June 21, 2023 OCDEL Releases 2022 Market Rate Survey Report The Pennsylvania Office of Child Development and Early Learning (OCDEL) recently released their 2022 Child Care Market Rate Survey (MRS) Report. Data in the report reflects a challenging operating and economic environment, which child care providers continually navigate. About the MRS Report The MRS report is a collection and analysis of prices charged by child care providers in an open market. It includes information on private pay tuition rates, staffing, payments and fee practices, facility types, and food offerings at local programs. OCDEL uses the report to set base reimbursement rates for Pennsylvania’s subsidized child care program Child Care Works (CCW) to ensure equal access to child care for low-income families. 2022 MRS Report Across the state, 6,378 child care providers stayed in operation throughout the entire survey period. A total of 4,383 providers participated in the 2022 MRS, representing a 68.7% response rate. Key Findings from the 2022 MRS Report CCW Of providers with a CCW agreement, half (50.1%) indicated that they do not usually require CCW families to pay any difference between the private tuition rate and the subsidy payment amount. Family and Group Child Care Homes are more likely to require CCW families to pay the difference between the private pay rate and subsidy reimbursement amount than centers. This raises concerns about equity and access to affordable child care in these settings. Among providers who did not have a CCW agreement, the most common reason for not participating was that their capacity was at full enrollment with only private pay families. Payments & Fees Providers with higher Keystone STAR designations charge more than similar providers with lower designations across all care levels and types. Almost two-thirds (64.4%) of providers charge families a registration fee, with the median fee being $50. Registration fees were most often charged by centers. Incidental fees for late pickups and overdue payments were charged by most providers. With so many providers requiring a registration fee, low-income families in the CCW program may face financial barriers to accessing child care. Additionally, fees for late pickups and overdue payments may cause financial strain for families who are struggling financially. Staffing Over half of all providers reported unfilled job openings (54.1%), which reduced the number of children that could be served. This was most common among Child Care Centers (67.9%). Only a portion of providers (36.6%) offered health insurance to any staff members. The low portion of providers offering health insurance benefits to staff members may impact the quality of care. Food & Nutrition The USDA Child and Adult Care Food Program (CACFP) is a federal program that provides reimbursements to providers for healthy meals and snacks — 43.3% of providers reported using the program. Regardless of CACFP participation, most providers offered some meals or snacks with regular tuition. The fact that over half of providers do not participate in CACFP suggests that there may be gaps in the quality of meals and snacks offered by child care providers. This could be particularly bad for children from low-income families who may rely on child care providers for healthy meals. Access the Report Access the 2022 MRS Report on the Pennsylvania Department of Human Services (DHS) website. Learn More To learn more, visit the Official Pennsylvania Government website.
May 3, 2023 ELRC Requiring All Subsidized Child Care Providers to Submit Closed Days Early Learning Resource Centers (ELRC) are requiring all in- and out-of-state child care providers participating in the Child Care Works (CCW) Subsidized Child Care Program to provide their Fiscal Year (FY) 2023-24 closed days. CCW is managed by local ELRC offices, and closed days must be provided to them by May 15. About Closed Days The ELRC pays subsidized child care providers for a limited number of days that their facilities are closed, when those providers also charge private-pay clients for their closed days. During FY 2023-24 (July 1, 2023 – June 30, 2024), CCW will pay up to 15 closed days. However, these closed days must be provided to ELRC by the May 15 deadline. In no case will the ELRC pay for more than 15 closed days per year. In-state and out-of-state providers using Provider Self-Service (PSS) have more flexibility to manage closed days than those not using PSS. Providers with PSS access may add, delete, or change closed days that occur in the current month, are planned for a future month, or that occurred in a prior month (even if the day is not an emergency closure), if the change is entered before the 6th of the current month. Requirements for changing closed days by providers not using PSS are described below. Child care providers can register for PSS at pelican.state.pa.us/provider. If you have questions when registering for or using PSS, call the PELICAN Help Desk at 1-877-491-3818. Providing Closed Days to the ELRC Providers Using PSS Providers using PSS must update closed days online. The ELRC will NOT enter the closed days for you. After accessing your PSS account: Click “Provider Profile,” then “Manage Closed Days.” On the “Location Closed Days Summary” page, select “2023.” Large, state-observed holidays will be prepopulated. Please indicate whether private-pay parents pay you for these closed days. If you are open on a prepopulated closed day, delete that day. Enter the remainder of your closed days by clicking the “Add Closed Day” button, and indicate whether private-pay parents pay you for the closed days you enter. Closed days must be entered into PSS by May 15. Providers Not