The Child Care Quality and Capacity Incentive Program is designed to support child care providers in improving their program quality and increasing their program capacity. It does this by offering incentive payments to providers who:
- Improve their program quality ratings (STARS)
- Increase or maintain their infant and toddler care capacity
- Expand their services in underserved areas of the state
- Offer care during nonstandard hours
- Complete a set of CDD-approved trainings
An overview of Quality and Capacity Incentive Program can be found here.
Components of the Quality and Capacity Incentive Program
The Quality and Capacity Incentive Program is designed to be easily accessible for child care providers, and gives them flexibility to change their relationship with the program as their priorities change and evolve. The program has three elements:
1. CDD-funded Technical Assistance
The Child Development Division (CDD) will be funding technical assistance opportunities for providers who are seeking to improve their program quality and expand their program capacity. This includes funding early childhood education coaching through VTAEYC's SPARQS program, support for capacity and sustainability from First Children's Finance's Business Technical Assistance Program (BTAP), and afterschool quality support from Vermont Afterschool. Technical assistance opportunities are described in more detail on TA provider websites; please contact those providers for more information on the resources that are available to your program.
2. The Awarding of a One-Time Recognition Bonus
One-time Recognition Bonuses provide financial support to programs and educators when they reach any of the following goals:
- Improving or renewing their STARS rating. STARS bonuses are calculated using a formula based on the child care program’s size and type, and are retroactive to July 1, 2023. Programs must accept Child Care Financial Assistance to be eligible for a STARS bonus through the Quality and Capacity Incentive Program.
- Earning Specialized Child Care Status. The Quality and Capacity Incentive Program incentives are available for programs that attain their specialized child care status beginning on October 1, 2024.
- Achieving a Level Certificate or Credential. Individuals who earn specific certificates or credentials will receive a set bonus for each certificate and certificate, beginning on October 1, 2024. If you are an educator who is interested in applying for a qualifying Level Certificate or credential, you can find the appropriate application on the Funding Opportunities page of the CDD website https://dcf.vermont.gov/cdd/providers/funding.
CDD will calculate, and VTAEYC will distribute one-time recognition bonuses to providers and educators beginning in October, 2024. Programs and educators can receive their bonuses through a direct deposit by contacting VTAEYC at info@vtaeyc.org or (802)-234-1090. Please note that October 2024 payments may be delayed due to processing time.
3. The Provision of an Annual Quality and Capacity Incentive
Starting in 2025, the Quality and Capacity Incentive Program will provide qualifying programs with annual payments to support improved program quality and expanded capacity. Additional details will be available in early 2025
How are STARS and Incentive Payments Calculated?
Information on how STARS and Incentive Payments are calculated can be found in this presentation.
How do I Register to Receive STARS or Incentive Payments Though the Quality and Capacity Incentive Program?
If you are a registered or licensed child care or after school provider, you don’t have to do anything additional to apply to this program! CDD will review your program’s STARS renewal or application status as of July 1, 2023, will make a determination about your eligibility for a payment, and will work with VTAEYC to issue your payment beginning in October 2024.
If you have any questions about the Quality and Capacity Incentive Program, please email Rey Garofano, CDD Child Care Quality Program Administrator.