Early Education and Care Programs Statewide to Receive $80 Million in Rate Increases for Fiscal Year 2023
The Baker-Polito Administration today announced a historic increase – nearly $80 million – to the rates paid by the Commonwealth to childcare providers licensed by the Department of Early Education and Care (EEC). During a monthly meeting on Tuesday, the Board of Early Education and Care voted unanimously to approve a 10 percent rate increase for this year for all childcare programs in every region of the state, which is expected to cover childcare costs for approximately 50,000 children whose families are eligible for state subsidies.
The increase will ensure all childcare providers are paid daily rates that are equivalent to at least the 30th percentile of the market rate paid to private pay childcare programs, while also dedicating state funds to support investments that improve quality. Funded by the Fiscal Year 2023 state budget, the rate increases will be retroactive to July 1, 2022.
During the past eight years, the Baker-Polito Administration, in coordination with the Legislature, has invested more than $250 million to increase rates for early education and care providers that accept state subsidies. Approximately 50,000 Massachusetts children attend child care supported through state subsidy at more than 4,000 providers across the Commonwealth. The funding provided by the state provides critical financial support so that families can access safe, quality childcare, and contributes to the fiscal stability of the programs that provide care.
The package of investments includes:
An across-the-board 10% rate increase for family childcare providers.
A 10% increase for center-based childcare providers, with 8.5% of the increase targeted toward quality improvements.
An increase from $22 to $23 to the additional daily rate paid to providers that serve teen parents, families experiencing homelessness, and children served by the Department of Children and Families (DCF) to enable the additional support services those families need.
“We are proud of the significant progress our administration has made since taking office to advance historic rate increases that have provided much-needed financial support and stability to early education and care programs serving our most vulnerable families,” said Governor Charlie Baker. “Quality and affordable child care is critical for Massachusetts families, and this rate increase will provide families more accessible options for quality child care in the communities where they live and work.”
“These increases build upon the previous progress we have made, along with our colleagues in the Legislature, to deliver more support to the early education and care programs and their providers that serve young children and their families,” said Lt. Governor Karyn Polito. “By implementing these increases, the Commonwealth and our administration continues to demonstrate its commitment to stabilizing the early education field and increasing access to high-quality child care for low-income families.”
“I am so pleased to hear that the Legislature’s investments in the FY23 budget will lead to such significant increases in rate reimbursements for our early educators,” said Senate President Karen E. Spilka (D-Ashland). “Early educators are the backbone of our economy, and yet they are far too often underappreciated and underpaid. The Senate is committed to financially supporting our early education and care providers, and I am hopeful that the Legislature will pass a comprehensive bill to support the early education sector in the next legislative session.”
“These rate increases are one part of the Commonwealth’s strategy to support the early education field, promote access, and help programs focus on quality as they prepare our young learners for school,” said Education Secretary James Peyser. “Our economy depends on our workforce having safe, quality childcare, and these increases will assist in ensuring that childcare is available for those who need it most.”
Every three years, EEC is required to conduct a comprehensive market rate survey of the Commonwealth’s childcare market to analyze access to care for families receiving financial assistance from the state. The assessment evaluates the prices charged by Massachusetts providers and includes a preliminary study of the costs to operate child care programs. The most recent survey was used to inform the subsidy rates and overall funding policy for childcare.
“This package of investments builds on the continued effort to increase the purchasing power of low-income families, while also serving as an important stabilizer for the programs participating in our subsidy system as they continue to grapple with economic challenges,” said Early Education and Care Acting Commissioner Kershaw. “EEC will be working diligently in the months ahead to ensure the rate increases are implemented to further support the families and programs we serve.”
“Providing high-quality education and care to working families with young children depends on a well-supported workforce of educators and providers; they are the cornerstone of quality,” said Board of Early Education and Care Chair Nonie Lesaux. “This unprecedented rate increase is instrumental for educator support and systems-level functioning and will have a vital impact at this crucial moment.”
The rates paid to subsidized providers are an important part of the overall funding strategy for the early education field, which also includes the Commonwealth Cares for Children (C3) child care stabilization grants, supported by federal COVID relief funds. To date, the C3 grant program has provided $533.8 million to more than 7,000 early education and care providers in Massachusetts, with approximately 60% of those funds supporting programs that provide subsidized care.