California, like many states, is facing a large budget deficit and difficult budgetary choices. The state legislature has made cuts to Early Care and Education (ECE)1 projected to total more than $ billion between fiscal years 2009–2010 and 2011–2012 (California Budget Project [CBP] 2011). Since 2009, California has faced double-digit unemployment rates (California Employment Development Department 2011) and unemployment is projected to remain at that level through 2012 (Legislative Analyst’s Office [LAO] 2010b). In this context, it important that policymakers under- stand the role that ECE spending plays in California’s economy
