CCRC is engaged in advocacy to achieve fair and equitable pay for subsidized child care providers that covers the true cost of providing care and a dignified wage. In 2023, the California legislature made significant strides towards this goal by codifying Senate Bill 140 ; a commitment to move to a new methodology for calculating provider reimbursement rates that relies on a single rate structure based on the true cost of care. This commitment was achieved via legislative efforts and collective bargaining agreements established between the state of California and Child Care Providers United (CCPU) which is the state’s first and only organized union for subsidized family child care providers.
During the 2024-25 legislative session, the California Department of Social Services (CDSS) initiated the process to start this shift towards a single rate, cost of care model. Currently, CDSS is working with Prenatal to Five Fiscal Strategies to design and implement an alternative methodology process.
As of July 2024, the state has submitted information to the Federal Administration for Children and Families (ACF) to support use of a single rate structure utilizing an alternative methodology. Following ACF approval, throughout Fall 2024 to Summer 2025, the state will engage in rate setting and implementation planning through negotiations with CCPU and state budget development process.
While the state starts works towards full implementation of the new rate methodology, subsidized child care providers will continue to be paid based on the Regional Market Rate and/or Standard Reimbursement Rate, with a supplemental payment to increase provider rates by an average of 20%.
“All early care and education providers, including child care and development centers, family child care homes, tribal programs, and license-exempt family, friend, and neighbor providers are invited to complete an online survey and participate in a virtual input session to provide input into the cost study" (https://www.cdss.ca.gov/inforesources/child-care-and-development/rate-reform-and-quality).
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