 30, 2020.
[3] The 2014 reauthorization of the CCDBG, a major source of federal funding for subsidized child care, required states to increase the share of funds set aside for improving the quality of subsidized child care. See Hannah Matthews, et al., Implementing the Child Care and Development Block Grant Reauthorization: A Guide for States (The Center for Law and Social Policy and The National Women’s Law Center: June 2017).
[4] Kristin Schumacher, Over 1.2 Million California Children Eligible for Subsidized Child Care Did Not Receive Services From State Programs in 2015 (California Budget & Policy Center: December 2016).
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Many women across California face significant barriers to advancing economically and achieving financial security. As part of the California Budget & Policy Center’s Policy Perspectives Speakers Series we discussed these barriers during our webinar: The California Women’s Well-Being Index: Advancing Gender Justice Through Increased Employment, Earnings, and Economic Security.
View slide deck presented during the webinar.
Click on the image below to view the webinar recording:
Speakers included:
- Chris Hoene, Executive Director, California Budget & Policy Center
- Surina Khan, President and CEO, the Women’s Foundation of California
- Kari Decker, Managing Director Corporate Responsibility, West Region, JPMorgan Chase & Co.
- Senator Hannah-Beth Jackson, Chair, Select Committee on Women, Work, and Families
- Kristin Schumacher, Senior Policy Analyst, California Budget & Policy Center
- Noreen Farrell, Executive Director, Equal Rights Advocates
- Danielle Beavers, Diversity and Inclusion Director, Greenlining Institute, and Women’s Policy Institute Fellow, Class of 2017-18
- Kellie Todd Griffin, President of Sistallect, Inc., and founder of The State of Black Women in California Initiative
Building on our work with the Women’s Foundation of California on the California Women’s Well-Being Index, Budget Center Senior Policy Analyst Kristin Schumacher took a deeper look at the barriers women face on two particular dimensions of the Index: Employment & Earnings, and Economic Security.
A number of interconnected factors, such as gender- and race-based discrimination and weak public systems and supports, have resulted in women facing far greater economic hardship than men. In fact, at all stages of life women are more likely than men to live in poverty. With a focus on gender justice and racial equity, we released a set of briefs covering the key areas of Work Supports, Boosting Income, Building Wealth, and the Safety Net.
During this webinar, we examined these focus areas and discuss actions that policymakers and other key decision makers can take to ensure California is a place where all women and their families can thrive.
This webinar was made possible with support by:
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For the California Child Development Administrators Association’s “Analysis of the Governor’s 2017-18 Budget Proposal May Revise,” Senior Policy Analyst Kristin Schumacher discussed what the May Revision means for California’s child care and development system.
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For the California Alternative Payment Program Association’s briefing on the Governor’s May Revision, Senior Policy Analyst Kristin Schumacher discussed major components of the revised state budget and how it invests in kids and families.
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For the Jewish Family and Children’s Services’ Public Issues Committee, State Policy Fellow Esi Hutchful presented on causes and approaches to homelessness and child poverty with a focus on Marin and Sonoma counties.
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Federal and State Budget Decisions Threaten AANHPI Women in California
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For the California Department of Social Services’ Lifting Children and Families Out of Poverty Task Force meeting, Senior Policy Analyst Kristin Schumacher presented on early learning for children aged 0-5 from a family access perspective.
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For the fourth hearing of the California Assembly Blue Ribbon Commission on Early Childhood Education, Senior Policy Analyst Kristin Schumacher discussed the Governor’s 2018-19 budget proposal for the state’s subsidized child care and development system.
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Q&A
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5Facts
Understanding California’s 1.8 Million Gap in Publicly Funded Child Care
key takeaway California’s failure to expand publicly funded child care leaves 1.8 million eligible children without access, worsening affordability, racial inequities, and affordability challenges for families statewide. California’s state leaders acknowledge that child care is a key driver of unaffordability and is critical for children’s healthy development and a strong state economy. Among these state … ContinuedChild Care & Preschool
Stay in the know.
Join our email list!
