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California Department of Education
Official Letter
California Department of Education
Official Letter
May 17, 2019

Dear Executive Directors, Child Care and Development Programs:

Assembly Bill 2698 — Effective January 1, 2019

The purpose of this letter is to inform contractors of the amendment made to California Education Code (EC) Section 8265.5 in order to reflect the additional expense of serving children meeting special criteria. EC Section 8265.5 provides adjustment factors which get applied to a child’s reported days of enrollment. The effect of these adjustment factors is increased reimbursement to account for the additional cost of serving eligible children.

Adjustment Factor Changes

Assembly Bill 2698 allows contractors to receive an additional adjustment of 0.05 for children served in classrooms where early childhood mental health consultation (ECMHC) services are provided, and are served in a California State Preschool Program (CSPP), infants and toddlers 0 to 36 months of age and are served in General Child Care Development Programs (CCTR), and children zero to five years of age and are served in a family child care home (FCCH) education network setting funded by a CCTR contract.

Pursuant to EC Section 8265.5(d), the use of adjustment factors will not increase the contract Maximum Reimbursable Amount. Therefore, contractors must determine how the use of the new adjustment factor categories will affect their current projected contract earnings and budget year target enrollment numbers. For budgeting purposes, contractors may also consider revenue received outside the child development contract that may be used for providing ECMHC services.

For reference, the California Department of Education is providing the adjustment factors in effect for fiscal year (FY) 2018–19. The following table presents the blended adjustment factors for the current FY as well as the factors for children served in classrooms providing ECMHC services.

Adjustment Factor Category FY 2018-19 CCTR
Adjustment Factor
FY 2018-19 CSPP Full-Time
Adjustment Factor
Adjustment Factor
Adjustment Factor
Infants 0-18 Months (in Centers) 2.07 Not Applicable 2.12 Not Applicable
Infants 0-18 Months (in FCCH) 1.92 Not Applicable 1.97 Not Applicable
Toddlers 18-36 Months (in Centers and FCCH) 1.60 Not Applicable 1.65 Not Applicable
Three Years and Older Not Applicable 1.00 Not Applicable 1.05
Exceptional Needs 1.37 1.37 1.42 1.42
Severely Disabled 1.715 1.715 1.765 1.765
At Risk of Abuse or Neglect 1.10 1.10 1.15 1.15
Limited and Non-English Proficient 1.10 1.10 1.15 1.15

The 2018–19 adjustment factors listed above are effective January 1, 2019. These factors are a blend of the factors in effect January 1, 2019 and those in effect December 31, 2018. The 2018–19 ECMHC adjustment factors listed above include the additional .05 adjustment as specified in EC Section 8265.5(e)(2). The ECMHC adjustment factors will be reflected on the new Child Development and Nutrition Fiscal Services (CDNFS) Attendance and Fiscal reports (CDNFS 8501 MHCS and CDNFS 9500 MHCS). These forms will be available on the CDNFS web site in May 2019.

Reporting Requirements

The adjustment factor for ECMHC services may be claimed for all children enrolled in the classroom(s) or family child care home setting as outlined in Management Bulletin 19–02. The ECMHC adjustment factor is in addition to any single adjustment factor used for a particular child. Therefore, when reporting enrollment for a classroom(s) or family child care home setting providing ECMHC services, all children in the classroom(s) or family child care home setting should be reported under the new ECMHC services adjustment factor categories. For example, if one child in a classroom of 24 children receives ECMHC services, all 24 children should be reported under the new ECMHC services adjustment factor categories. Non-subsidized children served in the same classroom will also have the additional 0.05 applied to their adjustment factor.

Contractors providing ECMHC services must use the new Attendance and Fiscal Report forms when submitting a report that utilizes the ECMHC services adjustment factor. Contractors that do not utilize the ECMHC services adjustment factors should continue to submit reports on the existing CDNFS 8501 or CDNFS 9500. Contractors will submit only one report form per contract, as the CDNFS 8501 MHCS and 9500 MHCS will have sections to report enrollment for classrooms not receiving ECMHC services as well as sections for classrooms that are receiving services. Current report forms can be found at the following link

The ECMHC service adjustment factors are effective January 1, 2019. Therefore, child days of enrollment provided prior to January 1, 2019 cannot receive the additional adjustment. ECMHC services provided after this date, per the guidance and directives stated in Management Bulletin 09–02, may be included on CDNFS MHCS report forms. There is no change to how program expenses are to be reported.

If you have any questions about or need clarification about any topic covered in this letter, please contact your assigned CDNFS analyst.


Andrea Cameron—Johnson, Staff Services Manager III

Child Development and Nutrition Fiscal Services

Fiscal and Administrative Services Division



Last Reviewed: Wednesday, May 22, 2019

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