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

START ME RIGHT (MAINE)
DESCRIPTION
Start ME Right provides support for children in their
homes and child care programs, and provides
opportunities for Maine businesses and individuals to
invest in child care. As a multipronged approach to
support for children and families, Start ME Right includes
a broad spectrum of initiatives, with financial support
provided from the state’s tobacco settlement.
WHEN ESTABLISHED
Start ME Right passed the Maine legislature in 1999 for
implementation beginning in state’s FY1999–2000.
ANNUAL AMOUNT
Start ME Right is financed through Maine’s share of the
tobacco settlement. For Maine’s FY2000 year, a total of
$1.575 million was appropriated for one–time–only
facilities and quality improvements, including $150,000
for a revolving loan fund. For FY2001, a total of $11.82
million was appropriated: $8.91 million for child care
improvement and expansion and $2.91 million for home
visiting. The $8.91 million for child care improvement and
expansion allocations included $300,000 for wage
increases and quality improvements, including add–on
rates for accredited programs; $3.06 million to expand
access to child care subsidies; $1.44 million to stimulate
additional care at “odd hours” and to serve special
populations; $393,000 for licensing and inspections of
child care; $394,000 for resource and referral services;
and $1.5 million for full–day full–year Head Start;
$575,000 to fund pilot programs for 12– to 15–year–
olds and $150,000 for a Quality Child Care Education
Scholarship Fund. Additional legislation is pending to
increase funding for FY2001 and beyond.
SERVICES FUNDED
To address child care needs in Maine, Start ME Right
includes funding and programs to improve child care
quality and affordability and to increase capacity. These
are described below. Start ME Right also includes a
home–visiting component, which provides information
about parenting as well as supportive services for
children and families. The goal of this aspect of Start ME
Right is to provide home–visiting services to all first–time
parents in Maine on a voluntary basis, with varying levels
of service, depending on the family’s needs. Communities
may choose from a list of approved home–visiting
models, and the bidding process is then carried out at the
local level.
The child care quality initiatives are multifaceted, using
both grant and tax strategies to increase the supply of
quality child care.
• Professional development of child care teachers is
addressed through the creation of a Tuition Assistance
Program for child care providers, enabling them to earn
a Child Development Associate (CDA) credential or an
A.A., B.S. or B.A. degree. The Tuition Assistance
Program allows up to $500 per person, each semester,
for a total of four courses annually.
• Oversight and monitoring resources are increased
through the addition of new child care licensing staff.
• Information about quality child care is enhanced
through additional resource and referral services.
• Parents who select an accredited child care provider
can take advantage of new provisions in Maine’s tax
plan which permit a doubled, refundable credit.
Likewise, an employer that provides child care
assistance to an employee is eligible to receive a
doubled tax credit if the employee uses accredited
child care. If a corporation provides a charitable child
care contribution that is designed to improve child care
quality, the business receives a 30 percent credit up to
$30,000 annually.
• One–time–only system–wide grants for health, safety,
facilities and training were provided in FY2000, with a
maximum grant award of $5,000 for a family child care
home and $20,000 for a center.
The affordability of child care is addressed though
dedication of new funds for Maine’s existing child care
subsidy program, which allows parents to purchase child
care for children through age 12.
Child care capacity is addressed through several new
initiatives in Start ME Right.
• Expansion of Head Start programs to full–day was
included, as well as a new effort to provide non–school
hour programs to younger teenagers, ages 12 to 15.
• A competitive grants program has been established to
stimulate additional child care in geographically
underserved areas and during non–traditional hours.
Should additional funds become available, the grants
program would be expanded to stimulate child care
capacity for at–risk children and those with special
needs.
• A revolving loan fund for child care providers has been
established.
• A new investment tax credit for child care has been
created through which businesses can invest in quality
child care programs (defined as accredited) to receive
a doubled tax credit.
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