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Management Bulletin 12-08


Child Development Division

Subject: Disenrollment due to 2012–13 Budget Reduction for California State Preschool Programs Number: 12–08

Authority: Chapter 21, Statutes of 2012 (Assembly Bill 1464);  Chapter 29, Statutes of 2012 (Assembly Bill 1497); and Chapter 38, Statutes of 2012 (Senate Bill 1016)

Date: July 2012

Expires: June 30, 2013

Attention: Executive Officers and Program Directors of California State Preschool programs ONLY
Purpose

This Management Bulletin (MB) provides guidance to all California State Preschool program (CSPP) contractors on the process for disenrolling families as a result of the reduction in contracted service levels from the implementation of Chapters 21 and 29, Statutes of 2012 (Budget Act of 2012–13).

Authority

The Budget Act of 2012–13 reduced funding available for CSPP, effective July 1, 2012. Additionally, Chapter 38, Statutes of 2012 (Senate Bill 1016) added California Education Code (EC) Section 8263.3(b), which set priorities for disenrolling families from subsidized child care services. 

Current law, EC Section 8236 requires contractors to:

  1. Give priority in enrollment to eligible four-year-olds before eligible three-year olds, and
  2. Ensure that at least 50 percent of the children enrolled are four years old.
Policy

CSPP contracts for fiscal year (FY) 2012–13 will be amended to reflect new contract Maximum Reimbursable Amounts (MRAs) in accordance with the Budget Act of 2012–13. California Code of Regulations, Title 5 (5 CCR) Section 18054, limits contract reimbursement to whichever one of the following is the least:

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

When reductions to service levels are necessary due to the reduction of the MRA, contractors will disenroll families in the following order:

  1. Families of three- or four-year-old children who are receiving child protective services or who have been documented to be at risk of being neglected, abused, or exploited, regardless of income, will be disenrolled last.
  2. Three-year-old children whose families have the highest income in relation to family size.
    • If two or more families have the same income ranking, the child who has an  exceptional need will be disenrolled last.
    • If there are no families that have a child with exceptional needs, the child that has received child care services the longest must be disenrolled first.
  3. Four-year-old children whose families have the highest income in relation to family size.
    • If two or more families have the same income ranking, the child who has an exceptional need will be disenrolled last.
    • If there are no families that have a child with exceptional needs, the child that has received child care services the longest must be disenrolled first.

Contractors should use the most recently published income ranking table (MB 11-10) to determine family ranking based on the most recent certification/recertification.

Contractors should adhere to the continuity of care provisions outlined in EC Section 8263(c) by attempting to transfer a child’s enrollment to another child development program for which the family is eligible, prior to the disenrollment date on the Notice of Action (NOA).

The California Department of Education (CDE) understands for cost efficiency, some centers and preschools may elect to close entire classrooms or sites. Contractors considering this option should contact their Child Development Division (CDD) Field Services Consultant for the process by which these families are disenrolled.

Notice of Action

A NOA, Termination of Services, shall be issued in accordance with 5 CCR, to all families identified for disenrollment. The NOA should include the following reason for action:

The Budget Act of 2012–13 reduced funding to the California State Preschool programs (CSPP), effective July 1, 2012. Consistent with existing law, the California Department of Education must ensure expenditures for CSPP do not exceed the amounts appropriated and families shall be disenrolled consistent with the priorities specified in Education Code (EC) Section 8263.3(b). EC Section 8236 further provides priority for CSPP services must be given to eligible four-year-olds before eligible three-year-olds.

The last day of services for your child(ren) will be <enter date>. The following factors were used to determine this action:

This decision also considers our records that indicate whether you have:

Termination of your child care services is due to legislative action and you have no right of appeal simply because you disagree with the action taken. You may appeal this decision only on the grounds the factors used to determine your termination as indicated above are incorrect.

If you have questions about the specific reason that you were given this NOA, please call <insert phone number of issuing agency> between the hours of <enter hours phone calls should be made to that agency> for additional information.

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 FY 2012–13 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.

Questions regarding the information in this MB should be addressed to your assigned 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.

Questions:   Child Development Division | 916-322-6233
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