Results of the 2017 Child Care Market Rate Survey are now available on the Child Development Division website. In accordance with requirements of federal regulations, periodically (every two years) the Child Development Division (CDD) in the Department for Children and Families examines the rates regulated child care programs in Vermont charge families, also known as the market rate. We compare how the rates of reimbursement paid by the Vermont’s Child Care Financial Assistance Program (CC FAP) compare to the market rate to better understand access to affordable child care for families participating in the program. The report documents statewide rates across different types of programs and for different age groups as reported to CDD by providers in the Bright Futures Information System. This year CDD included detailed analysis of rates by AHS Regions and by Vermont Counties in Supplemental Reports. The report and supplements are available at http://dcf.vermont.gov/cdd/reports
Here are some highlights from the report:
- Rates charged to families by Licensed Centers increased by an average of 8.02% over reported rates in 2015. Rates charged by Registered Family Child Care Homes increased by an average of 11.24% during the same period.
- CC FAP rates have not kept pace with increases in the market which means that even families with 100% benefit in CC FAP often face unaffordable co-payments for child care.
- Federal guidance advises that rates of reimbursement in child care subsidy programs should be established at a level that supports participating families access to at least 75% of regulated providers without a co-payment.
- In licensed centers families with a 100% benefit in CC FAP[1] have access to less than 20% of regulated providers without a co-payment.
- In registered family child care homes families with a 100% benefit in CC FAP[2] have access to less than 49% of regulated providers without a co-payment.
- Though there is some variation in rates between AHS regions, this is inconsistent across age groups and provider types and does not establish a significant pattern that would justify regional versus statewide rate setting in CC FAP.
- Vermont CCFAP pays a higher rate of reimbursement on behalf of families to child care programs participating in STARS. The report shows that that this makes a difference for families – subsidized families that enroll their child in a STARS rated program have lower co-payments.
Key Committees in Vermont House and Senate received a memo this week with highlights of the report and a link to the full report and supplements.
[1] Referencing the CC FAP rate of reimbursement for a 4 STAR program
[2] Referencing the CC FAP rate of reimbursement for a 4 STAR program