Using PPS Providers not using PSS must complete Provider Agreement Appendix B and return their completed appendix to the ELRC by May 15. To find your local ELRC, visit the Pennsylvania Department of Human Services website. Please note: Once providers not using PPS identify their closed days, they may not change them. Since providers not using PPS cannot change their closed days once submitted, you may want to limit the number of closed days you declare at the beginning of the year, in case you need to add closures later in the year. If you initially choose fewer than 15 closed days and need to increase closed days at a future date, you may only do so by: Notifying the ELRC at least two weeks prior to adding closed days. Notifying the ELRC within three (3) days of reopening your facility following an emergency closure, such as a snow day. If you do not return Provider Agreement Appendix B by May 15, all the commonwealth holidays will be entered as paid closures and will not be changed if you are open for business. Learn More Provider Profile Providers located in the Commonwealth of Pennsylvania who use PSS are encouraged to update their provider profile information through PSS. This information about your facility includes rates you charge your private-pay families, closed days, hours of operation, and activities offered. It is presented to the public through internet searches in Commonwealth of Pennsylvania Access to Social Services (COMPASS). In-state providers who do not use PSS can contact the ELRC to update their profile information. Out-of-state child care providers do not have a provider profile. Additional Information If you have any questions, please contact your ELRC at 412-350-3577.
April 20, 2023 ELRC Region 5 Shares Resources and Information on Facebook Early Learning Resource Center (ELRC) Region 5 makes resources and information available on social media. With an active presence on Facebook, ELRC Region 5 provides families, early learning service providers, and communities support for their child care needs in real time. Learn More Social media managers post to the ELRC Region 5 Facebook page at least once a day, providing the most up-to-date early childhood news, professional development opportunities, family events, ELRC Region 5 office hours, Child Care Works (CCW) information, family assistance opportunities, and more. Facebook users interested in receiving daily information from ELRC Region 5 should like or follow the ELRC Region 5 page. For additional resources and information from ELRC Region 5, subscribe to the monthly ELRC Region 5 Family Newsletter, or weekly ELRC Region 5 Providers Newsletter.
December 29, 2021 CCW Enhancements to Lower Family Copays and Increase Provider Base Rates On October 18, 2021, Pennsylvania Governor Tom Wolf announced changes to Child Care Works (CCW), Pennsylvania’s subsidized child care program, that will decrease costs to families who qualify for subsidized care and add incentives for child care providers to participate in the program. This article was updated on December 29, 2021, to reflect a new effective date for copays. CCW Enhancements Pennsylvania received more than $1 billion from the American Rescue Plan Act (ARPA) to support the commonwealth’s child care industry, child care providers, and the children and families that rely on this system. $352 million in Child Care Development Fund federal ARPA funding will also support: Lower maximum copayments for families eligible for CCW, effective January 17, 2022: $121.9 million will be used to reduce the maximum family copayment for families participating in subsidized child care through CCW. Current copayments range from 3-11% of a family’s overall income. This change will lower the copayment to 3-7%, in line with federal recommendations for family obligations for subsidized child care. No family will see an increased copay through the adjustment, and providers will still receive the difference as a part of the CCW base rate. Increased base rates for providers participating in CCW, effective January 1, 2022: $213.7 million will support increasing base rates paid to subsidized child care to the 60th percentile compared to the private pay market rate. This change brings Pennsylvania closer to the federally-recommended 75th percentile. Nearly two-thirds of children whose families are eligible for CCW are enrolled in a STAR 1 or 2 rated facility. By investing in base rates to providers participating in CCW, Pennsylvania is investing in quality across the child care industry for the children and families served by this program. In March 2021, the Wolf Administration raised base rates from the 25th percentile to the 40th percentile. Rate incentives for providers that offer child care during non-traditional hours, effective January 1, 2022: $16.8 million will support add-on incentives to CCW base rates for child care providers that offer at least two hours of care during non-traditional hours. Prior to the pandemic, the Keystone Command Center for Economic Development and Workforce recommended expanding availability of licensed child care before 6 a.m. and after 6 p.m. – what is normally considered “traditional” child care hours – in order to give flexibility and security for working parents. These rate incentives will support providers that offer care outside of traditional hours, giving parents a safe place for their children and the security necessary to help parents return to work. More Information For more information on child care providers operating in Pennsylvania, visit www.findchildcare.pa.gov. Providers seeking to apply for Child Care Stabilization Grants can learn more and apply online. For details, read Gov. Wolf’s full press release.
