Anticipating Governor Newsom's May Revision
This week, Governor Newsom will release his 2023-24 May Revision. This document takes into account the governor's priorities put forth in January, updated economic and revenue projections as well as newer priorities.
As we are all feeling, the economy has definitely softened. In January, the governor projected a $22.5 billion-dollar deficit, a far cry from last year's $100 billion surplus. It is heavily anticipated that the governor will be unveiling a much steeper shortfall in the coming days.
When the May Revision is released, I am concerned about potential reductions to programs that are not yet steady as well as pushing off desperatley needing investments in the workforce. Further, because there is a lack of understanding from some in the administration about how California's subsidized child care system works, the lack of understanding could actually hurt families in the very near future.
Let me give you an example, the evolution of two subsidized child care voucher types, one to support a parent/family who has a stable job and another child care voucher for a parent/family with unstable work hours. This split voucher was created under Governor Arnold Schwarzenegger in 2009-10 during the last recession as a way to cut off child care to some families and save money. Prior to this action, there was only a single income eligibility-based voucher wherein a parent could purchase child care from a family child care provider or center and know that a set payment to the provider would be made. However, for families with unstable work hours, and family child care provider that agreed to hold a child care slot for this family type was not provided and guaranteed that a set payment would be received. The reason? The voucher created by Governor Schwarzenegger only guaranteed reimbursement to a child care provider if the parent worked.
In 2014, President Obama signed a law to reauthorize the Child Care and Development Block Grant governing the Child Care and Development Fund program. Included in this reauthorized law was a directive to the states that child care was to be shifted from being a work support for parents to one that is also a stab le support for children. A specific provision was for states to establish policies that reflect generally accept payment practices for child care providers including paying for absence days and timely reimbursement for child care services.
However, California did not recognize this directive until Governor Newsom enacted via Executive Order (EO) during COVID that all income eligible families would be supported fairly and equitably with a single child care voucher type. The EO championed by the governor assured any family child care provider or center that they would be reimbursed for serving subsidized children. This action prioritized that every subsidized child in care is guaranteed stability. Parents who work in the fields, in the hospitality and food industries or in any job were work hours might be unstable knew that they babies and children would not be thrown out of a stable setting due to lack of payment.
However, the end date of this fair and equitable policy ends on June 30, 2023. Very quickly, in every county throughout our state, family child care providers and centers who will not be guaranteed funding to pay for the slot held for a child will begin reassessing and potentially disenrolling children. In the private market, if a child does not show up the family is still expected to pay for the slot. Why in the subsidized market is a draconian policy going to be allowed to start again wherein the poorest of families will be pitted against each other? Why is this policy even being considered when the governor has prioritized getting children into stable child care is this policy being allowed to take effect wherein many families are going to again be pushed into chaos?
So this week, yes the May Revision will come out. I for one will be looking to see a budget that continues to support struggling families, that lifts up the needs of fragile parents and children by supporting fair and equitable access to stable child care, and that values investments into California's early care and learning workforce.
Fingers crossed that the governor continues to value his commitment to increase meaningful access to child care for families. Allowing a policy to lapse that will result in tens of thousands of babies and children disenrolled from their stable care is contrary to where we need to be going.
