With the passage of H.217 last week and approval of new STARS rules earlier this month, significant investments and key changes for Vermont’s child care system are beginning to roll out. This communication outlines the new policies related to Child Care Financial Assistance, STARS, and Child Care Licensing that will be effective July 1, 2023.
During webinars on July 11th, the Child Development Division will provide child care program leaders with a more in-depth overview of H.217, the recently passed child care legislation, and a timeline for its implementation. Please register for either the 1pm webinar here or the 6pm webinar here.
CCFAP
The Child Care Financial Assistance Program (CCFAP) capped rates will adjust to a simplified and higher rate schedule that better reflects the cost of providing quality child care. The elimination of STARS in CCFAP payment levels is intended to ensure families a similar benefit from CCFAP no matter which program their child attends while supporting all programs in achieving high-quality standards.
A separate email outlining the CCFAP changes will be sent to all child care programs today. The message will include what program leaders can expect with the CCFAP service period that starts July 2nd.
STARS
A new and improved STARS system will go into effect on July 1, 2023. The new system focuses directly on practices associated with positive child outcomes and is designed to be simpler and more equitable for programs. Each STARS level continues to signify to families and other stakeholders how programs invest in building the best experiences for Vermont’s children.
The state also continues to recognize and reward achievement in STARS. Higher STARS levels will still be required for Universal Prekindergarten prequalification and Specialized Child Care status. In addition, higher STARS levels will be recognized in financial incentive or grant programs, including a new Quality and Capacity Incentive Program to roll out in July 2024. These concrete rewards complement the intangible benefits of quality: children’s and educators’ success in their programs.
Learn more about the new STARS system and how it can support your goals for your program.
New Provisions for Child Care Programs
The new child care law includes several new requirements for child care programs that will be effective on July 1. Because CDD is developing the related rules, policies, and procedures for those requirements, there will be a grace period on any compliance monitoring until those are set. Key provisions of the law that programs will likely need to prepare for are outlined below.
Prohibition: Child care providers shall not charge application or waitlist fees for children who qualify for CCFAP, and must reimburse the fees if the children are determined to be eligible for CCFAP at the time of the fee.
CDD will add this policy to future CCFAP Provider Agreements. CDD will develop related policies and procedures, including compliance measures, by the end of 2023. Child care programs should revise their policies and practices as soon as possible. There will be a grace period on compliance monitoring until the updated regulations are finalized.
Prohibition: Child care providers shall not impose an increase on annual tuition that is more than 1.5 times a specific national cost index for education services; CDD must post that amount on its website annually.
CDD will post the 2023 cap for rate increases (7.2%) by July 1, 2023. CDD will include this new requirement in the revision of Child Care Licensing Regulations already under way. There will be a grace period on compliance monitoring until the updated regulations are finalized.
Regulation Change: DCF shall amend child care regulations for center-based and afterschool programs to require that a program director is present at the child care facility at least 40% of the time that children are present.
CDD will issue a memo that officially adjusts this regulation effective July 1, 2023. CDD had already intended to include this change (down from 60%) in the revision of Child Care Licensing Regulations already under way.
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The Child Development Division aims to partner with child care programs and other community partners to support an effective and efficient implementation of the recent child care legislation. We will keep our H.217 implementation webpage updated. You can also reach out to CDD with questions any time.