Article 4 - Reimbursement Rates

California Education Code — §§ 8242-8251

Sections (11)

Amended by Stats. 2025, Ch. 13, Sec. 1. (SB 120) Effective June 27, 2025.

(a)The department, in collaboration with the State Department of Social Services, shall implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service.
(1)Parent fees shall be used to pay reasonable and necessary costs for providing additional services.
(2)The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.
(b)(1) (A) Commencing July 1, 2021, the standard reimbursement rate

shall be twelve thousand nine hundred sixty-eight dollars ($12,968).

(B) Commencing July 1, 2021, the standard reimbursement rate for part-day California state preschool programs shall be five thousand six hundred twenty-one dollars ($5,621).

(2)Commencing in the 2022–23 fiscal year, the standard reimbursement rates described in paragraph (1) shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c)(1) Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate established in this section shall be reimbursed at the greater of the following:

(A) The 75th percentile of the 2018 regional market rate survey.

(B) The contract per-child reimbursement amount as of December 31, 2021, as increased by the cost-of-living adjustment pursuant to paragraph (2) of subdivision (b).

(2)Commencing July 1, 2022, subject to available funding, the department may issue temporary rate increases to contractors that exceed the rates specified in paragraph (1) and the reimbursement rate supplements described in Section 51 of Chapter 571 of the Statutes of 2022.
(3)In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The department shall specify the timeline and format in which this information shall be

submitted, and the information shall include, but not be limited to, all of the following:

(A)Address, including ZIP Code.
(B)Race and ethnicity.
(C)Gender.
(D)Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.
(E)What types of federal relief funds have been received from the state.
(F)Use of federal relief funds received.
(G)Documentation that the provider met certifications as required by federal law.
(4)Rate

increases shall be subject to federal usage limitations and federal and state program eligibility requirements.

(d)(1) (A) Notwithstanding subdivisions (b) and (c), for the 2023–24 fiscal year and the 2024–25 fiscal year, the cost-of-living adjustment required pursuant to subdivisions (b) and (c) shall instead be zero.

(B) It is the intent of the Legislature that any adjustments in the 2023–24, 2024–25, and 2025–26 fiscal years related to reimbursement for programs funded pursuant to this section will be subject to a ratified agreement, and subject to future legislation providing for appropriations related to the budget bill.

(2)Notwithstanding

subdivisions (b) and (c), for the 2025–26 fiscal year, the cost-of-living adjustment required pursuant to subdivisions (b) and (c) shall instead be zero.

(e)Commencing July 1, 2026, the cost-of-living adjustment shall be applied consistently with subdivision (m) of Section 10227.6 of the Welfare and Institutions Code.

Amended by Stats. 2022, Ch. 915, Sec. 3. (AB 2806) Effective January 1, 2023.

(a)(1) For purposes of this section, “early childhood mental health consultation service” means a service benefiting a child who is served in a California state preschool program.
(2)For purposes of this section, “early childhood mental health consultation service” includes, but is not limited to, all of the following:
(A)Support for providers, parents, legal guardians, and caregivers to create trauma-informed, proactive inclusive environments and to respond effectively to all children.
(B)Assistance through individual site consultations, provision of resources, formulation of training plans, referrals, and other

methods that address the unique needs of programs and providers.

(C)Aid to providers, parents, legal guardians, and caregivers, and encouragement and facilitation of collaboration and communication, in developing the skills and tools needed to be successful as they support the development and early learning of all children, including observing environments, facilitating the development of action plans, and supporting site implementation of those plans.
(D)The development of strategies for addressing prevalent child mental health concerns, including internalizing problems, such as appearing withdrawn, and externalizing problems, such as exhibiting persistent and serious behaviors.
(E)If a child exhibits persistent and serious behaviors, support with the pursuit and documentation of reasonable steps to maintain the

child’s safe participation in the program, as described in Section 8489.1.

(F)Face-to-face interactions or video-based platforms and other modes of communication that are compliant with the federal Health Insurance Portability and Accountability Act (Public Law 104-191), such as the telephone.
(G)Group or individual consultations of any of the actions described in this paragraph.
(b)The cost to an agency of providing an early childhood mental health consultation service shall be reimbursable pursuant to Section 8244 if all of the following apply:
(1)The early childhood mental health consultation service is provided on a schedule of sufficient and consistent frequency continuously throughout the program year, to significantly contribute to all of the

following:

(A)Improving interpersonal relationships and child outcomes.
(B)Increasing the confidence, competence, and well-being of those consulted.
(C)Eliminating suspensions and expulsions.
(2)(A) The early childhood mental health consultation service is provided by one of the following persons:
(i)A licensed mental health professional, including a marriage and family therapist, a licensed clinical social worker, a licensed professional clinical counselor, a licensed psychologist, a licensed child and adolescent psychiatrist, a credentialed school counselor, or a school psychologist credentialed pursuant to Section 44266 and employed pursuant to Section 49400.

