For Immediate Release 

June 28, 2022

Contact: Maya Polon, (916) 444-7614

An agreement between providers and Governor Newsom guarantees contributions to providers’ health care and retirement security.

  

SACRAMENTO, CA – The 40,000 child care providers in California represented by Child Care Providers United (CCPU) have reached an agreement with Governor Newsom, included in the budget that state legislators and the Governor agreed to, that responds to the demands of an essential, majority women-of-color workforce. The agreement provides funding for providers’ urgent health care needs and develops a plan for long term retirement support. CCPU released the following statement from Patricia Moran, a child care provider in San Jose and member of CCPU’s Joint Labor-Management Committees (JLMCs) for Health Care and Retirement: 

“One year after our first union contract and after hundreds of hours of phone calls and long trips to the state capitol, providers won big again this week as Governor Newsom and our state legislators reached a historic deal on the most pro-child care budget we’ve ever seen.

“I am grateful to see that Governor Newsom is continuing his legacy as a pro-child care and pro-child Governor through this agreement and look forward to continuing to work with his administration to continue our progress in creating a child care system second to none in the nation. The Governor and Legislature listened to our voices, and we will keep working to build the system all families and providers in California need.”

Health Care 

“Providers stood together and stood strong in our demand that the state address gaps in providers’ access to health insurance; as a result, this agreement will place $100 million in ongoing funds in a trust to help providers access and afford health insurance as well as fund startup costs. Having lost a dear friend and sister child care provider last year because she could not access insurance and lost precious time while cancer advanced in her body, I am overwhelmed with emotion as we celebrate this life-saving victory for thousands of providers.

Retirement Security
“The agreement also funds a groundbreaking study and review of retirement benefits for child care providers as well as funding to establish a retirement trust to provide benefits – something that we hope to see lead to greater investments in next year’s budget.”

After the legislature ratifies and the Governor signs, the agreement will go before CCPU member providers for a ratification vote.

The agreement allocates funding towards CCPU’s proposals to: 

  • Stabilize the child care workforce through access to quality, affordable health care
  • Establish a groundbreaking study and review of retirement benefits for child care providers 
  • Waiving family fees – eliminating a regressive tax on some of the poorest people in our state 
  • Hold harmless policies to ensure providers don’t lose money when children stay home

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Child Care Providers United brings together 40,000 family child care providers across California and is a partnership of SEIU Local 99, SEIU Local 521 and UDW/AFSCME Local 3930.