Management Bulletin 21-09

Early Learning and Care Division

Subject: Revised State Median Income (SMI) Ceilings and Income Ranking Table for Fiscal Year (FY) 2021–22

Number: 21-09

Date: June 17, 2021

Expires: Until Rescinded

Authority: California Education Code, Sections 8263, 8263.1 and 8447(e)1

Attention: Executive Officers and Program Directors of All State Subsidized Early Learning and Care Programs

Purpose

The purpose of this Management Bulletin (MB) is to notify subsidized early learning and care contractors of:

• The revised Schedule of Income Ceilings to be used to determine families’ income eligibility for state subsidized early learning and care programs for FY 2021–22
• The updated Income Ranking Table to be used to determine a family’s income ranking for purposes of enrollment priorities for state subsidized early learning and care based on income for FY 2021–22

This MB rescinds and replaces MB 20-12.

Policy

Effective July 1, 2021, contractors must use the revised Schedule of Income Ceilings when determining both initial and ongoing income eligibility for families, and the revised Income Ranking Table when determining enrollment priorities related to a family’s income level.

Directive

The following Schedule of Income Ceilings must be used for determining income eligibility for families initially certified or recertified on or after July 1, 2021.

State Fiscal Year 2021-22
Schedule of Income Ceilings (85 percent of State Median Income)

Source: 2019 American Community Survey (ACS) Public Use Microdata Sample File

Note: Pursuant to the California Education Code (EC), Section 8263.1(c), the SMI for families of five (5) or more persons is calculated by multiplying the SMI for a family of four by the ratio for the appropriate family size used in the federal Low-Income Home Energy Assistance Program, and specified in federal regulations at paragraphs five (5), six (6), and seven (7) of subdivision (b) of Section 96.85 of Title 45 of the Code of Federal Regulations.

Effective July 1, 2021, contractors must use the revised Income Ranking Table located at https://www.cde.ca.gov/sp/cd/ci/documents/incomerankingtable2021.xlsx when determining enrollment priorities for families. Please note that this Income Ranking table goes to 100 percent of SMI since there are some cases where families are served whose income exceeds 85 percent of SMI, for example in California State Preschool Program (CSPP). As a result, please pay careful attention to the income and family size of the family and those indicators on the chart, along with the applicable statute, regulations, and Management Bulletin guidance that apply to enrolling children in those families.

Background

The EC Sections 8263.1 and 8447(e) require the California Department of Finance to annually recalculate the SMI based on the most recent census data and pursuant to the formula set forth in EC Section 8263.1(c), and provide the calculations to the California Department of Education (CDE). The updated SMI calculations are used to revise the income ceilings used to determine a family’s initial and ongoing eligibility for services, as part of the certification and recertification process, and to update the Income Ranking Table used for determining priority for enrollment.

In accordance with EC Section 8263.1(a) and (b), for families to be eligible for subsidized early learning and care services based on income, a family’s adjusted monthly income must be at or below 85 percent of the SMI adjusted for family size.

In addition, EC Section 8263(b) requires contractors to enroll families in priority order. The State Superintendent of Public Instruction adopts an Income Ranking Table for purposes of determining enrollment priorities when the priority is related to a family’s income level.

The EC Section 8263(b)(1) specifies that the first priority for enrollment must be families with children who are receiving child protective services, or children who are at risk of abuse, neglect, or exploitation. For programs other than the CSPP, second priority for enrollment goes to income-eligible families, whose income is at or below 85 percent of the SMI, in income ranking order, with families with the lowest gross monthly income receiving the highest priority.

For agencies offering CSPP, after all children who are receiving child protective services, or children who are at risk of abuse, neglect, or exploitation are enrolled, families shall be enrolled following Sections 18130.1 and 18130.2 of the CSPP Implementation Guidance included in MB 21-04, and use the Income Ranking Table when enrollment priority is based on income ranking.

If you have any questions regarding the information in this MB, please contact your assigned Early Learning and Care Program Quality Implementation Regional Consultant via the CDE Consultant Regional Assignments web page at https://www.cde.ca.gov/sp/cd/ci/assignments.asp or by phone at 916-322-6233.

This Management Bulletin is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement. Any portion of this Management Bulletin that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to California Education Code Section 33308.5.

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1 The statutory authorities cited in this Management Bulletin are in effect at the time of the release of this Management Bulletin in June 2021. Effective July 1, 2021, all direct service and voucher based early learning and care contracts, with the exception of California State Preschool Program contracts, will reside with the California Department of Social Services pursuant to the Early Childhood Development Act of 2020 (Stats. 2020, Ch. 24, Sec. 86). As a result of the transfer of these programs, statutory authority applicable to the transferred programs are being deleted from the Education Code and added to the Welfare and Institutions Code. Further information regarding the transfer of these programs will be forthcoming from the California Department of Social Services.