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Lawmakers press administration for details on alternative childcare reimbursement methodology, July 1 deadline and bargaining status
Summary
CDSS, LAO and stakeholder witnesses described the state's multi-year transition to an "alternative reimbursement methodology," the July 1, 2025 statutory rate-setting milestone, collective bargaining constraints for family providers and concerns about data and timelines.
Legislators on Senate Budget Subcommittee No. 3 pressed administration officials, LAO analysts and stakeholder representatives about the state's planned transition to a single alternative reimbursement methodology for state-subsidized childcare.
Edgar Cabral of the Legislative Analyst's Office summarized the statutory milestones: since 2021 the state has been transitioning away from a two-rate system (standard reimbursement rate and a county-based regional market rate) toward a single methodology that focuses on provider costs. The LAO highlighted that rates under the new methodology set on July 1, 2025, must be "no less than" the rates currently in effect and that if rates are not ready to implement, statute requires CDSS to submit a transition plan to the Legislature.
Jackie Barossio of CDSS said the agency is…
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