This webinar will begin shortly. There will be no audio until

This webinar will begin shortly. There will be no audio until the webinar begins at 10:00 AM. Thank you for your patience. CALIFORNIA DEPARTMENT OF EDUCATION Tony Thurmond, State Superintendent of Public Instruction

Rate Reform Webinar Early Education Division and Fiscal and Administrative Services Division Date: December 17, 2021 Time: 10:00 AM – 11:30 AM CALIFORNIA DEPARTMENT OF EDUCATION Tony Thurmond, State Superintendent of Public Instruction

Welcome and Introductions 3

Meeting Agenda Welcome Background Calculation of Contract Rates Effective January 1, 2022 Management Bulletin (MB) 21-15 Rate Reform Implementation Guidance Contractor Reporting Requirements Questions 4

Calculation of California State Preschool Program (CSPP) Contract Rates Effective January 1, 2022 Photo Credit: Poplar Avenue School, Kindergarten; Oroville, CA 5

Rate Reform January 1, 2022, Implementation AB 131 and the California Education Code Section 8242: Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate (SRR) established in this section shall be reimbursed at the greater of the following: 1. The 75th percentile of the 2018 regional market rate (RMR) survey. 2. The contract per-child reimbursement amount as of December 31, 2021. 6

Senate Bill (SB) 168 Section 4 of SB 168 (Chapter 261 of the Statutes of 2021) authorizes the CDE to provide guidance and instruction to implement rate reform through an MB, notwithstanding the Administrative Procedures Act, on or before December 31, 2021. SB 168 also directs the CDE and the California Department of Social Services to examine the impact of time-based and special criteria adjustment factors on center-based contractors. The bill authorizes the state to make changes to time-base and special criteria adjustment factors that supersede statute, pursuant to approval from the Joint Legislative Budget Committee. 7

Management Bulletin 21-15 MB 21-15 includes two attachments: 1. Rate Reform Implementation Guidance (Attachment A) ‒ This guidance supersedes existing regulations 2. California State Preschool Program Contractor Rates by Service County (Attachment B) ‒ These rates will be incorporated into the CSPP contract as a link to the CDE webpage, and amended via an Allocation Letter 8

Rate Reform Implementation Guidance (Attachment A) Chapter 18.5 California State Preschool Program ‒Subchapter 12. Rate Reform Changes oArticle 1. Contractor Requirements Sections 17835 through 17838 oArticle 2. Contractor Requirements for Reimbursement to Providers Sections 17840 through 17843 9

Determining CSPP Contract Rates Effective January 1, 2022 Photo Credit: Debra Manrique Family CDC; Oxnard, CA 10

RMR Compared to the SRR (1) Regional Market Rate (RMR) Standard Reimbursement Rate (SRR) RMR Survey collects data from nonsubsidized programs across California to determine the cost of care by county, setting type, and full-time or parttime services. The SRR is a rate set by the annual Budget Act, which does not consider differences in cost across California's 58 counties. Prior to January 1, 2022, only Alternative Payment Programs utilize the RMR. Prior to January 1, 2022, the CSPP utilized the SRR. 11

RMR Compared to the SRR (2) Setting Type Regional Market Rate Standard Reimbursement Rate Licensed Child Care Center Licensed Childcare Center, and LEAs that are licensedexempt providing services to 4year-olds Daily enrollment Time-based Monthly enrollment reimbursement category Time-Base Definition Full-time (30 hours per week or more), part-time (less than 30 hours per week) Part-time (less than 4 hours per day), three quarter time (between 4 less than 6.5 hours per day), full-time (between 6.5 hours and less than 10.5 hours per day), full-time plus (more than 10.5 hours per day) 12

Daily Equivalent Rate/Contract Rate Based on the relevant RMR for Preschool services: ‒ Full-time Monthly, specific to service county ‒ Part-time Monthly, specific to service county Comparison of the daily equivalent contract rate, and current reimbursement, where current reimbursement for contractors receiving the SRR is 51.87 per child, per day for full time services and 32.12 per child, per day for part-time services. 13

