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

CHILD CARE CAREER AND WAGE
LADDER (WASHINGTON)
DESCRIPTION
The Washington State Child Care Career and Wage
Ladder is a pilot project to support wage increments
(based on education and experience) for early childhood
teachers in100 child care centers across Washington
State. Participating centers are required to comply with
quality guidelines and to finance wage increases based
on longevity and increased responsibilities.
WHEN ESTABLISHED
In July 1999, Governor Gary Locke (D) allocated $4
million for the initiative for fiscal years 2000 and 2001.
In April 2000, child care centers were selected to
participate in the demonstration project.
ANNUAL AMOUNT
A total of $4 million of Temporary Assistance for Needy
Families (TANF) reinvestment funds was allocated for the
two–year demonstration project. Estimated costs for a
statewide initiative are $15 million a year.
SERVICES FUNDED
The initiative will fund wage increments for staff in early
childhood programs, including assistants, associate and
lead teachers and program supervisors, based on relevant
education. Centers will be required to use these funds to
increase staff wages by 50 cents an hour for various
types of educational attainment, starting with a high
school degree and moving up through a Child
Development Associate Credential, Early Childhood
Education Certification, and A.A., B.A., and M.A. degrees
in child development. In addition, participating centers are
required to use their own revenues to raise wages 25
cents an hour, based on experience. State funds will
assist with these wages increases, based upon the
percentage of subsidized, low–income children being
served by the facility.
HOW FUNDS DISTRIBUTED
State funds are awarded to selected child care centers,
both nonprofit and proprietary, based on a Request for
Proposals (RFP).
POPULATION SERVED
The initiative targets staff in participating licensed or
certified centers. The centers are required to:
• Adopt the career–development wage scale;
• Fill 10 percent of their slots with children that receive
child care subsidies from the state; and
• Contribute $25 a month toward any health care
premium paid by employees.
STRATEGIC CONSIDERATIONS
• The Economic Opportunity Institute (EOI), a nonprofit
public policy institute, did the initial policy development
for the project and educated the relevant officials. The
proposal received strong support from Governor Locke
and House Speaker Frank Chopp (D).
• Governor Locke charged the Department of Social and
Health Services, Office of Child Care Policy (OCCP),
with developing and implementing the initiative based
on preliminary work done by EOI.
• Provider stakeholder groups were established across
the state. These groups helped to review and revise the
initiative to ensure that it was feasible from a provider
perspective. To ensure participation by a diverse group
of child care centers, OCCP attempted to make the
wage ladder as flexible as possible while maintaining
the intent of the initiative.
• Prior to developing this initiative, child care workers
organized into a union and established an independent
voice. This was a key factor in securing state funds
targeted to wages. EOI worked closely with the Child
Care Union Project (sponsored by District 925 of the
Service Employees and Seattle Worthy Wages).
• The Seattle City Council approved additional funding
for T.E.A.C.H. The council determined that expanding
T.E.A.C.H. would help more staff to “climb the wage
ladder” and therefore be eligible for higher wages.
• Compensation approaches to date have focused on
two models: awarding compensation supplements 1) to
programs or 2) to staff directly. These approaches have
strengths and weakness. Deciding which model to
adopt will depend on a variety of factors, including
attitudes about accountability, organized labor,
perspectives of for–profit and nonprofit programs and
status of career–development efforts.
OTHER SITES WITH SIMILAR STRATEGIES
King County, Washington, has approved an ordinance to
augment child care employee wages in the City of
Seattle, and is considered likely to allocate $300,000 for
this purpose.
Illinois recently enacted a wage supplementation bill
called “Great Start” and allocated $3 million of its federal
Child Care and Development Fund for the initiative. For
information, contact Elissa Bassler at the Day Care
Action Council (773) 769 8020 or
elissa@daycareaction.org.
Salary enhancement legislation passed in New York in
2000 and was funded at $40 million. For more
information, contact Agnes Zellin at the New York State
Child Care Coordinating Council at (513) 463 8663 or
e–mail: agnes@nyscccc.org.
68