June 3, 2010
Distribution of child development contracts for fiscal year (FY) 2010-11 began on June 1, 2010 for General Child Care (CCTR) and California State Preschool (CSPP) programs. Immediately following will be Alternative Payment (CAPP), CalWORKs Stage 2 and Stage 3, and other direct service and support contracts.
The cut made to the General Child Care appropriation in the final 2009-10 Budget Act was never applied to the 2009-10 CCTR contracts. The Department had a one-time option available to absorb the cut and an across-the-board cut to all contracts was therefore avoided in FY 2009-10. Because there are no alternative solutions to continue to absorb this cut, a reduction of approximately one percent has been applied to the general child care funds in both CCTR and CSPP FY 2010-11 contracts.
CAPP contracts have been cut due to the reduction to the reimbursement rate ceiling proposed in the Governor’s Budget released in January. This results in a reduction of approximately 3.8 percent to CAPP contract Maximum Reimbursable Amounts (MRAs).
As is our normal process for CalWORKs Stage 2 and Stage 3 contracts, caseload and expenditure data reported by contracting agencies were evaluated and used to determine agency need. Each Stage 2 and Stage 3 contract then received a pro-rata share of the amount proposed in the Governor’s January Budget. Additionally, the appropriation for Stage 2 was adjusted for caseload as reflected in the May revision.
All other direct service and support contracts will be issued based on the Governor’s Budget released in January.
Further adjustments to all child development contract MRAs and/or rates remain a possibility and are contingent upon final legislation enacted in the 2010-11 budget. The CDE is diligently working with the Legislature to protect child care and development programs from any additional cuts and will inform contractors with information about funding reductions as it becomes available.
If you have any questions regarding this subject please contact your assigned Child Development Fiscal Services fiscal analyst. For contact information, please visit our website at http://www.cde.ca.gov/fg/aa/cd/faad.asp.
Sharon Taylor, Director
Fiscal and Administrative Services Division