Transcript Blended Toddler Infant Rate Presentation to the EEC Fiscal Committee October 1, 2012

Blended Toddler Infant Rate
Presentation to the
EEC Fiscal Committee
October 1, 2012
Blended Infant / Toddler Rate
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History
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2
DSS initiated this rate in the mid 1990s.
FCC providers lobbied strongly for the increase.
Providers lobbied for a specialized rate to pay for
classrooms where infants and toddlers were both served.
The ratio for care for infants is higher than it is for toddlers.
This was used to justify the increase.
Rate was partially established to allow for a smoother
transition for infants to toddler care.
Blended service also affirms the importance of stable
relationships and not moving children at 12 to 15 months,
thus disrupting the relationship.
Began as a pilot program.
Blended Infant / Toddler Rate
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CCFA
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3
The new Child Care Financial Assistance program does not
allow blended rates.
EEC has to make a decision relative to what rate to charge
in those situations where infants and toddlers are in the
same classroom or care and separating the infants from the
toddlers is impossible.
The fair conclusion is to pay the higher infant rate for the
toddlers in these situations.
That then creates an inequity in which toddlers in some
situations have a higher reimbursement rate than in
situations where only infants are in care.
It is the opportune moment to pay a reasonable rate for
toddler care.
Blended Infant / Toddler Rate
Center Based Prices by Age
•The most recent Massachusetts Market Price Child Care Survey
shows that even with the implementation of the infant rate for all
infants and toddlers, we would not be close to reimbursing at the
federally suggested level of the 75th percentile.
Region
Western
Central
N.E.
Metro
S.E.
Boston
4
Age Group
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
50 th
75 th
EEC Rate
Percentile Percentile
$47.90
$43.20
$33.40
$49.20
$44.20
$33.40
$54.95
$49.55
$35.65
$59.50
$52.85
$36.70
$48.00
$44.20
$33.40
$54.55
$48.40
$36.70
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
52.00
49.00
36.00
53.50
50.00
40.00
70.00
62.00
48.04
75.00
70.60
57.80
50.00
47.00
39.00
65.00
60.00
45.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
64.60
58.20
44.00
65.80
60.00
51.00
80.00
73.80
57.00
84.00
81.76
66.51
58.40
54.00
46.00
79.00
76.11
60.00
EEC
Market
Access
Rate
31%
12%
7%
13%
17%
11%
5%
4%
3%
10%
7%
6%
17%
8%
7%
15%
13%
5%
Blended Infant / Toddler Rate
Family Child Care Prices By Age
• The most recent Massachusetts Market Price Child Care Survey
shows that even with the implementation of the infant rate for all
infants and toddlers, we would not be close to reimbursing at the
federally suggested level of the 75th percentile.
Region
Western
Central
N.E.
Metro
S.E.
Boston
5
Age Group
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
50 th
75 th
EEC Rate
Percentile Percentile
$30.10
$30.10
$26.40
$31.80
$31.80
$26.40
$31.50
$31.50
$27.85
$34.35
$34.35
$27.85
$31.80
$31.80
$26.40
$31.50
$31.50
$27.85
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
35.00
32.00
32.00
40.00
40.00
36.00
35.50
40.00
35.00
57.50
56.00
55.00
40.00
40.00
40.00
35.00
34.00
30.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
37.00
35.00
35.00
48.00
45.00
44.00
50.00
50.80
50.00
65.00
65.00
66.00
50.00
45.00
45.00
40.00
40.00
35.00
EEC
Market
Access
Rate
29%
43%
9%
13%
20%
10%
35%
34%
22%
4%
5%
1%
13%
19%
3%
28%
37%
16%
Blended Infant / Toddler Rate
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Statistics
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There are now 244 Voucher Providers and 48 Contract
Providers programs charging EEC the blended rate.
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The average number of voucher and contract children in
infant/toddler care for a 13 month period is 2545.
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The average number of voucher and contract children in
toddler care for a 13 month period is 6,957.
Blended Infant / Toddler Rate
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Cost
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The difference in reimbursement to pay for children in infant /
toddler blended care at the infant rate is approximately
$1.7M annualized.
The difference in reimbursement to pay for children in toddler
care at the infant rate is approximately $8.8M annualized.
The total difference in reimbursement, the extra cost to the
program for all three caseload accounts, to pay for all infants
and toddlers at the infant rate is approximately $10.5M
annualized.
The cost to implement January 1, 2013, at the current care
levels, is roughly $5.25M. We are currently projecting an
overall surplus of $7.1M in the caseload accounts.