The First 5 Network in early July expressed a mix of support and caution following the state budget signed by Governor Gavin Newsom. Despite an unprecedented budget deficit, important early childhood investments will be maintained or expanded.
These include funding approximately 11,000 new child care slots, but pausing expansion of slots by two years to FY2026-27; preserving funding for the expansion of Medi-Cal health care coverage to all income-eligible Californians; maintaining funding for health enrollment navigators at clinics; a rate increase for community health workers, promotoras and representatives – a major focus of advocacy for the First 5 Network and California’s early childhood field; and preserving investments in CalEITC, Young Child Tax Credit (YCTC) and Foster Youth Tax Credit (FYTC).
The Network applauds the state’s commitment to fund continuous Medi-Cal coverage eligibility for children birth to age five starting in 2026 but remains concerned that delay in adopting this protection will result in more young children losing access to health coverage. The Network will continue to urge the state to move forward with submitting the necessary federal waiver request for continuous coverage this year.
The Network also appreciates the Legislature and Administration’s compromise to the proposed May Revise cuts to the CalWORKs Home Visiting Program. Despite the $30 million reduction in FY2023-24, and the temporary reduction by up to $25 million in FY2024-25, the budget bill language clarifies that this reduction is not intended to impact service delivery or staffing, but instead adjusts program funding to match enrollment.
The First 5 Network remains committed to doing more with less for the communities it serves. Despite the state budget challenges, the Network is steadfast in its mission – to ensure the basic rights and essential services of children prenatal-to-five are not eroded by financial shortfalls.