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The CA State Budget 2020/21

This year’s State Budget process has been a long, winding road. We began with a record budget surplus in January, then engaged in a pandemic response in the Spring, and ended with a final budget agreement in the Summer that acknowledges an ongoing economic downturn.

On April 10th, Governor Newsom announced the release of $100 million to support child care services for essential workers. This funding was authorized by Senate Bill 89, which the legislature passed in March to give the Governor $1 billion in emergency spending authority. Watch our video to learn about this year’s investments in Early Care and Education (ECE) and how the COVID-19 crisis impacted ECE and the budget.

Governor Newsom’s May Revision, announced on May 14th, included proposed cuts across various funding areas, as California has significant projected revenue shortfalls due to the COVID-19 pandemic. The proposed 10% cut to child care provider reimbursement rates – which was not included in the final budget agreement – would have been devastating to child care providers and their businesses.

The CA Budget 2020/21 includes:

  • Governor and Legislature reached an agreement to avoid provider rate cuts
  • $350 million in federal CARES Act funding to support COVID-19 response
           – $125 million in child care provider stipends
           – $73 million to extend vouchers for essential workers
           – $62.5 million to pay providers for all children enrolled regardless of                         attendance
  • Restored 60-month time clock for CalWORKs recipients
  • Moved child care programs (except State Preschool) from Department of Education to Department of Social Services (with one year for transition planning)

Child care is an essential part of the solution to California’s path toward economic recovery. We urge you to share its importance to you and your families by contacting your representatives.

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