Reimbursement Ceilings for Subsidized Child Care

Assembly Bill 131 (Chapter 116 of the Statues of 2021), which was signed into law on July 23, 2021, maintained the previous Regional Market Rate ceilings through December 31, 2021. Effective January 1, 2022 the new Regional Market Rate ceilings for licensed providers are established at the 75th percentile of the 2018 Regional Market Rate survey or the Regional Market Rate ceilings as they existed on December 31, 2021, whichever is greater. Also commencing January 1, 2022, reimbursement to licensed exempt care shall be 70% of the commensurate Family Child Care Home Rate.

To view the Reimbursement Ceilings effective January 1, 2022, select the January 1, 2022 effective date.

To view the Reimbursement Ceilings effective January 1, 2018 select the January 1, 2018 effective date.

Select the County where child care is provided to view the appropriate Regional Market Rate Ceilings. If child care is provided outside of California, choose the county of the child’s residence.

Regional Market Rate Ceilings

Note for Child Care Centers

For a five-year old child enrolled in kindergarten:

Use the 2 through 5 Years category when the child is in a program/classroom that is licensed as a preschool program, or
Use the School Age category when the child is in a program/classroom that is licensed as a school-age program.

Effective:

County:

For questions please contact ChildDevelopmentFiscal@dss.ca.gov

In accordance with the State of California – Child Care Providers United California Agreement, the adjustment factors, along with the reimbursement rate categories contained in Title 5 of the California Code of Regulations (5 CCR) Section 18075, are posted below:

5 CCR Section 18075. Reimbursement Rate Categories

Contractors shall reimburse providers in accordance with the following rate categories.
Hourly, which shall only be used for the following:

A child's certified need for child care of less than 30 hours per week and less than six hours on any day; or
An unscheduled but documented need of less than six hours per occurrence, such as the parent's need to work overtime, that exceeds the certified need for child care; or
That portion of the certified need for child care that exceeds 52.5 hours per week and is not included in the provider's full-time weekly or full-time monthly rate. This provision applies only if the family utilizes no more than one provider to meet the child's entire need for child care and development services. Additional payment made under the hourly rate for this purpose cannot exceed the provider's full-time weekly or full-time monthly rate.

Daily, which shall only be used for the following:

A certified need for child care of six hours or more per day; or
An unscheduled but documented need of six hours or more per occurrence, such as the parent's need to work on a regularly scheduled day off, that exceeds the certified need for child care.

Part-time weekly, which shall only be used when a certified need for child care less than 30 hours per week.
Full-time weekly, which shall only be used when a certified need for child care is 30 hours or more per week.
Part-time monthly, which shall only be used for the following:

A certified need for child care of less than 30 hours per week and that need occurs in every week of the month; or
A certified need for child care averages less than 30 hours per week when calculated by dividing the total number of hours of need in the month by 4.33, and that need occurs in every week of the month.

Full-time monthly, which shall only be used for the following:

A certified need for child care of 30 hours or more per week and that need occurs in every week of the month; or
A certified need for child care averages 30 hours or more per week when calculated by dividing the total number of hours of need in the month by 4.33, and that need occurs in every week of the month.

5 CCR Section 18075.1. Adjustment for Evenings and/or Weekends for Licensed Providers.

This section applies only to reimbursement to licensed providers, except this section shall not apply to reimbursement provided pursuant to the hourly rate defined in Section 18075(a).
When a licensed provider is meeting the certified need for child care that includes hours during the period from 6:00 p.m. to 6:00 a.m. on any day of the week or from 6 a.m. Saturday to 6:00 a.m. Monday, the contractor shall multiply the regional market rate ceiling for the applicable rate category by the appropriate adjustment factor as follows:

By 1.25 when 50 percent or more of the certified need for child care occurs during this period.
By 1.125 when at least ten percent, but less than 50 percent of the certified need for child care occurs during this period.

Reimbursement to the provider shall be the lesser of the amount the provider charges unsubsidized families for the same hours of child care, or the maximum subsidy amount as determined pursuant to subsection (b) above.

5 CCR Section 10875.2. Adjustment for Children with Exceptional Needs

When child care and development services are provided to a child with exceptional needs, the contractor shall multiply the lesser of the regional market rate ceiling or the rate determined pursuant to Section 18074.3 or 18074.4, whichever is lower, by only one of the following:

By 1.2, when the child has exceptional needs as defined in Welfare and Institutions Code Section 10213.5(l).
By 1.5, when the child is severely disabled as defined in Welfare and Institutions Code Section 10213.5(y).

Contractors shall apply this adjustment only when there is documentation that additional services and/or accommodations for that particular child are being provided, and such services and/or accommodations result in an on-going financial impact on the provider.

For questions please contact PQI@dss.ca.gov