January 16, 2024
California’s state budget must reflect the values we hold most dear, and be just to everyone involved in child care – children, families, and child care providers.
On January 10th, 2024, Governor Newsom announced his proposed 2024-25 budget. Three things to know about his proposal:
- There is no mention of the new funding needed to make good on the state’s commitment to pay child care providers a fair wage for their enriching care for children.
- The Governor does not increase affordable child care spaces for a second year in a row, further delaying his promise to reach 200,000 spaces by 2025-26.
- The Governor did not propose cuts to child care programs despite reporting a $38 billion state budget shortfall.
A Fair Wage for Enriching Care
Governor Newsom’s proposed state budget does not include the funds necessary to pay child care providers a fair wage. The 2024-25 State Budget should reflect the state’s Agreement to fully implement this policy.
The tremendous accomplishment of Child Care Providers United (CCPU) in their 2023 Union Agreement with the Governor paves the way for more equitable child care. The State agreed to use a new, cost-based formula so that child care providers are paid a fairer wage based on the true cost of providing enriching care to our youngest children.
While his proposal references the state’s next steps to implement this policy, it is disappointing that Governor Newsom did not dedicate new funding for this transformative shift to paying child care providers a higher, just wage. It is an antiracist policy that is essential and long overdue.
Affordable Child Care for Families
For the second year in a row, Governor Newsom’s budget proposal delays increasing vital child care spaces California families need, making no progress towards the promise he made in 2021 to add 200,000 new spaces by 2025-26.[2] At that time, Governor Newsom said:
“I’m proud to sign this legislation lifting up women and working families […] With 200,000 new child care slots to help meet the needs of parents as they balance the demands of work with raising a family, […] this package […] invests in the health and well-being of families across the state.”[3]
The Governor’s proposal does not increase affordable child care spaces and the total number of new spaces remains at 146,000.[4] It also officially moves the deadline for the Governor’s 200,000 spaces back one year to 2026-27.[5] Without this child care, thousands of families are forced to choose between working to provide for their families and caring for their children.
California Budget and Policy Center estimates show that 2.16 million children are eligible for these affordable child care spaces and a majority are children of color.[6] Their estimates also show that only 10.6% of children in California are actually receiving these child care services.[7]
Affordable child care spaces give families flexible, dependable child care and allow more people – especially women and women of color – to work.
No Budget Cuts to Child Care Programs
The Governor’s January budget makes no cuts to child care spending during a year when the state must make up for an estimated $38 billion shortfall.[8] The Governor’s proposal includes $6.6 billion ($4.6 billion in General Funds) for child care and development programs.[9]
California is open for business 24/7, with many people working swing shifts, night shifts, or flexible hours. Child care is a critical support for working families and vital to the health of California’s economy.
Conclusion
The state budget is the most important legislation for creating an equitable society where Black and Brown families have the child care they need and child care providers are fairly compensated for their hard work and dedication to our children.
“As a united community, we will work with policymakers and hold them accountable for fulfilling their commitments to California’s children, families, and child care providers. The broad, deep changes we need can only be achieved with collective strength and action,” Laurie Furstenfeld, Director of Legal Advocacy
[1] Service Employees International Union (SEIU) Local 1000, Gov. Newsom signs SB148 into law, securing funding for our contract, SEIU Local 1000 (Sept. 13, 2023), https://www.seiu1000.org/announcement/gov-newsom-signs-sb148-law-securing-funding-our-contract.
[2] Press Release, Office of Governor Gavin Newsom, Governor Newsom Signs Legislation Supporting Working Families and Child Care Providers (July 23, 2021), https://www.gov.ca.gov/2021/07/23/governor-newsom-signs-legislation-supporting-working-families-and-child-care-providers/.
[3] Press Release, Office of Governor Gavin Newsom, Governor Newsom Signs Legislation Supporting Working Families and Child Care Providers (July 23, 2021), https://www.gov.ca.gov/2021/07/23/governor-newsom-signs-legislation-supporting-working-families-and-child-care-providers/.
[4] Legis. Analyst’s Office, The 2023-24 Budget Child Care Proposals (Feb. 9, 2023), https://lao.ca.gov/Publications/Report/4672.
[5] Cal. Dep’t Fin., “Governor’s Budget Summary” at 54 (2024), https://ebudget.ca.gov/2024-25/pdf/BudgetSummary/HealthandHumanServices.pdf.
[6] This estimate is for California Department of Social Services child care programs and is based on 2022 American Community Survey data. The California Budget and Policy Center plans to publish these figures later this quarter.
[7] This estimate is based on the number of children 0-12 enrolled in California Department of Social Services child care programs (not including “Handicapped and Community College Stage 2” program enrollment) in October 2022. The California Budget and Policy Center plans to publish these figures later this quarter.
[8] Cal. Dep’t Fin., “Governor’s Budget Summary” at 7 (2024), https://ebudget.ca.gov/2024-25/pdf/BudgetSummary/HealthandHumanServices.pdf.
[9] Cal. Dep’t Fin., “Governor’s Budget Summary” at 61 (2024), https://ebudget.ca.gov/2024-25/pdf/BudgetSummary/HealthandHumanServices.pdf.
