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.
February 17, 2021 Child Care Providers and State Legislators Discuss Policy Changes Trying Together and child care providers joined Pennsylvania state policymakers on Tuesday, February 16, 2021 to voice their concerns about recent state-level program and policy changes that have widely destabilized the child care sector. At the beginning of the COVID-19 pandemic in March 2020, child care subsidy payments in Pennsylvania were modified so reimbursement was based on enrollment versus attendance. At the time, this measure was taken to ensure financial stability as child care providers were encountering complex challenges that exceeded the scope of their normal operations, including mandated closures. In September 2020, at Governor Tom Wolf’s direction, the Office of Child Development and Early Learning (OCDEL) restored the original subsidy payment practices from enrollment-based back to attendance-based, which has had a devastating effect since many programs continue to be under-enrolled due to COVID-19. “At this point we are at 66% of our pre-COVID enrollment. This loss of about 35% equates to more than $1.5 million in tuition. We are feeling it big time,” said Jason Kunzman, Chief Program Officer, Jewish Community Center of Greater Pittsburgh. “We believe that the primary driver in not being able to admit more children into our programs is actually the difficulty we’ve experienced in trying to recruit qualified staff. It goes without saying that operating in a COVID environment, everything is harder. What used to take one person to do now takes three people…this has been a real hardship to the entire industry. “[We need] more sustainable, longer-lasting changes to the financial model that can make high-quality care accessible to as many families as possible while allowing providers to pay their educators a livable wage.” To compound these constraints, OCDEL repurposed the Education & Retention Award (ERA) for STAR 3 and STAR 4 high-quality educators to a Pandemic Relief Award (PRA) in December 2020, providing $600 to 33,000 child care employees across the state with many programs waitlisted due to a lack of funds. Currently in Pennsylvania, the average wage of a child care professional is $9.71 per hour with 50% of them receiving government benefits. “Many of my staff are single moms or low-income who qualify for subsidies themselves… They returned to work during a pandemic, they risked their lives and their family’s lives for the greater good of the Pennsylvania economy, and the money was taken from them,” said Tracy O’Connell, Child Care Director, Catholic Youth Association. “To take away the only extra money these hardworking, dedicated teachers earn each year – during the year they deserve it the most – is heartless. There has to be a way to keep the ERA money for what it is designed to do, and that is to retain and reward degreed staff.” Since the ERA typically awarded more funds than this to its recipients, the loss of the ERA further disincentivizes high-quality educators to remain in the field. Essentially, Pennsylvania doesn’t have the funds to meet the full needs of child care providers due to this change. Senator Jay Costa, Senate Minority Leader (D-Allegheny), said child care providers are faced with a “catch-22” if the ERA is permanently taken away. “STARS requires you to have degreed folks but you don’t have money to retain them because [their money is being taken away],” Senator Costa said. “We shouldn’t tie your hands behind your back to try to have you meet standards that let people know the quality of service that you’re providing because here are criteria you have to meet. Both Democrats and Republicans are committed to working with you on this.” The Commonwealth will receive $302 million in federal dollars to support child care via the Child Care & Development Block Grant (CCDBG) funds from the most recent COVID-19 relief package. Senator Lindsey Williams, Education – Minority Chair (D-Allegheny), said it’s important to invest in early childhood education. “It’s heartbreaking that we as a legislature haven’t found a way as of yet to take care of the child care workforce because that’s the only way we get our economy going,” she said. “You have my support to use existing federal dollars, hopefully future federal dollars and whatever state funding we can come up with to actually address these policy issues…so that it’s a big structural change on how we fund child care.” Senator Camera Bartolotta, Labor & Industry, Chair (R- Beaver, Greene, Washington) also stressed that the early childhood education workforce is essential to the state’s economic recovery. “It is vital – it is imperative – that we get folks back to work. When we are opening our economy safely, these parents need their kids to be in a safe, healthy learning environment,” she said. “We’ve got to make sure that all of these institutions stay healthy economically as well as physically. That’s something that we have to prioritize. We are not going to open our economy if parents don’t have a safe place for their kids to go.” The child care providers, families, and early learning advocates throughout the state like Trying Together look forward to the concerns discussed during yesterday’s call being addressed and resolved. Read More Child Care Worker Subsidy Replaced An Award That Providers Say Incentivized Staff Higher Education, 90.5 WESA Child Care Facilities Call On Pennsylvania Lawmakers For Financial Assistance, KDKA-TV Child care providers say Pa. policy shifts are causing financial strain, Pittsburgh Post-Gazette Child care facilities struggling, PublicSource