The person described in this subparagraph shall have at least three years of experience providing mental health services to children zero to five years of age, inclusive, shall have training in infant, family, and early childhood mental health, shall be adequately insured, shall have held their respective license for a minimum of two years, and shall be in full compliance with all continuing education requirements applicable to their profession.

(ii) A license-eligible marriage and family therapist, a license-eligible clinical social worker, a license-eligible professional clinical counselor, a license-eligible psychologist, or a license-eligible child and adolescent psychiatrist, who is supervised by a person meeting all of the requirements described in clause (i).

(iii) A person holding, at a minimum, a master’s degree in a field related to mental health or human services,

including, but not limited to, marriage and family therapy, clinical social work, professional clinical counseling, infant mental health, human development, human services, psychology, school psychology, child and adolescent psychiatry or occupational therapy, education, social work, and other related fields, as determined by the department, and who has at least two years of experience working with children zero to five years of age, inclusive, who is supervised by a person meeting all of the requirements described in clause (i).

(iv) A person meeting all of the requirements described in clause (i) who is providing supervision pursuant to clause (ii) may be an employee of a contracting agency, including on a temporary or part-time basis, or engaged as an external contractor, provided that supervision takes place on a regular basis that is sufficient to offer professional guidance and support.

(B) Any person providing mental health consultation services pursuant to this section shall have a successful criminal background check.

(3)The early childhood mental health consultation service uses a relationship-based model emphasizing strengthening relationships among early childhood education providers, parents, children, and representatives of community systems and resources, and integrates reflective practice into the onsite consultation model. This model shall include, but not be limited to, all of the following:
(A)At least twice per program year, conducting early care- and education setting-based mental health assessments, such as the “Climate of Healthy Interactions for Learning & Development (CHILD)” or other appropriate instrument.
(B)Recordkeeping that adequately documents all

consultation activities.

(C)With consent from parents or legal guardians, at least one screening of each enrolled child for adverse childhood experiences and screening for buffering factors, including, but not limited to, resilience.
(4)Within the first 30 days upon hire or start of consultation service, a provider agency ensures that a consultant is trained in all of the following:
(A)California law and professional ethics for early childhood mental health consultation, including all of the following:
(i)Contemporary professional ethics and statutory, regulatory, and decisional laws that delineate the scope of practice of early childhood mental health consultation.

(ii) The

therapeutic, clinical, and practical considerations involved in the legal and ethical practice of early childhood mental health consultation.

(iii) Confidentiality, particularly as it pertains to minors.

(B) Child abuse and neglect mandated reporting laws.

(C) Best practices and foundations of early childhood mental health consultation.

(D) All relevant laws and regulations regarding state and federal childcare programs.

(5)Consultants and supervisors shall participate in continuing professional development and education for at least 18 hours per program year. Topics may include, but are not limited to, infant-family and early childhood mental health, implicit bias and equity,

trauma-informed practice, early childhood development, and consultation.

(c)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State, the department shall, in consultation with the State Department of Social Services, on or before December 31, 2023, issue guidance through management bulletins or similar letters of instruction for programs on implementing the requirements set forth in this section.

Added by renumbering Section 8266.1 by Stats. 2021, Ch. 116, Sec. 90. (AB 131) Effective July 23, 2021.

(a)For each fiscal year, for the purposes of this chapter, reimbursement rates for full-day California state preschool shall be adjusted by the following reimbursement

factors:

(1)Prior to January 1, 2022, California state preschool program providers serving children for not less than four hours per day, and less than six and one-half hours per day, the

reimbursement factor is 75 percent of the standard reimbursement rate.

(2)Prior to January 1, 2022, California state preschool program providers serving children for not less than six and one-half

hours per day, and less than 10 and one-half hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate.

(3)For

California state preschool program providers serving children for 10 and one-half hours or more per day, the reimbursement factor is 118 percent of the standard reimbursement rate.

(b)It is the intent of the Legislature, notwithstanding the difference between the standard reimbursement rate and the regional market rate, to support serving children for the length of day that is appropriate under a provider’s contract.

Amended by Stats. 2025, Ch. 108, Sec. 1. (SB 151) Effective September 17, 2025.

(a)(1) Notwithstanding any other law, for the 2022–23 fiscal year only, contracting agencies operating a California state preschool program shall be reimbursed according to paragraph (2), if they meet either of the following requirements:

(A) The program is open and operating in accordance with their approved program calendar and remains open and offering services through the program year.

(B) The program operated by the contracting agency is closed by local or state public health order or guidance due to the COVID-19 pandemic.

(2)Reimbursement pursuant to paragraph (1) shall be 100 percent of the contract

maximum reimbursable amount or net reimbursable program costs, whichever is less, pursuant to guidance released by the Superintendent.

