Before implementing the local subsidy plan, the City and County of San Francisco, in consultation with the department, shall develop an individualized county child care subsidy plan for the city and county that includes the following four elements: (a) An assessment to identify the city and countyâs goal for its subsidized child care system. The assessment shall examine whether the current structure of subsidized child care funding adequately supports working families in the city and county and whether the city and countyâs child care goals coincide with the stateâs requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the stateâs child care subsidy system that inhibit the city and county from meeting its child care goals. In conducting the assessment, the city and county shall consider all of the following: (1) The general demographics of families who are in need of child care, including employment, income, language, ethnic, and family composition. (2) The current supply of available subsidized child care. (3) The level of need for various types of subsidized child care services including, but not limited to, infant care, after-hours care, and care for children with exceptional needs. (4) The city and countyâs self-sufficiency income level. (5) Income eligibility levels for subsidized child care. (6) Family fees. (7) The cost of providing child care. (8) The regional market rates, as established by the department, for different types of child care. (9) The standard reimbursement rate or state per diem for centers operating under contracts with the department. (10) Trends in the countyâs unemployment rate and housing affordability index. (b) Development of a local policy to eliminate state-imposed regulatory barriers to the city and countyâs achievement of its desired outcomes for subsidized child care. (1) The local policy shall do all of the following: (A) Prioritize lowest income families first. (B) Follow the family fee schedule established pursuant to Section 10290 of this code or Section 8252 of Education Code, as applicable, for those families that are income eligible, as defined by Section 10271.5 of this code or Section 8213 of the Education Code, as applicable. (C) Meet local goals that are consistent with the stateâs child care goals. (D) Identify existing policies that would be affected by the city and countyâs child care subsidy plan. (E) (i) Authorize any agency that provides child care and development services in the city and county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy once it is adopted. (ii) The department shall approve an application to amend an existing contract if the child care subsidy plan is approved pursuant to subdivision (b) of Section 10352, or modified pursuant to subdivision (c) of Section 10352. (iii) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable. (2) (A) The city and county shall, by the end of the first fiscal year of operation under the approved child care subsidy plan, demonstrate an increase in the aggregate child days of enrollment in the county as compared to the enrollment in the final quarter of the 2004â05 fiscal year. (B) The amount of the increase shall be at least equal to the aggregate child days of enrollment in the final quarter of the 2004â05 fiscal year for all contracts amended as provided in subparagraph (E) of paragraph (1), under which the contractor receives an increase in its reimbursement rate, times 2 percent. (C) The amount of the increase shall also be proportional to the total contract maximum reimbursable amount to reflect the changes in the budget allocation for each fiscal year of the plan. (3) The local policy may supersede state law concerning child care subsidy programs with regard only to the follo
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