California Code, Education Code - EDC § 8255

(a) The Superintendent may approve and reimburse startup costs for contracts under this chapter or facilities in an amount not to exceed 15 percent of the expansion or increase of each agency's total contract amount.  Under no circumstances shall reimbursement for startup costs result in an increase in the agency's total award amount.  These funds shall be available for all of the following:

(b) Agencies shall submit claims for startup costs with their first quarterly reports.

(c) The Legislature recognizes that allowances for startup costs are necessary for the establishment and stability of new preschool programs.