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May Revise Full of Missed Opportunities
by Denyne Micheletti, CEO of Thriving Families CA (TFC)
Last week, Governor Newsom released the 2025-26 May Revision. Like many, I was hoping to see promises made to our child care workforce and businesses kept, parents provided more access to child care so that they can secure and maintain stable employment, and meaningful opportunties created wherein our public and private early care and education workforces could come together strengthened to meet the needs of children and working families.
Unfortunately, as I turned the pages, I was disheartened to once again see that California's critical child care workforce would not see their reimbursement rates raised from 2018 levels. For a reference, what are the 2018 base rates our child care provider workforce are being reimbursed? On average, $7.01 per hour for licensed-exempt care to $10.33 per hour in a licensed child care setting. Yes, child care providers would continue to receive a supplemental cost of care plus rate secured in 2023 on top of the 2018 rate. But seriously?
Based on the economics above and taking into account that California's minimum wage is $16.50 per hour, the existing 2018 base rates come out to be between $3.00 to $8.00 per hour for a professional working in California's child care field.
Another area of great concern has been the expansion of Universal Transitional Kindergarten (UTK) or TK or whatever the acronym of the day. My concerns do not focus on the merits of UTK, but rather on the huge mistakes that have happened wherein California's UTK experiment directly resulted in the mass closures of hundreds of licensed family child care homes, quality private child care centers and other businesses that supported them throughout our state. During the pandemic, the public schools closed, but our child care industry kept California open. Following the pandemic, when schools started to reopen, once again, the child care industry was again forgotten but then there began the conversation of moving three and four year olds to schools.
The May Revision continues to fund and enhance the funding for schools that serve three and four-year olds by increasing to $2.1 billion for UTK, increasing to $515.5 million to encourage schools to offer before, after and summer school, and provides to them a Cost of Living Adjustment (COLA) of 2.3 percent.
As we all know, California has a budget shortfall. Instead of continuing to fund some at the expense of others, maybe we could encourage our elected officials in the coming weeks to change the conversation and put on the table options that don't support only schools or only private businesses, but options that support families. Shouldn't private child care providers and businesses also receive a COLA? Shouldn't private child care businesses also be allowed to apply for incentives and grants to expand and support working families with access to care before and after school, in the evenings and the weekends while parents need to work? Shouldn't there be fairness in California's budget priorities?
The needs of families, employers and our children are best served when options are created and funded based on them and not on entrenched silos or politics.
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Thank You to Our Generous 2024-25 Thriving Families CA Foundation Champions!
Thank you to the following Champions who stepped up in 2024-25, with funding to enhance our ability to serve the field. These agencies have made it possible for TFC to support our field with more tailored support of individual organizations, ability to pay for legal, advocacy and social media supports, enhanced regional trainings, improving data collection, and more.
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