Enriching and affordable child care should be available to all children and families, regardless of their income, mental or physical
needs, race, ethnicity, or language they speak.
The Challenge
California pays providers for delivering publicly-funded child care services to families, but policymakers have underpaid them for too long. By not increasing child care providers’ pay, California policymakers uphold discriminatory laws that exploit Black, Latine, and immigrant women.
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The Solution
Fortunately, starting in 2024, California is taking steps to change how it pays child care providers and do it more fairly, based on their actual costs.
- Until now, child care providers set their fees based on how much families can afford to pay. This amount does not cover the full cost of providing enriching care to our children. The state then set a percentage of that fee to “reimburse” child care providers who care for children in families with lower incomes.
- The State and CCPU agreed in 2023 to a new way to pay child care providers known as a “cost-based formula.” This way is fairer because it is based on their full costs, like providers’ time, materials, rent/mortgage, etc. – all the costs associated with running an enriching child care program for California’s diverse children.
- This new method to pay providers promises to be fairer than the current method, which lacks transparency.
- The State Legislature may decide to fund less than 100% of the new minimum. The State Budget Process will determine how much funding is available for the new minimum and enhanced payments.
Fair pay would mean that child care providers can cover their costs and take home a living wage, resulting in stability and growth for themselves and the children in their care.
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Paying child care providers a fair wage makes all our communities stronger.
