Promoting her administration's recent rate increases, Governor Healey met childcare workers to discuss its impact Thursday.
The Democrat appeared at the Roots Learning Center for a roundtable discussion on the matter, two weeks after the new rates for western Massachusetts went into effect.
Since the start of the month, center-based child care providers in the region have been seeing a 34 percent increase in rates for infant care, a 14 percent increase for toddler care, and a 13 percent for preschool care, according to the administration.
"Childcare is just foundational – it’s foundational to kids’ development, to families, to our economy, to our workforce, and it’s why we’ve really leaned in to this space,” the governor said.
Broken down by region, areas across Massachusetts saw similar increases, such as a 34 percent increase for infant care in the state's southeast, and a 28 percent increase in central Mass.
Healey says that for far too long, families in western Massachusetts had not been getting fair treatment when it came to reimbursement rates — the rate at which the state reimburses providers who accept state child care financial assistance.
According to the governor, the rates, which were approved by the Board of Early Education and Care in January, make "significant progress on addressing long-standing inequities in rate amounts by geographic region and age group of children served."
The state will now use the cost of providing care as a metric for setting rates, with $65 million dollars from the previous budget supporting the move.
For organizations like Springfield-based "Square One," which serves 500 children a day, all from families receiving state subsidies, the new rates will help fill a significant gap between funds provided by the state and what providers refer to as “the true cost” of providing childcare.
“The impact of a rate increase on an organization like Square One is nothing short of incredible,” Square One President and CEO Dawn DiStefano said. “Historically, we’ve had to raise about a half-million-dollars each year to address the gap between the rate reimbursement and the actual cost of providing those services. So, when I saw the commissioner today and she said ‘How’s it going?,’ I said ‘I paid all of my bills!’”
Speaking with WAMC, DiStefano explained how when caring for a number of children who are either from families experiencing homelessness or in the custody of the state Department of Children and Families, the costs can extend well beyond what the state provides.
Children in either situation make up 30 percent of those cared for by Square One.
“We know that we have to add some additional layers to that supportive care and so the cost of that exceeded what the government was giving us in that daily rate,” she explained. “So, I was fundraising, literally, to keep the lights on – this rate change brings me to a break-even.”
DiStefano told the governor that with the increase in reimbursements, her organization can now re-invest some of the private donations they receive – potentially putting the money toward professional development, learning experiences for the children served by Square One, and more.
It was a sentiment echoed by staff at the roundtable’s host, Roots Learning Center. The facility, which offers infant, toddler and preschool programs, provides services for about 100 children, between the ages of 4-weeks-old and 5 years old.
“It will bring more money to support teachers in the classrooms – it’ll bring more money to allow families to receive quality childcare, we’ll be able to offer those supports – also, educating the teachers,” said program director Nicole Cava.
Speaking with reporters after the roundtable, Healey noted the reimbursement increases, as well as recent tax credits for families, free community college for residents over 25 years old, and other initiatives launched by her administration are part of a larger effort to make the state more affordable.
“Massachusetts is a great state if you can afford to live here,” the governor said. “So, we're always focused on 'How do we drive down housing costs? How do we ensure access to healthcare? How do we make sure that life is affordable for families here in our state?'"
The reimbursement rate increases come at a time when Massachusetts remains one of the most expensive states when it comes to childcare.
The Economic Policy Institute, a non-profit think tank specializing in economic research, found the average annual cost of infant care in the Bay State is nearly $21,000.
The only place more expensive is Washington, D.C.
