CA AB765

Establishes standard reimbursement rate of $9,024.75 per unit of average daily enrollment for a 250-day year, with annual increases beginning fiscal year 2015-16 matching the cost-of-living adjustment granted to K-12 education programs under Section 42238.15.

Specifies that the standard reimbursement rate is not intended to cover mandated costs from legislation related to minimum wage requirements, health insurance requirements, new or expanded program requirements, or other cost increases due to legislative action.

Requires the reimbursement rate to be raised as needed to provide living wages, reasonable health insurance and retirement benefits, support recruitment and retention of qualified teachers, ensure program financial stability and educational quality, and achieve gender pay equity.

Defines cost-of-living adjustment to ensure funding increases at least equal to the inflation adjustments provided to K-12 education programs, addressing the Legislature's concern about 34 years of inadequate or absent cost-of-living adjustments.

Maintains existing provisions allowing case-by-case rate adjustments based on loss of other funding sources, community wage rates, new regulations, and documented costs needed to maintain prior service levels and prevent program closures.