CA SB1110

Establishes new reimbursement structure for California state preschool programs and center-based childcare programs effective July 1, 2026, guaranteeing the maximum reimbursable contract amount if programs maintain at least 85% of certified daily enrollment.

Programs falling below 85% certified daily enrollment will be reimbursed at the lesser of net reimbursable program costs or the product of adjusted child days of enrollment times the contract rate.

Requires the State Department of Education to place contractors on conditional contract status if they fail to maintain 85% enrollment for three consecutive years and remain below 100% enrollment, unless they demonstrate clear progress toward full enrollment.

Expands reimbursement for alternative payment programs to include "direct program and support costs" covering family outreach, case management, attendance records processing, and technical assistance to families and providers.

Caps direct program and support costs and administrative and support services costs at 15% each of the maximum reimbursable contract amount, with combined costs not to exceed 25%, and establishes a $300,000 minimum reimbursement floor if 25% of the contract falls below that threshold.