It Could Have Been Worse: Child Care and Early Education in California's Budget Agreement

California has approved a budget that rejects drastic cuts proposed by the governor earlier in the year — but that still includes significant funding reductions for child care and early education programs. Under the final budget signed by the governor, child care and development programs will receive a $130 million cut, which could result in an estimated 26,500 fewer children being able to participate in these programs. The legislature had approved slightly smaller cuts in the budget sent to the governor, but at the last minute, the governor used his line item veto to make additional cuts.

In addition to preventing steeper cuts, the legislature turned back the governor’s earlier proposal to restructure the child care program and transfer administration of the program to county welfare agencies. The state also will not place new limits on child care assistance for parents while they attend education programs.

The approved budget does not provide a previously planned cost of living increase for child care programs. However, it does not reduce reimbursement rates for child care providers as the governor proposed, which would have deprived providers of the resources they need to offer high-quality care.

Another provision of the budget agreement institutes parent copayments for the part-day preschool program.

It’s good news that the cuts included in the final budget are much smaller than those in the governor’s original proposal, which would have cut funding for child care and early education programs by over $500 million and could have resulted in over 60,000 children losing the opportunity to participate in these programs. However, the final budget still reduces funding at a time when there are already many low-income families across the state being denied the child care parents need to work, gain their footing, and ensure their children are in safe, stable care.

Although the state now has a budget, the story is not yet over. If voters reject a proposed tax increase on the ballot in November, the state will have to find the money needed to close the remaining budget gap elsewhere, and child care — along with the broader education budget and other important supports for children and families — will be in for further cuts.