Daily Equivalent Contract Rate: Full-time Services Full-time contract rate calculated as greater of: ‒ Service county full-time monthly / 20, or ‒ Current contract rate ( 51.87 for contractors at the SRR) San Luis Obispo County Example: ‒ Service county full-time monthly rate: 1,009.58 ‒ Convert to daily-equivalent rate: 1,009.58 / 20 50.48 ‒ Greater of RMR daily equivalent and current fulltime rate: 51.87 14

Daily Equivalent Contract Rate: Part-Time Services Part-time reimbursement calculated as greater of: ‒ Service county part-time monthly / 20, or ‒ Current part-time reimbursement ( 32.12 for contractors at the SRR) San Luis Obispo County Example: ‒ Service county part-time monthly rate: 658.45 ‒ Convert to daily-equivalent rate: 658.45 / 20 32.92 ‒ Greater of RMR daily equivalent and current part-time rate: 32.92 15

Part-Time Adjustment Factor Part-time adjustment factors are the ratio between part-time and full-time reimbursements Contractors currently at the SRR have an adjustment factor of .6193, which is calculated as 32.12 / 51.87 Full-time and part-time rates that will be effective January 1, 2022, were used to calculate the new part-time adjustment factor for each county 16

Part-Time Adjustment Factor Example San Luis Obispo County ‒Full-time rate: 51.87 ‒Part-time reimbursement: 32.92 ‒Part-time adjustment factor: 32.92 / 51.87 .6347 17

Calculating the Contract Rate: Los Angeles County Example Los Angeles County ‒ Service county full-time monthly rate: 1,253.26 ‒ Convert to daily-equivalent rate: / 20 62.66 ‒ Greater of RMR daily equivalent and current full-time rate: 62.66 ‒ Part-time monthly rate: 793.85 ‒ Convert to daily-equivalent part-time rate: / 20 39.69 ‒ Greater of RMR daily equivalent and current parttime reimbursement: 39.69 18

Calculating the Adjustment Factor: Los Angeles County Example Los Angeles County ‒ Full-time rate: 62.66 ‒ Part-time reimbursement 39.69 ‒ Part-time adjustment factor: 39.69 / 62.66 .6334 19

Contracts Effected by Rate Increases Eighteen counties will receive an increase to the full-day rate Twenty counties will receive an increase to part-day reimbursement Number of contracts that were reimbursed at or more than the RMR as of July 1, 2021: 278 Number of contracts that will reimbursed at the RMR as of January 1, 2021: 401 20

Rate Reform Resources Early Education and Nutrition Fiscal Services Webpage ‒ California State Preschool Contract Rates by County (Attachment B) o Contains the results of each county's calculated full-time rate, part-time rate, and adjustment factor ‒ Rate Reform Determination o Contains full-time and part-time Preschool RMRs and calculated contract rates 21

Contract Rates Effective January 1, 2022 Rates effective January 1, 2022, will be incorporated into CSPP contracts as an amendment to the CSPP, and processed as an Allocation Letter Contractors with a rate increase and corresponding increase to the Maximum Reimbursable Amount will receive an allocation letter in January. 22

Ongoing Rate Reform Efforts Photo Credit: Patricia Angulos’s Family Child Care; Ventura, CA 23

Rate Reform Workgroups The State and Child Care Providers United (CCPU) - California are required to establish a Joint Labor Management Committee (JLMC) to develop recommendations for a single reimbursement rate. The California Department of Social Services (CDSS), in consultation with the California Department of Education (CDE), is required to convene a working to assess the methodology for establishing reimbursement rates and existing quality standards. 24

Rate Reform Implementation Guidance (Attachment A) Article 1. Contractor Requirements Sections 17835 through 17838 Photo Credit: American River College CDC; Sacramento, CA 25

