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2016/17 State Budget Agreement Reached

 On June 15, 2016 the California State Legislature passed the budget for fiscal year 2016/17. This year’s budget included robust contributions to a state rainy day fund, funding to address the increasing problem of homelessness in the state, a repeal of the Maximum Family Grant Rule in the CalWORKs Program and significant new investments in child care and early learning programs.

The details of the child care package include:

  • Increases to the Regional Market Rate to the 75th Percentile of the 2014 Regional Market Rate effective January 1, 2017.
  • Increases the Licensed Exempt Provider rate from 65% to 70% of the Licensed Family Child Care Rate
  • Increase to the Standard Reimbursement Rate for General Child Care Centers and State Preschool by 10% effective January 1, 2017
  • Expansion of full day California State Preschool spaces for children by 8877 over the next four years.

On Tuesday, Legislative Leaders and member of the Legislative Women’s Caucus held a press conference on the lawn of the California State Capitol to announce their successes on these issues in the budget.

The 2016/17 Budget now goes to Governor Jerry Brown who has until the end of June to sign the agreement. He does have the opportunity to line item veto things in the agreement, but once signed the implementation of the budget will begin.

The child care portion of the budget agreement is just over $100 Million dollars in the budget year and will grow to over $300 Million once annualized.

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