“Children Learning, Parents Earning, Communities Growing"

2018-19 California State Budget Information 

Click here to see budget process (Updated:  June 19, 2018)

Hearings:

  • As of this update, the budget bill (SB 840) and some of the trailer bills have been passed and are on their way to the governor.  Budget and Trailer Bills

2018-19 May Revise

CAPPA's Summary of the 2018-19 May Revise

OVERVIEW
Last Friday, the Governor released the May Revise.  As expected, California's economy continues to be strong, with revenue growth continuing to outperform estimates.  The May Revision proposes spending of $199.3 billion in total state funds, consisting of $137.6 billion from the General Fund, $58.0 billion from special funds, and $3.7 billion from bond funds.The May Revision factors in an additional $8 billion in General Fund (GF) revenues for the current and budget years.  Noting the additional revenue, the May Revision does not make real investments in programs such as child care and earlyeducation that have T he Governor continues to commit an additional $3.5 billion to California's constitutional rainy day fund bringing the amount to $13.8 billion for future budget emergencies, as well as another $3.2 billion in discretionary reserve that can be used for any purpose.
For the projected $8 billion in GF, roughly $4 billion is proposed for one-time spending to shore up the higher costs of existing programs in addition to $2 billion for deferred maintenance for universities, courts, state facilities and flood control; $359 for homelessness; and $312 million allocated for counties to serve youth with mental illness.
 
CHILD CARE
  • Cost-of-Living Adjustment
    The May Revision includes an increase of $2.2 million Proposition 98 General Fund and $1.8 million non-Proposition 98 General Fund to reflect a change in the cost-of-living factor from 2.51 percent at the Governor's Budget to 2.71 percent at the May Revision. 
  • Alternative Payment Program slots - 34,325 May Revision (increased from 32,775 (2017-18 budget)  to 33,096 January budget)
  • General Child Care slots - May Revision 28,427  slots (no change)  
    • Proposes an SRR increase for July 1, 2018 of 2.795%
  • Stage 2 - May Revision notes caseload of 58,674 an increase of 4,834 from January number of 53,840
    • No COLA
  • Stage 3 - May Revision notes caseload of 44,320 an increase of 8,231 January number of 36,089
    • No COLA
  • Migrant -May Revision continues COLA and July 1 SRR Increase
  • Hold Harmless - May Revision continues to restore funding so that no provider rates will be reduced 
  • Other Child Care Activities (R&Rs, LPCs, Child Care Initiative and Qualify Improvement) - May Revision notes $117,818 an increase in funding from January of  $17,207 .  This is due to federal quality funds and COLA.
  • CalWORKs Stage 1 child care - May Revision notes slight increase in enrollment to 38,843 from 38,760; The May Revision proposes Funding for Stage 1 Child Care at $326.8 million, a reduction of $36.8 million from the 2017-18 appropriation, but an increase of $675,000 above the January proposal. Specifically, the budget provides $5.2 million non-Proposition 98 GF to reflect slight increases in the number of CalWORKs child care cases and slight decreases in the estimated cost of care.
  • Pilot Program Funding - May Revision includes language to support CDE's pilot expansion bill (AB 2626 (Mullin)) 
  • Inclusive Early Education Expansion Program
    The Governor's January budget proposed an Inclusive Early Education Expansion Program, which anticipated a transfer of $42.2 million TANF funds. Those one-time federal dollars are no longer available, so the May Revision includes total funding of $167.2 million one-time Proposition 98 GF through a competitive grant program to increase the availability of inclusive early education and care for children aged 0 to 5 years old, especially in low-income
    areas and in areas with relatively low access to care. Grant recipients will commit that all children benefiting from grant funds, especially those with disabilities, have access to appropriate settings that support their educational and developmental growth. 
  • State Preschool Slots - This is the final allocation of 2,759 full-time slots for LEA's effective 2019
  • 3-Year Promise - This is the final year of a multi-year reinvestment promise from Governor Brown.
EMERGENCY FOSTER CHILD CARE BRIDGE -  The May Revision provides full-year funding beginning July 1, 2018 of $31 million for counties that opt into this program.
 
EDUCATION TRAILER BILL LANGUAGE - Amendments to trailer bill legislation to: 
(1) clarify the definitions of inclusive programs and children with exceptional needs, 
(2) clarify the intent of professional development for staff to develop best practices for inclusion,
(3) specify that applicants will need to demonstrate how they will consult with special education experts when determining how to expend funds, 
(4) prioritize applicants that demonstrate the ability to serve a range of disability types and a proportion of children with disabilities consistent with the regional rate of identification, 
(5) specify that grant funds may be used for universal design practices, 
(6) specify that grant recipients must participate in program evaluation activities, 
(7) specify that up to 1 percent of program funds may be used for a program evaluation, and 
(8) remove federal TANF funding from the program.

All Department of Finance (DOF) that breaks down the CalWORKs, child care and other noted slot and budget numbers are hosted above.  



2018-2019 Miscellaneous Handouts 

2018-19 Governor's January Proposal

2017-18 State Budget Archive

2016-17 State Budget Archive