§ 17836. Time-base Categories for CSPP. (a) CSPP contractors shall be reimbursed as full-time when the child’s certified schedule is 30 hours total per week or greater. (b) CSPP contractors shall be reimbursed as part-time when the child’s certified schedule is less than 30 hours total per week. Families enrolled in full-day California state preschool programs must be reimbursed as part-time if the certified schedule is less than a total of 30 hours per week. 26

Contractors Operating in Multiple Service Counties The RMR Survey determines cost per service county. Therefore, reimbursement effective January 1, 2022 will be based on the rate in the service county for which the child is enrolled. CSPP contractors that operate in multiple service counties will be reimbursed for and will report enrollment based on the service county in which the child receives services. 27

Adjustment Factor Category Changes Effective January 1, 2022 Part-time adjustment factor may vary by service county Removal of three-quarter time adjustment factor 28

§ 17837 Time-base Adjustment Factor Categories for CSPP Contractors (a) When Preschool services are provided, the contractor shall be reimbursed for each day the child is enrolled, pursuant to 5 CCR Section 18054 or any superseding regulation addressing Determination of Reimbursable Amount, by multiplying the full-time contract rate by only one of the following time-base adjustment factors: (1) By 1.0 when the child is certified for full-time CSPP services, pursuant to Section 17836(b). (2) By the applicable service county’s adjustment factor when the child is certified for part-time CSPP services, pursuant to Section 17836(a). (3) By 1.18 for the specific days in which children determined to have fulltime reimbursement are provided CSPP services for 10 and onehalf (10.5) hours or more per day. 29

§ 17838. Special Criteria Adjustment Factor Categories (1) When CSPP services are provided to a child that meets a special criteria category, the contractor shall multiply the contract rate, by only one of the special criteria categories. These are: Exceptional needs Severe disability At risk of neglect, abuse, or exploitation Dual language learner 30

§ 17838. Special Criteria Adjustment Factor Categories (2) When Mental Health Consultative Services are provided in a CSPP classroom, the adjustment factor is 1.05. This adjustment factor can be used in conjunction with any of the adjustment factors listed in this section and section 17837. 31

Rate Reform Implementation Guidance (Attachment A) Article 2. Contractor Requirements for Reimbursement to Providers Sections 17840 through 17843 Photo Credit: Conejo Valley Unified School District; Thousand Oaks, CA 32

§ 17840. Applicable Regulations The regulations contained in this Article shall apply to CSPP contractors that contract with family child care home providers in order to operate through a Family Child Care Home Education Network (FCCHEN). 33

§ 17841 Application of the Contract Rate CSPP contractors that operate through a FCCHEN shall use the contract rate as the basis to determine the rate agreed upon by the contractor and the provider. 34

§ 17842 Reimbursement Rate Categories (a) CSPP contractors shall reimburse family childcare home providers in accordance with the following rate categories: (1) Part-time rate agreed to by the contractor and the provider, which shall only be used when the family has a certified schedule of less than 30 hours per week. (2) Full-time rate agreed to by the contractor and the provider, which shall only be used when the family has a certified schedule of 30 hours or more per week. (3) Providers may be reimbursed either the part-time or full-time rate as required by the child’s school or vacation certified schedule. (4) For full-time children who are provided CSPP services for 10 and onehalf (10.5) hours or more per day, contractors shall multiply the provider’s full-time agreed upon rate by 1.18. 35

§ 17843. Special Criteria Adjustment Factor Categories (1) When CSPP services are provided to a child in one of the following categories, the contractor shall pay the provider by multiplying the part time or full-time rate agreed to by the provider and the contractor by only one of the following: Exceptional needs Severe disability At risk of neglect, abuse, or exploitation Dual language learner 36

§ 17843. Special Criteria Adjustment Factor Categories (2) When Mental Health Consultative Services are provided in a state preschool program, the adjustment factor is 1.05. This adjustment factor can be used in conjunction with any of the adjustment factors listed in this section and section 17842 37

