The proposed changes will roll out in three phases: Failing to compete at the regional level could incentivize Virginia-based early educators to transition to nearby jurisdictions paying more. In particular, providers in Northern Virginia are not provided significant rate increases despite recent policy changes for Washington DC that increased rates and educator compensation. As we look to additional changes for payment practices and participation in the coming years, the state should consider the localities that do not receive significant increases in this proposal as a priority population.
However, families looking for infant and toddler care will see significant rate increases as will home care providers serving school-age children. Providers in Northern Virginia will not see the same scale of increase as providers in more rural areas of the state. A $20/day increase (for example, in a center serving infants in James City County) would equal $5,200 additional resources per year and a $35/day increase (for example, in a center serving infants in Wythe County) would equal $9,100 per year.Īs with any cost calculation, there will be some “winners” and “losers”. Some localities and providers will see much larger increases in the magnitude of $20-35 per day. However, a $5/day increase for child served for 260 days throughout the year would equal a $1,300 increase for the program. Some providers and jurisdictions will see minimal increases of $5 per day, or slightly less. Each locality is now grouped into a region where the regional rate is equal across jurisdictions (unless the original market was higher). While there are a few localities who will not see rates increase for the preschool or school-aged age groups, every locality will see rate increases for providers. Voices took a look at the new rates across jurisdictions to better understand impact. In doing this, it recognizes the educators in the classroom as the critical inputs, not the physical location.Īs payment rates are currently set by the age of the child, type of setting, and locality, the impact of the new payment rates in comparison to the old rates varies significantly across these three areas. The new model considers rates at a regional level and takes into account different types of licensures. Under the previous reimbursement rate process, the market, or what parents could pay in a specific community, drove the costs. Payment rates have been posted online and can be compared to previous rates. The new payment rates have been set to reflect the costs of program inputs by including wages, program standards, curriculum, and quality improvement activities. Impact of Proposed Changes on Program Funding Recent policy changes have also improved the ability for parents to participate by raising maximum income requirements, removing child support requirements, and ending a lifetime limit of 72 months for receiving assistance. New copayment rates will help to reduce the burden on parents participating in the subsidy program. During the pandemic, VDOE has had the ability to waive parent co-payments which has provided relief when many families experienced economic hardship. The adoption of this legislation prompted the Virginia Department of Education (VDOE) to examine its payment practices and to seek approval from the federal government to use an alternative payment methodology to set rates based on program inputs. In 2021, Voices supported Senator Jennifer McClellan’s proposal to improve child care by funding the true cost of quality care ( SB1316 Bill Explainer).
The average annual rate for an infant is $14,063 and $10,867 for a preschooler. Virginia is ranked 10th highest in the nation for child care costs. This proposal has the potential to transform how staff are paid, how parents choose quality, affordable care, and how quality improvement resources are provided. Solutions have often been piecemeal and insignificant with regards to impact in all three areas of need. While it has been long recognized that child care programs need more resources to provide quality care, educators need higher wages and parents need lower costs to afford the care. These proposed changes will greatly impact the under resourced child care sector as well as help parents who are looking for care, so that they can continue to work.
Voices supports the proposed improvements to child care payment rates and the parent copayment requirements. Posted: July 18th, 2022 - By: Emily Griffey Voices Supports Proposed Changes to Child Care Payment Rates and Parent Co-Pays
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