October 31, 2013
Dear County and District Superintendents and Executive Directors of Center-Based Child Care and Development Programs:
California Education Code (EC) Section 8265(d) allows a rate increase for contractors on a case-by-case basis in order to maintain service levels for contracts currently at a rate less than the Standard Reimbursement Rate (SRR). Increases approved through this application will be retroactive to July 1, 2013. Contractors may apply for a rate increase if the contract rate for their center-based child development contract has a daily rate less than $34.38, and secondly meets one or more of the following:
In all cases, contractors must clearly demonstrate that the current year’s projected costs have increased and thereby threaten continuation of the existing program. Copies of prior and current year documentation for all areas of increased costs must be attached.
Documentation must reflect a complete audit trail for increased costs. For example, applications based on labor cost increases must be documented by board-adopted salary schedules for Fiscal Years (FYs) 2012–13 and 2013–14, listing of the appropriate staff on the salary range or step, and the number of staff affected. Board minutes can indicate that the FY 2013–14 salary increase is contingent on the approval of the rate increase application. Any worksheets or calculations that help clarify and/or justify the amount requested should also be included.
Eligible contractors who wish to apply for a rate increase, must complete the attached application (CDFS 3104) and return it with an original signature to the Child Development Fiscal Services (CDFS) unit by December 31, 2013. Because an original signature is required, no faxed applications will be accepted. Applications and all supporting documentation must be received by the deadline to be considered. Extensions will not be granted.
Applications will be evaluated based upon the information and documentation submitted, as well as an analysis of the contractor’s historical earnings, and expenditure data gathered through the annual CDFS contract review process. If available information does not clearly support the amount being requested, that portion of the request for a rate increase will be denied. Due to the unavailability of additional contract funding to support rate increases, approved increases in contracted reimbursement rates will result in a reduction of child days of enrollment levels for that contract. The contract service level will not be allowed to decrease below the current level of services being projected in FY 2013–14.
If you have questions about this application process, please contact Corey Wilson, Fiscal Analyst, by phone at 916-322-5083, or by e-mail at firstname.lastname@example.org.
Original signed by Phyllis A. Savage
Phyllis A. Savage, Staff Services Manager III
Child Development/Nutrition Fiscal Services
Fiscal and Administrative Services Division