SACRAMENTO — State Superintendent of Public Instruction Jack O'Connell today held a news conference at the Mexican-American Opportunity Foundation Holmes Preschool in Los Angeles to highlight the adverse effect of the state budget stalemate on child care agencies across the state and to urge the Legislature and the Governor to come to a budget agreement.

"Almost a year ago to the day I participated in an event like this at a child care agency just like this one," O'Connell said. "There are 792 child care agencies across California and these centers provide a range of services to about 500,000 children, but without a budget in place, we do not have the authority to pay these agencies for services rendered. So for the month of July and every month after that without a budget, these agencies will be without the financial resources they need to carry out their operations."        

The California Department of Education (CDE) has no authority to pay early care and education programs until a signed budget is enacted. Although agencies with CDE contracts are encouraged to have a reserve, it is difficult for agencies to manage the fiscal burden of operating a program over an extended period of time with no income to cover costs. The impact is particularly acute for child development agencies that have a signed contract for 2008-09, because while the CDE has prepared the first payment for these agencies, checks cannot be prepared until the budget is signed.

Also joining O'Connell at the event were Martin Castro, President and CEO of the Mexican American Opportunity Foundation and Josh Pechthalt, vice-president of the California Federation of Teachers.