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Screenshot 2023-01-31 at 2.04.53 AM

Screenshot: Massachusetts Taxpayers Foundation

The good news: since the start of the pandemic, Massachusetts has seen increased investments in child care, up to $1.3 billion in fiscal year 2023.

The bad news: these investments aren’t paying off the way they could.

A new report from the Massachusetts Taxpayers Foundation (MTF) — Preparing for Child Care Reform: How to Improve the Subsidy System to Maximize Future Investment — points to a key problem, noting:

“The subsidized child care system in Massachusetts is complicated and inefficient. The result of a state-federal partnership, it serves three different eligible populations with two different forms of subsidies and uses multiple funding streams.”

“Massachusetts is to be commended for its substantial investment in child care in recent years; unfortunately, the subsidy system is complex and inefficient,” Doug Howgate, MTF’s president says in a press release.

Among the results of this systemic failure, the report says, is “lagging enrollment numbers, financially unstable providers, and disruptions and delays in care for families.”

According to MTF’s previous research, this complicated inefficiency comes at a high cost: “due to inadequate child care, Massachusetts loses roughly $2.7 billion a year in lost earnings for employees, additional costs and lower productivity for employers, and in reduced tax revenues.”

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The Early Childhood Agenda has been released!

On Tuesday, early education advocates gathered at the Massachusetts State House for the release event. Watch a video replay here. And check out #EarlyChildhoodAgenda on Twitter.

“The Early Childhood Agenda imagines, prioritizes, and builds collective action around equitable and impact-driven solutions by providing a space for the early childhood community to work across sectors for better policy development,” a newly released brief explains.

It’s an exciting plan for unified action that can improve the experiences of young children and families in Massachusetts.

The Agenda includes the input of more than 1,000 people who contributed to a conversation that identified 10 priorities. They are:

1 Work with state government to “pass and implement comprehensive early education and care legislation that addresses family affordability and establishes a career pathway and funding mechanism to drive investments in workforce compensation.”

2 Ensure “early childhood professionals across multiple sectors have access to competitive wages and an affordable benefits package (health care, paid leave, retirement, child care)” by drawing on “operational grants, state-funded benefits, an opt-in group health plan, unionization, and premium assistance programs”

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“There was never much doubt that House and Senate Democrats would return Ron Mariano [the House Speaker] and Karen Spilka [the Senate President] to the top posts in the Legislature for the two-year term that started Wednesday, but the occasion did produce glimpses into the policy areas where each veteran legislative leader will attempt to wield their supermajority margins in the coming months.”

“Mariano and Spilka voiced mutual interest Wednesday in addressing the slow-burning crisis in the early education and child care sector, where providers are coping with widespread staffing shortages, workers are languishing on low wages and families are struggling to pay for care, if they can even find available slots.

“ ‘We know how important early education and care is, both to addressing the “she-cession” that worsened during the pandemic and in preparing our children to learn. Simply put, it is past time to update the way we imagine and support this crucial sector,’ Spilka said.

“The Senate unanimously approved a bill in July seeking a years-long expansion of subsidies, increased pay and benefits for workers, and permanent grants to stabilize providers, but the timing of the bill’s passage left the House with little time to fashion a response.

“Mariano’s comments on Wednesday could signal that he wants his chamber to get more involved in the issue this time around, though he stopped short of embracing the expansive proposal backed by the Senate last session.

“ ‘This session, the full attention of the House will be directed at examining ways to further support our vital early education and care workforce,” Mariano said. “This workforce is made up largely of women and often women of color. As we work to build a system to provide affordable access to quality child care for Massachusetts families, I was proud of the work done last session to increase salaries and other key supports for EEC workers, and I’m confident that the Legislature can do more on this critical issue.’ ”

“Speaker Mariano and President Spilka share some top priorities in new legislative session,” by Chris Lisinski and Sam Drysdale, State House News Service, posted on WGBH’s website, January 4, 2023

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In the shadow of the pandemic, there is positive and welcome progress in federal investments in child care. 

One example of this positive trend is the Consolidated Appropriations Act, 2023 (also known as the omnibus bill) that President Biden signed into law at the end of last year.

“The appropriation for fiscal year (FY) 2023 included more than $8 billion in total annual discretionary funds for the Child Care and Development Block Grant (CCDBG) in addition to increases for other important child care and early education programs such as Head Start,” the Center for Law and Social Policy (CLASP) explains.

“The FY 2023 CCDBG appropriation of $8 billion represented a $1.9 billion increase above the previous year’s funding, a 30 percent increase. This is the second largest increase in discretionary funding in the history of CCDBG—following the $2.4 billion increase in FY 2018.”

Specifically, this funding helps low-income families who would otherwise struggle to afford child care.

 “The increases in 2023 for each state range from $2 million in Vermont to $209 million in Texas.”

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The pandemic wiped out part of Massachusetts’ child care workforce.

Now Boston is trying to rebuild.

And the scale of this challenge is substantial.

“The childcare industry in Massachusetts lost about 10% of its workforce since the start of the pandemic,” WBUR radio reports. “In Boston, that’s translating into long wait lists and shorter hours of care. According to city officials, about 50 early education classrooms are sitting empty because child care centers can’t find enough people to operate at capacity.”

Boston Mayor Michelle Wu “was quick to point out that the estimate doesn’t include centers that have had to cut hours because they’re short staffed.”

To address this daunting gap, the city is using $7 million from the Biden Administration’s American Rescue Plan Act to launch the Growing the Workforce Fund.

The fund will provide scholarships and financial aid to 800 students who want to earn a Child Development Associate (CDA) or an associate’s or bachelor’s degree in early childhood education.

