Background

The CDE is responsible for the contract awarded on a competitive basis to conduct the biennial RMR survey of child care providers. The survey is based on a methodology of zip code groupings that have similar socio-economic characteristics (e.g., housing costs, population density, and employment rates). The survey results are utilized to create the RMR ceilings based on an aggregate of the survey data for each county. The RMR ceilings issued by CDE are equally applicable to the CalWORKs S1CC Program administered by CDSS.

The Fiscal Year 2006-07 Budget Trailer Bill, Assembly Bill (AB) 1808, required that the RMR ceilings be based on a county aggregate of the survey data. As such, Los Angeles County implemented reimbursement rates according to the type of care, age of the child(ren), and time base (i.e., hourly, daily, weekly, or monthly).

The Budget Act of 2014, Senate Bill (SB) 852, maintained the RMR ceilings at the 85th percentile of the 2005 RMR survey and the license-exempt child care provider ceilings at 60 percent of the family child care home ceilings through December 31, 2014.

On January 1, 2015, AB 1476 and SB 876 required California to implement reimbursement ceilings at the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent. If a new ceiling was less than the 2005 RMR ceiling, then the 2005 ceiling was to remain in effect. The license-exempt child care provider ceilings continued to be 60 percent of the family child care home ceilings. Accordingly, Los Angeles County implemented reimbursement ceilings at the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent as all of the new ceilings were higher than or equal to the 2005 RMR ceilings.

On October 1, 2015, SB 97 and AB 104 provided a 4.5 percent increase to the RMR ceilings by applying 104.5 percent to the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent. Additionally, SB 97 and AB 104 increased reimbursement ceilings for license-exempt child care providers to 65 percent of the family child care home ceilings.

Effective January 1, 2017 through June 30, 2018, SB 828, Chapter 29, Statutes of 2016, established the RMR ceiling for licensed providers at the greater of either of the following:

The 75th percentile of the 2014 RMR survey for that county; or

The RMR ceiling for that county as it existed as of December 31, 2016.

However, AB 99, Chapter 15, Statutes of 2017, revised the RMR ceiling period to reflect a new period end date of December 31, 2017 and maintained the RMR ceilings as established in SB 828. Effective January 1, 2018 through December 31, 2018, AB 99 revised the RMR ceiling for licensed providers as follows:

At the greater of the 75th percentile of the 2016 RMR survey for that region; or

The RMR rate ceiling as it existed in that region on December 31, 2017.

Reimbursement to license-exempt child care providers must not to exceed 70 percent of the family child care home ceilings.

Additionally, AB 99 established that as of January 1, 2019, the RMR ceiling shall be established at the 75th percentile of the 2016 RMR survey for that region.

AB 1808, Chapter 32, Statutes of 2018, instead requires that the RMR ceilings continue to be established indefinitely at the 75th percentile of the 2016 RMR survey for that region or at the RMR ceiling that existed in that region on December 31, 2017, whichever is greater.