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FY 2012-13 Changes to the California State Prescho

Letter Head: Tom Torlakson, State Superintendent of Public Instruction, California Department of Education

August 13, 2012

Dear Director of Child Development Programs:

Fiscal Year 2012-13 Changes to the California State Preschool Program

California State Preschool Funding

California State Preschool Program (CSPP) contracts underwent several changes between Fiscal Year (FY) 2011–12 and FY 2012–13. Original FY 2012–13 contract terms were based on the funding levels proposed in the Governor’s May Revise and have since been amended to reflect the final appropriation enacted in the 2012 Budget Act. Changes in funding amounts to your CSPP FY 2012–13 contracts, as has been in the past, are dependent on the type of funding that makes up your agreement. We are therefore unable to provide an across-the-board percentage reduction as funding sources for CSPP contracts vary amongst contractors.

An additional change to the funding composition for some CSPP contracts was made to those contracts with Preschool Family Literacy Program Cost Accounts (PCAs) 24818 and 24905. These two PCAs no longer exist in CSPP contracts, as the funding for these PCAs have been collapsed into the Part-day Preschool PCA 23038 and/or the General Child Care PCA 23254. However, Preschool Family Literacy Support (CPKS) contracts continue to be funded at $2,500 per classroom.

Lastly, a fund shift was performed between Part-day Preschool and General Child Care funding within CSPP contracts. This shift was performed pursuant to the final Budget Act and may have an effect on the ratio of PCA 23038 and 23254 funds within your contract. This shift did not have any effect on total contract MRA.

Additional CSPP/CCTR Transfer Period

In response to these changes, contractors will be provided with an additional period during FY 2012–13 to request a transfer of funds between their CSPP and General Child Care (CCTR) contracts. This period will be September 1–15, 2012. At this time, the FY 2012–13 transfer request letters have not been posted. These should be available by September 1, 2012, at http://www.cde.ca.gov/fg/aa/cd/cdfsforms12.asp. The opportunities to request a transfer of funds during the January period (January 1–15, 2013) and May period (May 1–15, 2013) will remain.

Contractors will follow the procedures used during FY 2011–12 and submit requests for any of the three transfer periods to their Child Development Division (CDD) Consultant. As with CSPP/CCTR transfers in previous years, contractors may not transfer Preschool funds (PCA 23038) into their CCTR contract, so please be aware of the funding structure of your agreements prior to submitting a transfer request. CDD may also require that you include a Program Narrative Change form with your request. The Program Narrative Change form should describe any changes to the number of sites operated by the contractor, any changes to the age groupings of children served by the contractor, and/or any significant changes in the provision of full-day versus part-day services.

Family Fees for Part-Day CSPP

Prior to the passage of Chapter 38, Statutes of 2012 (Senate Bill 1016), families receiving part-day services in a CSPP were exempt from family fees pursuant to EC, sections 8235(g) and 8263(h)(1). Senate Bill 1016 added EC, Section 8239(e) and amended EC, sections 8263(g) and (h) requiring agencies to assess family fees for families receiving part-day CSPP services. Effective July 1, 2012, families enrolled in a part-day CSPP program will be subject to a family fee based on the most current family fee schedule (Please refer to Management Bulletin 12-06 for additional information).

Agencies must report fees for both certified and non-certified children in the revenue section on page three of form CDFS 8501. Family fees for certified children should be reported as Restricted Income on the line “Family Fees for Certified Children” and fees for non-certified children should be reported as Unrestricted Income on the line “Fees for Non-certified Children”.

If you have any questions regarding these changes, 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.

Sincerely,

Original signed by Phyllis A. Savage

Phyllis A. Savage, Staff Services Manager III
Fiscal and Administrative Services Division
Child Development and Nutrition Fiscal Services
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