Child Development Division
| Subject: Disenrollment Priorities | Number: 11-21 |
| Authority: Chapter 7, Statutes of 2011 (Senate Bill 70). Education Code sections 8201, 8208, 8263, and 8447. | Date: June 24, 2011 Expires: Until Rescinded |
Attention: Executive Officers and Program Directors of All Child Care and Development Programs except CalWORKs Stage 2 and 3
Purpose
This Management Bulletin (MB) provides guidance to all child care and development contractors, except CalWORKs Stage 2 and 3 contractors, on the process for disenrolling families as a result of the reduction in contracted service levels from the implementation of Senate Bill (SB) 70 (Chapter 7, Statutes of 2011).
Information regarding reduction in service levels for CalWORKs Stage 3 contractors will be forthcoming under a separate MB.
Background
SB 70 added Section 8263.2 to the California Education Code (EC). EC, Section 8263.2(a) requires the California Department of Education (CDE) to reduce the Maximum Reimbursable Amounts (MRA) for all contracted child care and development service programs, except CalWORKs Stage 2, effective July 1, 2011. When a contractor must disenroll families because of the reduction in funding, it must do so in reverse priority order, as described in EC, Section 8263(b).
Policy
Contracts for fiscal year 2011–12, released beginning June 1, 2011, will reflect new MRA amounts in accordance with EC, Section 8263.2(a). California Code of Regulation, Title 5 (5 CCR), Section 18054, limits contract reimbursement to whichever one of the following is the least:
- The contract MRA
- Reimbursable costs and expenditures, or
- Service earnings
NOTE: Contractors with a Reserve Account may be reimbursed based on service earnings that are in excess of reimbursable costs, but within the contract MRA and reserve account maximum limits.
Directive
After disenrolling families over 70 percent (70%) of the State Median Income (SMI), in accordance with MB 11-06, and when further reductions to service levels are necessary due to the reduction of the MRA, contractors shall disenroll families in the following priority order:
- Families with the highest monthly income adjusted for family size as determined by the Income Ranking Table (MB 11-10)
- When two or more families have the same income ranking:
- The family with an exceptional needs child(ren), as defined in EC 8208(l), will be disenrolled after all other families in the same income ranking have been disenrolled, and
- If there are no families with exceptional needs child(ren), families will be disenrolled in enrollment date order, last “in” first “out"
- Families with a child(ren) that is receiving child protective services or has been identified as being at-risk of abuse, neglect, or exploitation, shall be disenrolled last
The CDE understands that for cost efficiency, some centers and preschools may elect to close entire classrooms or sites. Contractors considering this option should contact their CDD Field Services Consultant for the process by which these families are disenrolled.
Notice of Action
A Notice of Action (NOA), Termination of Services, shall be issued to all families identified for disenrollment. The NOA should include the following reason for action:
State law (SB 70, 2011) reduced funding to subsidized child care and development programs, effective July 1, 2011. In accordance with 5 CCR, Section 18106(f), families must be disenrolled in reverse order of enrollment priorities.
As a result of the reduction in funding and based upon your income, length of enrollment and record of family circumstances, the last day of services for your child(ren) will be (enter date).
The NOA issued under the directives of this MB will follow the normal and customary appeal process as described in 5 CCR.
NOTE: When implementing fiscal year 2011–12 contract reductions, contractors must consider the cost for continuing services during the appeal process. Service earnings or expenditures exceeding the contract MRA will not be reimbursed. The contingency fund process exists for Alternative Payment programs and is available, funds permitting.
Reporting
Contractors will be required to provide the following information for each county served. If the contractor provides services in two or more counties, the information must be reported for each if the counties in which services were provided:
- Number of families disenrolled due to reduction in funding
- Number of children disenrolled due to reduction in funding
- Number of staff that were laid-off as a result of the reduction to service levels
Cumulative reports will be due October 2011 and April 2012. Additional information regarding reporting requirements and instructions will be provided in a separate notification.
Questions regarding the information in this MB should be addressed to your CDD Field Services Consultant or by phone at 916-322-6233.
This Management Bulletin is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement. Any portion of this Management Bulletin that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to California Education Code Section 33308.5.
