2020-21 State Budget Signed

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Nearly 500 letters sent to Gov. Newsom to urge adoption of Legislature’s budget

The Governor and Legislature reached a final budget deal this week, protecting child care provider reimbursement rates and including additional protections to keep child care thriving as the essential service it is now and always will be. On June 30, Governor Newsom signed the 2020-21 state budget which protects many existing investments in children, families and care providers.

AB 77 and SB 98 are the budget trailer bills for education financing, includes child care issues. You can browse the excerpts related to child care, including notes and highlights and more by clicking here. The final budget avoids cuts to provider reimbursement rates, holds child care providers harmless who face a decline in revenue for reasons related to COVID-19, provides stipends to providers to address economic challenges during the pandemic, and expands access through the use of federal funds.

On June 26, the Head Start community in California helped us send 495 letters to the Governor to sign the state budget and protect children and families. Highlights of the enacted budget include:

An additional $53.3 million in new funding for approximately 5,600 child care slots
$73 million in one-time essential worker child care vouchers
Allowance to roll over $50 million from COVID-19 emergency funding for essential worker child care vouchers
$125 million in CARES Funding stipends for subsidized child care providers
An $8 million extension of family fee waivers through the end of the fiscal year
The preservation of the highly successful Black Infant Health program
Universal paid family leave job protections to all workers currently eligible
CalEITC program expansion to filers using the Individual Taxpayer Identification Number with children under age 6 to qualify for EITC and Young Child Tax Credit
Preservation of Proposition 56-funded supplemental payments until July 1, 2021