December 16, 2021 Base Rates for CCW Reimbursements to Increase January 1 Effective January 1, 2022, base rates paid to child care providers participating in Child Care Works (CCW), Pennsylvania’s subsidized child care program will increase. The new base rates are now available online. About The current Maximum Child Care Allowance (MCCA) rates (effective March 1, 2021) and the new MCCA rates (effective January 1, 2022) are now available on the Pennsylvania Department of Human Services (DHS) website. The MCCA is the ceiling set by the Department for payment of child care services to budget groups eligible for child care payment. Base rates per region can be found in the document Department of Human Services: Maximum Daily Child Care Allowances (MCCA)-effective 1/1/22. Updating Pay Rates OCDEL established a fee structure policy to pay all certified child care, relative, and in-home providers serving subsidy children at the lower of two rates – the rate the certified child care providers charge private-pay families or the established MCCA. Providers who want to update their private-pay rates must communicate those changes to families and provide verification of the updated private-pay rates to their ELRC. If a certified child care provider’s private-pay rate is lower than the new MCCA, they will receive the lower of the two rates. Allegheny County Providers Option 1: Certified child care providers can enter their updated rates in Provider Self Service (PSS) and return “Appendix C-1 ELRC Subsidized Child Care Provider Reported Rates” along with the verification of the certified child care provider’s published private-pay rates to the ELRC at elrc5@alleghenycounty.us (put CCW C-1 Rates in the subject line). Option 2: Certified child care providers can send “Appendix C-1 ELRC Subsidized Child Care Provider Reported Rates” along with the verification of their certified child care provider’s published private-pay rates directly to the ELRC at elrc5@alleghenycounty.us (put CCW C-1 Rates in the subject line). The ELRC will then enter the new information into PELICAN CCW. When the certified child care provider returns “Appendix C-1 ELRC Subsidized Child Care Provider Reported Rates” along with verification of the certified child care provider’s published private-pay rates, the ELRC will: Enter and/or verify the certified child care providers’ published rates into PELICAN CCW. Use January 1, 2022 as the effective date if verification is received by January 31, 2022. Convert the rates and save as “Converted Payment Rates.” Generate and send to the certified child care provider the “Appendix C-2 ELRC Subsidized Child Care Provider Payment Rates.” Once verified, ELRC staff will then convert the payment rates in the PELICAN CCW system, and the certified child care provider will be paid based on the new private pay rates, or MCCA, whichever is the lower of the two rates. The ELRC will not modify rates for any certified child care provider who does not return Appendix (C-1) along with verification of the certified child care provider’s published rates. The ELRC will not need to enter rates for relative or in-home providers. The ELRC Region 5 will generate and send “Appendix B Subsidized Child Care Relative Provider Payment Rates” to both types of providers.
