Management Bulletin 23-06

Early Education Division

Subject: Revised State Median Income (SMI) Ceilings and Income Ranking Table for Fiscal Year (FY) 2023–24

Number: 23-06

Date: August 2023

Expires: Until rescinded

Authority: California Education Code, Sections 8208, 8210, 8211, and 8213.

Attention: Executive Directors and Program Directors of All California State Preschool Programs

Purpose

The purpose of this Management Bulletin (MB) is to notify California State Preschool Program (CSPP) contractors of:

• The revised Schedule of Income Ceilings to be used to determine families’ income eligibility for CSPP for Fiscal Year (FY) 2023–24
• The updated Income Ranking Table to be used to determine a family’s income ranking for purposes of enrollment priorities for CSPP based on income for FY 2023–24

This MB rescinds and replaces MB 22-05.

Policy

Effective July 1, 2023, CSPP contractors must use the revised Schedule of Income Ceilings when determining both initial and ongoing income eligibility for families in part- and full-day CSPP. Contractors must use the revised Income Ranking Table when determining enrollment priorities related to a family’s income level.

Directives for Implementation

The following Schedule of Income Ceilings must be used for determining income eligibility for families initially certified or recertified on or after July 1, 2023. The schedule must also be used for determining maximum monthly income for 15 percent above the income eligibility threshold.

State Fiscal Year 2023–24 Schedule of Income Ceilings

Source: 2021 American Community Survey (ACS) Public Use Microdata Sample File

Note: Pursuant to the California Education Code (EC), Section 8213(c), the State Median Income (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, 2023, contractors must use the revised Income Ranking Table at https://www.cde.ca.gov/sp/cd/ci/documents/incomerankingtable202324.xlsx when determining enrollment priorities for families. The revised Income Ranking Table is not provided for the purposes of determining eligibility for CSPP. Please note that this Income Ranking table goes to 100 percent of SMI (rank 100) and includes income up to 15 percent above the income threshold as well (rank 115). Because there are some cases where families are served whose income exceeds 100 percent of SMI in CSPP, the California Department of Education (CDE) has accounted for these situations in the updated table so contractors serving these families know how to prioritize them. 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 MB guidance that apply to enrolling children in those families.

Changes to the Child Development Management Information System

The updated SMI boundary for FY 2023–24 will take effect in Child Development Management Information System (CDMIS), beginning in the July 2023 CDD-801A Monthly Child Care Population report (CDD-801A) reporting period. The updated income boundaries will be reflected in the CDD-801A reporting fields for “Family Size” and “Monthly Family Income.” Families that have been certified under a previous fiscal year’s income rankings will continue to be able to be saved within the CDMIS.

Background

The Education Code (EC) Section 8213(c) requires 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 8213, and provide the calculations to the 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 8213(a) and (b), for families to be eligible for CSPP services based on income, a family’s adjusted monthly income must be at or below 100 percent of the SMI adjusted for family size. Notwithstanding any other law, EC Section 8208 provides that a part-day and full-day CSPP may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold. However, no more than 10 percent of enrolled children can be from families whose income is within the 101-115 percent of the SMI bracket.

In addition, EC sections 8210 and 8211 require 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 sections 8210(a) and 8211(a) specify that the first priority for CSPP enrollment must be families with children who are receiving child protective services, or children who are at risk of abuse, neglect, or exploitation. Second priority for services is for children with exceptional needs/disabilities (as defined in EC 8205) whose family’s income is below the income eligibility threshold. After the first two priorities, families must be enrolled following EC sections 8210 and 8211 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 Education Program Quality Implementation (PQI) 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. For questions related to the CDD-801A income data fields in the CDMIS, please email CDMIS@cde.ca.gov.

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 EC Section 33308.5.