Dear Administration, Department of Finance, Legislative Budget Chairs and Legislative Women’s Caucus, Early Care and Education Services are a vital support for working families in California. Access to quality affordable early education services is a pivotal economic determinant of the success of our citizens, businesses and communities. California has a long history of providing low income working parents with early care and education services; however over the last decade we have fallen behind, particularly in the reimbursement rates paid to child care providers and the utilization of an outdated State Median Income (SMI) level entrance criteria for families accessing these services. Over the last decade reimbursement rates have been held at levels more than 7 years behind the current market. While there have been modest increases provided in the past two state budget agreements; we are still estimated to be nearly $1Billion behind the current market costs for both the Standard Reimbursement Rate and the Regional Market Rate.

Joint Early Childhood Education California Budget Request

The income ceilings for families entering the system based on state median income (SMI) are almost a decade old, and have not kept up with inflation nor taken into account actions by the legislature to increase the minimum wage. The SMI has been frozen since 2007, and is in turn based on 2005 income data. These two areas have caused reduced access to services for families who are priced out of high quality programs, hindered retention of qualified staff and eroded the total supply of early care and education available to our communities.

It is critical that this year’s California State Budget, which is rich with resources, increase infrastructure investments throughout the subsidized early care and education system. To achieve this goal we recommend the following investment strategies to improve California’s Early Care and Education System:

Increase all reimbursement rates:

Make significant investments in both the Standard Reimbursement Rate and the Regional Market Rate systems to ensure forward progress toward paying early care and education providers to reflect the current cost of care.

Consider the benefits of a single reimbursement system for vouchers and contracted centers based on regional market rates and quality of care. Increase Access for families:

Update the eligibility guidelines to reflect the current State Median Income (SMI), and increase the exit eligibility level to 85% of current SMI, in order to ensure low income families have access to subsidized services.

Add additional slots in both the General Child Care and Alternative Payment systems to expand access to care for families with a variety of child care needs.

Promote 12-month eligibility consistent with AB 2150.

California has the opportunity this year to make significant investments in improving the affordability and access for families and children to child care programs through budget investments. We urge your support for the Legislative Women’s Caucus request of an $800 Million investment in our child care system and look forward to partnering with you in securing these resources.

Sincerely, Advancement Project AFSCME Local 3930-UDW Homecare Providers Union Arista Preschool Around the Korner Child Care Centers Association of FCCHENs Bananas, Inc. Beanstalk California Alternative Payment Program Association (CAPPA) California Association for the Education of Young Children

(CAEYC) California Child Care Coordinators Association California Child Development Administrators Association (CCDAA) California Children’s Academy California Coalition for Equity in Early Care and Education California Head Start Association (CHSA) California Resource and Referral Network California Welfare Directors Association Californian’s for Quality Early Learning (CQEL) California State Alliance of YMCAs Cambridge Community Center CCR Analytics Central Valley Children's Services Network Chicano Federation of San Diego County Child Action, Inc. Child Care Alliance of Los Angeles Child Care Coordinating Council (4Cs) of San Mateo

First 5 Monterey County FRAMAX Go Kids, Inc. Growing Tree Children's Center Hands Together-A Center for Children Institute for Human and Social Development, Inc. International Institute of Los Angeles

Jewish Family Service of San Diego Kids & Care Inc. Kids Kare Schools

KinderCare Education Kings Canyon Unified School District La Plazita Preschool

Linda Vista Kindergarten Readiness Collective Impact Network

Live Oak School District Local Early Education Planning Council of Santa Clara County, Inc. Loving & Learning Center Marin Child Care Council Martinez Early Childhood Center, Inc. Merced County Community Action Agency Mexican American Opportunity Foundation

(MAOF) Montessori Association of Covina New Life Discovery Schools Inc. North Coast Opportunities (NCO)

Child Care Law Center Child Care Links Child Care Planning Council of Yuba & Sutter Counties Child Care Resource Center Child Development Associates, Inc. Child Development Division, Community Bridges Child Development Incorporated Child Development Resources Child, Family & Community Services, Inc. Children & Family Circle Children Now Children’s Council of San Francisco Children’s Paradise Children’s Workshop of Petaluma Chino Valley Unified School District Choices for Children Church Related Early Childhood Education Fellowship Coalition of California Welfare Rights Organizations, Inc. Common Sense Kids Action Community Action Marin Community Action Partnership of San Luis Obispo Community Child Care Council (4Cs) of Alameda County Community Child Care Council of Santa Clara County (4Cs) Community Child Care Council of Sonoma County (4Cs) Community Resources for Children Connections for Children Contra Costa Child Care Council Crystal Stairs, Inc. Davis Street Family Resource Center Del Norte Child Care Council Discovery Tree Schools Dr. Shaun-Adrian Chofla Drew Child Development Corporation Education Synergy Alliance Educational Enrichment Systems (EES) El Dorado Early Care and Education Planning Council Escondido Union School District Preschool Program FACES SF Family F.O.C.U.S. Family Resource & Referral Center First 5 Association of California First 5 California First 5 Los Angeles

Northern Director’s Group Oak Park Preschool, Inc. Old Firehouse Schools Only Love Children’s Centers Options For Learning Pajaro Valley Unified School District Palcare Para Los Niños Parent Voices Pathways LA Peninsula Family Service Plumas Rural Services Professional Association for Childhood Education

(PACE) Quality Children’s Services River City Christian School River to Coast Children’s Services Saint Vincent’s Day Home San Bernardino County LPC, SBCSS San Francisco Child Care Providers’ Association San Francisco Office of Early Care & Education San Mateo County Child Care Partnership Council Santa Cruz County Child Care Planning Council

(CCPC) Santa Cruz County Parents Association, Inc. SEIU CA State Council Sierra Nevada Children's Services Siskiyou Child Care Council Solano Family & Children's Services Supportive Services, Inc. The Children’s Center, Inc. The Childs-pace Foundation, Inc The Little Country Preschool The Resource Connection The Salvation Army - Southern California Division Headquarter Training, Employment and Community Help, Inc. Valley Oak Children’s Services Vista Unified School District YWCA Contra Costa/Sacramento