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Management Bulletin 20-12


Early Learning and Care Division

Subject: Revised State Median Income (SMI) Ceilings and Income Ranking Table for Fiscal Year 2020–21

Number: 20-12

Date: June 16, 2020

Expires: Until Rescinded

Authority: California Education Code, sections 8263, 8263.1 and 8447(e);

Attention: Executive Officers and Program Directors of All State Subsidized Early Learning and Care Programs


Purpose

The purpose of this Management Bulletin (MB) is to notify contractors of:

  • The revised Schedule of Income Ceilings to be used to determine families’ income eligibility for state subsidized early learning and care programs
  • The updated Income Ranking Table to be used to determine a family’s income ranking for purposes of enrollment priorities for state subsidized early learning and care based on income

This MB supersedes MB 19-03.

Background

California Education Code (EC) Sections 8263.1 and 8447(e) require the California Department of Finance to annually recalculate the SMI based on the most recent census data and pursuant to the formula set forth in EC Section 8263.1(c), and provide the calculations to the California Department of Education (CDE). The updated SMI calculations are used to revise the income ceilings used to determine a family’s initial and ongoing eligibility for services, as part of the certification and recertification process, and to update the Income Ranking Table used for determining priority for enrollment.

In accordance with EC Section 8263.1(a) and (b), for families to be eligible for subsidized early learning and care services based on income, a family’s adjusted monthly income must be at or below 85 percent of the SMI adjusted for family size.

In addition, EC Section 8263(b) requires contractors to enroll families in priority order. The EC Section 8263(b)(2) authorizes the State Superintendent of Public Instruction to adopt an Income Ranking Table for purposes of determining enrollment priorities when the priority is related to a family’s income level.

The EC Section 8263(b)(1) specifies that the first priority for enrollment must be families with children who are receiving child protective services or are at risk of abuse, neglect, or exploitation. For programs other than the California State Preschool Program (CSPP), second priority for enrollment goes to income-eligible families in income ranking order, with families with the lowest gross monthly income receiving the highest priority.

For agencies offering CSPP, after all children who are receiving child protective services or are at risk of abuse, neglect, or exploitation are enrolled, families shall be enrolled following Sections 18130.1 and 18130.2 of the CSPP Implementation Guidance included in the MB 20-01 and use the Income Ranking Table when enrollment priority is based on income ranking.

Policy

Effective July 1, 2020, contractors must use the revised Schedule of Income Ceilings when determining both initial and ongoing income eligibility for families and the revised Income Ranking Table when determining enrollment priorities related to a family’s income level.

Directive

The following Schedule of Income Ceilings must be used for determining income eligibility for families initially certified or recertified on or after July 1, 2020.

Schedule of Income Ceilings (85% SMI)
for State Fiscal Year 2020-21 Child Care and Development Programs

Family Size Family Monthly Income Family Yearly Income
1-2 $5,540 $66,479
3 $6,157 $73,885
4 $7,069 $84,822
5 $8,199 $98,393
6 $9,330 $111,965
7 $9,542 $114,509
8 $9,755 $117,054
9 $9,967 $119,598
10 $10,179 $122,143
11 $10,391 $124,687
12 $10,603 $127,232

Source: 2018 American Community Survey (ACS) Public Use Microdata Sample File

Updates based on 2018 ACS from California Department of Finance

Note: State Median Income for families of 5 persons or more are calculated by multiplying the SMI for a family of four by the ratio for the appropriate family size used in the federal Low-Income Home Energy Assistance Program and specified in federal regulations at paragraphs (5), (6), and (7) of subdivision (b) of Section 96.85 of Title 45 of the Code of Federal Regulations.

Effective July 1, 2020, contractors must use the revised Income Ranking Table at https://www.cde.ca.gov/sp/cd/ci/documents/incomerankingtable2020.xlsx when determining priority for enrolling families.

If you have any questions regarding the information in this MB, please contact your assigned Early Learning and Care Program Quality Implementation Regional Consultant via the CDE Consultant Regional Assignments web page at https://www.cde.ca.gov/sp/cd/ci/assignments.asp 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:   Early Learning and Care Division | 916-322-6223
Last Reviewed: Tuesday, June 16, 2020
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