November 29, 2021 CCW Non-Traditional Care Add-On Rates Beginning January 2022 Beginning January 1, 2022, PA Department of Human Services certified child care providers who provide care to children receiving Child Care Works (CCW) during non-traditional hours will be eligible for a non-traditional care add-on rate. About DHS certified child care providers that provide care to children receiving CCW for at least two hours between the hours of 6 p.m. and 6 a.m. on weekdays or any amount of time on weekends will receive a non-traditional care add-on rate. These rate incentives will support providers that offer care outside of traditional hours, giving parents a safe place for their children and the security necessary to help parents return to work. The non-traditional care add-on only applies to the days that the non-traditional care takes place and not to any days the child only receives care during typical hours. The add-on rate will be 25% above the established subsidy base rate for each CCW child served during non-traditional hours. Keystone STAR designation does not impact this add-on. For details, read the full announcement by the Office of Child Development and Early Learning (OCDEL).
February 4, 2021 2021-22 Pennsylvania Budget Proposal Response On February 3, during his 2021-22 budget proposal address, Pennsylvania Gov. Tom Wolf put an emphasis on Pennsylvania families. As a member of Early Learning Pennsylvania (ELPA), a statewide coalition of advocates focused on supporting young Pennsylvanians from birth to age five, Trying Together commends the governor’s continued commitment to growing state funding for pre-k. However, additional effort is needed to boost the availability of quality child care and home visiting services that are essential to Pennsylvania’s working families and our economic recovery. ELPA operates three issue-based advocacy campaigns: Pre-K for PA, Start Strong PA, and Childhood Begins at Home. Governor Wolf’s state budget proposal included: Pre-k $25 million in additional funding for the state’s Pre-K Counts program. $5 million in additional funding for the Head Start Supplemental Assistance Program. Together, this $30 million expansion would serve approximately 3,270 additional young children. Currently, more than 106,000 eligible three- and four-year-old children do not have access to high-quality publicly funded pre-k programs. In a press release, ELPA states, “During a difficult budget year, Governor Wolf deserves credit for his continued support of expanded access to publicly funded, high-quality pre-k in PA. The $30 million funding increase for these programs in the proposed 2021-22 PA budget ($25 million for Pre-K Counts; $5 million for Head Start State Supplemental Assistance Program) continues the tradition of expanding this once-in-a-lifetime opportunity to thousands more three- and four-year-olds. “A new study by the University of North Carolina Chapel Hill confirmed that the Commonwealth’s investment in pre-k is paying dividends for the children fortunate enough to access pre-k through Pennsylvania’s Pre-K Counts program. In language and math skills, the study showed that these kids outperformed their kindergarten peers who did not enjoy access – an advantage that equated to four to five months of learning gains, which is a substantial difference in development at that age and a meaningful advantage during the COVID-19 era.” Child Care $87 million in existing federal child care funds to increase child care base rates. Base rates for CCW reimbursements will be increased to the 40th percentile of the market rate for child care in the provider’s region, up from approximately the 25th percentile where most of Pennsylvania’s child care providers currently sit. This change brings Pennsylvania closer to the federal government’s recommendation of reimbursing at the 75th percentile. Trying Together and the ELPA campaigns commend the Wolf administration for this proposed change, however, the child care industry needs an additional boost. “Pennsylvania’s working families struggled to find and afford high-quality child care prior to the pandemic. Today’s economic downturn has only exacerbated this problem,” the ELPA press release states. “Start Strong PA urges Governor Wolf and the Pennsylvania General Assembly to address these child care needs by quickly utilizing federal funds to serve 3,000 additional eligible infants and toddlers in high-quality slots through contracts, which provides greater financial stability to providers.” Evidence-based Home Visiting Level funding for home visiting. The current public health crisis, isolation, stress, and unemployment have made home visiting more essential than ever. Trying Together and the ELPA campaigns hope to work collaboratively with the administration and legislature to expand evidence-based home visiting services to match that commitment with the resources to make it a reality. We will advocate for these investments as the budget process continues. Stay up-to-date on how to advocate for these issues by signing-up to support Trying Together’s public policy agenda.