California State Preschool Program (CSPP) Reporting Updates Effective January 1, 2022 Photo Credit: Debra Manrique Family Child Care; Oxnard, CA 38

Enrollment Reporting Changes (1) Certified enrollment will be based on the number of hours per week a child is enrolled Enrollment will continue to be reported for each day the child is enrolled ‒Children with a certified schedule of less than 30 hours total per week must be reported as part-time ‒Children with a certified schedule of 30 hours or more per week must be reported as full-time 39

Enrollment Reporting Changes (2) If a child is certified for full-time services and for any individual day the child is enrolled more than 10.5 hours, the child must be reported as full-time-plus on that day 40

Reporting Weekly Full-Time Enrollment All children with a certified schedule of 30 hours or more per week should be reported within the full-time rate category Enrollment must be reported for all 5 days of the week as full-time child days of enrollment 41

Weekly Full-Time Enrollment Reporting Example Enrollment Monday Number of Hours 8 Tuesday Wednesday Thursday 8 8 8 Friday 3 Total Weekly Hours 35 Fulltime Reporting Monday Tuesday Wednesday Thursday Friday Category Full-time Full-time Full-time Full-time Full-time 42

Reporting Weekly Part-Time Enrollment All children with a certified schedule of less than 30 hours per week should be reported within the parttime rate category Enrollment must be reported for all 5 days of the week as part-time child days of enrollment, because the child’s total enrollment for the week is less than 30 hours 43

Weekly Part-Time Enrollment Reporting Example Enrollment Monday Number of Hours 5 Reporting Category Tuesday Wednesday Monday Part-time 5 5 Tuesday Part-time Thursday Friday 8 5 Wednesday Part-time Thursday Part-time Total Weekly Hours 28 Parttime Friday Part-time 44

Reporting Full-Time-Plus Enrollment Children receiving full-time reimbursement and certified for ten and a half (10.5) hours per day or more will continue to be reported as full-time plus on the specific days in which they receive services for 10.5 hours or more. 45

Full-Time-Plus Enrollment Reporting Example Enrollment Monday Number of Hours 8 Reporting Category Monday Full-time Tuesday Wednesday Thursday 10.5 Tuesday Full-timeplus 8 10.5 Wednesday Full-time Friday 8 Thursday Full-timeplus Total Weekly Hours 45 Fulltime Friday Full-time 46

Changes to Child Development Provider Accounting Reporting Information System (CPARIS) Reporting The CPARIS CSPP reporting interface will be updated Beginning with January reports, CSPP enrollment will be reported by service county The service county options are specific to each contractor and based on service county information provided in the Child Development Management Information System (CDMIS) 47

Changes to CSPP Calculation Worksheets Fiscal Year (FY) 2021—22 CSPP calculation worksheets have been updated Beginning with January reports, worksheets will no longer include: ‒ Contract rate ‒ Reported total adjusted child days of enrollment ‒ Service earnings 48

Changes to CSPP Calculation Worksheets and CPARIS in FY 2022—23 CDE is building calculation worksheets in CPARIS Calculation worksheets will display service earnings by county Calculation worksheets will be viewable in CPARIS 49

Next Steps for CSPP Contractors Determine if currently enrolled children should be reported as part-time, full-time, or full-time-plus For contractors operating in multiple service counties, determine a process for reporting enrollment by service county Verify sites indicated in CDMIS are accurate Update reporting procedures 50

Questions Photo Credit: Tulare City School District; Tulare, CA 51

Resources The Early Education Nutrition Fiscal Services (EENFS) Fiscal Analysts https://www.cde.ca.gov/fg/aa/cd/faad.asp The Program Quality Implementation (PQI) Regional Consultants Øhttps://www.cde.ca.gov/sp/cd/ci/assignments.asp 52

Closing Photo Credit: Lighthouse for Children CDC; Fresno, CA 53