California Action Center

Updated September 1, 2010

House and Senate Fail to Pass Budget Bill Before Legislative Session Ends

On July 31, the last day of the regular legislative session, the House and Senate voted on a series of budget bills for the 2011 fiscal year. The two competing budget plans included a Republican plan that would have kept the Governor's proposal to eliminate all state funding for child care except for preschool and school-age child care, and CalWORKS child care, as well as a Democratic plan that would not have eliminated the funding for child care.

Both failed to pass with the necessary 2/3 majority. While it is expected that budget negotiations will continue, a special session of the legislature has not yet been called. 

August 17: California Budget Conference Committee Wraps Up Work

The Joint Budget Conference Committee, which includes members of both the House and Senate, has finally wrapped up their work. The Committee’s proposal avoids the worst of the cuts proposed by the Governor’s office earlier this year:

• The budget package rejects the Governor’s May Revision proposal which called for the elimination of all state funding for child care except for preschool and school age child care, including CalWORKs child care.
• The budget package rejects the Governor's January proposal to lower the reimbursement rate for child care providers from the 85th percentile of the Regional Market Rate for licensed providers to the 75th percentile.
• The budget package rejects other ideas including:
       o Increasing family fees
       o Lowering eligibility for child care assistance
       o Reducing and/or redirecting quality child care funding
       o Realigning child care to the County level

Some cuts are made to child care, however:

• A $49 million reduction to CalWORKS as a result of decreasing caseloads.
• A $3.5 million reduction to the Migrant Child Care program as a result of decreasing caseloads.
• A cap is placed on Contracted Center program reserves at 5% ( $84 Million), and
• $201 Million of unexpended one-time-only child development carry-over funds are taken back.

The Joint Budget Conference Committee’s proposal now must be voted on by the full House and Senate. The budget proposal requires a two-thirds majority to pass, which is no easy task.

Thank you to those who responded to our previous action alert and contacted the conference committee!

June 17: Conference Committee Completes First Review of the Child Development Budget, Approves Cuts

Despite disagreements over the Senate and House versions of the budget, the Conference Committee did complete a first review of the child development budget and approved:

• A $49 million reduction to CalWORKS as a result of decreasing caseloads
• A $3.5 million reduction to the Migrant Child Care program as a result of decreasing caseloads

The Conference Committee members are still looking at several issues, and all aspects of the child care subsidy program are still on the table for consideration. This includes changes to reimbursement rates, family income eligibility levels, and a greater reduction in the CalWORKS caseload.

Thanks to all who called conference committee members asking them to preserve and protect child care in the budget!

May 25: Budget Committees Reject Proposal to Eliminate Child Care, Welfare

On May 19, the Assembly budget subcommittees on Education and Health & Human Services held a joint hearing and voted to reject the May Budget Revision proposals. On May 24, the Senate Budget and Fiscal Review Committee also rejected the proposal. This is great news!

There is much work to be done toward a real solution to the budget gap, however. Watch for more news about the Save Child Care campaign!

Governor Proposes Elimination of Child Care Services 

The state of California is facing a budget gap of over $17 billion dollars. On May 14, Governor Schwarzenegger released the annual May Revise - an update state budget proposal. Advocates, program providers were deeply troubled to see that one of the Governor's proposed solutions to the budget gap includes the complete elimination of CalWORKS and all associated child care, and all Child Development programs with the exception of Preschool and AfterSchool.

ECEC joins the Save Child Care Campaign in the coordinated effort to work with the legislature to save child care programs and keep California parents working!

In the News

Hundreds rally over proposed child care cuts. KGO-TV (San Francisco). August 6, 2010.

California budget tardy again, and here's why. Sacramento Bee. July 1, 2010.

Senate Democrats outline plan to shift services to counties. Sacramento Bee. June 21, 2010.

Affordable child care key to jobs. The San Diego Union-Tribune. June 18, 2010.

Lawmakers set to miss budget deadline again. Sacramento Bee. June 15, 2010.

Child care cuts put a face on budget debate. Redding Record Searchlight (Redding). June 14, 2010.

Rallying to save child care. The Record (San Joaquin County). May 29, 2010.

Child care on the chopping block. People's World. May 28, 2010.

More than 150 child care supporters appear before Senate Budget Committee Tuesday to oppose Governor’s proposed elimination of Child Care. Campaign to Save Child Care Press Release. May 25, 2010.

Caifornia could lose child care for workers. Sonoma County Gazette. May 24, 2010.

Cuts to Child Care Subsidy Thwart More Job Seekers. New York Times. May 24, 2010.

Governor's budget revise cuts welfare, childcare; puts greater burden on counties. The Turlock Journal. May 14, 2010.

We Can’t Afford Not to Invest in Early Childhood Education. L.A. Watts Times. September 10, 2009.

Questions? Send an email to info@ececonsortium.org

 Click here to return to main Action Center

Resources

Campaign to Save Child Care Statement on the Proposed Budget, May 2010

Save Child Care Campaign

Campaign to Save Child Care Supporters (June 23, 2010)

 The Economic Impact of the Child Care Industry in California, (2001)

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