A. Out of this appropriation, $366,327,857 million the first year and $461,645,569 million the second year from the general fund shall be transferred to the Early Childhood Care and Education (ECCE) Fund to support slots in the Child Care Subsidy Program, Mixed Delivery Program, and Virginia Preschool Initiative.  This transfer includes (i) $2,700,000 the second year from marijuana tax revenues as required by § 4.1-614 B.1 of the Code of Virginia and (ii) $1,080,000 the first year and $4,320,000 from electronic gaming tax revenues as required by House Bill 590.  

The general fund transfer is based on these initial estimates of slots and sources of support:                                                                                                              

The Department is authorized to adjust funding and slots among programs to address demand as provided by law.

B. Child Care Subsidy Program

1. Family copayment rates for the 2024-2026 biennium shall not exceed those that were in effect at the beginning of fiscal year 2024.

2. Parental work and job search requirements for the 2024-2026 biennium shall not exceed those that were in effect at the beginning of fiscal year 2024.

3. Each locality shall have mechanisms in place to address circumstances when family demand exceeds the Department's local-level annual targets.

C. Mixed Delivery Grant Program

1.  Providers in the program may collect copayments from participating families.  Such copayments shall be based on the same schedule provided for the Child Care Subsidy Program.

2. Parental work and job search requirements shall be the same as required for the Child Care Subsidy Program.

D. Virginia Preschool Initiative

1. Grants shall be distributed based on an allocation formula providing the state share of funding to serve 100 percent of the unserved at-risk four-year olds in each locality.  These grants shall be based on $9,968 per pupil for full day programs and $4,984 per pupil for half day programs.  For Planning District Eight localities, these per pupil amounts shall be increased by 7.35 percent, and for the counties of Stafford, Fauquier, Spotsylvania, Clarke, Warren, Frederick, and Culpeper and the Cities of Fredericksburg and Winchester, these per pupil amounts shall be increased by 1.84 percent.

E. VPI Expansion.  

ECCE funds may be used to support Virginia Preschool Initiative Expansion efforts, including (i) serving three-year olds, (ii) addressing waitlists, (iii) community provider add-on grants, and (iv) and adjusting VPI classroom ratios where Board-established benchmarks are exceeded.

F. Employee Child Care Assistance Pilot Program

Out of this appropriation, $2,000,000 the first year and $2,000,000 the second year from the general fund is provided for the Employee Child Care Assistance Pilot Program, pursuant to the passage of House Bill 1216.  The maximum state contribution shall not exceed 25.0 percent of the total cost of each child care slot.  The minimum employer contribution per child care slot shall be at least the state contribution per child care slot.

G. Notwithstanding 8VAC-20-780, or any other requirement in state law or regulation, the Superintendent of Public Instruction shall have the authority to alter staff-to-child ratios and group sizes for licensed child day centers and child day centers that participate in the Child Care Subsidy Program or Mixed Delivery Grant Program by increasing the number of children per staff by (1) one child for groups of children from birth to the age of eligibility to attend public school, and (2) two children for groups of children from the age of eligibility to attend public school through 12 years. Child day centers that take advantage of this flexibility must notify families in writing of the temporary increase in ratios and group size. This authority and any resultant waiver of state law or regulation shall expire June 30, 2026. The Superintendent of Public Instruction shall ensure that any action taken under this provision is permissible under federal requirements.

H.  The Early Childhood Care and Education Commission shall review and recommend updates to the current copayment schedule, parental work requirements, and attendance expectations applicable to the Child Care Subsidy Program and Mixed Delivery Grant Program.  In its review, the Commission shall consider: (i) leveraging state general funds to minimize the fiscal cliff as family income increases beyond program eligibility, (ii) use of reasonable family copayments to minimize the need for additional general funds.  No later than December 1, 2024, the Commission shall submit its recommendations to the to the Governor and the Chairmen of the House Committee on Appropriations, the Senate Committee on Finance and Appropriations, the House Committee on Commerce and Energy, the Senate Committee on Commerce and Labor, the House Committee on Education, and the Senate Committee on Education and Health."