CA SB116

Suspends annual cost-of-living adjustments for childcare and state preschool reimbursement rates for fiscal years 2023-24 and 2024-25.

Reduces family fees for childcare and preschool services to 1% of monthly income (effective October 1, 2023) and eliminates fees entirely for families earning below 75% of state median income, with $56 million appropriated to offset provider revenue loss.

Delays implementation of requirements to reserve 7.5% and 10% of state preschool enrollment for children with exceptional needs by two years (from July 1, 2023 to July 1, 2025).

Extends authorization for 11 counties (Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Clara, Santa Cruz, Solano, Sonoma) to operate individualized childcare subsidy pilot projects until July 1, 2024.

Codifies income calculation regulations allowing families experiencing income fluctuation to average income from at least 2 months (up to 12 months) to determine eligibility and family fees, effective January 1, 2024.