SB 120 amends existing law related to early childhood education and childcare. The bill makes the following changes:
(1) It provides that when families already receiving childcare services add another child, the eligibility period is extended to guarantee at least 12 months of services for the new child before redetermination of eligibility.
(2) It removes the requirement for certain reporting on preschool service numbers.
(3) The bill reduces the required documented need for daily rate reimbursement from 6 hours to 5 hours.
(4) It extends the monthly cost of care plus rate payments until mid-2026 and introduces a formula-based increase for the 2025-2026 fiscal year.
(5) The bill suspends cost-of-living adjustments for 2025-2026 for childcare and development programs.
(6) It extends the timeline for implementing new reimbursement rates to July 1, 2027, introduces additional reporting requirements, and emphasizes using an alternative methodology to set future rates. The bill also modifies how reimbursements are calculated, requiring that from July 2025 through June 30, 2026, they be based on actual certified need instead of attendance. The bill appropriates $88,550,000 from the General Fund for this purpose.
(7) The bill also amends existing law to allow family childcare providers to participate in provider organizations that can negotiate with the state, and the resulting agreements can override conflicting reimbursement provisions without further legislative approval.
(SB 120 amends Sections 8242, 8245.5, and 42238.15 of the Education Code, and amends Sections 10227.5, 10227.6, 10243, 10271, 10277.1, 10277.2, 10280, and 10374.5 of the Welfare and Institutions Code.)