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Child Care Facilities Revolving Fund 2010-11 - Legislative Report

The Child Care Facilities Revolving Fund provides funding to eligible child care and development contracting agencies for the acquisition of relocatable buildings.
California Department of Education
Report to the Governor, Legislature, and the Legislative Analyst's Office:
Child Care Facilities Revolving Fund 2011-12 Annual Report
Executive Summary

On or before August 1 of each fiscal year (FY), a report detailing the number of funding requests received and their purpose, the types of agencies that received funding from the Child Care Facilities Revolving Fund (CCFRF), the increased capacity that these facilities generated, a description of the manner in which the facilities are being used, and a projection of the lease payments collected and the funds available for future use is required per Section 8278.3(b) of the California Education Code (EC).

Since the inception of the CCFRF program in FY 1997–98, the California Department of Education (CDE) has received 1,155 applications for funding of child care facilities projects.1 Currently, the CDE has 345 executed contracts with participating agencies for the funding of new relocatable buildings. Overall, these relocatable buildings have the potential to increase capacity and serve approximately 26,086 children in California.

Due to the revolving nature of the CCFRF, the program fund balances fluctuate annually based on loan repayments received from participating agencies. In FY 2010–11, the CDE received $6.4 million2 in repayments to the CCFRF. Over the last 13 fiscal years, the Budget Act appropriations as well as the additional loan repayments have facilitated the CDE’s commitment of approximately $126.4 million in facilities funding to child care agencies through an application process to the CCFRF.

The CCFRF began FY 2010–11 with an initial available fund balance of approximately $24.4 million. In FY 2010–11, the CDE received no new applications for funding requests under the CCFRF.

In FY 2010–11, the Budget Act allocated $5 million from the CCFRF balance for use on a one-time basis for the necessary renovations and repairs of facilities. The CDE awarded the full $5 million to 27 First Priority and 125 Round 1 Facilities Renovation and Repair (FRR) applicants. Each of the applicants also received a portion of the $2.5 million federal American Recovery and Reinvestment Act funds. The amount of FRR funds requested exceeded the allocated FRR funds; therefore, 45 FRR applicants did not receive FRR funding.

1This year’s application total was revised based on a verification of data.
2Projected as of June 2011; the final figures for FY 2010–11 are not yet available.

Child Care Facilities Revolving Fund 2010-11 Annual Report
http://www.cde.ca.gov/sp/cd/op/documents/lrlegrpt2011ccfrf.pdf

If you need a copy of this report, please contact Alice Ludwig, Associate Governmental Program Analyst, Early Education and Support Division, by phone at 916-327-0197 or by e-mail at aludwig@cde.ca.gov.

Questions:   Early Education and Support Division | 916-322-6233
Last Reviewed: Tuesday, January 12, 2016

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