AB 555: California state preschool programs: reimbursement amounts: adjustment factors.

Existing law, the Early Education Act, among other things, requires the Superintendent of Public Instruction to administer all California state preschool programs, including, but not limited to, part-day and full-day age and developmentally appropriate programs for 3- and 4-year-old children. Existing law requires each state preschool program applicant or contracting agency to give priority for part-day and full-day programs according to a specified priority ranking. Existing law requires the 3rd priority for services to be given to eligible 4-year-old children who are not enrolled in a state-funded transitional kindergarten program and requires the 4th priority to be given to eligible 3-year-old children.

This bill would instead require the 3rd priority for services to be given to eligible 3- and 4-year old children who are not enrolled in a state-funded transitional kindergarten program, and would revise the remaining priorities accordingly.

Existing law requires the State Department of Education, in collaboration with the State Department of Social Services, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service, for purposes of the act. Existing law requires those contractors who, as of December 31, 2021, received the established standard reimbursement rate to be reimbursed at the greater of the 75th percentile of the 2018 regional market rate survey or the contract per-child reimbursement amount as of December 31, 2021, as increased by a specified cost-of-living adjustment.

This bill would instead require, for a contract whose period of performance begins on and after July 1, 2023, the contract reimbursement to be based on the lesser of the maximum reimbursable amount stated in the contract, the net reimbursable program costs, or the product of the adjusted child days of enrollment for certified children times the contract rate set forth in the above-described provisions.

Existing law establishes adjustment factors to reflect the additional expense of serving full-day and part-day preschool children who have exceptional needs, are being provided with early childhood mental health consultation services, or are 47 months or younger, as provided. Existing law additionally establishes adjustment factors to reflect the additional expense of serving full-day preschool children who are at risk of neglect, abuse, or exploitation or who are dual language learners. Existing law prohibits days of enrollment for children who meet more than one of the criteria eligible for adjustment from being reported under more than one of those categories.

This bill would, on and after July 1, 2024, additionally apply those adjustment factors for children who are at risk of neglect, abuse, or exploitation or who are dual language learners to part-day preschool children. The bill would also eliminate the prohibition on reporting children under more than one of the above-specified categories eligible for adjustment. adjustment and make conforming changes.