Bill Explainer: Child Care Stabilization and “True Costs” of Quality SB1316 (McClellan)Leave a Comment
There are two truths in early childhood education: parents can’t afford to pay any more for child care and teachers can’t afford to earn any less. The imbalance in this equation is due to the fact that child care is an expensive endeavor—low teacher to student ratios, safety precautions, play materials, etc. add up. For too long these costs have been passed along to parents for what they can “afford”. Now the average cost of infant care in Virginia is more than college tuition.
At the same time as costs were getting too high for parents, teachers also were not able to earn living wages. A recent UVA study of the racial composition and compensation of the early childhood workforce found that two out of five early educators in child care centers reported household incomes under $25,000. Prior to the pandemic, the national median wage in child care was $10-14 per hour.
Long-term, we need more public investments to decrease costs for parents while providing better compensation to teachers. Short-term, we need creative solutions.
Senator Jennifer McClellan’s SB1316 seeks to make a number of changes to stabilize the child care sector and improve our options to pay for the “true cost” of quality. These changes would utilize existing state and federal funds through the Child Care and Development Block Grant (CCDBG) and/or federal COVID relief funds to pay for these initiatives.
- To promote flexibility for child care providers to hire new staff and use substitutes, the legislation establishes a plan for portable background checks. Currently an employee’s background check stays with their employer instead of the individual. Del. John McGuire has a companion bill (HB2086) to implement portable background checks.
- To establish a two-year pilot program to allow the state to contract with child care providers based on enrollment instead of attendance. The contract would also determine payment amounts based on the inputs for high-quality, full-time services and equitable compensation for early educators.
- To collect data on the inputs and costs related to providing high-quality services and the outcomes for quality improvement, workforce retention, and financial stability.
- To work in conjunction with the School Readiness Committee to evaluate the pilot and make recommendations for future payment practices and cost-of-quality reimbursement methods.
These innovations on how Virginia would pay for child care services are allowed by federal authorization, but few states take these options. Virginia would be a leader in moving down the path of providing flexibility and stability to the child care sector by using our funds for child care in these ways.
We are also learning more about other bills that would improve access and affordability in child care and will add more to this space! Sign up to receive policy emails and the latest updates straight to your inbox.