“Today’s investment is a welcome one for early educators like me,” Lisa Brooks, an early educator at Horizons for Homeless Children, says in a city press release. “Relieving the burden of debt associated with higher education will help educators continue to focus on the important work of building the foundation for our students’ future success.”

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poll photo

Photo: Huong Vu for Strategies for Children

The results are in!

A new statewide poll sponsored by the Common Start Coalition has found that “73 percent of the state’s voters” back “the Common Start proposal to create a universal childcare program in Massachusetts.” Only 18 percent of respondents oppose the idea.

“Support is up nearly 10 points from two years ago, when the corresponding margin on this question was 64%-23%,” according to a memo from Beacon Research, the organization that conducted the poll.

The poll was conducted last month and surveyed 817 Massachusetts voters.

Most of these voters acknowledge three facts that are driving “the push to create a universal childcare program:”

• too many families can’t afford the high cost of child care

• child care workers are significantly underpaid, and

• state government should play a role in addressing these challenges

The poll also found that 58 percent of respondents favor “increasing taxpayer funding for childcare programs in Massachusetts,” a jump up from two years ago when 48 percent of respondents supported this idea.

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Photo: Alyssa Haywoode for Strategies for Children

Great news! Early education and care got a financial boost earlier this month when Governor Charlie Baker signed a $3.76 billion economic development bill into law.

As our FY’23 budget webpage explains, this investment includes “an additional $150 million to continue the C3 Stabilization Grants through the end of the fiscal year in June 2023, and an additional $315 million in the newly created High-Quality Early Education and Care Affordability Fund.”

We are grateful to the Legislature for passing this bill and to the governor for signing it.

In a State House News story that ran in the Sentinel & Enterprise, Baker says Massachusetts can invest in child care and be fiscally prudent:

“Recognizing the importance of childcare investments, I am approving sections in this bill that redirect $315 million from the Commonwealth Taxpayer Relief Fund to the High-Quality Early Education & Care Affordability Fund. However, we can invest in childcare and make sensible tax changes at the same time. With the state in a historically strong fiscal position, the tax cuts that the Legislature has committed to prioritizing next session will be affordable without a special set-aside.”

A WBUR report focuses on the relief for some workers, noting:

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“On Tuesday, New Mexico became the first state in the nation to create a permanent fund for child care. More than 70 percent of New Mexicans agreed to amend the state constitution and spend about $150 million a year on early learning. The next morning, providers from across the country gathered on a Zoom call to celebrate.

“Many wiped away tears as an advocate relayed the news: The fund would make child care more affordable for hundreds of thousands of families, and workers would finally win the wage increases they’d long needed.

“ ‘I’m emotional right now,’ Ivydel Natachu said. She works with 3-year-olds at a preschool in Albuquerque, and she’d spent years advocating with the nonprofit organization Olé to create the fund. Before the coronavirus pandemic, the 52-year-old earned only $10 an hour. But the state’s leaders had funneled federal relief into temporary raises, and Natachu’s pay had risen to $15 an hour.

“ ‘And now I’m starting to save money,’ she told the group of about 50 providers on the Zoom call. ‘I’m saving money to buy a house. That’s my personal goal. With the constitutional amendment passing, I think my dream’s going to come true.’ ”

Only some of the providers who’d logged on that morning were from New Mexico, but nearly everyone cheered. Tuesday’s victory wasn’t just a win for New Mexico, many said. It was a road map.”

“As Natachu finished speaking, providers from Minnesota, Ohio and California said they felt energized. New Mexico had long been ranked one of the country’s worst states for child well-being, and activists there had faced a decade of opposition. If they could turn it around, couldn’t anyone?”

“In N.M. child-care funding win, providers nationwide see road map,” by Casey Parks, The Washington Post, November 10, 2022

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“Our child care system is broken.”

“Initially, to address this crisis as an employer, I considered hosting onsite child care; however, I quickly realized this was a mere stop-gap to a much larger, systemic challenge. Systemic challenges require systemic solutions, which is why the only solution to Vermont’s child care crisis is increasing public investment in our 0-5 child care system. Not just temporarily, but for the long-term, with a sustainable funding source.”

“Column: Lack of child care hinders small businesses,” by Sam Hooper, Valley News, October 25, 2022

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“Over the past couple years, Vermont has seen an influx of thousands of new people and families moving to the state. In Chittenden County alone, from 2020 to 2021, 605 new businesses launched or opened new locations, a massive spike over the previous year. However, it’s increasingly challenging to find workers here in Vermont or those willing and able to relocate and the top reason we hear is lack of high-quality, affordable child care. It’s estimated that there are over 5,000 parents living in Vermont right now who want to work but can’t because they don’t have the child care they need.”

“Hamel, Grace & Wall: The weight of the child care crisis is crushing Vermont’s workforce,” by Carina Hamel, Aba Grace & Tim Wall, Vermont Business Magazine, October 27. 2022 

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What are the best ways for states to help young children?

The Prenatal-to-3 State Policy Roadmap has answers that were shared earlier this month at a virtual summit that drew “thousands of national and state leaders, scholars, and practitioners.” Videos of that event are posted here.

Released by Vanderbilt University’s Prenatal-to-3 Policy Impact Center, the roadmap is an annual guide that draws on the science of child development. Specifically, the roadmap looks at:

• young children’s wellbeing

• proven, evidence-based policy strategies

• states’ implementation of 11 effective policy and strategy solutions, and

• how policy changes impact young children and their families, and how these changes reduce racial and ethnic disparities

Those 11 policy and strategy solutions are:

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