May Revise Released

Today, the Governor released details on California’s 2026-27 May Revise budget proposal. Click here to view the press conference.

The Governor’s budget is very light on details as it relates to early care and education programs. CDE Early Learning program details start on page 17, and DSS Child Care program details start on page 36.

May 2026 Budget Specifics:

Significant Adjustments from the January Budget Proposal

COLA reduction
California State Preschool Program

• The May Revision reduces the California State Preschool Program COLA from 2.41% at Governor’s January Budget Proposal to 2.01% in the May revise, aligning CSPP with other child care and development programs.

CDSS Programs

• The May Revision notes a 30-percent reduction to the revised 26-27 child care COLA, resulting in a 2.01% COLA, reduced from 2.41% at Governor’s January Budget Proposal.

QRIS increase

• The May Revision includes $20 million in additional ongoing Proposition 98 General Fund for the state’s Quality Rating and Improvement System, which provides assessment, technical assistance, and fiscal support for improving the quality of early care and education programs.

Ongoing Proposals from the Governor’s January Budget Proposal

DSS child care and development programs

• DSS administers child care and development programs, including CalWORKs Stages One, Two, and Three; Alternative Payment Programs; Migrant Child Care; General Child Care; Child Care for Children with Severe Disabilities; Resource and Referral; Local Child Care Planning Councils; and quality improvement projects. The May Revision includes $7.5 billion total, including $5 billion General Fund, for DSS-administered child care and development programs.

Alternative Payment agency administrative/support cost increase

• $65.1 million General Fund in 2026-27 to increase allowable in-contract administration costs for Alternative Payment Program agencies by 1.5% of their total contract amount.

Child care infrastructure funding

• A one-time increase of $28 million in federal funds for child care facilities affected by the 2023 and 2024 natural disasters. 

Proposition 64 shift for child care infrastructure

• A one-time shift of $11.8 million in 2026-27 from the youth education/prevention/early intervention/treatment account to DSS, to be invested in child care infrastructure, specifically targeted toward communities impacted by recent fires.

Continues Proposal to Move Office of the Superintendent of Public Instruction

• This fiscally neutral funding shift is related to the education governance proposal included in the Governor’s January Budget Proposal.

What the May Revise Is Missing

While the May Revise includes several items relevant to early learning and care, there are still key field concerns that are not directly addressed in the proposal. These omissions do not necessarily mean the issues are off the table, but they do mean continued advocacy will be important as budget negotiations move forward. The May Revision preserves some existing child care investments but does not meet the scale of instability facing California’s early care and education field. While the proposal includes limited adjustments for QRIS, Alternative Payment administration, disaster-related facilities, and a reduced COLA, it does not include a comprehensive strategy to stabilize community-based preschool, permanently address 2-year-old CSPP access, expand slots, implement cost-based reimbursement, strengthen the ECE workforce, or resolve facilities and licensing barriers.

Additionally, the May Revise addresses none of the proposals provided by the State Senate in their own budget plan, include their proposal to move CSPP entirely under Prop 98. At a moment when TK expansion, expiring flexibilities, rising costs, and enrollment instability are reshaping the field, the absence of a durable mixed-delivery stabilization plan is the most significant gap.