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EEC outlines FY27 budget landscape: House, Senate largely aligned but staff flag watch areas
Summary
EEC staff told the board the House and governor's FY27 proposals largely align for the agency, including sustained investments in C3 and caseloads, but flagged watch areas: reduced CPPI funding in the House, administrative funding cuts in the Senate Ways and Means, and the status of a Fair Share supplemental.
Department of Early Education and Care budget staff briefed the board on May 13 about where FY27 funding stands as the Legislature moves toward conference negotiations.
Budget Director Crystal Lan and Chief Financial Officer Eric Hanson said the governor’s H2 (house two) and the House final plan keep substantial funding for several EEC priorities: $475 million for the C3 initiative (level funded), continued investments in child care financial assistance and caseload needs, and line items for CCR&Rs, Head Start supplemental grants, early childhood mental health grants and other programs. The House’s final recommendation and the governor’s H2 are “largely aligned,” staff said.
Staff identified several watch areas. House action reduced the CPPI line relative to the governor’s request (the House funded CPPI at $5 million in one comparison, while the governor’s proposal was higher), and they said Senate Ways and Means initially funded CPPI at about $28 million — a maintenance level that would limit new expansion. The agency also cautioned that the Senate’s administrative/operating line was roughly $3.8 million below FY25 operating levels and below the governor’s ask, a cut that would complicate the agency’s ability to meet federal claiming requirements without one‑time fixes.
Lan told the board that the House and governor’s budgets include targeted sums to expand access: the House’s Fair Share supplemental (FY26) proposal would provide $38.7 million for EEC if adopted in conference, including $12.5 million aimed at increasing access and reducing the income‑eligible waitlist and $10.7 million for CCFA contracted seats. The Senate version of that supplemental had not included EEC funding at the time of the update.
Board members asked staff to model operational impacts (for example, the effect of career‑pathways reductions) and to return with more detail on how changes would translate into service levels for educators and families. Crystal Lan said the agency will closely monitor amendments in the Senate and report back as the fiscal process proceeds to conference and to the governor’s desk.