(3)A California state preschool program that is physically closed as described in subparagraph (B) of paragraph (1) due to the COVID-19 pandemic, but funded to be operational, shall provide distance learning services, as specified by the Superintendent, for the program. A contractor specified in paragraph (1) shall submit a distance learning plan to the department overseeing their contract pursuant to guidance from the Superintendent.
(b)Notwithstanding any other law, reimbursement for full-day and part-day California state preschool family childcare home education network providers for the 2022–23 fiscal year shall be based on the maximum certified hours of care for all families, including families certified for a variable schedule, regardless

of attendance.

(c)Notwithstanding any other law, commencing July 1, 2023, to June 30, 2025, inclusive, if a program is open and operating in accordance with their approved program calendar and remains open and offering services through the program year, the contract reimbursement amount shall be based on the lesser of either of the following:
(1)One hundred percent of the contract maximum reimbursable amount.
(2)Net reimbursable program costs.
(d)Notwithstanding any other law, commencing January 1, 2023, and to July 1, 2028, inclusive, reimbursement for full-day and part-day California state preschool family childcare home education network providers shall be based on the maximum certified hours of care for all families, including families certified for a variable schedule, regardless of attendance, less any allowable administrative expenses withheld by the contractor.
(e)If the provisions of subdivisions (c), (d), (f), and (g) are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426 of the Welfare and Institutions Code, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions

shall not become effective unless approved by the Legislature in the annual Budget Act.

(f)Commencing July 1, 2025, and through June 30, 2026, if a program is open and operating in accordance with its approved program calendar and remains open and providing services to certified children throughout the program year, the contract reimbursement shall be based on the lesser of the following:
(1)The maximum reimbursable amount stated in the contract.
(2)Net reimbursable program costs.
(g)Commencing July 1, 2026, the contract reimbursement shall be based on the lesser of the following:
(1)The maximum reimbursable amount stated in the contract.
(2)Net reimbursable program costs.
(3)The product of the adjusted child days of enrollment for certified children times the contract rate set forth in this section.

Added by renumbering Section 8268 by Stats. 2021, Ch. 116, Sec. 94. (AB 131) Effective July 23, 2021.

The Superintendent of Public Instruction and the State Controller shall establish the necessary plans to advance preschool funds to contracting agencies.

Added by renumbering Section 8269 by Stats. 2021, Ch. 116, Sec. 95. (AB 131) Effective July 23, 2021.

(a)The Superintendent of Public Instruction shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures required by this chapter.
(b)The Superintendent may establish any regulations the

Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs.

Added by renumbering Section 8270 by Stats. 2021, Ch. 116, Sec. 96. (AB 131) Effective July 23, 2021.

The Superintendent of Public Instruction shall support the coordination of resources available to state and local agencies serving preschool through grade 12 children and their families. During times of disaster this shall

include coordinating resources to support the specific needs of children and families.

Added by renumbering Section 8271 by Stats. 2021, Ch. 116, Sec. 97. (AB 131) Effective July 23, 2021.

In the event that operating agencies are unable to operate due to incomplete repairs and renovations authorized by administrating state agencies, or due to circumstances beyond the control of the operating agency, including earthquakes, floods, or fire, such programs shall not be penalized for incurred program expenses nor in subsequent annual budget allocations.

Added by renumbering Section 8272 by Stats. 2021, Ch. 116, Sec. 98. (AB 131) Effective July 23, 2021.

(a)The rules, regulations, and guidelines adopted by the Superintendent of Public Instruction pursuant to Sections 8231 and 8247 shall permit reimbursement for interest paid by contractors on private sector debt financing for the purchase, lease-purchase, repair, or renovation of

preschool facilities owned or leased by contractors providing center-based preschool.

(b)The Superintendent of Public Instruction shall adopt regulations requiring contractors to demonstrate that the amount of interest paid in a year on private sector debt financing for the purposes identified in subdivision (a) does not exceed the value obtained by the state in the use of the facilities during the year for the preschool services program. The regulations shall include, but not be limited to,

the following methods of making this demonstration:

(1)Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a portable building, including any transportation charges, installation charges, loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(2)Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a permanent building and real estate, including any loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(3)Evidence acceptable to the Superintendent of Public Instruction that loan payments for the purchase of a portable building or permanent building and real estate, including principal and interest, do not exceed the fair

market rental cost that the contractor would have paid if the property was not purchased.

(c)Loans or lease-purchase agreements amortized over the number of years designated in subdivision (b), but due in a fewer number of years, shall not be disallowed because of the shorter due date.

Added by renumbering Section 8272.1 by Stats. 2021, Ch. 116, Sec. 99. (AB 131) Effective July 23, 2021.

An agency contracting with the department to provide

California state preschool program services may schedule up to two days of staff training, per contract period, using state reimbursement funding on the topics including procedures for emergencies in preschool programs, licensing regulations relating to preschool programs, recognition and reporting of suspected abuse of children in preschool

programs, managing challenging behaviors and preventing expulsion of children, and addressing items on the program’s Quality Rating and Improvement System (QRIS) Quality plan.