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Management Bulletin 16-11


Early Education and Support Division

Subject: Standard Reimbursement Rate Increase for Fiscal Year 2016–17

Number: 16-11

Date: October 2016

Expires: Until Rescinded

Authority: Budget Act of 2016 Items 6100-194-0001 provision 5(b), and 6100-196-0001 provision 3(b). California Education Code Section 8265(b)

Attention: Executive Directors and Program Directors of Early Care and Education Programs (CCTR), California State Preschool Programs (CSPP), Migrant Center Programs (CMIG)


Purpose

The purpose of this Management Bulletin (MB) is to inform Early Education and Support (EESD) CCTR, CSPP, and CMIG contractors of the 10 percent increase to the standard reimbursement rate (SRR), effective January 1, 2017.

Background

The Budget Act of 2016 includes the rates of $42.12, for general child care programs in Item 6100-194-0001 provision 5(b) and $26.26, for part-day state preschool and $42.38, for full day state preschool programs in Item 6100-196-0001 provision 3(b). The new rates are effective January 1, 2017. 

Policy

Due to challenges associated with implementing two rates in the same contract year, the California Department of Education (CDE) will implement the increase to the SRR by blending the two rates. The blended rate will be the average of the approved rate for each contract type and that approved rate adjusted by the 10 percent SRR increase. This blended rate will be applied to the entire fiscal year (FY) 2016–17 contract period. For most contractors, this will be the sum of the current SRR and the new SRR, divided by two, as displayed below.

Blended Rate
Program Calculation
(Approved Rate + Adjusted Rate) ÷ 2 = Blended Rate
General Child Care and Migrant Programs ($38.29 + $42.12) ÷ 2 = $40.20
Part-day State Preschool Programs ($23.87 + $26.26) ÷ 2 = $25.06
Full-day State Preschool Programs ($38.53 + $42.38) ÷ 2 = $40.45


A contract amendment will be issued reflecting the increased maximum reimbursable amount resulting from the 10 percent increase to the SRR. The rate increase will be clearly identified in the amendment by showing the current rate, the rate with the 10 percent increase, and the blended rate for this contract period. Please note that the blended rate applies only to the FY 2016–17 contract period. Beginning July 1, 2017, when the new contract period begins, the new rates provided in the Budget Act of 2016 will be in place for the entire year.

The Fiscal and Administrative Services Division's Child Development and Nutrition Fiscal Services (CDNFS) has revised the Attendance and Fiscal Report Form (CDFS 8501) for FY 2016–17. The half-time adjustment factors have been revised to implement the blended part-day state preschool rate.

If you have any questions regarding the information in this MB, please contact your assigned EESD Field Services Consultant or CDNFS Fiscal Analyst. You may find a directory of EESD Field Services Consultants on the CDE Web site at http://www.cde.ca.gov/sp/cd/ci/assignments.asp or contact the EESD by phone at 916-322-6233. You may find a directory of CDNFS Fiscal Analysts on the CDE Web site at http://www.cde.ca.gov/fg/aa/cd/faad.asp.

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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 EC Section 33308.5.

Questions:   Early Education and Support Division | 916-322-6233
Last Reviewed: Thursday, January 3, 2019