The purpose of this informational notice is to address California Alternative Payment Program (CAPP) over-enrollment in fiscal year (FY) 2017-18, and inform contracting agencies that fund sources previously available to reimburse programs for over-enrollment in FY 2016-17 and 2017-18 will not be available in FY 2018-19.

Previously, the EESD and the Child Development and Nutrition Fiscal Services (CDNFS) Office in the Fiscal and Administrative Services Division worked closely with the Department of Finance and the Legislature to secure funds in order to avoid the disenrollment of children. This partnership has continued in FY 2017-18, and the CDE continues to direct CAPP programs that are over-enrolled to continue serving currently enrolled families (do not dis-enroll families) but to not enroll any new families at this time.

The CDE is aware some CAPP programs have begun to enroll or are currently preparing to enroll families. If or when you begin this process, the CDE strongly advises all CAPP programs to review enrollment projections to ensure enrollment does not cause contract earnings to exceed the Maximum Reimbursable Amount (MRA). This should include an analysis of the Regional Market Rate (RMR) ceiling increase effective January 1, 2018 and its effect on contract earnings. This analysis should be performed by under- and over-enrolled programs alike, as the RMR increase may cause a currently under-earning contract to over-earn in the current and upcoming year.

If your program is projected to be over-enrolled, please notify your EESD Field Services Office (FSO) consultant and your CDNFS Fiscal Analyst as soon as possible if you have not already done so. The list of EESD FSO consultants can found on the CDE Consultant Regional Assignments Web page at http://www.cde.ca.gov/sp/cd/ci/assignments.asp. The list of CDNFS Fiscal Analyst can be found on the CDE Fiscal Apportionment Analyst Directory Web page at https://www.cde.ca.gov/fg/aa/cd/faad.asp.

Additionally, as FY 2018-19 approaches, agency fiscal staff should coordinate with program and enrollment staff to prepare FY 2018-19 budgets. While the CDE previously was able to utilize other fund sources to reimburse programs for over-enrollment in FY 2016-17 and 2017-18, those fund sources will not be available in FY 2018-19. Therefore, it is critical that projections and budgets prepared to ensure earnings in FY 2018-19 do not exceed the contract MRA. As a reminder, the only additional funding available is through the contingency fund application process, and contingency funds are limited in any given fiscal year. Program budgets and enrollment projections should include an analysis of family fees and attrition realized in FY 2017-18 in order to assess the effect of current year changes to the Family Fee Schedule and the implementation of 12-month eligibility. If you have questions about any potential over-enrollment or your enrollment projects, please contact your EESD field services consultant and your CDNFS Fiscal Analyst.

Thank you for all you do for California’s young children with high needs and their families.

Sarah Neville-Morgan

Director, Early Education and Support Division

California Department of Education

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