CA AB596

State Department of Social Services and State Department of Education must develop an alternative methodology for calculating subsidy payment rates for child care and preschool services based on a cost estimation model that includes staff salaries, benefits, training, curricula, group size, ratios, and enrollment levels.

Contracting agencies operating California state preschool programs shall be reimbursed 100% of the contract maximum reimbursable amount or net reimbursable program costs (whichever is less) indefinitely, and reimbursement for family childcare home education network providers shall be based on maximum certified hours regardless of attendance.

Reimbursement for childcare providers in alternative payment programs shall be based on maximum certified hours of care rather than actual attendance, including for families certified for variable schedules.

Departments must develop an interim transition plan to gradually implement the alternative methodology by the 2027-28 fiscal year as funds are appropriated, and must seek federal preapproval to amend the state's Child Care and Development Fund State Plan.

Collection of family fees is suspended until a new equitable sliding scale is developed and implemented by the State Department of Social Services in consultation with the State Department of Education.