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Management Bulletin 12-10

Child Development Division

Subject: Disenrolling Families from CalWORKs Stage 3 Number: 12–10

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: All CalWORKs Stage 3 Contractors

This Management Bulletin (MB) is to remind CalWORKs Stage 3 contractors that they must continue to transfer Stage 2 families into Stage 3, and to direct contractors on the process for disenrolling families to ensure current year Stage 3 expenditures do not exceed their Stage 3 contract Maximum Reimbursement Amount (MRA). Stage 3 is no longer considered an entitlement program and as such the total amount of funding each year is capped at the appropriation set by the Legislature.


Chapters 21 and 29, Statutes of 2012 (Budget Act of 2012–13) reduced funding available for CalWORKs Stage 3 programs and provides authority for the California Department of Education to implement the provision through MBs. Chapter 38, Statutes of 2012 (Senate Bill 1016) added Section 8263.3 to the California Education Code (EC) to require contractors who must disenroll families as a result of the reduction in funding do so in the order of priority set forth in Section 8263.3(b).


CalWORKS Stage 3 contractors must continue to transfer otherwise eligible “timed out” families of Stage 1 or 2 into CalWORKs Stage 3. After transferring families, contractors, on a monthly basis, will determine if their Stage 3 contract MRA is sufficient to provide service to all enrolled families for the full fiscal year.

When a Stage 3 contractor has determined they are overenrolled and funding is not sufficient to provide services to all enrolled families, the contractor must disenroll families in accordance with directives provided in MB 12-07. Stage 3 contractors that are close to exceeding their MRA must repeat the above process each month as families “timing out” of Stage 1 and 2 are enrolled in Stage 3. If after enrolling all “timed out” families the Stage 3 contractor remains overenrolled, the above process must be followed. This could mean enrolling and disenrolling families that had “timed-out” of Stage 3 in the same month.

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 disenrolling the family from Stage 3.

Questions regarding the information in this MB should be addressed to your assigned Child Development Division 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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