Assembly panel reviews childcare rate-reform transition plan; advocates urge interim payments and equity for rural counties

The Legislative Analyst’s Office outlined an eight-part transition plan for childcare rate reform and stakeholders urged interim funding and equity measures during a California State Assembly hearing on the topic.

Dylan Oksalitza, Legislative Analyst with the Legislative Analyst’s Office, told the panel that the transition plan “consists of 8 parts” and described measures intended to provide interim increases to existing reimbursement rates, maintain the single higher rate between the regional market rate (RMR) and the standard reimbursement rate (SRR), annualize cost-of-care supplements, update the statutory hold-harmless language to reflect any interim increases, eliminate the private market cap in the RMR statute, authorize one-time funding for data and systems transitions at CDSS and CDE, and require collection of parent copay data beginning January 1, 2026.

The plan as presented would: provide percentage increases to the regional market rates table and the SRR beginning January 1 of the budget year; preserve the rule that the applicable single rate is whichever is higher (SRR or RMR); annualize cost-of-care supplements; expand the statutory hold-harmless floor to include any interim rate increases; remove the private market cap on state reimbursement in RMR statute; authorize with Joint Legislative Budget Committee approval one-time funds for California Department of Social Services (CDSS) and…