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

CHILD CARE WAGE$ PROJECT
(NORTH CAROLINA)
DESCRIPTION
The Child Care WAGE$ Project provides salary
supplements to child care teachers, directors and family
child care providers serving children through age 5. The
salary supplements are available to individuals with
earnings less than a specified amount, who have
achieved early childhood educational credentials and who
have had steady employment at the same child care
program for at least six months. The amount of the salary
supplement increases as the level of education increases.
WHEN ESTABLISHED
The Child Care WAGE$ Project, established in 1994,
was initially a pilot project in one county with a budget of
$100,000. After early success, additional counties joined
the project. In 1999, the Child Care WAGE$ Project
went statewide, and all North Carolina counties were
invited to participate.
ANNUAL AMOUNT
In FY1999-2000, approximately $4.8 million was spent
on WAGE$. Most of the funding is derived from state
investment in the Smart Start program, profiled on page
151, with $500,000 in supplemental funding from the
federal Child Care and Development Fund.
SERVICES FUNDED
WAGE$ provides a salary supplement to child care staff
based on their current level of education. Individuals with
higher educational levels receive larger salary
supplements. The salary supplement is available to
individuals working with children from birth through age 5,
in a regulated family child care home or a center for at
least 10 hours a week. Two scales have been developed
for use in the WAGE$ project. One scale, for family child
care providers and center-based teachers or assistant
teachers, provides for annual salary supplements ranging
from $200 to $3,000 annually. A second scale is geared
to center directors, with salary supplements ranging from
$300 to $2,250 annually. Individuals who have received
credentials or degrees, as well as those who have passed
certain benchmarks toward their early childhood degrees,
are eligible for the salary supplement. Individuals working
less than 40 hours per week receive a pro-rated salary
supplement.
Eligible applicants must demonstrate that their current
wages fall below the maximums set for the WAGE$
project. These caps are indexed proportionately with the
salaries of public school teachers. For 2000, family child
care providers and child care teachers/assistant teachers
must earn less than $14.14 per hour and directors must
earn less than $14.72 per hour to be eligible for
supplements. All applicants must be employed at the
time they apply and must complete six months with the
same child care program to receive salary supplements.
An individual who moves to another provider in less than
six months must start the commitment period over again
at the new site.
WAGE$ participants are encouraged to obtain additional
educational credentials so that they can receive
increased salary supplements. Participants are referred to
the T.E.A.C.H. Early Childhood ® project for this purpose.
T.E.A.C.H. is profiled on page 153.
HOW FUNDS DISTRIBUTED
Salary supplements are distributed to the individual
WAGE$ participants through a nonprofit statewide
organization, Child Care Services Association (CCSA),
every six months. Individual teachers, assistant teachers,
family child care providers and directors complete an
application, and provide documentation verifying current
employment, wages and educational credentials.
Once the WAGE$ participant (and the employer) has
successfully completed the application and the participant
has remained continuously employed at the same child
care program for six months, the employee receives a
salary supplement from CCSA. The salary supplement is
reported as income to the relevant government agencies,
and the individual pays applicable taxes.
POPULATION SERVED
WAGE$ is available to teachers, assistant teachers, family
child care providers, assistant directors and child care
center directors who meet minimum educational
qualifications and who work at least 10 hours weekly with
preschool children at one site for six months. At present,
56 of 100 counties in North Carolina have individuals
enrolled in WAGE$, and more than 4,750 child care
professionals in the counties were expected to participate
during FY1999-2000.
STRATEGIC CONSIDERATIONS
• By providing a salary enhancement to individuals based
on current levels of educational attainment, the Child
Care WAGE$ Project helps address the problem of
staff turnover and complements the T.E.A.C.H. Early
Childhood ® project, which helps individuals to advance
their educational qualifications. While the primary focus
of WAGE$ is to reduce turnover, the graduated salary
supplement also helps create a career ladder for
participants. Evidence indicates that the primary goal,
reducing turnover, is being met. A survey of three
counties during FY1998-1999 showed significant
reductions in staff turnover. In Orange County, turnover
fell from a pre-program rate of 36 percent to 8
percent; in Davidson County, turnover dropped from 44
percent to 11 percent; and in Nash/Edgecombe
Counties, from 32 percent to 12 percent.
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