To: Board of Supervisors
From: Marla Stuart, Employment and Human Services Director
Report Title: CSB - Contract #39-997-1 California Department of Education
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Employment and Human Services Department Director, or designee, to accept funding in an amount not to exceed $4,129,915 from California Department of Education and the California Department of Social Services for a reimbursement rate supplement and temporary rate increases to California State Preschool Program contractors caring for children receiving a state childcare subsidy, and AUTHORIZE the Auditor-Controller, or designee, to pay six contracted partner agencies in an amount not to exceed $805,374.
FISCAL IMPACT:
$4,129,915: 100% Federal funds, of which $318,682 is funded by California Department of Social Services and $3,811,233 is funded by the California Department of Education, all of which is budgeted in FY-24-25.
BACKGROUND:
This Staff Report seeks to accept a total of $4,129,915 from the California Department of Education (CDE) and authorize the Auditor-Controller to make one-time payments to licensed childcare centers and the six contracted childcare partners. The allocation of these funds are as follows: $318,682 is designated to CalWORKs Stage 2 (C2AP) and the California Alternative Payment Program (CAPP); $2,594,920 is allocated for California State Preschool Program (CSPP) as well as EHSD directly operated centers; and $1,216,313 is also allocated for CSPP and EHSD directly operated centers.
On January 3, 2023, the Employment and Human Services Department (EHSD) received temporary reimbursement rate supplements from CDSS for licensed childcare centers who accept subsidy vouchers for C2AP and CAPP, pursuant to California Senate Bill (SB) 115 (Chapters 21, 26 and 240, Statutes of 2021). This total funding of $318,682 is provided to childcare providers based on their October 2021 enrollment.
On June 29, 2023, EHSD also received reimbursement rate supplements from CDE and CDSS to address disparities for CSPP providers, pursuant to California Assembly Bill (AB) 131 (Chapter 116, Statutes of 2024) and AB 185 (Chapter 571, Statutes of 2022). This total funding of $2,594,920 was also based on enrollment data from October 2021. As a result, Contra Costa County’s reimbursement rate temporarily increased from $74.97 to $84.52.
Payments are distributed to six Childcare partner agencies based on their October 2021 enrollment as follows, with any remaining funds going to EHSD directly operated centers:
1. Young Men’s Christian Association of the East Bay not to exceed $366,617;
2. Tiny Toes Preschool and Childcare Center not to exceed $18,748;
3. Richmond Elementary School, Inc., not to exceed $64,006;
4. San Ramon Valley Unified School District not to exceed $48,701;
5. We Care Services for Children not to exceed $38,961; and
6. Little Angels Country School, LLC. not to exceed $25,046.
On October 10, 2023, EHSD received an additional $1,216,313 from CDE to raise reimbursement rates further. Under AB 110 (Chapter 4, Statutes of 2023), the reimbursement rate temporarily increased from $84.06 to $87.02. This funding is allocated based on April 2022 enrollment data of childcare partner agencies, and the remaining funds are allocated to EHSD directly operated centers.
The enrollment for the six partner agencies has been verified by EHSD Program and Fiscal staff for the period covering April 2022 and partners, as licensed childcare providers, and allocated as follows:
1. Young Men’s Christian Association of the East Bay not to exceed $188,821;
2. Tiny Toes Preschool and Childcare Center not to exceed $8,322;
3. Richmond Elementary School, Inc., not to exceed $16,137;
4. San Ramon Valley Unified School District not to exceed $14,442;
5. We Care Services for Children not to exceed $7,504; and
6. Little Angels Country School, LLC. not to exceed $8,069.
These stipends are intended to provide financial relief to childcare providers facing hardships due to the COVID-19 pandemic because of increased costs and reduced income.
CHILDREN’S IMPACT STATEMENT:
This staff report supports three of the community outcomes established in the Children’s Report Card: 1) “Children Ready for and Succeeding in School” 3) “Families that are Economically Self-sufficient”: and 4) Families that are Safe, Stable, and nurturing” by offering comprehensive services, including high quality early childhood education, nutrition, and health services to low-income children throughout Contra Costa County.
CONSEQUENCE OF NEGATIVE ACTION:
Should the proposed action not be approved by the Board of Supervisors, CDE funding for childcare providers throughout Contra Costa County will be forfeited.