R-012-24 - Allowing the Receipt of Funds to the Early Care and Education Division of the Community Services Department via the California Department of Education and SB 140

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children with behaviors that are challenging to adults; and upcoming Classroom Assessment Scoring, System (CLASS) implementation. Transitional Payments for Providers and CSPP Centers Allocation SB 140 authorizes the CDE to issue one-time payments for CSPP centers and CSPP family childcare providers based on license size. The CDE will allocate funding to CSPP contractors for these one- time payments. To the extent that the contractor subcontracts with a center or operates a FCCHEN, the contractor is required to pass the funding along to their subcontractor(s)/family childcare provider(s). Allocation Methodology Pursuant to SB 140, transitional payment allocations are based on those centers that provided subsidized state preschool program services in April 2023 based on CDMIS data and family childcare providers who were reimbursed for subsidized state preschool services in the month of April 2023 from the Subsidized Provider Report (SPR). Transitional Payment allocations are determined as follows: 1. Two thousand five hundred dollars ($2,500) per each family childcare provider licensed to operate a small family childcare home. 2. Three thousand ($3,000) per center, including subcontracted center, and family childcare provider licensed to operate a large family childcare home. 3. An additional allocation (five percent) to CSPP contractors to cover the administrative costs associated with distributing these payments to providers or subcontractors. Note: Currently, the CDE has only released transitional payments to contractors who provide service through a FCCHEN and has not released transitional payment allocations for CSPP centers. Allocations for centers, including subcontracted centers, will be forthcoming and provided to CSPP contractors. Requirements for Distributing Transitional Payment Allocations and Expenditure Deadlines For CSPP contractors who subcontract with centers or who provide services through family childcare providers operating in their FCCHEN, there are specific timelines for passing along the funds to the subcontractor or provider. Specifically: • For contractors who provide services through subcontractors, funds must be distributed to subcontractors promptly. The CDE recommends these payments be made to centers who are subcontractors no later than 21 calendar days following receipt of funds. • For contractors operating a FCCHEN, per the union agreement, funds must be distributed to the family childcare provider no later than November 30, 2023. CSPP contractors who are required to pass the transitional subsidy payments to family childcare providers by this deadline were notified of these allocations and requirement via email by their fiscal analyst in October 2023. CSPP contractors who are required to distribute the transitional subsidy payment to providers and subcontractors must not reduce the payment to provider. As such, the payment to the provider should be either$2,500 or $3,000 (dependent upon the license size)while payments to subcontractors shall 3