Financing Child Care in the United States - Ewing Marion Kauffman ...

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ALLOCATING PUBLIC REVENUES SOCIAL AND HUMAN SERVICES CONTACTS Katherine McGurk Child Care Planner Office of Child Care Wisconsin Department of Workforce Development 201 East Washington Avenue P.O. Box 7935 Madison, WI 53707 Phone (608) 266 7001 Fax (608) 267 3240 E–mail mcgurka@dwd.state.wi.us Laura Saterfield Child Care Grants Manager Office of Child Care Wisconsin Department of Workforce Development 201 E. Washington Avenue P.O. Box 7935 Madison, WI 53707 Phone (608) 266 3443 Fax (608) 267 3240 E–mail saterla@dwd.state.wi.us QUALITY INCENTIVE BONUSES (VERMONT) DESCRIPTION Vermont has established three bonus programs designed to enhance the quality of early care and education services. These include: 1) a 15 percent subsidy bonus to licensed, accredited child care centers and family child care homes and to family child care providers who have attained a Child Development Associate (CDA) credential; 2) a one–time $1,000 bonus to all accredited centers and homes, including those that do not serve subsidized children; and 3) a one–time $1,000 credential bonus for attainment of specified early childhood or child development degrees. WHEN ESTABLISHED A 5 percent subsidy bonus was established in 1994, and was increased to 15 percent a few years later. In 1999, the legislature added the $1,000 bonus for all accredited centers as well as the $1,000 credential bonus for practitioners. ANNUAL AMOUNT In FY1999, approximately $160,000 was earmarked for the subsidy bonus. An additional $130,000 was allocated by the legislature for the new $1,000 accreditation bonus, and an additional $90,000 was allocated for the credential bonus. These funds were drawn from a combination of state general revenues and the federal Child Care and Development Fund. SERVICES FUNDED The subsidy bonus is structured as an additional payment that is made to eligible child care centers and family child care providers that participate in Vermont’s child care subsidy program. The bonus is equal to 15 percent of the total subsidy earned by the provider each quarter. Additionally, these programs — as well as child care programs that do not serve subsidized children — are eligible for a one–time bonus of $1,000 when they become accredited. Policies regarding how the new credential bonus will be administered have not yet been developed. HOW FUNDS DISTRIBUTED The Child Care Services Division of the Vermont Department of Social and Rehabilitative Services administers all three programs. Subsidy bonus checks are sent to eligible providers each quarter. Accreditation bonus checks are sent when the provider demonstrates that accreditation has been attained. 63
POPULATION SERVED All accredited child care centers and homes are eligible for the one–time accreditation bonus. Accreditation must be awarded by the National Association for the Education of Young Children or the National Family Child Care Association. Centers and homes that serve subsidized children are eligible for the subsidy bonus. (Homes may substitute a Child Development Associate credential for accreditation.) The credential bonus will target practitioners who attain a CDA credential or early childhood degree (including a B.A./B.S. or M.A./M.S.), have a professional development plan and are employed in a home– or center–based early childhood program. STRATEGIC CONSIDERATIONS • The subsidy bonus had almost no impact at the 5 percent level, but when it was raised to 15 percent, providers began to take notice. While the percentage of accredited centers and homes has increased significantly, the overall numbers are still low. At present, approximately 40 child care centers (out of 500 licensed centers statewide) and 28 family child care homes (out of 1,450 statewide) receive the subsidy bonus. • Using accreditation and the CDA credential as the quality measures makes it relatively easy and cost–effective to administer the program. Some providers are concerned, however, that the initiative assumes that accreditation and/or a CDA credential are the only measures of quality. They believe that the initiative should be broadened to include other measures of program and provider quality. Vermont is currently exploring other means of doing so. • The need to improve quality is not limited to programs that serve subsidized children. All families need high–quality care and all child care programs have difficulty generating the funds they need to maintain high–quality standards. The one–time bonus of $1,000 is seen as a nice gesture, but one that does not address the need for an ongoing source of revenue to meet the cost of maintaining a high–quality program. To this end, Vermont is currently looking at model wage and benefit compensation initiatives in other states. • The effectiveness of subsidy bonuses and “tiered” reimbursement rates is limited when the base reimbursement rate is too low. Vermont recently raised its base rate by 13 percent and hopes to implement another 13 percent increase in 2001. • In addition to the bonus program, Vermont has other programs to assist providers in attaining standards and degrees. For example, Vermont allows child care centers and homes to apply for mini–grants to help cover the cost of accreditation fees as well as necessary training, supplies and equipment. The Child Care Services Division supports an interactive television Child Development Associate program that allows participants to obtain college credit for course work linked to serving children with special needs. • Some help in pursuing accreditation is also available from the private sector. The Vermont Association for the Education of Young Children (VAEYC) has obtained a grant from the Child Care Fund of Vermont to assist child care providers with some of the costs related to obtaining accreditation and provides peer assistance in completing the self–study and validation process. OTHER SITES WITH SIMILAR STRATEGIES Fifteen other states pay more for higher quality care (Florida, Kentucky, Michigan, Minnesota, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, South Carolina, Utah, West Virginia, Wisconsin, and some counties in Colorado.) However, most of these states do so as a “tiered” reimbursement rate, rather than a subsidy bonus. Several states have compensation initiatives that include bonuses for staff who attain a credential or degree. CONTACT Kim Keiser Director, Child Care Services Division Vermont Department of Social and Rehabilitation Services Agency for Human Services 103 South Main Street, 2–North Waterbury VT 05671 Phone (802) 241 3110 Fax (802) 241 1220 E–mail Kkeiser@srs.state.vt.us 64
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FINANCING CHILD CARE IN THE UNITED
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FINANCING CHILD CARE IN THE UNITED
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ABOUT THE GRANTEE PHILADELPHIA CITI
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:02 ALLOCATING PUBLIC REVENUES 54 O
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HOW TO USE THIS CATALOG This catalo
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This revised, expanded edition of F
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DIFFERENT EXPECTATIONS The expectat
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03 LONG-TERM THINKING Successful st
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LEVERAGING Matching and leveraging
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TAXES Income taxes are the major so
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EMPLOYERS Employers increasingly re
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EMPLOYERS AT&T FAMILY CARE DEVELOPM
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FINANCING CHILD CARE IN THE PRIVATE
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PHILANTHROPY ALLEGHENY COUNTY EARLY
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When businesses in the private sect
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PUBLIC-PRIVATE PARTNERSHIPS EMPLOYE
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PUBLIC-PRIVATE PARTNERSHIPS EMPLOYE
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PUBLIC-PRIVATE PARTNERSHIPS COMMUNI
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CAPITAL INVESTMENT PARTNERSHIPS CHI
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PUBLIC-PRIVATE PARTNERSHIPS CAPITAL
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LOOKING TO THE FUTURE TAX POLICY Th
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LOOKING TO THE FUTURE THE HOME MORT
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LOOKING TO THE FUTURE HIGHER EDUCAT
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APPENDIX 174
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WHAT YOU OWN Property taxes on real
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INDEX 178
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Child Care Scholarship Fund of the
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lotteries and gaming, 14 Neighborho
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Area, Kansas and Missouri), 133—1
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income tax provisions for child car
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