February 1, 2021 Base Rates for CCW Reimbursements to Increase March 1 On February 1, 2021, Governor Tom Wolf announced an increase to base rates paid to child care providers participating in Child Care Works (CCW), Pennsylvania’s subsidized child care program. About Effective March 1, 2021, base rates for CCW reimbursements will be increased to the 40th percentile of the market rate for child care in the provider’s region, up from approximately the 25th percentile where most of Pennsylvania’s child care providers currently sit. This change brings Pennsylvania closer to the federal government’s recommendation of reimbursing at the 75th percentile. This increase equates to an additional $28.8 million in federal funding for the 2020-21 fiscal year and $87.2 million in the 2021-22 fiscal year. This change will also regionalize rate calculation based on Early Learning Resource Center (ELRC) regions rather than calculating rates by county for each of Pennsylvania’s 67 counties. Pennsylvania is currently the only state that does not regionalize rates. Regionalization of rates creates a larger pool to more accurately represent rates across provider types licensed by the Office of Child Development and Early Learning in each region rather than calculating rates by county with limited sample sizes and provider type representation. No provider will see their rates decrease with this new structure. The average increase across all regions is $4.59. Every three years, a child care market rate survey is conducted to guide rate setting. The last Market Rate Survey was completed in 2019 and released in 2020. Why It Matters “Child care is essential for a functioning economy. Investments in this industry benefit us in two different ways. They support communities and the families that rely on care to join the workforce every day and nurture the growth and development of young minds as they prepare for grade school and later long-term success,” said Gov. Wolf. “Increasing base reimbursement rates is an investment in the dedicated professionals that do this work every day and for countless parents and children. We all seek to weather the challenges created by the pandemic and the recovery ahead.” According to the announcement, nearly two-thirds of children enrolled in CCW are in a lower-rated child care provider, and higher quality providers serve fewer CCW families. By providing increased base payments for care for children enrolled in CCW, more child care operators will increase operating margins allowing them to potentially retain more highly qualified staff and engage in enhanced quality activities. “Child Care Works makes quality, affordable child care accessible for working families across our commonwealth,” said Department of Human Services Secretary Teresa Miller. “By investing in base rates, we invest in quality across our child care industry – an investment that will help providers grow, develop, and retain staff and continue to improve services and care for our youngest Pennsylvanians.” What is Child Care Works? Child Care Works is Pennsylvania’s subsidized child care program that helps low-income families pay their child care tuition and fees. To be eligible, families must earn 200 percent or less of the federal poverty guidelines at application and meet work or job training requirements. Eligible families are able to choose to enroll at any participating child care provider, which can be impacted by convenience, transportation, cost, and working hours. Families enrolled in CCW pay a co-pay, and providers that participate in CCW are reimbursed a set base rate per child from the state with the opportunity for add-on funding. More Information For more information, read Governor Wolf’s full announcement.
September 21, 2020 State Office Candidate Conversation: Child Care In Allegheny County, 48 percent of eligible children do not have access to publicly funded pre-k programs and 67 percent of Child Care Works subsidy-eligible children under age five remain unserved. Before you vote on Tuesday, November 3, 2020, find out what your candidates think about early childhood education. Registration Join the Children Matter Action Fund on September 23 for an online conversation about child care with Allegheny County candidates for state office in House Districts 28, 30, 44, and 45! To register, visit the event webpage. Unable to attend? Check out each candidate’s views on the Children Matter Action Fund website.
July 21, 2020 Child Care Works Payment Practice Changes Effective 9/1 On July 17, the Pennsylvania Office of Child Development and Early Learning (OCDEL) issued an announcement stating that starting September 1, 2020, Child Care Works (CCW) payments will return to payment practices and policies based on attendance and invoicing for all children. This will remain true regardless of when a child was enrolled with the provider. Additional Policy Changes In addition, the following policies will again be effective starting September 1: absences will be tracked and counted towards the 40 days of absences for all children; children’s enrollment after five days of absence will be suspended until the child returns to care; all Adverse Action notices will be sent to families per policy; dual enrollments, the practice implemented under COVID-19 to support both a closed provider and families who need care, will end; and collection of family co-pays will resume. The announcement is intended to provide advance notice to child care providers, allowing them to plan for the use of final CARES Act funding which will be issued in August. Providers should communicate the resumption of absence policies (effective September 1) to the families they serve. More Information For more information, view OCDEL’s full announcement or contact your local ELRC.
